ZEEK: Key Figures — And Paul Burks’ Defense

Founder Of Zeek Rewards, Paul Burks Trial To Begin

PatrickPretty

EDITOR’S NOTE: Prosecutors and Paul Burks are clashing over expert witnesses and the admissibility of certain evidence. The article below reproduces the anticipated core of Burks’ trial defense, as advanced by his lawyers. This article is not intended to be all-encompassing. Prosecutors, of course, have an altogether different take. They have posted the indictment against Burks […]

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URGENT >> BULLETIN >> MOVING: Zeek Receiver Moves For Summary Judgment Against Class-Action Clawback Defendants; Kenneth Bell Says Defense Expert Witness Has Found No Evidence That ‘Disproves That The Business As A Whole Operated As A Ponzi Scheme’

Kenneth Bell Says Defense Expert Witness Has Found No Evidence That ‘Disproves That The Business As A Whole Operated As A Ponzi Scheme’

Kenneth D Bell

URGENT >> BULLETIN >> MOVING: (3RD UPDATE 6:11 P.M. EDT U.S.A.) On virtually the eve of the criminal trial of Paul Burks, receiver Kenneth D. Bell has asked the court presiding over a huge class-action lawsuit against 9,400 alleged Zeek “winners” for a finding the MLM program was a Ponzi scheme. Such a finding would mandate […]

The post URGENT >> BULLETIN >> MOVING: Zeek Receiver Moves For Summary Judgment Against Class-Action Clawback Defendants; Kenneth Bell Says Defense Expert Witness Has Found No Evidence That ‘Disproves That The Business As A Whole Operated As A Ponzi Scheme’ appeared first on PatrickPretty.com.

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Grand Jury Was Meeting When Some Zeekers Waged Misinformation Campaign

Federal Prosecutors In Zeek Reward Trial Question Veracity Of Burks’ ‘Handwritten Notebooks’

Paul Burks Founder of Zeek Rewards & Rex Venture Group

New filings by federal prosecutors in the criminal case against Zeek’s Paul Burks reveal that a grand-jury investigation was under way within days of the SEC’s Aug. 17, 2012, shutdown of the “program” and confirmation by the U.S. Secret Service that it also was investigating Zeek. Burks was subpoenaed by the grand jury on Aug. […]

The post Grand Jury Was Meeting When Some Zeekers Waged Misinformation Campaign; Prosecutors Question Veracity Of Burks’ ‘Handwritten Notebooks’ appeared first on PatrickPretty.com.

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Zeek Rewards Founder Indicted For Operating $850 Million Internet Ponzi Scheme

Zeek Rewards COO Dawn Wright Olivares

United States Attorney Anne M. Tompkins Western District of North Carolina
CHARLOTTE, N.C. – The president of ZeekRewards, Paul Burks, has been indicted on federal charges for operating an Internet Ponzi scheme that took in more than $850 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The criminal indictment was returned today by a federal grand jury sitting in Charlotte, charging Burks, 67, of Lexington, N.C., with wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy.

Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Tompkins in making today’s announcement.

Angle Of Justice

According to allegations contained in the indictment, from January 2010 through August 2012, Paul Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”). The indictment alleges that Burks and his conspirators induced victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from its penny auctions, and that the public could share in such profits through investment in ZeekRewards. Indeed, the indictment alleges that Burks and others claimed, at one point, that investors would be guaranteed a 125% return on their investment.

The indictment alleges that Burks and his conspirators represented that victim-investors in ZeekRewards could participate in the Retail Profit Pool (RPP), which supposedly allowed victims collectively to share 50% of Zeek’s daily net profits. The indictment alleges that Burks and his conspirators did not keep books and records needed to calculate such daily figures, and that Burks simply made up the daily “profit” numbers. The indictment further alleges that, contrary to the conspirators’ claims, the true revenue from the scheme did not come from the penny auction’s “massive profits.” Instead, approximately 98% of all incoming funds came from victim-investors, which were then used to make Ponzi-style payments to earlier victim investors.

MLM Attorney Jeffrey A. Babener: Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis

Angle Of Justice

Jeffery BabenerLast week Jeff Babener, like Kevin Thompson before him, wrote a great analysis on the Burn Lounge decision handed out by the 9th Circuit. I believe there is much to be learned fro this decision no matter how one views network marketing if they are willing to study the courts decision.

BurnLounge Appeal Decision:
Guidance on Pyramid v. Legitimate MLM and the Role of Personal Use in Pyramid Analysis

By Jeffrey A. Babener
© 2014

You can read the full article at MLM Legal! Here at MLM Help Desk, I am going to print what I feel are the most important points Babener makes. 

Oz At Behind MLM Raises A Great Question: Did the Zeek Receiver shut down Robert Craddock?

After weeks of promising to reveal a “really good” revenue-sharing that MLM opportunity that everyone was welcome to invest in, a somewhat unexpected message appeared today over at ZTeamBiz. November 13, 2013 Fellow Zeeker’s,  this is our final posting. As you know the goal was to assist the people of Zeek Rewards, and provide relevant […]

Source: Did the Zeek Receiver shut down Robert Craddock?

Read the full article and join in the discussion over at BehindMLM.

ATTENTION Zeek Rewards News & Info: Last chance to file Zeek Rewards claim

LEXINGTON, N.C. — Victims of Zeek Rewards have one more week to file a claim to get their money back.

The federal government shut down Zeek Rewards last year, calling it a “pyramid scheme.”

Zeek Rewards COO Dawn Wright Olivares

A receiver is now in charge of getting as much money back as possible and giving it to victims.

The last day to file a claim in September 5.

Visit www.zeekrewardsreceivership.com for more information.