Rex Venture Group Receiver Kenneth D. Bell And Zeek Rewards Victim Information

ZRReceiever

On August 17, 2012, the Securities and Exchange Commission (“SEC”) filed a Complaint in United States District Court, Western District of North Carolina, Charlotte Division, against Rex Venture Group, LLC (“Rex Venture”) d/b/a ZeekRewards.com (“ZeekRewards”), and Paul R. Burks. The SEC alleges that Rex Venture and Burks offered and sold unregistered securities in a combined Ponzi and pyramid scheme.

On August 17, 2012, Judge Graham C. Mullen issued an Order appointing Kenneth D. Bell of McGuireWoods LLP as temporary receiver (“Receiver”) for Rex Venture Group, LLC d/b/a ZeekRewards.com. The August 17th order directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate.

At this time there is no claims process and no distribution. The Receiver is currently gathering ZeekRewards investment history and harmed investor information from the Defendants in an effort to facilitate the claims process and subsequent distribution to harmed investors.

This website will be the Receiver’s primary means of communicating with customers and the public. Please check back periodically for additional information.

Click here to see a press release from the Receiver.

Case Documents

Agreed Order Approving Temporary Receiver and Freezing
Assets of Defendant Rex Venture Group, LLC
Complaint: SEC v. Rex Venture Group, LLC d/b/a ZeekRewards.com, and Paul R. Burks
Kenneth D. Bell Press Release

Frequently Asked Questions

What Is This Lawsuit About?
The SEC alleges that online marketer Paul Burks of Lexington, N.C. and his company Rex Venture Group have raised money from more than one million Internet customers nationwide and overseas through the website ZeekRewards.com, which they began in January 2011.

According to the SEC’s complaint filed in federal court in Charlotte, N.C., customers were offered several ways to earn money through the ZeekRewards program, two of which involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.

The SEC alleges that investors were collectively promised up to 50 percent of the company’s daily net profits through a profit sharing system in which they accumulate rewards points that they can use for cash payouts. However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company’s net profits. Most of ZeekRewards’ total revenues and the “net profits” paid to investors have been comprised of funds received from new investors in classic Ponzi scheme fashion.

The SEC’s complaint alleges that the scheme is teetering on collapse with investor funds at risk of dissipation without its emergency enforcement action. Last month, ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million. If customers continue to increasingly elect to receive cash payouts rather than reinvesting their money to reach higher levels of rewards points, ZeekRewards’ cash outflows would eventually exceed its total revenue.

I was enrolled in a ZeekRewards monthly subscription plan, purchased ZeekRewards “VIP Bids,” or otherwise invested in ZeekRewards. Will I receive back all of my money that I invested in ZeekRewards?
According to the SEC’s complaint, ZeekRewards has paid out nearly $375 million to investors to date and holds approximately $225 million in investor funds in 15 foreign and domestic financial institutions. Those funds will be frozen under the emergency asset freeze granted by the court at the SEC’s request. Meanwhile, Burks has personally siphoned several million dollars of investors’ funds while operating Rex Venture and ZeekRewards, and he distributed at least $1 million to family members. Burks has agreed to relinquish his interest in the company and its assets plus pay a $4 million penalty. Additionally, the court has appointed a receiver to collect, marshal, manage and distribute remaining assets for return to harmed investors.

How Will the Claims Process Work?
At this time there is no claim form available nor has a formal claims process been established and approved by the Court. However, the process of verifying and validating or rejecting claims typically involves comparing the information submitted by the Claimant to the information available to the Receiver, and reaching a conclusion in light of the available information and the applicable law.

What if I have additional questions?
If you have any additional questions, please contact the Receiver by email at: info@ZeekRewardsReceivership.com

Contact Us

You may also contact the Receivership using the contact information listed below. Please note that at this time the preferred method of contacting the Receiver is via e-mail.

E-mail: info@ZeekRewardsReceivership.com

11594

Mr. Bell works in the firm’s rapidly growing Government, Regulatory and Criminal Investigations Department, where he represents clients on a variety of matters involving white collar crimes and business-related investigations. As part of his practice, he routinely represents Fortune 500 companies facing federal and state grand jury investigations.

Honors
Named a “Leader in the Field,” Litigation: White-Collar Crime and Government Investigations, North Carolina, Chambers USA, 2012

Named the Best Lawyers “Charlotte Criminal Defense: White Collar Lawyer of the Year,” 2010

Named One of the “Best Lawyers in America,” Woodward/White, Inc., 2007-2012

Named a North Carolina “Super Lawyer,” 2010-2012

Named One of North Carolina’s “Legal Elite,” Business North Carolina

U.S. Attorney General John Marshall Award for Trial of Litigation

Previous Experience
Partner, Hunton & Williams LLP, 2006-2009
Partner, Mayer, Brown, Rowe & Maw LLP, 2003-2006
First Assistant U.S. Attorney, 1993-2003
Assistant U.S. Attorney, Western District of North Carolina, 1990-1993
Republican Nominee, U.S. House of Representatives, North Carolina Fifth Congressional District, 1990
Womble, Carlyle, Sandridge & Rice, PLLC, 1988-1990
Assistant U.S. Attorney, Western District of North Carolina, 1983-1988

Speaking Engagements
North Carolina Bar Association’s White Collar Crime Spring Program, Cary, North Carolina, May 2009
“Challenges in Disclosing and Using Intelligence in Criminal Prosecutions,” Canadian National Conference on Public Safety, Montréal, Canada, November 2008

Faculty, 27th Annual National Trial Advocacy College, University of Virginia School of Law, 2008
“Recent Developments in North Carolina’s Confrontation Clause Jurisprudence,” Wake Forest University School of Law, September 2006

International Association of Financial Crimes Investigators, Chicago, Illinois, September 2004

National Organization of Black Law Enforcement Executives, Dallas, Texas, July 2004

Law Enforcement Intelligence Unit, San Antonio, Texas, May 2004

Intelligence Agencies Legal Advisors Conference, Vancouver, British Columbia, September 2003

International Law Enforcement Academy (Money Laundering, Financial Crimes and Terrorism), Budapest, Hungary, July 2003

Federal Reserve Bank of New York (Money Laundering Symposium), New York, New York, July 2003

Money Laundering Alert Annual International Conference, Miami, Florida, March 2003

Terrorist Financing, Money Laundering and High Risk Money Laundering and Related Financial Crimes Area (HIFCA) Conference, U.S. Virgin Islands, March 2003

National Forensic Auditor Conference, San Francisco, California, September 2002

Forfeiting the Proceeds of Terrorist Organizations International Seminar, London, United Kingdom, September 2002

International Conference on Illicit Tobacco Trade, United Nations, New York, New York, July 2002

Department of Justice Anti-Terrorism Regional Conferences, Atlanta, Chicago, Dallas, Denver, July/August 2002

Professional Affiliations
North Carolina State Bar Association
District of Columbia Bar Association

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17 thoughts on “Rex Venture Group Receiver Kenneth D. Bell And Zeek Rewards Victim Information”

  1. @Janey,

    Not sure why you do not feel it is valid, it had been used by hundreds of thousands of former Zeek Rewards Affiliates since it went public.

    If you have not had time to follow our editorials, then I will quickly fill you in. The Receiver will prsent the claims process and claims form to the Judge when the Judge approves it, then it will go live on the Receiver’s website and we will take it live here at http://mlmhelpdesk.com/zeek-rewards-court-documents/

    You can also at the above page review all the Receiver has published in monthly letters to learn more.

    My advice is to continue stufying the above page because we update it will all the court documentation as it become available.

  2. The Receiver’s email doesn’t seem valid. It is info@zeekrewardsreceivership.com. I lost money to zeekrewards and need to know where to go from there. Is there an official form in which I need to file with the SEC in order to expedite my losses so as to get my money back? Whom do I contact? What is the address? Phone Number?
    Is there anybody out there that can help me get my losses back? “Flakes” are not welcome to respond to my comments and or questions. I have lost a lot of money to these flakey zeek money hungry mongrels, and I want it back! If the Rex Venture Group / Paul Burks had any honor at all, they should have not conjured up that ponzi scheme and sure give the money back!

  3. @Tissa,

    I do believe any and all attorneys working for the affiliates will protect ALL former affiliates. Which may be one good reason for folks to form a class with one attorney or another.

    I totally agree with you. Since I feel there is far more liquid assets than listed on the SEC complaint, I still feel the Affiliates due refunds should get 100%, and that the additional Clawbacks (if this goes to a criminal case) will help pay off all of the class actions suits.

    I have been looking to find where the Clawback laws have been used in a civil cases and have not found any yet. Which leads me to believe there will be a criminal case pending in the future.

    I agree with you, the Receiver needs to get a handle on all this to truly figure this all out.

    Thank you Tissa for helping to keep valid info following.

  4. @Renzilla,

    The SEC was formed to protect US Citizens and do not have any control over international citizens. That does not mean they will not be protecting you as part of the class. What it does mean is that US Citizens will more than likely get their refunds first.

    With all the lawsuits now pending this will take years to get cleared.

    I will continue to do all I can to help everyone

  5. Hey troy,

    You say : The only people the SEC protect are USA Citizens.
    Can you tell us what can be done when you're not USA citizen ?
    I'm from europe and I have several donwline from different contries who put money on zeek like me…so can you recomend us if there is something else to do than wait ?

    Thank you Troy

  6. Fair enough Troy, but nor has Kevin Thompson said that he will limit his “actions” to non-US citizens either. He’s taking all names, USA citizens or not.

    The class-action attorneys may not make money off Zeek affiliates directly, but ultimately their fees will be taken from that $225 million – reducing the reimbursements available for qualified affiliates. With lawyers typically getting about 30% of a class-action settlement, that would mean $67 million LESS for reimbursements to harmed Zeek affiliates.

    I’m sorry, but that’s just adding insult to injury.

    And that’s assuming one class-action; we know a class-action has already been filed by Calvin Cunningham in Lexington: http://www.the-dispatch.com/article/20090610/ARTI

    In the aftermath of Zeek’s demise, many have accused other programs like Vitel of being “vultures”, but at least those programs don’t reduce the funds available to reimburse harmed Zeek affiliates. Class-action lawyers on the other hand – do.

    I agree with @Jim8686 – let the receivership do its job. One million affiliates or not, all claims will still have to be validated individually, and class-action lawyers aren’t going to speed that process one bit. Lawyers aren’t exactly renowned for their efficiency and cost-effectiveness 🙂

    I don’t have a dog in this fight, since I didn’t lose any money in Zeek. I just don’t want Zeek affiliates who lost money to be screwed over, yet again.

    Side note: Take cover from Hurricane Isaac, stay safe Troy. Thanks for raising the bar.

  7. @Gone2TheWood,

    Well, I am not an attorney and have never gone through a situation like this one. But, it seems gathering everything would be a good move. Do not send to Mr. Bell until the forms go live on the site.

  8. @Jim8686,

    The attorneys don't make money off of you at all. With 500K to 1 plus million reps, if each person waits to figure out what is happening, and they are not based in the USA, then they may not get what is due them.

    The only people the SEC protect are USA Citizens.

  9. Man, these people are out for blood. I could imagine how they feel because I'm a part of this too. But the last thing I think we want to do is file a Class Action lawsuit. If they think that waiting for the receiver to return their money would take too long, just wait and see how long a Class Action lawsuit would take. And most of that $225 mil would go to the attorney. The attorney would tack so much legal fees and expenses that we would soon be suing each other just to get back what we invested. In my opinion we are opening a can of worms here. Maybe soon more affiliates and disgruntled distributors will get the idea to sue their opportunities too. Then there goes the final frontier to the American dream. God bless the MLM industry.

  10. Just let the recievership so there job, don't let the blood sucking ambulance chasing attorneys make money off of us, the victims. I wanna see ZEEK masterminds in shackles, that goes for that hippie Dawn,

  11. Troy,
    First thanks for everything you do! You are much appreciated! I have a question. Under "How Will the Claims Process Work?" it says "…the process of verifying and validating or rejecting claims typically involves comparing the information submitted by the Claimant to the information available to the Receiver, and reaching a conclusion in light of the available information and the applicable law." Does this mean we need to gather our information and send it to the Mr. Bell?
    Thanks

  12. 8/23/2012 – This WEEKS “ZEEK DIAMOND UPDATE” – WE HAVE FOUND AN SEC LEGAL DEFENSE LAW FIRM

    WE HAVE FOUND
    AN SEC LEGAL DEFENSE LAW FIRM

    By Monday 9/1/2012 The Following Website Will Be Active
    (IT’S BEEN SET UP AS A PRIVACY DOMAIN TO PROTECT THE INNOCENT)
    ZEEKREWARDSDEFENSETEAM . COM
    “We Will Take A Stand – What Was Done Was Wrong”
    “I’m as mad as hell and I’m not gonna take this anymore!” http://www.youtube.com/watch?v=q_qgVn-Op7Q
    IT’S NOT JUST ZEEK – IT’S OIL – IT’S TAXES – IT’S GOV’T

    We do not wish to spam any one any updates
    To be removed from these – just reply with the words PLEASE REMOVE…
    The rest of you need to help us get the word out so send our ZEEK UPDATES out to every ZEEK PERSON YOU KNOW!!!
    To be added to our list just e-mail your request to: zeekdiamondupdates@gmail.com
    Please post this communication on facebook, blogs, talking boards and any other online sites available to you.

    “THINK REAL HARD ABOUT JUMPING INTO ANOTHER PENNY AUCTION”

    Regardless of our warning in our past communications many ZEEK Affiliates are jumping into what they are being told is the next BIG ZEEK. Bidify, Bidxcel, Bid2Give and many others. Unless these companies can show you LEGAL DOCUMENTATION – STAY AWAY. You will just be leading more people into a very risky opportunity. If you dig deep behind the management of many of these companies you will not like what you find. For example take BIDIFY. Frode Jorgensen is behind such and it was just a few years back that he was shut down in NORWAY and we in the field lost OVER $300,000,000.00 YES OVER 300 MILLION DOLLARS with NOT ONE DOLLAR RECOVERED

    BE SAFE THAN SORRY – WE SUGGEST YOU WAIT AT LEAST 90 DAYS BEFORE YOU GET INVOLVED IN ANY PENNY AUCTION

  13. @Richard8,

    With over 1 million affiliates, don't expect a reply fast. This is one of the reasons I was wiling to put up Kevin Thompson's offer to represent the class of affiliates.

  14. I finally decided to stop crying over my Zeek Rewards lost. I kept hearing the voice of Troy Dooly and thought I was going mad. Live life like its an Epic Adventure, stay dangerous, stay strong, and If you're In Network Marketing act like It. Thanks Troy, today I found a new home with Solavei. If anyone out there needs an invite just email me yuhdalla@gmail.com

  15. if the sec realy wants to refund the victims i want to suggest here a very simple and fast way to close the zeek file in amonth.

    a:for i:=1 to banks sum the money in hand
    b;for i:=1 to 1,000,000 afiliate begin if the af is victim sum the total money we want to refund end;
    c:a minus expences of operating the zeekrewards website for month.
    d:a devided by c is the precntage that every victim will get back
    e:for i=1 to 1,000,000 begin if af[i] is victim then update his vip in his rpp to the sum he didnt pulled out x d(the precentage).
    and now just activate the site and with 4 persent of earnings every day and let the victims pull the money out to their ewallet as they used to do.
    and so the zeek file will be closed in a month or 2

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