Breaking Zeek Rewards News: SEC Admissions Of Weakness In Zeek Case “Inaccurate”; Tactics and Motivations of Zeek Victim Group Questioned

The is a follow up to my post on September 8th, 2012: Breaking Zeek Rewards News: The SEC acknowledged that there are a couple of problems with the case against Rex Venture group? Respected Anti-Ponzi Advocate, Forbes Contributor and Attorney wrote the following article!

Source: PonziTracker.comJordan Maglish

Jordan_Maglich

[quote]On August 17, 2012, the Securities and Exchange Commission (“SEC”) filed an emergency enforcement action to shut down ZeekRewards (“Zeek”), calling it a massive $600 million Ponzi scheme.  According to the SEC, while Zeek promised participants a daily payout of “net profits,” these profits were nearly exclusively derived from the funds of new investors – the classic hallmark of a Ponzi scheme.  At the SEC’s request, the court then approved the appointment of Ken Bell as the receiver, who would be tasked with gathering and safekeeping assets for eventual distribution to victims.

Emotions have run high since Zeek’s shutdown, as many lament their losses amid what was such a promising operation that seemingly defied the age-old “if it’s too good to be true..” mantra.  However, a select (and growing) group has taken their dissatisfaction to another level, soliciting the assistance of other victims to fight the “illegal” and “unlawful” actions taken by the SEC.  While their rousing rhetoric is critical of the SEC, recent representations made regarding the SEC’s handling of the case may have crossed the line from opinion to misrepresentation.  Indeed, an SEC official briefed on the claims by Ponzitracker explicitly refuted such allegations.

Shortly after the SEC stepped in, several groups, including “Zeek Rewards Affiliates United Against The SEC” and “Zteambiz” were formed, and appear to operate in tandem.  Zteambiz describes itself on its website, www.zteambiz.com, as “a professional organization designed to secure competent legal counsel to prevent further damage caused by the actions of the SEC actions against Rex Venture Group aka, Zeek Rewards.”  Dave Kettner and Robert Craddock are several of the individuals behind these sites, as evidenced by multiple postings attributed to them.  Using the site, both have solicited Zeek victims to “donate” towards a fund being set up to retain a top law firm to fight the SEC’s allegations and reopen Zeek.   A September 5, 2012 update from Kettner implored victims to donate if possible to be added to the “protected group.”  The response seems to have been positive, and on August 30, 2012, a notice was posted indicating that SNR Denton, a well-known international law firm, had been retained:

“Important notice:

SNR Denton US LLP represents Fun Club USA and all inquiries about this representation should be directed to Fun Club USA at xxxxxxxxx. SNR Denton’s legal representation is limited to Fun Club USA; SNR Denton does not represent and does not have an attorney-client relationship with affiliates of Zeek, Zeek Rewards, Rex Venture Group LLC or with any individual or party that chooses to provide funds to Fun Club USA.”

The notice is seemingly at odds with representations contained in the “People Helping in the Legal costs” tab on Zteambiz, which indicated that those who had donated – numbering over 6,000 as of September 1, 2012 when it was last updated – were “now being represented by counsel, to protect their moneys (sic) earned by Zeek Rewards and monies currently held by Zeek Rewards.”  The notice, which has since been removed, was clear that “SNR Denton’s legal representation is limited to Fun Club USA.”  A quick search on Florida’s Division of Corporations website yielded a “Fun Club USA Inc.” registered on August 28, 2012.  The President of Fun Club, as shown on its Articles of Incorporation?  Robert Craddock.

Zteambiz has been vocal in its criticism of the SEC, alleging that “all the pages that were submitted…by the SEC that froze the assets of Rex Venture Group, LLC has all been one sided and what we believe to be a misrepresentation of the truth and facts of what Zeek Rewards was as a viable and legal business.”  Additionally, Zteambiz claimed that “the SEC mislead (sic) the judge” in securing an emergency asset freeze.

This past Saturday, an email from “Dave” updated recipients based on information recently learned from Craddock.  One of the first revelations was that SNR Denton had decided to no longer represent Zeek, reportedly due to the “tons of calls” received by the firm from victims that interfered with Denton’s “entire law firm operations.”  A new law firm was said to be in the works, whose identity would remain a secret until court filings were unveiled “early next week.”  What piqued the interest of many, however, were the representations made immediately after.  The paragraph is reproduced below:

Here is the great news…The law firm has already talked to the SEC and the NC DOJ. On Thursday, Robert got a call from one of our attorneys regarding the conversation that he had with the SEC. Here
is what he said:

The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:
1.    We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.
2.    We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.
Based on their (the SEC) new knowledge of the Zeek Rewards business model, they are having a hard time moving forward in making their case. And they are now looking for a path or way to back out of this.

These apparent admissions by the SEC quickly spread over the internet, with dozens of websites frequented by the multi-level marketing community accepting the statements as fact and quickly proclaiming that the SEC was close to capitulating.

The claims seem skeptical for several reasons.  First, it is highly unlikely that these kind of admissions would be made to a potentially adversarial party and/or attorney.  Second,  both Rex Venture Group and Paul Burks have each already entered into a consent judgment agreeing to waive any right of appeal, and, in Burk’s case, paying a $4 million civil penalty.  Further, a link to an information page established by the SEC now features prominently on the SEC’s homepage, www.sec.gov.

These suspicions were confirmed today after Ponzitracker spoke with a top SEC official familiar with the case.  After reviewing the allegations, the official, who declined to be named, labeled the statements as “inaccurate” and “false”.  Additionally, it would be highly impractical for the SEC to make such moves and statements without allowing the receiver to complete his initial investigation and make appropriate recommendations.

Craddock is no stranger to controversy in his affiliation with Zeek and Rex Venture Group.  Several months before Zeek was shut down by the SEC, a blogger who goes by the name of KSChang posted an article presenting a detailed look into the legitimacy of Zeek.  The article contained a wealth of information about Zeek, its past, and, perhaps most prescient, whether “ZeekRewards [is] a Ponzi Scheme?”. However, shortly after the article was published, the site’s administrator received a letter from a person purporting to act on behalf of Rex Venture Group alleging that:

It has come to our attention that your website Hubpages.com is broadcasting and delivering content that is both copyrighted and, Trademark Protected. In addition, the content constitutes a tortuous interference with us and our 1.2 million independent advertising reps around the world.

The following page was brought to our attention yesterday (July 21, 2012) and we would request this page to be removed before greater damage is done to our business model and reputation. 

The author of the letter?  Robert Craddock, on behalf of Rex Venture Group LLC.  The letter succeeded temporarily, as the article was removed by the site administrator while the claim was investigated.  Apparently not satisfied with the allegations, the article was allowed back online after six days.  KSChang provided a summary of his efforts while the site was down:

When I requested details from this person, he said he couldn’t POSSIBLY create a list of what’s untruthful or libelous and why about the hub by Monday. (I contacted him on THURSDAY). When I pressed for more details, he replied with veiled legal threats about “pursue all legal venues”.

Less than three weeks later, the SEC confirmed the article’s skepticism and shut down Zeek.

 

The 9/8/2012 email is here.

The Fun Club USA Articles of Incorporation are here.

The “takedown” letter sent by Craddock is here.

Recent Zeek Coverage:

ZeekRewards Update: Banks Report Account Balances, Receiver Takes Fight For Cashier’s Checks To Court

ZeekRewards Victims: What Happens Next

SEC Shuts Down Zeek Rewards, Alleges It Was $600 Million “Massive Ponzi Scheme” On Verge Of Collapse[/quote]

Jordan Maglich Bio

Jordan Maglich’s practice includes complex commercial litigation and regulatory matters, with a focus on securities and financial services litigation. He represents securities broker/dealers, investment advisors, and their associated persons in federal and state court and in arbitration. Additionally, Jordan is currently part of the team representing the court-appointed receiver nominated by the Securities and Exchange Commission in Arthur Nadel’s $400 million Ponzi scheme.

He graduated cum laude from the University of Florida in 2006 as a graduate of the Honors Program and holds degrees in Business Administration and Political Science. He obtained his law degree cum laude from the University of Miami School of Law, where he was also a member of the nationally-ranked Charles C. Papy, Jr. Moot Court Board. Jordan also holds an MBA from the University of Miami Graduate School of Business with a concentration in Finance.

Jordan also is the author of Ponzitracker, an internet blog that tracks the proliferation of ponzi schemes across The United States. The blog is updated daily, and was recently recognized by Lexis Nexis as one of the Top 25 Business Law blogs on the internet. It can be accessed at www.ponzitracker.com. He is also a Forbes contributor, where he writes about white collar crimes.

Spread The News!

62 thoughts on “Breaking Zeek Rewards News: SEC Admissions Of Weakness In Zeek Case “Inaccurate”; Tactics and Motivations of Zeek Victim Group Questioned”

  1. as far as the bids being purchased I do not understand. One has to purchase bids to recieve any money from zeek rewards. My money was frozen in the e wallet and the only way I could have earned it was from the bids. You are confusing me Troy

  2. Dh
    I’m simply asking for creditable evidence to your incredible statements reguarding the SEC’s over zealousness reguarding the shutdown of ANY above the board business! I google’d it with no results, corruption sure, but not one news article reguarding SEC bk’d xyz co. Without name calling I’m simply asking “what the what” are you even talking about. If your going to make a charge like that please back it up or start your rant with IMO!

  3. Is this the proof that the SEC has shut down a well run perfectly legal company?? What is your point to this post?

  4. troy
    u just want to increase ur rating thats y ur saying its not goin to open but it will and i will come to ur face and say \
    ooooooooooooooooooooooooooooooooooooooooooooooo
    it opened

  5. @Patrik,

    I know that US citizens are the ones that the SEC are mandated to protect. But, unless I am wrong, everyone should get refunds who are owed refunds. Maybe we can get one of the more educated anti-ponzi advocates to respond to this for you.

  6. Yes it does help. It helps people who already lost money in Zeek to to learn the truth and not get scammed by people like Craddock. Patience and waiting will get you anywhere.

    The ASD cheerleaders are still being patient waiting for ASD to return. You don’t need an expert to see that Zeek was a ponzi. Any idiot could see that from a mile away. Anyone with have a brain who analyzed the business model and comp plan by following the money and tell you it was a ponzi.

    Making up some B.S. about the SEC not finding victims is just another ploy to separate dummies from their money. The SEC is who prevented there being a large number of victims. The SEC stepped in and froze funds so people could stand a chance of getting their money back.

    Blaming the SEC for this is like biting the hand that feeds you. The ponzi was on the verge of collapse. When ponzi’s collapse people get nothing back because the profit is absorbed by the people at the top. This way at least the SEC will divvy up the funds evenly. Any top earning affiliate with the funds could start a class action lawsuit and set up a donation site for suckers who are dumb enough to donate.

    They don’t have a leg to stand on. They are not going to prove that magically Zeek wasn’t a ponzi and the farce of an auction was somehow making millions a day. The only case that they could possibly bring against the SEC is fighting clawbacks from top earners. Which is probably what they will do with the money and just pocket the rest or pocket all of it.

    Fighting clawbacks if successful will just result in the average affiliate getting less of his/her money back. Giving Craddock or anybody money in hopes of getting Zeek back is shooting yourself in the foot and dumb. All you have is that persons word that they are doing what they say they are with the money and when you examine the facts you can see that whatever case they say they have is an impossibility. You can’t prove that a duck is not a duck.

  7. Pingback: Mlm Company Review | MLM Help Desk
  8. ONCE AGAIN MR CHANG…

    ZEEK REWARDS WAS NOT A PONZI….

    I WONDER WHICH MLM YOU ARE INVOLVED….

    YOU PASSION TO KILL ZEEKS IS IMMEASURABLE….

  9. Well DH,

    I’m certainly not disputing that the SEC or any other agency has made mistakes in the past and will in the future.

    Everybody is human.

    Police arrest innocent individuals.

    DAs charge innocent individuals

    Juries convict innocent individuals.

    Seriously, what percentage of people who are innocent or truly believe they are innocent would just hand over everything without a fight?

    Your opinion of Chang’s site is irrelevant. The methods Craddock used in attempting to have it permanently pulled were dishonest.

    Nobody really knows what Craddock is up to.

    However, he is in bed with serial ponzi/HYIP players like Dave Kettner and Todd Disner.

    As GlimDropper noted below, Craddock and the people he is working with have already issued numerous misleading, inaccurate, and outright false statements.

    Why would it be foolish to do the exact same thing that Disner and crew did after ASD went down?

    Craddock and his group control all the info with zero accountability to anyone at this point.

    Nobody knows how much money they’ve been given, how much they’ve spent, or what they’ve spent it on(if anything).

    In his latest update, he’s essentially trying to tell people not to think for themselves and believe only what he says.

    After everything that has gone down, people need to be questioning things more, not less.

    I don’t know about you DH, but I’m not in the habit of accepting everything I read on the web as true.

    As someone who has already been documented as being deceptive and dishonest, why should anyone believe anything Craddock has to say?

    Craddock and crew are just as guilty of stirring people up as any critics are.

    The big difference is that he and those he is associated with have a financial motive to do so.

    I don’t know how much experience you have in seeing the fallout and insanity that collapsed or shut down ponzis create, but I’ve personally followed quite a few while those firmly entrenched in the anti-scam community have often followed dozens if not hundreds.

    Nothing you say or do is going to stop this process from playing itself out.

    Personally, I’m in no rush to be critical or negative. But when I see something I view as BS, I’m going to call it.

    Not doing so would be allowing some vulnerable people to be taken advantage of……again.

    People can then read what I and other “Internet Clowns”, as Mr. Craddock has labeled us, have to say and then hopefully make a more balanced decision on what to believe.

  10. YOU HAVE MISSED THE POINT…

    WE DONT WANT OUR MONEY BACK WE WANT OUR BUSINESS BACK…

    THIS IS A CRIME AGAINST HUMANITY…

    IF THE SEC DONT RECTIFY THE SITUATION THEN THE SEC ARE INTENTIONALLY CAUSING GREAT SUFFERING TO TWO MILLION PEOPLE….

    I KNOW PEOPLE THAT DEPENDED ON THIS BUSINESS FOR A BRIGHTER FUTURE….I WAS ONE OF THEM!!

  11. @Dan,

    Eventually you should get a refund if you are owed one. And if you have money in an eWallet and have never bought bids, you will eventually get it unfrozen.

  12. No hate or ignorance….just hoping people don’t get ripped off and misled again by the unscrupulous.
    And not a waste of time…its dodging legit points when found out.

  13. Do Government Agencies Make Mistakes? In fact they do and they discuss in great detail mistakes they make and how to prevent them going forward. If you doubt this, check out this report. Hereinbelow is the first five pages of a lengthy report.

    http://financialservices.house.gov/uploadedfiles/112-66.pdf

    First Five Pages of report found here:

    POTENTIAL CONFLICTS OF INTEREST
    AT THE SEC: THE BECKER CASE
    JOINT HEARING
    BEFORE THE
    SUBCOMMITTEE ON OVERSIGHT
    AND INVESTIGATIONS
    OF THE
    COMMITTEE ON FINANCIAL SERVICES
    AND THE
    SUBCOMMITTEE ON TARP, FINANCIAL
    SERVICES AND BAILOUTS OF PUBLIC
    AND PRIVATE PROGRAMS
    OF THE
    COMMITTEE ON OVERSIGHT AND
    GOVERNMENT REFORM
    U.S. HOUSE OF REPRESENTATIVES
    ONE HUNDRED TWELFTH CONGRESS
    FIRST SESSION
    SEPTEMBER 22, 2011
    Printed for the use of the Committee on Financial Services and the Committee
    on Oversight and Government Reform
    Serial No. 112–66
    Committee on Financial Services
    Serial No. 112–62
    Committee on Oversight and Government Reform

    Today, we are having this hearing in order to look into matters
    at the SEC on how ethics are handled within the organization. The
    Inspector General has just released a report, and he will go over
    VerDate Nov 24 2008 11:21 Mar 16, 2012 Jkt 072607 PO 00000 Frm 00009 Fmt 6633 Sfmt 6633 K:\DOCS\72607.TXT TERRIE
    2
    that. I think one of the things that is alarming about this hearing
    today is that the SEC really holds the entities that they regulate
    to very high standards, particularly when it comes to conflicts of
    interest. And I think it is extremely important that the organization
    that holds others to these standards must have those same
    standards within their organization.
    As we look at the Inspector General’s report, he thinks there
    were some holes in that system, and one of the things we are here
    for today is to discuss that.
    I think it is alarming to find out that someone who may have
    had a financial interest in the Madoff settlement was actually handling
    many of the very high-level discussions that were going on
    at the SEC. Many of us believe that was probably not appropriate
    behavior.
    As we move forward with this, I think one of the things we have
    to understand is that the SEC is entrusted to protect shareholders
    and investors, and that some of the behavior that was going on
    within the organization would probably be behavior that would not
    be tolerated by some of the companies and entities and individuals
    that fall under the SEC’s jurisdiction.
    Ultimately, I think the findings of the Inspector General, as we
    will hear, is that there were some lapses and that there are some
    changes that need to be made within the organization, and that the
    leadership on this issue really needs to come from the top. We look
    forward to hearing from Chairman Schapiro on some of her reflections
    on the report and things that she thinks need to be happening
    within her organization moving forward, to make sure these
    kinds of issues do not happen in the future.
    I think there is a high expectation that this issue will be dealt
    with and that hopefully things like this won’t happen again, because
    this was a very high-profile case to begin with and had a lot
    of attention through the Madoff issue; and then to kind of follow
    up and find out that within the organization, we were having
    lapses in other internal control areas was somewhat disturbing for
    a lot of us.
    So I look forward to this hearing today.
    Now, it is my pleasure to yield 2 minutes to the the ranking
    member of the Subcommittee on Oversight and Investigations, Mr.
    Capuano.
    Mr. CAPUANO. Thank you, Mr. Chairman. I would just like to
    welcome the people who are going to give testimony today, the
    members of the panel. Thank you for being here and thank you for
    your patience with our schedule and the demands of our schedule,
    which I know you both know.
    Obviously, I want to know more about this particular incident.
    But I read the report and I actually think it is pretty clear. I will
    find it surprising if you shed additional light. Maybe. For me, everybody
    make mistakes. Even I have made an occasional mistake
    or have interpreted something wrong or applied something wrong.
    That is one way to judge people. And if it is all about perfection,
    then let anyone who wants to, stand up and be perfect. That is one
    part it of the judgment, though; how bad was it; did innocent people
    get hurt, and if they did, what was it? But the other part of
    the judgment is to find out what has happened since the problem
    VerDate Nov 24 2008 11:21 Mar 16, 2012 Jkt 072607 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 K:\DOCS\72607.TXT TERRIE
    3
    came to light; what has been the reaction; has the reaction been
    proper; has it been appropriately timed; have innocent people been
    protected? Have any wrong decisions been corrected? Again, I think
    I know some of these answers, nonetheless, I would like to hear
    them today, because to me, that is the real judgment. Making a
    mistake is one thing, but how you react to a mistake, to me, is usually
    more important.
    I look forward to hearing the testimony.
    Thank you, Mr. Chairman.
    Chairman NEUGEBAUER. I thank the gentleman.
    Also, I am pleased to have the chairman of the Oversight and
    Government Reform Committee joining us on the panel as well,
    Mr. Issa. We appreciate your being here.
    I now yield 3 minutes to the chairman of the Subcommittee on
    TARP, Financial Services and Bailouts of Public and Private Programs,
    Mr. McHenry, whom I look forward to working with on this
    hearing. Thanks for your cooperation.
    Chairman MCHENRY. Thank you. Thank you for this joint hearing
    today. I want to thank our panel for being here and complying
    with our schedule. I certainly appreciate that. I want to thank you
    both for your service in government.
    In May 2010, then-Ranking Member Darrell Issa released a report
    that explained how the SEC’s unworkable structure, lawyerdriven
    culture, and technological backwardness helped to cause one
    of its high-profile failures such as the Madoff scandal. This joint
    committee hearing continues the ongoing efforts of congressional
    oversight.
    The matter at hand today originates with Bernie Madoff’s elaborate
    Ponzi scheme. Mr. Madoff admitted guilt nearly a decade after
    questions had been raised to regulators about the Madoff firm
    which operated a Ponzi scheme with over $60 billion of fraud and
    thousands of clients. It was clear the SEC’s reputation had taken
    a blow.
    In 2009, Mary Schapiro was named Chairman of the SEC and
    stated her commitment to rebuild the SEC’s reputation. Soon after
    her arrival, she welcomed back David Becker to the SEC as General
    Counsel. Upon arriving at the SEC in early 2009, Mr. Becker
    informed Chairman Schapiro about his status as a net winner from
    a Madoff fraud case. Despite learning this, Chairman Schapiro
    never asked Mr. Becker to recuse himself from Madoff-related matters
    or to disclose his financial interests. This was unfortunate and
    this was a mistake. That is now clear.
    Since then, a series of missteps by high-ranking officials of the
    SEC, ranging from Mr. Becker’s communication with the SEC’s
    Counsel to his personal participation in matters in which he had
    a personal financial interest, have put into question the reputation
    of the management and decision-making of the SEC. That is what
    this hearing is really about. We also note, for example, that the
    SEC’s five Commissioners, advised by Mr. Becker, voted on an
    issue that affected Mr. Becker’s personal financial interest, and
    only Chairman Schapiro knew about that, and perhaps not to the
    full extent that she now does. Just yesterday, the SEC’s Inspector
    General referred the Becker situation case to the Department of
    Justice.
    VerDate Nov 24 2008 11:21 Mar 16, 2012 Jkt 072607 PO 00000 Frm 00011 Fmt 6633 Sfmt 6633 K:\DOCS\72607.TXT TERRIE

    Chairman Schapiro, you have had a distinguished career. You
    have had a long service in government service, and we certainly
    appreciate that. We appreciate your contribution to Federal service.
    You have a wonderful reputation.
    What is clear about this situation is that you did make a mistake.
    You admitted such, and you said had you known then what
    you know now, you would have acted differently. What we want to
    know in terms of Federal congressional oversight is how we prevent
    this from happening again; what policies are you going to put
    in place, what actions you have taken, and what actions you will
    take going forward to make sure this never happens again?
    Thank you for being here. Thank you for your testimony. And
    thank you for your service.
    Chairman NEUGEBAUER. I thank

  14. Just to be sure, which side are YOU REALLY on?
    If you are in some way trying to point out to Maria1965 that governments don´t do evil things and that the “little man” is mostly treated right by them. You need to open your eyes and travel the world. Then you will see why she can say and feel that evil will win again.

    If we now have to choose sides, I think most of us would choose the “truth side”. I mean we kind of understand how feel about Craddock, but even so, don´t you feel it is best with a proper trial so that we all can see the papers and see the TRUTH?

    You say, based on “past cases”, it can take 2-4 years getting half of our money back.
    What is an extra year to you?

    I mean really! why are you feeling so strong about Craddocks case? is it because you want the best for all of us former affiliates, because your such a loving guy? Or is it because you just dislike Craddock? Or any other reason?

  15. This should be legal regardless! I don’t see anyone complaining or threatening to shut down the biggest Ponzi ever –Social Security!! Everyone ‘voluntarily’ enters these Zeek type programs KNOWINGLY they might not get their money back!! The real problem is WAY too many lawyers and REGULATIONS in this country!! I don’t blame people for taking their business outside the borders!!
    There were way more people, including myself, that were helped tremendously both income and HOPE which this pathetic government will NEVER accomplish other than SEC attorneys getting paid off by Jealous ‘Big Shots’!!
    Show me the List of people that the SEC ‘saved’?? Of course NO ONE!! I love how our government BRAIN washes people in thinking they are ‘working for the people’
    Yeah working on supressing as many people as possible to promote Socialism!!!

  16. Do you think they just pleaded to it or they were pressure into it! Wakeup my friend this is the Government we are talking about lol!

  17. @ Troy,

    Is there a possibility that you can confirm who has been spreading this rumor around one for all? If Craddock himself then come on live and say it Bonehead … There is absolutely no official confirmation from SEC or SEC attorney period.

  18. troy
    every thing is going wonder full then why u dont think that zeek will open zeek is saaying they r goin o and ur saying no?

  19. Facts reguarding SEC shutting down business for no reason……………..FAIL
    Fred:2
    DH: 0

    Naming experts to backup “left field” claim ……….FAIL
    I did google baseless:
    base·less  (bsls)
    adj.
    Having no basis or foundation in fact; unfounded.

    I did not make your baseless statement, you did. If you are attempting to present your post as anything other your OPINION, back it up.
    P.S. you do not have to be rude to make a point.

  20. An incomplete list of “less than factual” things the Kettner/Craddock/Disner crew have said while soliciting donations:

    1: The SEC swooped in at the last second when ZR was closing temporarily to address the North Carolina’s CID.

    In fact Paul had been cooperating with the SEC in very significant ways and for some time prior to the shut down. The SEC may not have had all the facts at that moment but they had enough to convince Paul to consent to their complaint.

    2: Paul’s criminal attorney, Noell Tin is less than qualified, doesn’t understand the buisness and “negotiated (Paul) right out of buisness.”

    Noell Tin has Martindale Hubbell’s highest peer review rating as well as many other professional awards and distinctions. He also represented Charis Johnson after her 12Daily Pro ponzi was shut down. Mr. Tin knows the buisness.

    3: The job of the court appointed receiver is to drag things out as long as possible and use up as much of the victim’s money as they can. Robert claims to have never seen a case where a receiver ever returned any money.

    The process of unwinding a scheme like this is complicated and time consuming. They need to verify how much money each participant put in and how much they took out. I wont lie, this will take a long time. But if you put more money into Zeek than you took out you will get at least a partial refund,..eventually.

    If Robert Craddock has never seen a receiver return money he’s never looked but I suspect he knew he was lying when he spoke those words. Anyone who wants an example of how these things work can read the following:

    http://www.wfperkinsforcep.com/

    4: Long after being forced to admit that the law firm being hired only represents Fun Club and not the donors their website still falsely claims otherwise:

    http://zteambiz.com/wordpress/?page_id=129

    5: The irresponsible “hopemongering” that is Zeek2.0.

    An e-mail from Dave Kettner is the first place I saw the word and zTeamBiz’s FaceBook page refuses to stifle speculation that everyone’s downlines and VIP point balances from the original ZR will be transferred to the new one.

    Folks, this is impossible and if Robert, Dave and Todd were honest they’d tell you that themselves.

    6: That their law suit will somehow “open the books” on Zeek Rewards giving it it’s day in court.

    There will be criminal trials and ZR WILL have it’s day in court but it will not be due to this case. Reason, before they are in a position to argue the facts about the company they need to prove they have legal standing to make such an argument.

    https://sites.google.com/site/asdupdatesfiles/asd-justice–disner-schweitzer

    Those are the court documents from Todd Disner’s attempt to sue the government over Ad Surf Daily being closed (final memorandum of opinion is document 59). You’ll see why it will be impossible for Robbert, Dave and Todd to argue the facts when they can’t show they have legal standing.

  21. By the way Chris,

    How foolish would Craddock have to be to attempt ripping people off at this point?

    There are far to many eyes on him and his group right now and he has made entirely to big a footprint to be ignored if he is up to something crooked.

    My opinion … either he is actually trying to help and barely three weeks into this thing there are still communications issues, which would be expected … or … he is trying to rip more people off and he is playing a very high risk game on several fronts …

    He does not strike me as stupid so I will give him the opportunity to prove himself and it will take more than some minor communications problems in a rushed set up to make me say some of the foul things that have been said here about him … the same would apply to you or anyone else.

  22. Chris, I do apologize, you are correct, I can not think of any HYIPS/Ponzi that SEC has had to back down on.

    Other businesses have been hurt, seriously and Bk’d by overzealous SEC actions and I made a blanket statement where it was inappropriate.

    I know nothing but what I read above about Craddocks involvement with Chang. Having spent some time on Chang’s sight I am little impressed.

    Troy does a good job here and all I have tried to say is that while everyone seems in a major rush to be as critical and negative as they can, no one has any accurate information.

    Be patient, quit stirring up already raw emotions and wait for the facts before people like the goofball Sanford (below) simply come in to stir people up with what he thinks he knows … which is nothing.

    Thanks for the correction

    DH

  23. Hi Troy, I really appreciate your updates on Zeekler. You’ve done a great job! Zeekler will never be re-opened. That’s what SEC wants, no matter what means they use, right or wrong, legit or illeagle, reasonable or predatory. That’s what they want.

  24. You want to see the letter Craddock sent to Hubpages claiming to represent RVG? Here.

    PDF download link

    https://www.box.com/shared/static/88940babf06a4f9f1312.pdf

  25. @K.Chang,

    🙂 Yep, one of the oldest tricks in the book, when someone wants to take the spotlight off of the real issues. And I would not ever call us friends! I was willing to give him the benefit of the doubt based on the references. But, with what I just went through, I am not about to give someone months to get their act together.

  26. I see Craddock is now using the “you’re just posting this to get your ad impressions up” against you… That’s rather sad. I’ve had that charged against me from every single potential scam I highlighted, esp. TVI Express pyramid scheme.

    Clearly, he no longer considers you a friend.

  27. They found enough to make Burks and his lawyer to plea “no contest”, which is essentially same as guilty.

    You know, you sound just like the ASD supporters after ASD got shut down…

    Except ASD head Andy Bowdoin chose to fight, and Burks already threw in the towel and quit.

    So what are you mad about?

  28. if past cases like ASD Ponzi can serve as a guide…

    In 2-4 years, you may get back half.

    Plan for the worst, hope for the best.

  29. Another “government is evil” rumor spreader…

    Are you aware that Irving Picard, the trustee (equivalent to receiver) for Bernie Madoff, managed to claw back enough money to pay 45% of all most lost to the victims, which is like TENS OF BILLIONS of dollars in restitution, when Bernie Madoff spent the piggy bank down to a mere 200 million? He could have paid SOONER if he wasn’t delayed by a bunch of lawsuits.

    Thus, ANY sort of lawsuit against SEC, Zeek, or the receiver is only going to DELAY THE PROCESS OF RESTITUTION.

    Which side are YOU REALLY on?

  30. If someone can point me to a lawyer at Denton stating that SEC guy admitted weak case, on a blog, I may allow *that* comment through, as that’s far less of a hearsay.

    Or even Craddock himself said “My lawyer said SEC has a weak case”.

    But a guy hearing from Craddock who heard from Denton lawyer who heard from SEC? Come on.

    But I see Craddock seem to decided to paint you as “them” instead of “us” instead. So this is pretty moot. 🙂

  31. Pingback: Zeek Rewards !! How to get to $3K a month, starting as a free member ! - Page 39
  32. LMAO.

    I told you that Craddock was going to start pushing you into the “enemy” corner.

    I do, however, have to agree completely with the last line of Cynbad’s post.

    “And last please don’t let people play with your emotions for their financial gain”

  33. @Cynbad,

    ROFLOL… This is not about me, this is about truth and justice for the affiliates.

    Instead of comments, this deserves a real post. 🙂

  34. K.Chang,

    I agree that each Blog has the right to control the comments as they see fit, due to the fact each blog is run by private enterprise.

    However, where I get my dander up is when folks who complain that you or other will not allow their comments to go live, then turn around and block you or others from commenting.

  35. I think the wisest thing is to do as DH says, let the people directly involved do their job and see where it all comes out. I for one am not going to go off the deep end one way or the other until the facts come out, even though that may well take a while. I believe Craddock and company are trying to do the right thing and as DH mentioned, it would be extremely foolish on their part to try and take advantage of anyone at this point, there are plenty of eyes and ears on them. So, don’t be so quick to judge, get the facts and see what happens. In the meantime, let’s let Troy, Craddock and everyone else do their job.

  36. So DH, in your “25 years of dealing with securities” you can’t recall a single specific example of the SEC “destroying a business for no particular reason other than they had a suspicion” .

    Or more to the point, an entire business accused of being a ponzi scheme and pyramid.

    Most of the lost cases I could find deal with people misleading investors and the SEC not being able to prove without a doubt that the accused knew they were misleading investors.

    Most of what I could find dealt with all the garbage from the banking and investment industries.

    I couldn’t find any accused HYIP/ponzi companies that were found innocent. Nor could I find one where the “wrongly” accused just gave up without a fight.

    I don’t doubt that it’s possible they exist, but in this case I would have to rely on someone that claims to have seen some examples to remember at least one.

  37. If you read what was said in between the lines they never said SEC admitted to anything but its obvious that from the talk with them basically they haven’t found anything towards the zeek case so yes he can say some of the things he said about the SEC. People always reading to deep into things thats all. In so many words if the haven’t found anything and they have been in there close to a month then thats something to think about!

  38. I couldn’t agree more. And all of this is for this website owner to make a blessed or filthy buck. Read this:

    LATEST NEWS
    Update as of September 11, 2012

    Greetings good people, I use this term as it is one you are used to seeing and it also seems to be firing up the Internet Clowns as I would like to describe them. As you are aware of we have secured a law firm and are moving forward with, answering the questions all of us want to know. We have some great things happening but if I can I would like to discuss how you all need to be aware of potential threats on the web.

    As we all know if you read something on the web through a blog or posting people tend to accept it as being true and I would like to point out that in most cases it is not. For the ones that have had the privilege to meet with, you know that Zeek Rewards was in the process of retaining me, to challenge some of the negative posting and content being placed on the web. As we have moved into this new challenge and like most people out there I also would like to see Zeek Rewards come back but know the challenges that await us are enormous but not impossible.

    If I may I would like to explain the logic of keeping everyone confused and guessing “what comes next”, for example let’s look at the revenue model of Troy Dooly’s MLM Help Desk. As we all know Troy site did not get the traffic it now enjoys before Zeek Rewards, but in the last 4 weeks the traffic has shot up as shown by this graph from Alexa

    If you look at the graph the site was kind of flat but if you take a look at the spike in traffic you can see that due to the problems at Zeek Rewards, Troy Dooly was capitalizing on your pain and confusion. As we formed a group to assist and provide legal representation the excitement was enormous and Troy wanted to capitalize on this, again as you can see by the spike in traffic. Now you may ask yourself how this would translate into dollars for Troy if he continued to keep you on this roller coaster of emotion, well simply, if you have advertisement on your page you most likely get paid by one of three ways if not all three. First you have impression revenue that simply means that the more people that come to your site the more you make, the next one is click through revenue and again with more traffic the more chances, and you have that someone will click on a banner advertisement. The last is flat rate advertisement and that happens when you can’t show large amounts of traffic and by Troy site it appears he has a flavor of both.

    Banner Ad Pricing

    Zone
    # Available
    Pricing

    125×125 Sidebar
    125×125 size
    1 slot(s)
    available now
    75.00 USD
    for 90 days

    250×250 Sidebar Add
    250×250 size
    17 slot(s)
    available now
    150.00 USD
    for 90 days

    468×60 Individual post
    468×60 size
    1 slot(s)
    available now
    100.00 USD
    for 30 days

    Inline Ad Pricing

    Type
    # Available
    Pricing

    Inline Video Ad
    10 slot(s)
    75.00 USD
    for 30 days

    Intext Link
    3 per post
    0.03 USD
    for 1,000 clicks

    I would say to you that Troy wanted to get updates starting on the 5th of September and, have responded to Troy that we needed to let the information he received will need to come from court filings. Now this is not going to drive traffic to his site so he needs to create a sense of panic, and he has done that.

    I’m posting this now to help you understand that Troy needs to keep the prior Zeek Affiliates in a panic and let you think that the latest news will come from Troy but I’m here to tell you that you will only get updates from me in your secure backend area located at Zteambiz.net

    If you have not gotten your login please go to http://www.zteambiz.net/register.cfm and signup, its free and you do not need to donate anything to be part of this site.

    And last please don’t let people play with your emotions for their financial gain

  39. Way to go Troy!!

    Thank u for doing what is right for your readers and telling your story from a proper angle instead of a misleading one. Today I was proud to see u speak out with the red, white and blue in the background.

    Sometimes to be an american hero u have to take a bullet from the bad guys. You try to be fair to both sides to a fault, but it appears you may be starting to understand the characters you are dealing with on the one side. Honest, open and upstanding? I don’t think so!

    Way to keep it real by re-posting a reputable source.

  40. Lol what in the world are you referring to maria? What business was distroyed? How about some examples.
    Troys article/vid covers who said what, the background of the author, where the article can be found….. If you and DH would have started your rant with IMO you could have saved some time to readers who are looking for facts not rumors.

  41. Troy,

    I have a comment regarding “freedom of speech”.

    Anybody can say anything, but blogs and blog comments are PRIVATE enterprises and freedom of speech do not apply. Freedom of speech is protection from GOVERNMENT censoring you… provided you keep it within the rules that doesn’t constitute libel and slander, nor violate other rules like confidentiality, state secrets, blah blah blah. There are limits.

    But that’s actually NOT relevant here. Nobody censored Craddock for making his statement.

    I’ve had Craddock’s crew who tried posting copy of his letter (or links to where it’s reposted), or a link to YOUR repost, on my hubs and blog. I denied them, not because of what they said, but because they are HEARSAY. Not just hearsay, but fourth-hand hearsay.

    This guy heard from Craddock, who heard from Denton’s attorney, who heard from SEC, that SEC admit their case is weak.

    Is there any corroboration or confirmation? Nope. This is like children playing “pass it on”. This is NOT information. This is rumor-mongering and sensationalism. This is tabloid journalism, similar to headlines like “Bush on cocaine in the White House!” (actual National Enquirer headline)

    I do NOT consider third or fourth-hand hearsay that cannot be confirmed to be “useful information”. Clearly, other people have different criteria.

    –KC

  42. Fred, spend an hour or so on google, you will find enough examples to keep you busy for a while.

    These are not left field allegations, simply look to suits SEC has lost and the companies that wound up BK’d in the process. It is not a new story and they are not that hard to find..

    Never said Craddock was an expert, only that, if it is true, Zeek had many experts assisting them in set up and others have offered positive opinions. At this point that is all they are … opinions, on both sides.

    No one is clear here until the facts are known. The SEC may be correct but that certainly does not appear to be the case based on the complaint they filed. The SEC may be wrong, that is the position Craddock has taken, either way Zeek is put out of business.

    If the SEC is right Zeek will go through the receivership. If the SEC is wrong and Craddock is right, SEC will do nothing to rectify the error. Zeek will have to go through receivership anyway … a mess either way. .

    In the mean time all the panic, snarkiness, opinion and vitriol does nothing to help anyone.

  43. DH, there is zero doubt that when Craddock attempted to take down KSChang’s hub the letter he sent was signed in a manner that indicated he was representing Rex Venture Group, LLC.

    Additionally, he was falsely claiming infringement violations on trademarks that weren’t even owned by RVG.

  44. Maglich is a receiver … in other words one of those appointed to consume as many billable hours as is possible for his firm. He also has a vested interest in not supporting or encouraging any class actions that may be successful in this arena. It could cut deeply into his gravy train.

    His basic information is valid. In 25 years of dealing with securities I have never heard of the SEC admitting to any mistakes, even after destroying a business for no particular reason other than they had a suspicion.

    WHY IS THERE ANY HOPE FOR JUSTICE WHEN IT LOOKS LIKE EVIL WILL WIN AGAIN!!!

  45. “I have never heard of the SEC admitting to any mistakes, even after destroying a business for no particular reason other than they had a suspicion.”
    What the what? Is this your opinion or can you provide ANY creditable reference to your “left field allegation”

    This will be a mess to sort out. If the SEC is in fact wrong … and many “experts” believe they are ,,, it is still going to be a mess to straighten out.
    Again: What the what! Experts? Who? Craddock

  46. Tom, you are exactly the kind of guy that keeps people stirred up and you do it with little or no knowledge and a fair amount of venom.

    There is no “conflict of interest” for the any litigant to say something publicly … perhaps a bit of stupidity that may weaken a case one way or the other.

    If you think the SEC and law enforcement are not watching what is going on with Craddock right now you would be sillier than the comments you made above, especially if what Maglich says is true and Craddock has at some point held himself out as representing Zeek. (which calls into question Maglich’s opinion)

    As far as your “No reply to that.” comment, would you want to spend your afternoon arguing with someone so full of hate and ignorance … seems like a waste of time to me.

  47. @aris,

    This question has been answered but it can be hard to find here in all the comments. NO! Zeek will never reopen its doors.

    Since it is my understanding RVG did NOT own the copyrights on Zeek Rewards and maybe Zeekler also, someone could take and use those names for something else. And I guess someone if they could get their hands on the database could create a new penny auction.

    But since folks were always griping about the complete platform I do not see anyone paying for the software program. And since the compensation plan was flawed in areas, I do not see anyone launching with the exact same compensation plan either.

  48. Seems to me the ‘protectors’ of zeek affiliates are either foolish or just down right liars and thieves.
    I questioned Kettner as to the validity of the 2 supposed confessions of error by SEC…( and bear in mind that later a disclaimer was added as to Craddocks ability to either confirm or deny)…and Kettner replied it was discussed in a private cinversation between the attorney representing zeek and SEC.
    I responded that that was nonsense as would be a ‘conflict of interest’…no such ‘admissions’ would be made public about any case.
    No reply to that.
    Foolish or liars and thieves?….probably the latter

  49. What Maglich says makes some sense from the POV that there is little likelihood the Gov would admit a mistake. I have never heard of the SEC doing it. Still he is running on hearsay too from someone that is not involved but close to the situation …. isn’t that like your brother’s, boss’ aunts cousin who is close to the situation …. not buying that on face value either..

    The problem with Legal Eagles is they all have differing opinions. Differing opinion is how they make their money. If what was explained to us as affiliates was true, there had been several “in the know attorneys” and “experts” involved in designing the Zeek system. So again, which “experts” are we to believe.

    Do we know if RVG actually followed what the “experts” suggested … not yet. It is hard to imagine that RVG could have fooled so many top notch pros so thoroughly. Thus I must ask again … why should anyone take this “experts” opinion over the others?

    No one has a complete picture here. Craddock has run into the very same issue that RVG ran into with its affiliates … complete and utter unprofessionalism from a significant number of the participants. It happened in the presentations and promotions and it happened with the e-wallet systems. This makes it quite believable that it could have happened with Denton causing them to resign.

    Now … Denton returned the retainer, which means Craddock spent the money for what was intended and he has given little reason to believe he is not doing the same with the new firm. In fact I read somewhere that every dime is going to the law firm … no verification as yet, but as soon as they feel safe letting the name of the firm out we will be able to confirm that.

    It is certainly possible that information became skewed coming through several channels before hitting the Zteambiz site. Emotions are running high and the slightest positive news is like feeding one tidbit to a bunch of starving lions.

    On the other side, Maglich is a receiver … in other words one of those appointed to consume as many billable hours as is possible for his firm. He also has a vested interest in not supporting or encouraging any class actions that may be successful in this arena. It could cut deeply into his gravy train.

    His basic information is valid. In 25 years of dealing with securities I have never heard of the SEC admitting to any mistakes, even after destroying a business for no particular reason other than they had a suspicion.

    No attorney in his right mind is going to allow his client to admit to anything as long as the case is still open and the same applies to every player in the Zeek Issue. Craddock probably stepped out of line by letting any information out before the current law firm gave him permission.

    If people do not have the wherewithal to put a few more dollars in with Craddock to find out what is going on DON”T!

    If Craddock is silly enough to be playing with people’s money and emotions at this point then he is a crazy man!!

    This will be a mess to sort out. If the SEC is in fact wrong … and many “experts” believe they are ,,, it is still going to be a mess to straighten out.

    Simply be patient, don’t give what you don’t have and lets see where we wind up here!

    As far as everyone that has an opinion … remember, that is all it is and it is hardly worth the paper it is written on at this point.

Leave a Comment

shares