Breaking Zeek Rewards News: The SEC acknowledged that there are a couple of problems with the case against Rex Venture group?

This message was originally sent on 09/08/12 under the Subject: “Important Zeek Update Sat Sept 8th” 
Robert Craddock, founder of Fun Club USA could not admit or deny the following information.

[quote]

Hey Zeek Samurai Kazoku,
We just got off the phone with Robert Craddock in response to news going on around the Internet of rumors and other misrepresentations of the truth. So here is what we found out directly from Robert…

Due to this, SNR Denton told Robert on Friday, August 31 that they would no longer be able to represent us and sent back the retainer funds to Robert. They did however share a few law firms that they believed would be successful in representing us and Robert this past week has been able to retain another powerful law firm moving forward and has already made significant progress this week. Due to what happened with SNR Denton since people do not listen, the name of this law firm and our representing attorneys will not be announced until the filings are done early next week. At this time, the court filings will be made public.

Again, we ask that when the law firm is announced, DO NOT CONTACT them! If you want things to proceed, then take a step back and let them proceed. People that want more information delay the work that is happening including sending Robert, myself and other emails, calls and Skype messags asking us how are things going with the Zeek fight. Please people, trust in the fact that as we know things, we will announce them. Please be patient and know that if you do these things that we are asking you not to do, all you are doing is hindering the operation. If you want to help, then spread the word of the fight, spread the word of how you can help, and pray for the best and for justice to prevail.

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.

What are attorneys will be doing next week is filing a motion of appearance that they are now representing Fun Club USA, LLC. and the people that are now associated with them (the protected group). The receiver, Kenneth Bell, has now also realized that 2/3 of the Zeek Rewards affiliates are international which makes for the use of federal clawback laws being used to recover more funds impossible as they cannot collect them from the international affiliates and would not hold the 1/3 of US affiliates liable for the entire company.

You may have noticed that on the site, http://zteambiz.com and http://zteambiz.net had to pull down the PayPal donation button. This had to be done because PayPal found out that we were working to defend Zeek Rewards and since PayPal had to stop working with Zeek in the past due to the fact that Zeek is an MLM and PayPal does not work with MLM’s, they decided that they could no longer work with Fun Club USA, LLC. either. So, if there is anyone that has made a donation to Fun Club USA, LLC for their donation to the legal fight against the SEC and needs a refund for any reason, you can request that through Robert directly by sending an email to zeeklegal@gmail.com. If more donations are needed for the law firm, these directions will be forthcoming. Please realize that all funds that have been received have been sent directly to the law firm and more news will be announced next week as the filings are made with the courts.

In the conversation with the SEC, our attorney’s have already put forth the direction with moving forward with what they are calling “Zeek Rewards 2.0″. They already have decided on another law firm where our attorneys would write an opinion letter which is something we have been told should have been done a long time ago with Zeek and had not been done. What this opinion letter will do is go to all regulatory agencies which will put them all on notice as to how this business, “Zeek Rewards 2.0″ operates. Furthermore, if there should ever happen in the future like what happened with the SEC emergency injunction against Zeek, there will be a process that will have to be done first where they would have to go through a series of steps going through the law firm first that fully understands the business model. In other words, what happened to Zeek Rewards on August 16 which was a major mistake by the SEC, will never happen again.

It has also been our goal to fight the SEC allegations to prove that what they accused Zeek and Rex Venture to be false, and then to get Zeek Rewards back into operation. The SEC, since we have basically called them out to prove their allegations and put their feet to the fire, they now have to own up to this HUGE mistake on their part. They can no longer sweep this mistake under the carpet and are now going to be forced to assist us in getting our business back up and running more then likely stronger then ever. The SEC were the ones that actually have recommended how to set up the opinion letter with the law firm that they recommended to be sure that the new Zeek is protected from this ever happening mistakenly again.

Ok, well that is a wealth of information…Please be sure to share this news with everyone. Do know that these steps still need to play out in the court system and it will take time. But the most important thing to know from all of this is that we have already succeeded in showing that the proof that we have fully proves that EVERYTHING the SEC accused Zeek and Rex in their August 16 complaint was gravely mistaken as they did not fully understand the Zeek business model and that it now looks very positive that there WILL be a Zeek Rewards business moving forward. Again, please be patient and allow for the court system and our attorneys to do their job. Please also do not listen to the “talking heads” that claim they know everything online as the only thing that they are trying to do is drive up controversy which builds their own followers and gets more views to their websites.

I hope you all have a Blessed weekend…Keep the faith and look for further announcements from us a we get them.

God Bless,
Dave Kettner

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[/quote]

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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175 thoughts on “Breaking Zeek Rewards News: The SEC acknowledged that there are a couple of problems with the case against Rex Venture group?

    • I bought into Zeek as an affiliate. I lost money and all my bids. I am walking bow legged again thanks to the good ole’ usa gov. I bought “securities” which I guess equals bids on penny auction sites. I didn’t realize that bids were securities, but like they say you learn something everyday. If I bought juice and the people I recruited as affiliates bought juice and we all gave it away to people that came into our company to get them to buy more juice and we profited off of the new affiliates buying juice and the only way for the juice company to sustain itself was for new affiliates to buy juice, would the juice be considered a security and therefore a ponzi? I wonder if there are any juice companies out there that are doing that?

  1. This is great news! I hope the new law firm works out ok to get things moving. Now here was the issue with the SEC, they just rushed in and shut the whole thing down without taking a careful look at the business model. In addition, Zeek never sold securities, which all parties now understand. Yeah, and for the future, its better if there is a judicial process that takes place before any shutdown. Its too bad thats just how the SEC functions, quick and rapidlly. I wonder if the new possible business model will include the qualifiers that Troy stated in previous articles. That would allow for more of the bids to be used. They should implement that for the longevity and validity of the business.

  2. @ Troy,

    (1) SEC can’t find a victim. This is crazy … Looks there is plenty of victims I don’t know what this guy Craddock is talking about …
    (2) A ponzi scheme was the cornerstone of Zeekrewards. 98% of fund was paid out to Paul, his cronies, and top 5 affiliates …

    Thanks,

    Dan

    • Dan…we are all victims of the SEC not ZEEK…why listen to propaganda?

      Let’s get the real facts…If it is true that the sec recognize that they do not have a case…

      Your “lost” money is to blame on the SEC…do you think that is logical?

  3. I believe this information, it is apparent that the SEC erred in closing the ZeekRewards ugly. The charges they neither cited Zeekler, Shopping Daisy and also Free Store Club, among several other errors. The business model of Zeek was unique, innovative. For the history of his life, Paul Burks is more a humanist than a great businessman, because he always sought to build businesses that were developed by people who had no skills in sales and recruiting. ZeekRewards is the realization of that dream, a real opportunity for all.

    That truth wins! Regardless of anything!

    • Hiring people with “no skills in sales and recruiting”? When you run a business dealing with hundreds of millions of dollars a month you need to hire the best lawyers, accountants, and marketing consultants. There was enough cashflow to do that? Even charities hire professionals.

  4. Thanks Troy. Your very helpful and I wouldn’t be where I am today in Network Marketing if it wasn’t for your advice.

    MSG Dale Myers
    Retired, US Army

    • The critics are all just fine Tom.

      They’ve already watched this movie at the ASD Movie Theater.

      Same stuff as before. Government admits wrongdoing, trying to save face, yada, yada, yada.

      Craddock, Kettner, and crew just made some minor script changes.

      • @Chris Bailey, In your opinion Zeek had the same exact business model as ASD for your arguments sake? It’s ok if you don’t know, because most of the critics don’t have a freaking clue, but like to reference the 2 as the same.

        • No Dune, I never said they had the exact same business model.

          But I have said that Disner, Craddock, Kettner, and crew are trying to make some of the same arguments that were summarily tossed out of court after ASD got shut down.

          And yep, all any of us can really do is state our opinions, including you.

          People that believed the opinions of critics don’t have their money tied up in frozen RVG assets hoping to get back a percentage of what they’ve lost.

          People that believed the opinions of critics also don’t have to sit and wait to see if they will be having any profits generated from illegal revenues clawed back.

          People that followed opinions similar to yours have what to show for it?

          About the only online opportunities that I speak out against are the ones I find to be obvious ponzis which I feel are guaranteed to collapse if they aren’t shut down first.

          There are plenty of opportunities that I find questionable, but even though their products/services may be of suspect viability, they aren’t likely to just collapse like ponzis do.

          And many MLMs have what I feel are unnecessary monthly fees that I believe are there just to feed the top recruiters with bonuses.

          I’ll occasionally give my opinions on those types of opportunities, but they don’t irk me anywhere near as much as ponzis do for numerous reasons.

          We all have our opinions and we all are voicing them in various places.

          In the end, the only opinions that really matter are those of the SEC, other agencies that may pursue criminal charges, and those of the jury in any criminal trials.

    • Yes Zeek is on fire!!!! That’s for sure! Paul R. Burks jugdment is FINAL! The court ordered, adjudged and decreed that Paul R. Burks violated Exchange Act, violated Section 17a of Exchange act too and several others. It’s final judgment and Paul R. Burks acknowledged it and signed it in a criminal trial and he is guilty. Even he doesn’t admit it, based on the law he is guilty. That’s why it was ordered adjudged and decreed.

      • Paul Burks’ wife is very ill.

        The SEC “threatened” him with “Paul, you don’t want to be in jail when you’re wife passes do you”?

        So he signed the paper and paid the fine. Everything isn’t as always as cut and dry as it seems.

  5. If Zeek is allowed to continue / re-open….will we have access to our monies originally used to purchase bids and subsequent rewards to those monies?

      • There was an order for Zeek Rewards to be handed over to the SEC … the SEC has possession of all the cash and assets …I will not be surprised if at least 30 million has not been spent already…

        I don’t think Zeek Rewards can come back again…that is why there is talk about Zeek Rewards 2.

        This is great news for American affiliates because their money is safe…

        BUT…

        I JUST HOPE THE AMERICAN AFFILIATES WHO ARE FIGHTING THE SEC DON’T FORGET THAT THEIR DOWN LINE AFFILIATES ARE MOSTLY INTERNATIONAL …

        • Maria,
          Please state you posts with IMO (30m spent already) based on what? IMO that’s just nonsense you made up based on nothing but your own rambling thoughts. If I’m wrong please correct me! What facts do you base this unfounded fear mongering on?
          P.S. burks handed ZR OVER to the SEC!!! Why is it so hard to except facts over rumor, and opinion. Fact burks signed over ZR and payed the fine! If you need reference to my facts please respond

      • Why not? :( If the assets were ‘frozen’ for the time being and SEC backs off, shouldn’t they give the money back to ZeekRewards?

      • craddock and disner are ponzi pimps. Do not listen to these dogs … they are not human … trying to suck more blood from others…

      • @Tom,

        There is no point and it’s not lawyers pockets your lining. It’s Todd Disner, Robert Craddock, Dave Kettner and the rest of the 12 crooks that know exactly how to play on the emotions of those less knowledgable of what is really going on.

        Someday the law will catch up with the TRUE criminals and cons who’s only objective is to line their pockets with suckers money. Their motto is – there is one born every minute.- You can’t escape them if you are on their email list. This is their most valuable asset.

  6. Scratch a cynic and you’ll find a battered idealist. All I can tell you is if you took a beating in Zeek, be really careful in who you’re buying you hope from.

    From Mr. Kettner’s message:

    “.,…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…,.”

    This is a deliberate and outright falsehood. I use different words to describe it over on RS but this is a bald faced lie.

    The only thing preventing the SEC from “moving forward” is that their part of this investigation is completely over. Finished. Complete. When Paul signed his Consent the Civil portion of this case (the part the SEC was engaged in) ENDED.

    So when Dave is telling us the SEC is having a hard time moving forward he’s either being deliberately deceptive or exposing a degree of ignorance which should remove him from the list of people you look to for advice in this matter. And one doesn’t negate the other.

    Folks, ya’ll yelled at us critics for being “negative” when the fact is that we’ve just seen all of this stuff happen before. I hate seeing good honest people taken advantage of by people who likewise have seen this all before. The difference between us and the perpetrators is we aren’t going to lie about it to get your money.

    Lesson for the day, when someone is asking you for money, don’t let them lie to you.

    • @Chris,

      Well that is a great question. In reading through everything that is purported, here are my thoughts to this point.

      1. Based on reading up on these situations, it seems that it would be easy for the SEC to find the victims based on the current laws. The part I am not sure about in this case, is what happens if there is plenty of funds to pay off all the refunds. If that is the case maybe the SEC doesn’t apply the victim laws. But since I am not even close to being an expert on these situations, I think that would be a long reach.

      2. The SEC from all I have gathered did not have any problem stating the RPP was an “unregistered security”, and even MLM experts have agreed that the RPP really needed to be changed because it created the wrong behavior in the marketing by the field.

      I do believe over 70% of the affiliate based was more than likely outside the USA and that could cause an issue for clawing back some international funds that had been removed from the eWallets. But, even then depending on the country if the Receiver files the correct paperwork, he should be able to collect some funds.

      And since the SEC is only responsible for enforcing the laws in the . It would seem to me that even if the Receiver could not clawback on international funds, that he would still have the responsibility to clawback the funds in the eWallets and to look at the US promoters to see whom he might need to clawback money from.

      But again I am only thinking like a layman, trying to use come common sense, which sometimes is not used in law. And remember I am not an expert in ponzi law.

      • LOL. Careful, you may be labeled a traitor by Mr. Craddock again.

        Any idea why it would be okay for Kettner to release this stuff claiming it came straight from Craddock, but Craddock won’t confirm it for you?

        Interesting change of why PayPal shut down their little money gathering scheme, don’t you think?

        How do you feel about them now soliciting donations via ACH over an unsecured connection, asking people to put their bank account info out there in cyberspace for hackers to have a go at?

        Well, if you want to believe Kettner/Craddock, the whole statement about clawbacks is ridiculous.

        First, you would have to believe that the SEC admitted they made a mistake and that there was nothing wrong with Zeek’s business model after all.

        And then you would have to believe that after admitting said mistake, they would actually entertain the idea of letting the receiver pursue money that was actually legally earned, but instead changed their mind because they couldn’t go after legally earned income from reps outside U.S. jurisdiction.

        Do you believe that the SEC would actually recommend an attorney to anyone?

        I might have to switch from boots to hip waders for the next steaming pile of misinformation from these guys.

        • @Chris,

          I can guess that Craddock thought I was just a raving fan and would fight for the SEC case, without realizing my goal is for truth and justice and protecting those who truly do need their money back.

          You hit it on the head the other day when you stated I had emotional skin in the game. My goal is to get to the truth it at all possible, not to come down on one side of this issue or another. I think most folks realize I based all my evidence on some great minds inside of MLM and would love to see those opinions defended. But I am also a realist. If Paul Burks decided to cut a deal for any reason, then I figure there was at least something that none of us knew that was possibly going on.

          I figure part of controlling the story as they want is to control who releases what and when. Maybe the new media organization they have hired (hope that was not with the legal defense funds) will be able to spin the story for them.

          PayPal is pretty tight in the AUP (Acceptable use Policy), and I figure the anti-fraud triggers went off with the amount of money that showed up in the account basically overnight. This is pretty typical I think.

          I am not a fan of ACH over unsecured connections at all. But it any issues do arise, with fraud or identity theft there will be a clear path to follow and US banking laws will be enforced.

          I do not believe the SEC would admit to a mistake, but I do believe the SEC does make mistakes based on the losses they have had in the US Court System. Not many mind you, but some :)

          I do not think the SEC recommended the attorney, I think that was SNR Denten.

          • I was under the impression that this investigation was started because of multiple complaints at the BBB that went unanswered by Zeek. Umm,am I still sleepy or are those people your initial victims that now the SEC is saying they can’t find?
            When Paul Burks and the Higher up within the company come forward and start talking I’ll listen. The fact that they aren’t talking, speaks volumes. Everyone else is, in my opinion, is looking to make a buck.
            Thank you Troy for not charging for access to your website.
            Truth always prevails, just takes time to weed out the lies.

          • @Nicoletee,

            Many companies do not answer the BBB. This investigation was started at the SEC level due to a website a few months ago that was brought to their attention on many companies promoting daily ROI. The NC DOJ got involved because of so many folks calling asking about investing in Zeek.

            Paul and others I am sure will talk when their attorney’s give them permission.

        • It is laughable that SEC is not able to find a victim :-) If you need my help please let me know … I am one of many …

          I don’t believe whatever this dog says … craddock and disner are out there to scam more money to save them from the crawback law…

          Please do not get duped by these dogs again …

          • So you are a victim??? Let me guess, you signed up, maybe for a silver or diamond level business, put in $1,000 or maybe $10,000. You had high hopes of getting rich quick. You probably did your daily responsibilities for a while and then got lazy. Started to forgot to DO WORK everyday TO GET PAID. Then eventually stopped doing any WORK at all. You even thought, “this is lame, I actually have to post ads everyday to get paid.” After 90 days you realized you squandered any chance of making any profit so you called zeek rewards requesting your full refund. When they told you that your initial purchase of bids (your startup costs) were not refundable you were pissed and filed a report with the BBB. You are not a victim. You are the problem!!! See I am a victim. I did the work and worked hard to make my business successful. When it began to pay off for me our government illegally and immorally went in and shut it down. No I am left without an income that I relied on to live and eat with. No the SEC is saying Oops our bad. We kind of messed up. The business model was actually legal and we can’t find any wrong doing but meanwhile we have spent all of your money (millions) and you won’t see any of that back. You can reopen as ZR 2.0 and start all over again. Everyone’s happy now vote for Obama!:). I want to know who is going to be held responsible for this mistake. How are they going to fix this mess they made. How will True victims be compensated. This current government running our country is all about keeping the poor poor and the rich rich. This is a tragedy. American people stand up and fight. Lines have to be drawn. This can never happen again. Or next our rights to bear arms will be taken away. I feel totally violated. You are not a victim. You don’t know what a victim is.

          • Justin,

            You have no clue about my case. I am just like you and many others who got duped by Paul Burks and his cronies such as Craddock and Disner.

      • Call it tokens, points, raz-a-mataz, what ever you like its a investment. Changing the terms dose not change the definition. The opposite is true: the definition defines the terms! The compliance courses and threating associates to not use the word “investment” dosent change the fact that ZR is a ponzi investment scheme.
        Deffination: http://www.sec.gov/answers/ponzi.htm
        A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.

  7. It would be great to see Zeek rise from the ashes and Paul vindicated. I also believe the government should restore what was wrongfully taken away from so many affiliates.

    If possible get a competent managment team in place and implement the recommendations that have been suggested. And have open and honest communications with affiliates, which Zeek needed to work on anyway.

    Not sure if all of this can happen but if it is possible to get Zeek going again there are many of us ready to go to work. Go Zeek!!!

  8. Troy, do you personally believe that Zeek rewards has any realistic chance of opening its doors again?

    I find it hard to believe that it could or would open per the obvious fact that Paul for reasons that I could never understand claimed fault without claiming quilt. Paul should have fought this but since he settled than it’s fair to say that the possibility of Zeek rewards opening up again is as realistic as the pope being jewish.

    • @Greg,

      Absolutely not! From what I have gathered in researching these situations. I would say, that no matter what happens the Receiver will fulfill his obligations to refund all the money due ZR Affiliates, and then the assets of the company will be sold.

      Now whoever buys the assets may decide to use the database to launch a new company.

      And, since I am not an attorney I do not know if Paul Burks could request that his Consent be withdrawn and fight the original complaint or not. But outside of something like that I do not see RVG reopening.

      • I would find it hard to believe that they would sell the database of Zeek members, if that is what you are referring to.

        Is there any reference illustrating where this has been done in the past?

        • @Chris,

          When it comes time to sell the assets, all there will be is the software programs that are build on ASP Classic, not worth much. A couple of building (if they are owned by RVG), and the database which is where the true value lives.

          You do make a good point on them not wanting to sell it, but many courts have ruled it is an asset of the corporation.

          And, even if the Receiver does not decide to sell it, I can almost guarantee you that, there is more than one copy anyway and will be sold and used sooner or later. Which bring up a question… If someone else who is also in control of the asset sells or uses it, would that be classified as theft and a criminal offense before or after the whole situation is done?

          • I don’t know if Zeek had a privacy policy, but if they did and it stated that people names and email addresses wouldn’t be sold, I don’t see how it could be an asset up for grabs.

            I’m in complete agreement with your last paragraph.

            If somebody on site didn’t hijack all the names, emails, and possibly other more personal and confidential info, the lack of security on the system may have allowed hackers to get all the info anyway.

            We know hacking is a criminal offense and I’m sure that stealing your employers database would be as well.

          • @Chris,

            I think in the privacy policies it is clear the names will not be sold to be used by any other company. But when a company goes bankrupt or sold the database is an asset and the assets are bought to be used by another company. At least in network marketing. Prime example is Excel Communication. The courts approved the sale of the database to Shacklee and the affiliates were grafted into the compensation structure.

            Now in this case, I personally feel that since the SEC has alleged a illegal operation was in play, and Paul Burks as consented to the takeover of the company, that for the protection of the folks in the database that it be destroyed.

    • We actually don’t know what Paul claimed because we weren’t there and those that were would not reveal that because it is protected by attorney-client privilege laws.

  9. This is all good but… no matter what the deed is done, the receiver will sort it out (while taking his cut of “Ponzi” money) and the SEC will just say “oops” and move on to ripping more people off. The SEC will just keep doing whatever they want either way, so get out your check books for when they come knocking for the money you made from Zeek. I foresee lots of bankruptcies happening soon. Sorry to be negative but it appears we are just gonna take this one right up the you know what like every other time this happens when they (SEC) jump in.

      • Not me. I hate em. Also skeptics, cynics, quasi experts who can only speculate because they are not ever up close and personal with the facts. I see through the ego driven diatribes of some of the contributors to this blah blah blog. It’s so important to them to be right no matter who is hurt or affected. I manage a business law firm, have done so for 11 years. I understand far more than any of the self proclaimed experts who write here and wish to appear to know it all. Why don’t you all just shut up and wait and see. Go outside and play!

        • @Cynbad

          Did you understand ZeekRewards was a Ponzi scheme?

          It didn’t require much knowledge to understand that the money mostly came from new investors, and that the penny auction wasn’t very profitable.

          • I don’t think you had the capacity of understanding whether or not the penny auctions had the capacity of making good money or not. Did you go to zeekler.com? did you watch the bids that were going on? did you ever bid and win? DId you ever see the actual profits that were coming in the company for the penny auction website? If the answer is No to any of these. Walk away and take your unintelligent comments with you….

  10. Troy, I know beyond any shadow of a doubt that you have the best intentions, and I know you live by the Golden Rule. I understand that you report information as it comes in, but there has to be greater verification on your part before you publish certain information – especially when it comes to former Zeek members parting with even more of their hard-earned money.

    First there was the “breaking news” about Zteambiz retaining “one of top 25 law firms in the world” (SNR Denton) to represent Zeek affiliates. That led to at least 6,028 people (according to the Zteambids site) presumably paying at least $20 each to Fun Club’s PayPal account (so approx. $120,000 or more; I know of someone who paid $1,000). Though subsequently it was revealed that only 12 members would actually be represented by SNR Denton, and the rest of the ‘donors’ weren’t part of any protected group. Oops, strike that – now it turns out that SNR Denton isn’t going to represent ANYONE after all. (By the way, one could easily conclude that even “one of top 25 law firms in the world” doesn’t think there’s winnable class-action here, but we won’t go there.)

    But wait! Breaking news from Zteambiz that another law firm instead will represent Zeek affiliates, and THIS firm has supposedly told Zteambiz that the SEC is having a hard time making their case. Seriously? Personally, I don’t buy that for a moment, but forget what I believe. What concerns me Troy is that you’re reporting this – and calling it “great news” – based entirely on hearsay – which can’t be confirmed or denied! Under any other circumstance that would probably be fine, but it’s music to the ears of MANY Zeek members out there who are still in complete denial. I’m already seeing the “great news about Zeek!” posts on Facebook. And because you’re so trusted Troy, many of them are going to head right over to the Zteambiz site, and donate even more money using their new payment method (since PayPal “decided that they could no longer work with Fun Club USA, LLC” – more on that later).

    In a previous post of yours, shortly after the SNR Denton breaking news, you mentioned that you would request full accounting and transparency from Zteambiz, so folks could see exactly how the donated funds have been managed. To my knowledge, that has not been made available yet. Before this second round of fundraising, wouldn’t it be more responsible to insist on that accounting and transparency FIRST, before you steer folks to yet another way for them to donate more money to an equally dubious legal effort – based entirely on hearsay? Instead, you’ve bulleted the hearsay in your writing, your title is based on hearsay (and is easily misunderstood if the question mark at the end is overlooked: “Breaking Zeek Rewards News: The SEC acknowledged that there are a couple of problems with the case against Rex Venture group?”)

    Back to PayPal: I think the need for full accounting and transparency is actually greater than before, now that PayPal “decided that they could no longer work with Fun Club USA, LLC”. What exactly does that mean? Does it mean PayPal froze their account? If so, were donors’ funds frozen? How can refunds be issued if that’s the case? I have a fair amount of experience dealing with PayPal as a merchant, and in a situation like this, it’s entirely plausible to me that PayPal would freeze their account including all funds. I’m not saying that’s the case, but it underscores the need for that accounting and transparency – before folks who are blinded by their denial part with even more money.

    So instead of hearsay, I would urge folks to keep in mind what these well-respected and independent experts have already stated publicly about Zeek class-actions:

    Kevin Thompson (top MLM attorney and Troy’s attorney):

    “If there’s going to be litigation, it’s going to be done as a class. And in class action litigation, the entire CLASS benefits regardless if they’ve formally retained (or paid….or donated to) the firm. This seems like a shoot first aim second sort of strategy. As for expecting a legal opinion validating Zeek’s business model, which was hinted at during the call, it’s not going to happen.”

    Jordan Maglich from Forbes magazine, who attended the August 27th news briefing held by the court-appointed receiver, Kenneth Bell:

    “Mr. Bell was also asked to address the recent news that some investors had filed class-action lawsuits against Zeek and Burks. While Mr. Bell indicated that he had not been provided with copies of the lawsuits, he did give his opinion that, under the order appointing him as receiver, any and all litigation brought against Zeek or its subsidiaries would be stayed and prevented from moving forward.”

    I’m not an expert, but my humble advice:

    Monitor the court-appointed receiver’s Web site, and submit your claim once a formal claims process been established and approved by the Court:
    http://www.zeekrewardsreceivership.com/

    I’ve heard it said that those who aren’t trusting of others, can’t be trusted themselves. In your case Troy, I think your “problem” is that you are so trusting of others, because you’re so trustworthy yourself. That’s why so many people listen to you, heed your advice, and follow your lead. But that’s also why it’s so important for you to trust but verify, especially under circumstances like these were so many people have already lost so much.

    • @Tissa,

      As always thank you for sharing from the heart. You make some great points and most do not even need clarification. However, there are a couple I would like to respectfully address.

      1. I did do the due diligence, talked to more than just Robert Craddock, and reviewed several unpublished documents showing all that was happening with the original law firm and what Craddock was working to create. I reported on what Craddock had told me I could report on, and did not violate his trust on things he asked not to be published at that time.

      2. I did not call anything “great” news, but I did call it “breaking news” In a matter of 90 seconds on Saturday I received 40 emails and 27 texts all sending me to the same website. At least half of these were from former ZR affiliates who truly feel Zeek will return, and not realizing how this whole system works.

      I reached out to Craddock, and also went to his site. On the site he made it publicly clear “I am not to be trusted” because I am willing to hold everyone accountable for the protection of the affiliates.

      I decided to publish under a title that would get the most attention so folks would not just read the post, but listen to the video and read the comments.

      I have no clue what might happen in this case, But folks need to go in with their eyes wide open, not just blindly following their emotions.

      I do not agree these folks will go right over and donate more money. As soon as they land on the site and See “I can’t be trusted” they will pause to get more information. Not all mind you but some will.

      And if anyone donates now and this ends up being a screw job, since Craddock is using ACH for the donations, federal and state banking laws come into play and criminal not civil charges will be handed down. Not to just Craddock but to the 12 founding members or whatever they are called.

      Tissa, should I ignore the emails and the website the above email was posted on and let folks go blindly there, and then just go donate? I thought about the outcome and when Craddock would not “confirm or deny” and I saw his public statement of my “betrayal” of Fun Club USA, I made the decision to report to make sure everyone on both sides could make their opinions public so folks can STOP, LOOK and LISTEN before just deciding out of blind faith to go donate.

      3. Tissa, I believe I mentioned in the video, or maybe a comment here that Craddock has refused to respond to the email where I asked these very questions. Instead he called and gave just a few answers, none which were very conclusive. To his credit maybe that is because he does not know how the new lawfirm will want to work. But he did provide the following two answers.

      a. The funds are held by Fun Club USA at this time.
      b. And he has raised between $100K and $500K in legal defense funds.

      4. Kevin is one of the best in my book. However, there are those who will disagree with me and you on what Kevin has written because one of his clients is BidiFy. I have already been slammed with folks who have made their opinions clear, that they feel all he has written was to direct folks eyes back to Zeek and away from his client.

      I personally do NOT believe this, but I do realize it is a valid argument. Especially since BidiFy has not changed their compensation plan twice since the closure of Zeek Rewards.

      Tissa, I value your friendship and the advice you willing give to me both publicly and privately. Again your bring up very valid points that all of us should think about.

      • Troy, thank you for the clarifications.

        You wrote, “2. I did not call anything “great” news, but I did call it “breaking news””

        I stand corrected; indeed you didn’t call it “great” news, but at 2:25 in your video, after quoting David Kettner, you say: “Now this is definitely good news for those who are trying to get to the bottom of the facts”. That comes across (intentional or not) as you validating Kettner’s hearsay – which has been great news for a lot of Zeek members in denial.

        To answer your question, “Tissa, should I ignore the emails and the website the above email was posted on and let folks go blindly there, and then just go donate?”

        Not at all, but I think a wiser approach would have been to de-emphasize the email, and emphasize that it’s entirely hearsay which cannot be confirmed, so folks should proceed with caution before donating any funds (especially since SNR Denton refused to take the case after the first round of fundraising).

        I guess Troy my point is this:

        Perception is often reality, and the perception right now (amongst many Zeek members who are still in denial) is that you are reporting the SEC is having a hard time making a case against Zeek, and that Zeek may come back as a result. I realize that’s NOT reality, but it’s the perception on the ground. Just look at some of the comments-in-denial that have been posted on this page.

        Even on Facebook, your wall post for this report has been shared 21 times at last count, far more than any other post I could find in your recent history. Those folks aren’t sharing to caution others it’s unconfirmed hearsay; they’re sharing to cheer the ‘great news about Zeek from Troy!’

        And perhaps the greatest evidence of all: Zteambiz has managed to raise raise $100,000 – $500,000 in “legal defense funds” without any transparency in accounting and no assurance of representation! That blows my mind frankly, but I think that’s more a commentary on the people who have donated.

        In any case, thanks for your friendship Troy, and for letting the information flow freely. Your efforts are always appreciated.

        • Tissa,

          I can see your point on “Now this is definitely good news for those who are trying to get to the bottom of the facts”. It was not said to validate anyone, and since I made it clear in the very beginning of the video Craddock sees me as a betraying him, I am not sure how anyone can take it that I am validating this information, but I do not doubt you are correct and some will use this to make that claim.

          Again, thank you and I will be more careful in the choice of words I use to make sure folks do not feel I am validating or endorsing anyone. Maybe a vocal and written disclaimer might work.

          I again can see your point. I truly thought I was making it clear that the email was not confirmed by Robert Craddock because he refused. ANd I did write that at the very top of the post. It truly was my intent to make it clear Craddock sees me as the enemy, and refused to admit or deny what his colleague was stating.

          Although, do any of us really believe, that some former ZR Affiliate would make up such an elaborate story without Robert Craddock first being notified?

          I agree 100% perception is the reality to some. However, it doesn’t change the facts of what the reality really is! Now don’t get me wrong, I do not want to lead anyone to a false hope, and I have gone out of my way to make it clear to all who have contacted me that Zeek is dead period. Which may be why the Zeek 2.0 has not become so strong of a call card for some.

          I agree 100% on the issue of raising funds without any transparency. And when I asked for transparency and it did not come, and I saw that SNR Denten had not been removed from the site, I was very clear in my previous post I would not donate until more information was forthcoming. I think that might have pissed Craddock and his team off. But the reality is, until some 3rd party takes full control of the legal fund, and neither Robert or anyone inside the case has access to it, I caution anyone from just donating.

          I do like the fact if they are using ACH, that federal banking laws are in place to protect against fraud, and the money can be traced.

          Tissa, I respect your insight and friendship. Thank you sir!

      • Troy,

        On another note, I would like to request that anything posted on the zteambiz.com website show a date of the posting. When references are made to activity expected “next week,” the missing reference point (date of the posting) makes it difficult to follow the date trail.

        Thanks.

      • My keyboard malfunctioned. I meant to say that the lawsuits against Paul Burks and RVG were filed after Zeek ceased business operations on 8/16/12. In other words — that class didn’t have a beef until they realized or feared their loss. When Zeek reopens, I plan on spearheading the class action suit against the SEC for the losses we all experienced not earning during the time from closure to reopening including punitive damages for all affected. I will advise at a future date of how you can become part of that class.

        • @Mohammad Memom,

          It is my understanding that the Receiver will review all the affiliate accounts to find out who is owned money. How he may decide to refund the money has not been shared publicly yet. I would take a calculated guess that he will refund those who had just joined in the last few days of the closure and work his way backwards from there.

          • No, Troy, you’re wrong on that. The people who donated on the last day will get the same percentage back as everyone else. The law is very clear on that, and it;s the same principle that even people who didn’t make a profit, but did withdrawal amounts making them more whole than the baseline will not receive any refund and though I doubt it will happen they could be forced to return some of their initial investment so that they bear equal losses. We need to talk, Troy, you’re not familiar with this process and I am, and a little research on your part would save both your readers and you a lot of idle speculation. I send you a number, gimme a call Tuesday and we’ll work something out..

          • @Gregg Evans,

            I may not have been clear on my statement. I was not talking about percentages, I was talking about “who” gets their refunds first. And I was clear, that I was not for sure if my deduction was correct, that it would be those who had gotten in last.

            As always thank you for the clarification and correction.

            I am looking forward to talking :)

  11. I honestly don’t understand the excitement here…..

    OK, the SEC screwed up…… I personally purchased 10,000 Bids….. Call it what ever you want to at this point….. I made the purchase in June and at the time the SEC came in and closed the doors…… my VIP point total was 23,000.00……. never took a “Penny” out as payment.

    So, the SEC says they can’t find anyone that was hurt ? Hmmmm …… I am out $10,000.00 ….. The Gov’t killed a profitable venture for me and now they don’t even know how to move forward ?

    And just how much of my $10,000.00 will I ever see ? And When ?

    No One got hurt you say…… Sounding more like a Politician every day…..

    I will tell you who’s going to get hurt……. I am going to write off the entire $10,000.00 OFF my taxes… even if I have to do it over 3 yrs…… SO, Your Tax Base just got reduced…. who is that going to hurt ? Schools, Military, HealthCare ?

  12. when will the sec ever help a company that it hurts. its funny how they get to just walk away everytime they hurt someone and its not just a few people its thousands of real good people.

  13. the SEC can go F** Off!. the truth will be told 100% and once again there name will be smeared all over the internet. Corruption at its best.

  14. If the Lawyers get their hand on the money will never going to see any Funds returns ,is tipical of the system, our Govertment is just to Big, this is the 21st century, not 1920,let the citizens, make the american dream, as long that is legal, and pay Taxes, Let Zeekrewards reopen their door,and make sure their follow the Law, why closing, a comapy that pay out 375 Million.

  15. Thank you for fighting the good fight for justice! ZeekRewards was always honest and upfront about the businessmodel, and what has happened is a MAJOR failjure of the justice system. The damage done is going to be hard to undo, but at least we have some recognition now.

  16. The author of the letter above wrote the letter with a brown dirty toilet paper. Can you suckers/zeek affiliates not smell a shiiiiit when it is right in front of you?

  17. Seriously, some of you zeek affiliate suckers need to wake up and smell dog doo doo. Can you not smell sh.iiit when it is right in front of you? What makes you suckers think that the other firm can help bring back Zeekrewards, if SNR Denton can not represent you suckers in this “weak case”? Honestly, I’m SMH and LMAO. lol

  18. @Troy,

    When do u think the feds will go after the real root of the problem which are the well known, professional ponzi players that lurk around this industry looking for the next company they can take advantage of and destroy. Yes, I’m talking about our Ad Surf Daily boys. True, heartless criminals to the core.

    Everyone in your industry speaks out against them especially your colleagues with similar blogs. Although you have spoke up from time to time it has had little impact on the severity of the problem.

    I believe you could help a lot of your loyal readers by hammering this home repeatedly until they can see the truth. Write about their past and the similarities to ASD even down to now and begging for donations “again” to help themselves as they did before. Warn your readers each time your hear of more lies. Don’t debate it, just protect your readers.

    Putting these known criminals behind bars who lie, cheat and deceive innocent people out of their money repeatedly would go a long way to restoring credibility to an industry most of us here love.

    They are not spreading hope and they are not dillusional. They are simply highly advanced, professional con men who have used the internet for a decade to fraud people out of their money. They’re not good at it, they’re the best!

    It’s going to take a lot of cleansing to get the foul stentch of them out of our industry. Please help and take on a bigger role. MLM needs you right now and many of us are counting on you.

    • @B.Radison,

      You ask a great question. I would guess they are already in the process. It would not surprise me at all if there is a Grand Jury meeting somewhere reviewing evidence presented.

      I know there are plenty of folks that the feds have had their eyes on for the last few years, and not all of these are ADS folks. Since the SEC complaint also talks about the Canadian Authorities also being part of this investigation, you can bet this is an international investigation and may even include some other countries by now.

  19. This is a short version of an ASAP emergency solution to keep ZeekReward working if they allow us!
    Assuming that Zeek is paying about 160,000,000 a month’s (possible)

    Making an assumption that this amount could be just a 20% average of what can be take! Because the recommended formula 80/20 0r 85/15 or whatever.

    The compensation model NEED TO BE MODIFIED ASAP!
    Why?

    Because if every member start taking all the money from the daily POOL!
    Zeekreward cannot pay 1 billion dollar!!!

    So this is my short modifiable version of a solution to keep our business alive! And to protect the little people like me who never got pay a penny yet.

    1. No one should be able to take out more than 10,000 a months until the model show on paper that you can earn more! Hey if the company can pay 15,000 a day and not be a Ponzi! Please, take the money

    2. 1,000,000 members’ subscriptions are a great income for the company. Zeekreward should be able to grow safe for many years and reach possible 50,000,000 members and explore new ways of increase profit. We could have our own search engine “ZeekareUs” like Google or Yahoo and bring $$$ to the business. Companies will love to pay thousands of dollars to advertise on our “ZeekareUs new tool” Hey we are 50,000,000 users!!! The point is we have a bright future ahead.

    3. To the best of my knowledge, we have our Auction that need to get better and grow with LEGIT customers!!! Let us as a whole promote or do a campaign that will give us real customers to eventually all reach the 10,000 dollars per months.

    This is just a basic idea to help all of us and to give the new ones who just started or will start, a strong felling about we are here to stay for a long time!!!!

    I sincerely hope that whatever department in Zeekreward or the CEO or whoever is in charge to adjust our compensation model, sincerely hope to be called by them and be part of the team who will make the new plan realistic, doable and safe. I can help and so do you.

  20. “Now whoever buys the assets may decide to use the database to launch a new company.”

    Um, The SEC owns Rex Ventures doesn’t it ?

    • @Bouncin Betty,

      The SEC doesn’t own RVG. They are in receivership of the company to dismantle it and to refund those who are due a refund. The Receiver will report to the SEC any possible criminal activity he and his team might find, and the SEC will pass that on to the DOJ for possible criminal prosecution.

      All of which happens both during any pending lawsuits and after depending on the outcome of those lawsuits from my understanding of things.

  21. Troy,

    I have to say I am more then a little disappointed… I have people sending me emails that Zeek is coming back… Based on what I read on this page it is very misleading itself. You should take responsibly to make sure you are clear on what impressions are being made…

    Why in the world do you include a letter that on the face value looks very positive… Unless you are yourself, taking advantage of those who have emotion in this. After reading through the comments, and reading what you your self think of Zeek coming back, I again, am very disappointed, with how you have used this information for your own gain.

    Feel free to correct me if I am wrong… But I am disappointed.

    • @Luke,

      Sadly, the impressions are coming from all kinds of locations. My goal is to make sure we keep as much information and where it comes from front and center.

      As you can see I did not write this information I reported on it and I am very clear, I can’t confirm it. And you read my comments here see I question some of it directly.

      Not sure how you get taking advantage of anyone… If all I did was put some letter and and promote it as truth, then you would have a very valid point. But if you listen to the video you can see these folks already feel I have betrayed them by making sure they don;t take advantage of folks emotions and pocket book by not keeping their information current.

      And sadly the email I did send asking them to verify several things went unanswered.

      So, please explain deeper how I am using this information for my gain? Either in this post or any editorial I have posted. This is not about me, this is about making sure those folks who have suffered, are not taken advantage of by anyone.

      • Hi Troy.
        I think what Luke means is that most people are only looking at the video, and not reading the comments.
        I also saw the video as very positive for Zeekers. But after reading the comments you say that Zeek can most definitely not come back. So maybe your video should´ve been about the “useless” struggle for truth that will not help any of the poor former Zeek affiliates.

        And how can you be so sure that the bids will be useless and Zeek will not come back?
        (Troy @Mohannad, No it will never be back.)

        I mean what if Paul says he signed because of the pressure from SEC, is it not possible then?

        Thank you for reporting on the subject

        • @Patrick,

          In watching the video I am very clear that I am working to provide ALL information on the ZR situations. The very first thing on the video is the fact that I exposed that SNR Denton was NOT the attorney of record and had sent back the retainer. And that I thought affiliates who might be denoting money, should be aware of this fact and NOT donate until they know more info.

          I was also very clear Robert Craddock who is in charge would not admit or deny the information. Yet the email tells everyone to spread the news.

          Here is what I know. I sat on the SNR Denton information for four days, and had told Craddock, if he did not get this info out, then I would be Friday. Nothing happened on his site, and nothing would have happened, had I not made it public.

          You video title is a little to long, and it would not have gotten the majority of folks to watch it. Based on your own writing here, people are looking for ONLY positive information. Sadly, this is not a positive situation and folks need to learn more.

          I have NEVER stated the bids were useless. Not sure where you got that idea.

          As for Zeek not coming back. I have been very clear on this statement. Zeek Rewards is now by Court Order being dismantled. Paul Burks gave his company free of charge to the US Government to do as they see fit. They are going to do what they are paid to do, protect the victims as they see fit, and sell off the assets to help pay those victims.

          And, if at some future time there is a trial to provide Zeek Rewards was not a ponzi, what will not be debated is that the RPP was flawed and either had to be filled with real customer sales volume or trashed and taken out of the comp plan altogether. This is something that all insiders have discussed and do not disagree with the SEC on for the most part. For the most part people did not and do not fully understand the RPP, and that has been the issues.

          Even if Paul were to state he signed under pressure, that in and of itself will not change things. All folks who take deals, take those deals because they feel the pressure. An investigators and an attorney for the SEC explains what could happen (worse case) to Paul Burks. Paul talks with his personal attorney and they discuss the situation. His attorney would have made it clear to him, no matter what if he is found guilty in civil court of masterminding a ponzi he will serve time. But worse is if he is found guilty of criminal charges of masterminding an international ponzi, securities fraud, banking fraud, credit card fraud, then he will die in prison… that is pressure but not illegal or untrue.

          • Thank you for the answers, it explained a lot!

            Maybe I was unclear about the bid statement. And I apologize for that.

            What I meant was:
            As I understand the information you are sharing about ZR, the bids will never come back in ANY WAY, for example in ZR 2.0.
            (There for in my opinion, the bids are useless, even if they win against SEC)
            Or am I misunderstanding this?

            As many people now believe, after getting mails from Craddocks team and hearing all the “great news”
            like, Zeek has a great chance of coming back!!

            But if the bids, people bought, will NOT be able to be used in any way in Zeek 2.0, I would love for that information to be clearly stated.

            If not by them, maybe by you.

            Thanks!

          • @Patrick,

            If anyone relaunches a ZR 2.0 I am sure there will be bids and some form of an auction. What will NOT be back in my opinion is the RPP component of the compensation plan.

            The most valuable assets of RVG is the close to 2 million affiliate database. The money will be gone and I do not believe anyone will want to launch a new ZR 2.0 in N.C. especially in Davidson County aka city of Lexington.

            I believe that the SEC complaint might not stand under the scrutiny of cross examination. However, that would not mean RVG will come back. Paul’s consent to surrender the assets of the company to the SEC and pay an administrative fine of $4 million, from what I have seen puts that part of the saga to bed.

            And there are some who feel that the way the Judge wrote the Order, that any lawsuit which might be filed against RVG or Paul Burks would be “stayed” under the Receiver has accounted for and collected all outstanding assets, and refunded folks who are due a refund their money.

            So, if a group of people decided to open a new ZR 2.0 and allow folks to use their old bids, then they would need to have purchased or have access to the old database showing who bought what bids, and how many of those bids are still usable.

            Again, from researching I have never found a case quit this convoluted, so we may learn that this became a new benchmark and sets a new precedent on how these type of cases are managed.

  22. The day I get a letter or a call that I have access to my 10k I will believe some one is trying to help me, until then I believe nothin!!

  23. Troy
    From your article which I did not see the good news or bad news.
    You say ZEEK will not come back, the that text ZEEK2.0 what?
    To mention the SEC are mistaken, does it refused to let Rex Group

  24. @Troy

    You should be telling your readers that if they are receiving e-mails that are signed from Disner, Craddock, Kettner or others to immediately report the emails as spam and demand to be removed from their email list. Or tell them to forward them to the SEC as I do. Since they are “so honest” I’m sure they won’t mind.

    I agree with Luke, by posting their emails you are only helping spread the word for their cause to those who may not be on their list and you are sending the WRONG message to your readers. (unless those donating to their “cause” are your target audience)

    I received a second email from “ThePennyAuctionKing” urging everyone to rush to your site to see proof of your support and even included your link.

    Great traffic for you, very disappointing to me.

    PLEASE stop helping them Troy! I will be happy to forward a copy of the email promoting you in their efforts. I have many emails from them promoting you as I’m sure you do too.

    Here is a direct quote of the email I received that I will simply copy/paste:

    - “From the desk of Tony M. Thanks a lot!

    http://mlmhelpdesk.com/breaking-zeek-rewards-news-the-sec-acknowledged-that-there-are-a-couple-of-problems-with-the-case-against-rex-venture-group/

    I’ve been out all day-just got home-but heard the following encouraging news. This is from Troy Dooly’s website — http://www.mlmhelpdesk.com ……” -

    So please Troy tell us all again how you are not helping their cause??? They have been using you all along and sucking the credibility out of you. They are the ones emailing thousands and telling them not to listen to the crap on your competitors blogs but to ONLY listen to you. They are driving traffic to you. Maybe you should consider a donation to their “cause” as a thank you for all the free traffic.

    Please take notice before they completely destroy you. These scumbags are pros, not amateurs like Todd Hirsch. KNOW YOUR ENEMY!

    But hey, don’t worry about them they’ll be fine, because once they have used you up they’ll just find someone new to leech on to and suck the blood out of.

    Remember their credo… “There’s a sucker born everyday!”

  25. Troy: Isn’t it interesting that you failed decided not to post my comment today wherein I told you all to “go out and play”. Thank you for making my case that ego and saving face is indeed more important to you than telling the so-called truth. I’m disappointed in you. Shame on you! I’m sure this too will not see the light of your day.

    • @Cynbad,

      Not sure what you are referring. Unless a comment is a personal attack on someone else or down right spam it is always published.

    • By the way we show six comments which have been approved for you. If you feel one was missed, then you might want to send it again, or make sure your connection was stable.

      I have no issues with folks questioning me, but those who hang in this community know my stance on Freedom of Speech.

  26. @Jim, you are spot on. Talk is cheap. Until the new people in Zeek get their money back all of this speculation is…speculation.

  27. @Troy

    This article seems to contain misleading info?

    You have published an email unedited, and that’s OK. You have tried to verify it by contacting Robert Craddock, and he did neither support it or deny it. There’s some work missing in that part, since Craddock is cited as the main source.

    He SHOULD have been able to verify it before you decided to publish it, or else you should probably have delayed it rather than publishing it.

    The other option is to verify the truthfulness yourself, by using other methods than contacting Craddock. You seems to have failed that part?

    It’s not enough to verify that the email itself is genuine, you’ll need to verify the content too before publishing it. In this case the main source hasn’t been willing to verify the content, and that should be a huge red flag. The ZTeamBiz website doesn’t contain any additional info, either when I’m writing this.

    Another red flag here is that you haven’t done anything yourself to verify the content, or to analyse it by comparing it to the actual case documents.

    You have failed to analyse this part of the email, for how it actually corresponds to the court documents, and whether it is misleading or not:

    *** quote***
    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.
    ********************

    That job should have been done BEFORE you published the email. And it should preferrably have been done by you rather than by some random readers.

    I gave you access to most of the court documents several days ago, so you have had access to all the information you need. When dealing with court documents AND other sources, we will usually need to verify the other sources against the court documents rather than against themselves.

    It means even if documents or statements are “true” in themselves, they can still be misleading.
    * The question about victims is a misleading question, because the case wasn’t about victims but about an emergency shutdown.

    * The question about securities is a misleading question. The security part was covered in the complaint, and has already been handled by the court.

    * In general, the focus on SEC is misleading. The Receiver is currently the one in charge of the civil part of the investigation.

    So we can’t expect meaningful answers, we can only expect misleading points or something.

    I’ll believe it’s time to slow down your willingness to publish information before you have done some quality checking. In the Zeek case, you already have a history of misleading information, and I don’t think you should add more material to that history. I can specify some of the points from that history if you’re in doubt of it yourself.

    • @Morton,

      Not sure if you have read Craddock’s website, but he would not admit or deny because I had the day before gone public with the fact SNR Denton was not representing Fun Club USA.

      It is not that Robert has not held a call or directed folks to send out the email. I feel this was a move to make sure the legal info I had shared did not get in the way of the future. Which is his right, he is the one fighting to get control of the assets and to prove the case is flawed (Which I do believe).

      Since this email and the website it was published on was being emailed, text and sent via private message on FB, the viral growth was moving fast, and it would not have been fair to sit on it and not make it clear there are flaws in what is being said here.

      Since Robert would not admit or deny, I could not edit the email or even break it apart as Oz is so good at doing and discussing each part. It needed to be in original content.

      I do agree Robert SHOULD have been able to admit or deny. He chose after seeing it NOT to admit or deny. Which many folks seem to do these days ;)

      Not sure why you feel I did NOTHING. That is a judgmental comment based on no facts period. :)

      But I do thank you for stopping by because you add value to the thinking process.

      But, don’t assume you know what our team does and do not know because you are not part of it. And 99.9% of the time I will never disclose all we do behind the scenes.

      In situations like this there is no win. If I do not publish, and you or anyone else find out I know about what is happening you jump on it. If I do report and share very valuable information and conversation that can shed light from both sides of the debate, you also want to point out flaws.

      Seems to me you could add so much more value by talking about what you see as a flaw in the content, not the messenger.

      • Hey Troy,

        In many instances, I don’t think it’s necessarily what or when you put stuff out there, but how you do it.

        In this case, I think the article title is tremendously misleading. Hell, I even missed the ? in this case.

        You know that we all have a tendency to look for whatever we want to find in things that we read, hear, or see.

        A more explanatory title would have helped. Perhaps something like “Craddock’s Crooked Crew’s New Mystery Law Firm Claims SEC Admits Case Is Crumbling” or something along those lines.

        You can use my title if you’d like. ;)

        Putting the letter in block quotes would also have helped to stress that it was just third party unverified info.

        You know how completely shell-shocked and desperate many people still are for anything that remotely appears to be positive news in this disaster.

        You are being used as a tool to screw more people out of more money because of the way you report things.

        Do you not find Craddock and this mystery group’s activity to be at least somewhat suspect and a bit shady?

        There was no need to rush into soliciting donations from people.

        The only reason they had to act quickly was because the longer they waited the less money they would be able to suck from the victims as more and more people would have finally grasped the reality of the situation.

        These guys are absolute masters of misinformation, manipulation, and deception. They are especially effective at doing this with people who are confused victims.

        At one point, I believe you said you were going to post a letter of retainer(or whatever the legal name is) from SNR Denton.

        That never happened. And to be honest, I don’t know what it would have proved.

        Does that document explain exactly what a firm is being hired for and exactly who it represents?

        You also asked Craddock to provide a complete accounting of funds that he was collecting from people and he apparently is unwilling to do this for you.

        Look, I can understand why you want to continue to straddle the fence on whether Zeek was a ponzi or not, but I think it might be time to sh!t or got off the pot with this particular lawsuit and advise people that they should stay away from this shady outfit.

        You know Todd Disner is involved and you can easily see all the same B.S. that he used in his frivolous ASD lawsuits is being used in this to spread false hope and suck up money from people.

        I haven’t seen nearly as much of this type of stuff as PPBlog and the crew at RealScam, but I’ve seen plenty to know exactly what they are doing.

        If you want to continue trying to remain neutral and let them continue to use you as an instrument of destruction against the people you want to protect, so be it.

        But at the very least, when putting this type of unverified B.S. out here, please highlight your doubts or concerns in big, bold, underlined, red flaming letters.

        Based on the reactions you’re getting from some affiliates, it should be clear to you that perhaps you aren’t being viewed as being as clear in your warnings and doubts as you think you are.

        Given the extremely delicate state of many of the Zeek victims, the situation calls for a lot more emphasis on caution and doubts than you normally place.

        • @Chris Bailey,

          Very valid points!
          :) I can see how the title you created would gather some interesting views.

          The block quotes, have been added. As you can tell from the video I was on the road. As soon as got off stage and saw what was happening I decide to quickly get things up and hopefully clarify some things. Sadly, I did not add the quotes in the beginning. Thank you for bringing that to the forefront.

          I am sure folks would like to use me. Which might be what frustrated Craddock to such an extend that he wrote on his website “that I betrayed him.” Hope that does help folks to see I am not on anyone’s side but those who are truly wanting their money back and who ae looking for truth and justice no matter where it might fall.

          Now to your important questions ;)

          1. I do find the Craddock crew’s mystic somewhat questionable. I have learned not to case judgement to early (however I do not wait as long as times in the past), to figure out specifically what is happening. I also know in talking to some folks today, that some federal regulators are also wondering, so I do hope a law firm is announced soon so we do not have to be chatting about another situation where folks are trying to get their funds back from a group connected to Zeek. If Craddock is truly working on the best interest of ALL parties and not just the chosen 12, then I can gladly support a worthy cause. But, if we find this is just a ploy to screw folks…

          2. The letter did explain specifically that SRN Denten was representing Robert Craddock and Fun Club USA , and that Craddock would be responsible for paying the law firm. In follow up emails they were also very clear that he should inform ALL people involved to stop calling the law firm, because at the rate of the calls coming in, the retainer would be used up pretty quick. (my words, not the actual email.)

          3. You are correct, Robert never responded to my email request asking several questions including the administration and distribution of the legal fund. He did call and that is when I was clear, I would wait until Friday to release any information on the law firm change. When nothing was announced or posted on the official ZTeam site, I posted making it clear, the law firm had sent back the retainer.

          You bring to me valid advice and I can see from your point of view this advice is worth noting.

          • They have and are continuing to use you.

            In a previous comment somewhere on this site, I mentioned that you held Craddock in high regard. You questioned me on that. I haven’t taken time to try and hunt down where I got that idea because it’s not all that much of a sticking point for me. If I was wrong, you corrected me.

            But, I’m not using it to push my own agenda like T Lemont Silver did when introducing Robert Craddock on that late August conference call. Here is a quote from a transcript from the opening of the call:

            “We got a voice, ladies and gentlemen. We finally have a voice!!!

            The gentleman that is leading the charge, and I really want to salute him for taking ownership and leading the charge… He’s going to share with us why he is leading the charge, what this all means, and why we all need to join in this cavalry.

            This information needs to get out! Make sure you tweet it out,

            Facebook it out to all your folks

            With that being said, let me introduce Robert Craddock.

            If you have seen Troy Dooly’s video, Troy talked extremely highly of Robert.”

            You told me you didn’t speak highly of Robert or claim you held him in high regard. Well, Craddock and his cronies are using you as an endorsement of Craddock and therefore, his agenda with this lawsuit.

            Yep, you were used as a promotional tool for Zeek and now you have been used as a promotional tool to help gather funds for Craddock’s alleged lawsuit.

            Craddock’s recent statements to begin villifying you are probably just a bit of preemptive manipulation of his flock because even though he knows that many viewed you as a Zeek supporter and someone who still doesn’t think of Zeek as a ponzi, he most likely never intended to provide you with any full disclosure on handling of funds given to him and his crew by Zeek victims.

            Even though you think you are being unbiased in your reporting, the simple fact that your videos and articles were being used to promote Zeek should illustrate that the manner in which you report is not taken that way.

            In your efforts to not be a “negative” person, you tend to gloss over the potential negatives. By trying to focus on the positive instead of focusing equally on both, your reporting loses its unbiased nature.

            A perfect example was the CID from the NCDOJ, something that should have been covered as potentially very negative.

            You passed it off as SOP/business as usual when that simply isn’t the case.

            Most businesses will never, ever receive a CID no matter how fast they might be growing. Seriously, what percentage of businesses ever receive a CID?

            Instead of focusing equally on the potentially negative outcomes and potential positive outcomes, you focused almost entirely on what you believed would be a positive outcome, providing yet more recruiting material for the Zeek faithful.

            In one of the videos pertaining to the CID, you stated

            “I think this will once and for all will help clear that up and make sure that they’re as compliant as they can be and people will realize they are a different type of business model. They’re a big monster out there, there’s no doubt about that. But they are legit. That’s just the way I see it. We called this one right.”

            As someone with your background in dealing with law enforcement, you are well aware that there can be so much more going on with regard to investigations that none of us know about.

            At the same time that you were giving your stamp of approval to Zeek as a legitimate company, Paul Burks and his attorney were working on a deal to shut everything down.

            IMO, you seem to have a double standard in your dealing with positive vs negative info, requiring far more substantiation of negative info than you do with positive info.

            Now, onto the 3 highlighted points.

            1. LOL, cast judgment too early. Hell, Zeek has been shut down for nearly a month and you’re still reserving judgment. I guess if Paul Burks is brought up on criminal charges and also pleads no contest, you will never have to.

            While you may not be the sort to call out Craddock’s B.S. lawsuit full throttle like so many critics are, wouldn’t it be a good idea to strongly urge extreme caution given that Craddock is asking for money and providing little detail upfront about exactly how things are being handled.

            His penchant for leaving out minor little details like the fact that only Fun Club USA would be represented by SNR Denton until most likely being forced to disclose it would also seem like a decent reason to error on the side of caution.

            Let’s not forget the fabricated reasons he supplied to HubPages regarding trademark and copyright violations in his failed attempt to get K. Changs hub permanently removed.

            What type of pattern do you see developing with this man? One of honesty, openness, and full disclose? Or one of deception, misinformation, and manipulation?

            2. I’m sure you noticed how quickly they were in telling people to stop calling the firm for info vs. the delay in disclosing that SNR was not representing the people that Craddock was soliciting money from.

            3. And this appears to be when Craddock decided to start pushing you into the same “enemy” category as the much maligned critics.

            If you find at least some of my thoughts, opinions, and advice valid, great. Either way, I do appreciate that you let people speak out even with occasional violent opposition to your own stance.

            What do you use to clean your Teflon skin? :)

          • @Chris,

            I would not contest that in my first few engagements with Craddock, and based on the folks who introduced us, that I felt he was a person who was (may still be sincere), but over the last couple of weeks his refusal to answer simple, yet important questions, and the false information he left on his website for at least four days that I personally know of, is very questionable.

            I am always willing to give folks the benefit of the doubt, but if the track record continues and based on conversations I have had today with some legal minds, and others. And other conversations private and public, with you and others, I do see a pattern of behavior form some. Maybe Craddock is a patsy himself, but until I know for sure, I am being very careful in some areas, and have also expressed concerns to others.

            I am aware that folks do take my words out of context and use them to validate their own agendas. Very similar to what we see in politics. In some cases it is past politics and both Patrick and Glim Dropper have brought situations to my attention where ponzi pros were blind forwarding to my site through pages of their own. In these cases I put the team on it. If they can’t get the issues cleaned up, then Kevin Thompson gets involved.

            I know I am unbiased. However, I also know that because I am the only one truly doing videos, that these can and have been unused to promote individual agendas by some. Because this is an issue where fringe companies are concerned, I will be very careful in the future to make sure if and when I cover one, that I am very clear on my stance. Which is kind of funny in and of itself. Because if I do not have folks I respect form your community finding fault, then folks from my own community will find fault. And never about the same things :)

            I see your point on the CID, and I am not sure I would have changed that aspect. It is the lowest of the investigations, and in the majority of cases is resulted with changes demanded by the AG and an administrative fine. Which from what I understand would more than likely happened here also. I did and do think they were and are now a big monster. (Not sure how that could be construed as positive unless someone watched Monsters Inc.) I did feel they were running a legit business, but not without flaws. I also concede that if Paul Burks had admitted to running a ponzi and the SEC would have pushed him into admitting that very thing, we would not be having this discussion now. But because the SEC allowed him to “neither admit or deny” the charges, it leaves a huge question mark in my mind still to this day, how so many legal, compliance and comp plan experts could all blind to all the allegations the SEC has made and Paul Burks consented.

            And, I was not the one who stated it was SOP/business as usual. That came from a different site that has currently been shut down. I may have referenced what that person stated, but I did not state that personally.

            I did make it clear that it is a common practice by the AG.

            I do understand there are always investigations going on behind the scenes. I knew there was an SEC investigation going surrounding several companies and even made that clear here in the community on several occasions when asked. And I have made it clear there are investigations going on right now that most folks do not know about!

            I also agree that while I made it clear to folks that based on what I had seen and been told personally from the legal, compliance and comp experts, I felt Zeek was doing everything they could to be compliant. I never once gave it a stamp of approval. Not live at a Red Carpet Day and not here. I did give them plenty of room to make the changes, and even suggested many changes to help Zeek become even more compliant as a company.

            I will also agree that folks will hear what they want to hear. Those who wanted to prove Zeek was risky and had issues used my videos to prove that. Those who wanted to prove Zeek was great used my videos for that. Just this weekend I was talking to a couple who thanked me for my coverage of Zeek, because it saved them from getting involved. Mind you this is not the norm, but it once again allowed me to realize that people hear what they want to hear.

            I respect your opinion on double standard, however, I would not agree. I present info based on a simple principle (and I admit I do not get it right all the time)… Treat others as I want to be treated. Based on this I do my best to I do take it a bit further by keeping the following three phrases handle to review when I am reporting.

            Walk Justly
            Act Humbly
            Love Mercy

            Like I said, I do not get it right all the time, but when approaching negative, critical or controversial, I realize that what I say will effect he lives of those who hear or read it, so I am doing my best to report facts not just opinions of subjective conclusions.

            Now to the important issues you raise :)

            1. Based on the info I have at hand, and the fact he did not update the website once he knew the original law firm would not be representing Fun Club USA I would say I am leaning more and more to one of deception, misinformation. I do not know him personally, so I can’t say he is purposely trying to manipulate anyone. He may just be listening to the wrong advice.

            2. Yes I did notice!

            3. LOL… Yes, it is amazing how I can become the enemy so fast. But, since I do not answer to him, and believe that truth and justice is what matter above all else, I am not too concerned with him thinking I betrayed him, as long as the majority of folks fully understand my intent at providing facts, and opinions while protecting the trust folks place in me.

            Chris I am far from being an expert at much. But I love the network marketing community and do not want to see them or anyone else hurt. And when it comes to the ZR affiliates, they have been through enough and like you I do not want to see them screwed by anyone – period.

            Thank you for being willing to call me on the carpet when you disagree.

            Living An Epic Adventure,
            Troy

            P.S. It’s not Teflon, I just believe in the Constitution!

          • Troy the point Morton was trying to make and that completely flew over your head is that verifying whether the email came from Craddock or not is irrelevant. Just because Craddock did write it does it make it true? Why do you seem to take everything Craddock says at face value. How about verifying what is in the email which is a crock of BS in itself? Instead of making a neutral title to this article you put part of that very content of the email that is erroneous and being used to screw people as the title. If you were being a neutral observer in search of truth as you claim you should have stated the facts as they appear. Such as: Craddock claims such and such. Or if you did not know if he was the author of the email you could say alleged email from Craddock claims xyz. If you read the comments following your blog post they’re from people cheering this psuedo-class action suit as their savior under the false impression that zeek is coming back. These same people who are easily misled will probably go make a donation to this “legal fund” in hopes of getting zeek back. You Troy are leading people who have already been ripped off to get ripped of again by charlatans like Craddock. It appears to the untrained eye that you are broadcasting these false quotes from the SEC as fact. You really need to learn how to present your facts straight Troy. I’m not the first one who said you are misleading people. Numerous people have pointed this out about the article. Are we all blind and dumb or is there substance to what we are observing and pointing out. Are you going to wait until more innocent people get screwed out of money by sellers of false hope?

          • @Joshua,

            I knew the email did not come from Craddock!

            And I am not sure it is me who has missed the point. You might want to read the post I put up the day before. Craddock and I are not on what you would call speaking terms.

            I personally connected with Robert Craddock and got the political spin…

            Troy: “Robert, I am getting massive emails on the SEC reversing their position on things. Do you have an official press release ir was there a call you held?”

            Robert: “Troy, you will have to wait for the attorney to make the announcement public. At this time of this looking very positive. Right now I have to be careful what I say.”

            Troy: “Robert this is not about waiting, there is already a website up with this info stating it came directly from you. I will send you the link via email.”

            Robert: “I have to let the information come from the attorney, it would be foolish of me to undermine them.”

            Troy: “No issue for me, just want you to know folks are already publishing that this came from you. I am the safe blogging community so have your folks ready for Oz and Patrick.”

            In the title I did use part of the title so the search engines would bring folks to the community to get the facts, not just believe what they read. And if you take time to read the title, you will also see that it it contains a question mark for a specific purpose. To help people fully understand there are many questions surrounding this whole deal.

            You bet there are comments cheering this on, as there are comments from the other view point calling folks nuts. It is ot just here but on YouTube FB and across the globe on my other social profiles.

            In this situation, it doesn’t matter who or what I publish, there will be people on both sides who will not like it.

            I’m not leading anyone anywhere. But I am making sure I can keep at least one website that folks go to open for comments where they can see both sides of this issue. And where I can give them my opinions when asked.

            You and others are entitled to your opinions that I am misleading folks. But, I even find that interesting. Especially since when folks go to Craddock’s site he makes it clear “I betrayed him.” Now I bet that causes folks to truly wonder what is going on.

            By the way blind and dumb I do not see you.

          • @ Troy

            To me and I’m sure many others, your comment from that one video, “But they are legit. That’s just the way I see it. ” would come off as a stamp of approval.

            No big deal and no use in spending too much time rehashing things. It was just an attempted illustration of how you come off to the majority of people, IMO.

            I see Tissa was more or less saying much of the same stuff I was about perception and all that jazz.

            For better or worse, you just aren’t used to swimming in this type of cesspool with the professional cybercriminals that lurk beneath its surface.

            Treating these individuals by the Golden Rule can make you into a Golden Tool. ;)

            I generally agree with treating people in the manner you mention and I also tend to give people the benefit of the doubt. Just not these people.

            I hope you don’t have to do this again real soon.

            As always, thanks for allowing the exchange of opinions.

      • @Troy

        quote:
        Not sure why you feel I did NOTHING. That is a judgmental comment based on no facts period.
        ******

        I pointed out the lack of quality check. It should normally be done by you before publishing, not by random readers via the comments.

        When a court has been involved, we have official documents to check, and it means they also should be used when checking other information. Court documents should normally have the power to overrule Robert Craddock as a source if there’s any conflict between them.

        In this case there are conflicts between them, and I pointed it out by quoting a section of the email — making comments about the questions were misleading.

        As an example, the “SEC had trouble finding any securities” is a point that already has been made clear in the complaint, where the profit sharing agreement was considered to be an investment contract. It has also already been accepted by the court, and by the parties involved in the court case.

        The publisher himself (in this case you) will need to do some kind of quality checking — checking the content rather than the source. Quality checking will usually also mean to check contradicting information, and in this case we have court documents that mostly contradicts the other information.

        Since you didn’t handle factors like that, I decided to ask Robert Craddock to defend his own case rather than hiding behind you (in my next comment, posted some hours ago). That decision is based on my own experience from this website, where information often have become vague and misleading when it has been filtered through you (e.g. you don’t include all the information needed).

        “Judgmental” may be right, but I’m not the first one to point out issues like that. You have received lots of critique for misleading information,, e.g. for the publishing of the NMBJ review about ZeekRewards. So maybe you should check the critique for factual content before you decide whether it is judgmental or not.

  28. @Robert Lee Craddock

    If you want to defend the information published in the article, I belive it will be better if you do it yourself rather than hiding behind Troy Dooly.

    You are claimed to be the original source behind the information, and so far you haven’t been willing to verify it. You haven’t denied it either, so you haven’t done anything to clarify the situation.

    I will put up a huge red flag on the information if you don’t defend it yourself. That’s what we normally should be able to expect from an original source to something, when there’s serious issues about the quality of the information.

    I have pointed out that some of the questions are misleading in my previous post, so you should also be prepared to clarify issues like that.

  29. @Troy,

    I agree with Luke and Chris. Posting their email only helps the cause of the pond scum that is sending it out and helps them reach even more people that may not be on their email list.

    I have dozens of emails from an upline that connects to Todd Disner and Dave Kettner promoting your site. You’re the poster boy for their cause. I’m sure that means plenty of Free traffic for you.

    First I received this same email you posted from Kettner and also signed by Disner. Next it turned up on your site. Then I received another email from Dave Pasquale, “ThePennyAuctionKing” promoting you and your site for promoting their letter.

    Here’s a quote from that email that I will copy/paste:

    - “From the desk of Tony M. Thanks a lot!

    http://mlmhelpdesk.com/breaking-zeek-rewards-news-the-sec-acknowledged-that-there-are-a-couple-of-problems-with-the-case-against-rex-venture-group/

    I’ve been out all day-just got home-but heard the following encouraging news. This is from Troy Dooly’s website — http://www.mlmhelpdesk.com ……” -

    If you are their pawn then it’s time to Wake Up! If not, then you are part of them.

    These guys are professionals, not amateurs like Todd Hirsch.

    KNOW YOUR ENEMY!

    They are bloodsuckers that will take your credibility and suck it out of you till it’s all gone.

    You should express an opinion/warning before posting an email like this and follow it with a response afterword. Just posting it is nothing more than “free advertising” for them and helping to lend credibility to their “fake” cause so more people will waste more money to fill their pockets. Every one of those scumbags made enough money from Zeek to pay for their own legal defense.

    This same scam worked great for them years ago after the feds shut down Ad Surf Daily and with your help they should make even more this time. Why not research these criminals and warn your readers about the characters they are giving their money to?

    You can debate Zeek, MLM’s and Ponzi’s all you want but this latest twist is none of them. This is nothing more than blatant disregard for the law, the truth and realty in a deliberate effort to steal even more money from those who have lost so much already, especially those that are international.

    Taking advantage of the less knowledgeable and those living in Fantasy Land is criminal.

    Troy, I have been a follower of yours long before Zeek. I would have expected better from you. It’s time to heed your own words. “If you’re gonna promote MLM, act like it”, because this, my friend, isn’t MLM. This is garbage.

  30. Will we get a 1099?? If so will it be for our original bid purchase or a total of the bids we purchased after we “reinvested”? Will we get a copy of our backoffice for our tax’s. Hard to prove what we spent with our something to show the IRS. We know how forgiving they are. Will this be done by January 30,2013.

    • @Gail

      I don’t think anyone knows.

      The 1099′s for 2011 were fake, the part where repurchase of sample bids was posted as taxable income. “Cash available” wasn’t real money before it actually was withdrawn and received.

      You have court documents showing that Zeek has been shut down as a Ponzi scheme, a type of investment rather than a type of work in its’ main parts, If people have received LESS than their principal investment, the loss should be deductible as “loss to theft” or something.

      If people have received MORE than their principal investment, then they will probably face clawbacks before the end of the year for the amount that exceeds their principan investment.

      One example method for how to post a fraudulent 1099 can be found here (from April 2012):
      http://www.justanswer.com/tax/6keyn-need-tax-expert-what-zeek-rewards.html

      **** quote ****

      Stephen E. Grizey :
      Hi & thanks for using our service. I’ll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don’t understand.

      This is a well know Scam. That’s the botXXX XXne;

      The money that you invested, less whatever you received back, may be claimed as a Theft loss on Schedule A.

      If you can substantiate the fact that you made this as an investment, then claim the loss as a short or long-term capital loss. Consider yourself lucky that you only invested $2,000.

      As far as any 1099 you may have received on “phantom” income, the number should be included in the appropriate place on your income tax returns and then subtracted on the next line & described as a “Fraudulent 1099 in connection with Scam”.

      That’s how I would advise anyone with this set of facts and advise them that any further investigation by them is just a waste of time & money.

      ****************************

      I’ll guess the Receiver will post some information about how to handle the taxes.

      I have been involved in several tax discussions when Zeek was still alive, but we never reached any clear conclusion there. People couldn’t agree whether the “Cash available” was fake or real (taxable income), whether or not the daily ad was work, whether it was investment or work, and so on and so forth.

      * The daily RPP was 100% fake
      * The “Cash available” was 100% fake for most people.
      * “Cash available” withdrawn and received was real money (reduction of loss for most people)
      * People’s initial investment was real (loss)

      * “Cash avaailable” used to repurchase bids was NOT an income.
      * Repurchase of bids does NOT count as deduction

      * Ponzi schemes don’t pay out “salary”, “commissions”, “dividends”, “ROI” or anything like that, it’s all “stolen money” and belongs to the investors as a group.
      * Money received from a Ponzi scheme <= (less than, or equal to) your principal investment is your own money and belongs to you, and shouldn't be taxable as income or anything else.

  31. Troy,

    I have tried to read all the comments but now I am even more confused. Please help me understand:

    I have 4 affiliates in my group that purchased between $500 and $8500 in bids in the last few months since Feb. None of them ever took a cash withdrawal.

    My only concern is that my son and friends are able to get something back from the mistake I led them into…

    IN YOUR OPINION…

    1. Is it likely that we will get a refund and will it even be close to the amount that was purchased?

    2. Would it be accurate to assume that the people who purchased bids but NEVER took a withdrawal would be the first (and maybe the only) to receive a refund? …and like you said, working from the most recent backwards?

    3. Are you saying that even if we donate to the Craddock thing that only 12 people are being represented? …so there would be no benefit to joining this? …are they just doing it to avoid the potential clawback? (for the record I would really like to find that the SEC was wrong..but is it really worth it to join this cause? What really can come of it??)

    4. I just want to direct my affiliates to the best, most likely possible outcome… should we send our info to the receivership (do we even need to do this? are we automatically included) and hope for the best? — or is there more that we can do?

    Thank you Troy for your invaluable reporting and integrity!!

    • @Karyn,

      1. It is likely you will get a refund and it could be close to the full price. It will depend on the amount of assets recovered by the Receiver.

      2. Although it seems accurate to assume that the folks who have never withdrawn any money will be the first to get their funds, since everyone else has had a chance. Those who are entitled to a refund should all get the same percentage back.

      3. No, I am saying only one person is being represented and that is Robert Craddock of Fun Club USA. But is has, from what I have seen and been told, picked 12 top leaders to help him in the fund raising and facilitation of making sure the story is out there for all who are interested. I will not say there is NOT a benefit to joining. I am just not clear at this time what the benefit is.

      The way I see it, if you give them your contact info and no money, they can keep you notified. However, they can also promote additional businesses down the road. Second, at this time I am not sure who is administrating the funds at this time or if, you would get your donation back if the lawsuit never goes forward.

      Once I have additional info I will publish. But right now I am not sure, nor is anyone but Craddock and maybe the chosen 12 what exactly is happening.

      4. I know Kevin Thompson is representing a class of affiliates to get their money back, and he is working to be the most he can for all. http://themlmattorney.com/zeek-rewards-recovery/

      This is the first time I have been involved with such a convoluted mess.

  32. If I get told that there is ZR 2.0 and to start all over again…NO THANK YOU VERY MUCH!!!

    Another think that will make me very angry is if we are fighting the SEC only to prevent clawback … now this will be very cruel indeed!!

    PAUL BURK NEEDS TO PULL HIMSELF TOGETHER AND REVERSE THE MESS HE CREATED. HE NEEDS TO APPEAL THE ORDER…. THE SEC SHOULD PAY A FINE…JUST LIKE THEY MADE PAUL BURK PAY A FINE FOR RUNNING AS THEY ALLEGED A PONZI BUSINESS!!!

    WHATS GOOD FOR THE GOOSE ITS GOOD FOR THE GANDA

    ATTENTION PAUL BURK

    I UNDRSTAND YOU WERE INTIMIDATED AND IN SUCH HARD FAMILY CIRCUMSTANCES …BUT LIFE GOES ON AND THERE ARE OVER 2,000,000 PEOPLE THAT DEPEND ON YOU…PLEASE HELP US WE ARE DESPERATE AND IN NEED OF YOUR HELP!

    • Without being heartless I think Burks’ ‘family issues’ are a weak excuse to avoid responsibilty to affiliates. He should have stood up and fronted the situation. Many people in business have issues but don’t run away.
      The PM of Australia has just lost her father…is she going to go and bury her head in the outback desert now forever or will she have her grieving period and get back to her responsibilities?
      Too many of the hierarchy in Zeek have disappeared and deserted their ‘fine peope’.
      Burks is one, and another is burger bitch Dawn….where are these con people now?

      • @Tom,

        You could be right. However, I guess until we have been married to the same women for 35 years, wonder when her last days are, have survived cancer twice ourselves and find out days before the closure your long time friend and partner has five inoperable cancerous tumors, we may not know what we would do in this case.

        I personally would have at the very least given my legal team the opportunity to defend my company. If they at any time feel they are not going to win, then cut a deal.

        By the way, folks are still around, their attorneys have put them under gag orders, until the criminal indictments come down I think.

  33. @Troy

    (Parenthetical note: I know Word Press supports quote boxes, I wish you did too.)

    From Troy above:

    “.,..1. Based on the info I have at hand, and the fact he did not update the website once he knew the original law firm would not be representing Fun Club USA I would say I am leaning more and more to one of deception, misinformation. I do not know him personally, so I can’t say he is purposely trying to manipulate anyone. He may just be listening to the wrong advice…,.”

    And another data point. How long has it been since Robert has had to publicly admit that the donor’s to his law suit will NOT be represented by the (eventual) law firm? From the zTeamBiz dot COM site:

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

    That doesn’t imply that donors are being represented, it flat out states it and more than once.

    I’m sure Robert and Dave will claim it’s an oversight, they just ~forgot~ to change it and it’s nothing but a coincidence that the oversight is being used by 3rd parties as ~proof~ that donors are paying for personal representation. And by happy accident this helps attract donations.

    And all this Zeek2.0 talk is being aided and abetted by the Kettner’s “Zeek Affiliates United” FaceBook page. There are open discussions about when Z2 will be up and running and fervent hopes shared that everyone’s downlines and VIP point totals will be restored. And the Kettners do nothing to discourage this because it helps their money raising efforts.

    So for the record let’s ask Troy:

    Sir, do you think a rebranded Zeek Rewards program will be opening up restoring the full value of affiliate’s VIP points and their downline matrix earnings? Thank you.

    Again quoting Troy:

    “.,..This is the first time I have been involved with such a convoluted mess…,.”

    Once you’ve watched a few of these things unfold, you’ll start to see the patterns, hell it’s almost like deja vu. Even down to Todd Disner raising funds for a lawsuit to nowhere.

    • @GlimDropper,

      This went to spam for some reason. I did correct the issue of quotes. :) I fully agree!

      Now to answer your direct questions.

      1. Sir, do you think a rebranded Zeek Rewards program will be opening up restoring the full value of affiliate’s VIP points and their downline matrix earnings? Thank you.

      “No I do not belueve that a rebranded Zeek Rewards program will be reopened called Zeek 2.0 restoring the point value. For that to happen, the Receiver would have to turn over control to somewhere between $235 million and $500 million dollars in liquid assets in order to fund the new Zeek 2.0 and that will NEVER happen.”

  34. I must say, I am truly astounded at the shear volume of guess work, self aggrandizement and outright need to prove ZeekRewards right wrong or evil.

    If you don’t trust Craddock and his crew get the hell out!

    If your goal here is simply to hear yourself talk, shut up we are dealing with enough without you peeing down your leg with excitement about finding problems you know nothing about.

    Troy I appreciate the hard work you do to get out all sides of the information.

    It is going to take time. The SEC has never dealt with something like this by their own admission.

    If they did in fact screw up it is a sure bet they have never dealt with recovering from a screw up like this.

    One thing is absolute … none of you soothsayers have anything near complete information.

    None of you know what the deal is that Burks made, none of you has ever seen anything like this before and while you all have opinions, none of them are worth the toilet paper it is written on at this point.

    It is clear that there are opinions on both sides that have educated guesses and guess what … both sides are not correct, one will be proven wrong here. Why should I believe one “expert” over the other clearly they too are just dealing in opinion.

    The only opinion here that matters is that of the SEC and its definitions of a “security”. Without that none of the rest of this even matters. No securities, no Ponzi … game over.

    Climb on, take the ride or get off and laugh at those willing to fight for what they care about. Either way quit with the nonsense!

  35. Troy I am out 10k, live here in the states, unfortunately I found the MLM helpdesk before I sent ZEEK 10k in June and never took a dime out. I’m not blaming you by any means for my own bad judgement I made with zeek, but your site influenced me tremendously, and the only thing I want to know if you were in my shoes and just wanted your 10k back, what would you do? I can’t afford a lawyer or afford to send more money for some lost cause, because even if zeek survived this I want no part of it any more or any MLM for that matter. Sorry but the zeek experience was such a turnoff even thinking about a MLM makes me wanna hurl chunks. All I want to know is what the best road to take to recoup my 10k if that is even possible. Thank you Jim

  36. It disgust me that P.Burks gave up the company without a fight. His actions showed that he did not care for his affiliates. Sadly .If zeek 2.0 clone to start again, I will not join.
    my 2 cents.

  37. Maglich of forbe.com pointed out a very good point that when the Receiver filed an emotion to cash out the cashier checks, other cash avaliable, the Receiver also included the request to freeze Paul Burk’s personal bank as well as his family. However, Burks’ attorney only filed motion to reject one part of the Receiver’s motion, that is to reject the Receiver to freez Burks and his family members’ persoal bank accounts only. Burks’ attorney and Burks himself didn’t even entertain to object the motion of cashing out the remaining cash and cashier checks, money orders, etc.. which were sent in by people a few days before, on and after August 17,2012, and haven’t been cashed out by Zeek yet. This could help a lot of folks to get back their money, especially when the checks arrived after Aug 17.

    Clearly, Paul only cares for himself and his family members. People blame on the SEC for not allowing Paul a fair trial in court to defend Zeek, but if we stop for a moment, and read all the court filing documents, then turn our camera to a different angle, we can see that it was Paul who refused his right just so he can exchange for a lesser verdict and possible lesser chance of going to prison or shorter prison term later on when the investigation is finished. — Any right mind and innocent person would not agree to sign a term which he/she cannot do anything to indicate or imply that she/he is innocent, especially when that person has a lawyer right besides.

  38. Troy…Why should we value your opignion on zeek rewards when we all know now you were dead wrong about what happend to zeek!
    Consider this…you might be wrong now too thinking that justice cannot be made for Zeek if the SEC in fact shut them down for not enough cause.

    Just becasue you have a blog and make video on so many mlm…you are a reporter not a person who really know anything.

    Sorry but that is the fact.

    Nader

    • @Nader,

      I can’t tell you why you should value my opinion over anyone else. I can say that if you read through all the comments, you should get enough facts and opinions to make and informed decision on what you should do.

      I was wrong on the federal regulators moving in 2012, that is correct. But since the SEC allegations were never defended in court, we may never know if I was wrong or not. Paul Burks, cut a deal, which is his right, and decided to never let the corporate legal team defend their opinions on the compensation structure.

      I am not sure where you get your thinking that I do not think Justice can be served. I have never wavered on stating I want an open trial so the SEC evidence can be cross examined and the Zeek Rewards legal team can defend their opinions.

      • Thank you Troy. What I do think right now is that the Sec actually harmed the zeek people especially the ones who joined in last. If they are sincere about it they should let the last people get there money first since there is no question no money was made there.

        More importantly I think this country is becoming a economic dictatorship that actually incite business to go overseas where the rules are more reasonnable. In the end this goverment is shooting itself on the foot.
        The tax revenues are lost in the state of north carolina…all this becasue Paul did not want to move his business to benefit Nevada!

        Who is the SEC not to declare any banks, the FED reserve and the social security a ponzy scheme too. We all know what would happen if we all go to the bank and want our $ in cash or not?

        People from Zeek…have a little more respect for yourself if you feel for the propaganda…If your were 65 year old and a totalitarian SEC gave you a “deal” to put you in jail for the rest of your life or let you free knowing that they can make the rest of you life miserable from a penitentiary : what would you do?

        Paul might just be a just American hero the way I see it.
        He came up with a business model that worked. May be he should have put a limit to how much people can take out in cash in a day to make it sustainable.

        There is another fact you might want to consider what is people hight up do not want the average joe to get economically more free? Do you know how many people in the world some diseable where making enought $ to feed their familly.

        Consider the lottery that in many state is legal…It harms more people than zeek could ever do by itself…So little people win!

        Now consider the psychological effects…how many people in the world had a very happy smile and felt finally hopefull about their financial possibilities?

        Just for that Zeek should remain open alone!
        Stand up for Zeek people…AMERICAN freedom is at stakes. We should have the right to choose to be fooled…we do not need the SEC or anybody else to take the risk out of our lives.
        We want free entreprise good or bad…let us be!

        Best

        Nader

        • @Nader,

          I also think harm has come due to the SEC’s actions. But even more confusing is Paul’s actions, and when you combine them both it is very puzzling. I just wish the corporate legal team could have had a chance. Maybe someday we will know the whole story.

          I do agree the business climate is not the best it has been. But I also believe that will change as more and more folks get on the grass roots bandwagon and vote to make some changes at all levels this year. We are still a Republic For The People By The People… We just need to wake up and do something about it!

  39. Here’s a quote from document #1 in the court documents, “Motion to Seal”:
    ********
    [..]
    Commission counsel has engaged in discussions with counsel for the Defendant Rex Venture Group, LLC (“Rex”) and Defendant Paul R. Burks (“Burks”). These discussions have resulted in the Defendants’ consenting to filing of this Motion and the documents referenced herein under Seal.

    In support of this Motion, the Commission respectfully states that the parties have reached agreement to settle this matter as reflected in Complaint, Agreed Order, Consents of both Defendants, and [proposed] Judgments. Given the emergency nature of this action and risk of dissipation of assets, the parties have moved the Court for an (Agreed) Order Appointing Temporary Receiver and Freezing Assets of Defendant Rex Venture Group, LLC.
    [..]
    ********

    So Paul Burks’ counsel had discussions with SEC’s counsel in the day(s) before the shutdown, probably initiated by Paul Burks himself via his counsel.

    Other parts of Zeek was shut down in the last days before the court meeting, e.g. cancelling Red Carpet Event and conference calls. The office was shut down on August 16th, the day before the court meeting.

    This was probably a planned shutdown rather than an involuntarily one. Paul Burks probably knew Zeek was about to collapse, and tried to avoid the escalating trouble that was ahead of him, and of course trying to make a good deal at the same time.

    The deal was good because it limits the civil penalties to a fixed amount, and covers ALL civil penalties including tax penalties. Tax penalties would probably have become HUGE, so he choosed to limit that risk.

    As far as I can see, Paul Burks have very few motives for trying to restart Zeek. He has already made a good deal, and it would be stupid of him trying to reverse it.

  40. hello every one how are you my qustion is to all people that the zeek case are held and also the people says that zee2.0 is coming so why they fight for the zeek case or they making us fool can you tell me anything about this and when the zeek case is over

    • @David,

      From the way I understand it, the owner of Zeek Rewards, Rex Venture Group, LLC., and the one controlling member of RVG, Paul Burks, has consented to the SEC complaint and surrendered all current and future claim to the assets of RVG aka Zeek Rewards. The courts have accepted the consent and at the request of the SEC has appointed Kenneth D. Bell as the Receiver of those assets.

      So, there is nothing for any attorneys to fight for when it comes to Zeek Rewards. Now with that said, there are some attorney’s fighting for different groups of former affiliates. Some are fighting for more money from Burks… I think (not sure on that one), and there is a group (mentioned in the video above) who are fighting to stop any clawbacks that might come their way from, if I understand right is classified (my term) and “ungodly profit” off the victims.

      • Thanks Troy for your insight on this . so with zeek pretty well done for what would you recommend for a home base bussines ? whats your thoughts on bidify?

        • @David,

          I am personally cautioning everyone when it comes to penny auctions. But, BidiFy did follow their attorney’s suggestions and made some major changes to their compensation model just days after the Zeek take down.

          I do not know their auction numbers, but Frode has made it very clear he wants to create the largest penny auction in MLM.

          • Changes to pay plans don’t guarantee profits. Do these MLM penny auctions produce enough profits to pay profits to all affiliates along with all the generous referral commissions?

          • @Reeder,

            I did a few reports on Penny Auctions in general, and when run right, they can produce huge profits. Now, that many of the MLM Penny Auctions have changed their marketing structures, only time will tell.

  41. Hi, I have a few questions for you.

    1 I opened 4 zeekrewards account with my own money which is 38,000 dollars total. . One is under my name, two are under my parents names and one is under my uncle’s names. I am an American citizen, my parents and my uncle are chinese citizens who live in China. Well, I have all the cashier’s receipts to prove all the money are from my checking accounts. I also have all the email addresses and passwords to prove I am the person who is in charge of all the accounts. Do you think it will be hard for me to claim the money in the future when it is time for the receiver to give the money back since I use my family member’s names to open 3 accounts?

    2 By the end of this year, if I have not receive any money back from the receiver, can I claim 38k as a loss for tax deduction?

    Thanks

    • @Meiling,

      Well, if you personally opened those account and you loaded the money, you might have an issue, since what you did was also against the policies. Now without knowing if your family were legal to transact business in this country I can’t answer that question.

      I am not a tax accountant. But since right now you have not lost any money, but rather it is frozen, I would say no. But you need to talk to a tax accountant.

      • First, thank you for answering my questions.

        Regarding the tax part, I do agree with you since I don’t know how much I can get back and there is no final decisions come out, so I basically can’t claim ZR as a loss unless I know exactly how much I can get back from the receiver. This question is clear.

        Regarding my family members’ other 3 accounts, I have told my parents and my uncle I used their names to open 3 accounts before I opened it. I also believe it is a common issue for a lot of Zeekrewards affiliates, I hate the fact my upline pushed me very hard and asked me to open more accounts by using family members’ names so that he canern more commissions. Using our family members names to open more accounts is a bad decision I made, it is part of my fault too. I just do not want my money to mail to China. I think there are certain ways to prove I am the person who opened the 3 accoutnts: I am the only one who have their email addresses, I have the original email I got from zeekrewards after I opened the 3 accounts, I have the passwords to prove. The most important part is I have the receipts to prove the money is from my checking accounts. If that is not enough, then I don’t know what else I need to prove it. Anyway, this will be a common issue since a lot of people did the same thing including my upline.

        Thank you for taking your time to read my comment

  42. yes they stole our money, plan and simple the gov boys are the one to blame show the securtiy notes show us the stock the tried to sell nope they cant of the again they came in and stole the money plan and simple

    • @Tell The Truth,

      I can feel your frustration, but I have yet to see any evidence that the government is trying to steal anything. Now I am not pleased with what has happened, but to try an blame the government, when Paul made the choices he did, with the guidance of his personal legal team, it seems there are many players in this situation.

  43. I am beginning to think this whole scam is started by people that don’t live in this country or no longer living in this country. Very elaborate planning.

    • @Jay Jack,

      Well, it always amazes me that some folks are clueless on the subject in which they are speaking.

      First of all you need to check the date of this article. Second, my reporting has never been about traffic and if it were, I would be covering Empower Network, Go Fun Places, ILA, and the issues surrounding Profitable Sunrise.

      So sport before you try and speak about a topic you are not well versed, take some time and study it.