Paul Burks, the 70-year-old operator of the Zeek Rewards Ponzi scheme, now is listed as prisoner No. 29723-058 at FMC Lexington. The facility is an administrative security federal medical center with an adjacent minimum security satellite camp in Lexington, Ky. After being sentenced in February to more than 14 years, Burks was ordered to report to […]
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.
“Rather, [Andy] Bowdoin manufactured the revenue numbers to deceive members into believing that they could reasonably expect to receive an average daily return on their investment with [AdSurfDaily] of at least 1%. This percentage in no way corresponded to the daily revenue that ASD was generating, but had been determined by ASD’s operators to be […]
The post FEDS: Having Pocketed $11 Million In 2011, Burks Plowed Forward With Zeek, Despite Knowledge Of AdSurfDaily Ponzi Case appeared first on PatrickPretty.com.
SPECIAL REPORT: N. Donald Jenkins Jr., an Arkansas attorney listed as a registered agent for Wandering Phoenix LLC, a firm federal prosecutors have linked to Zeek Rewards’ figure Dawn Wright-Olivares, was ordered disbarred on May 30, 2013, records show. He thrice previously was ordered suspended from the practice of law and has a thick disciplinary […]
Many on both sides of the argument have been waiting for something to break to either prove or disprove that Rex Venture Group LLC was truly running a ponzi/pyramid scheme. In this latest news Dawn Wright-Olivares and Dan Olivares admit to some incredible information. SEC Press Release.
WFMY News – Federal Charges Filed in Zeek Rewards Case
Behind MLM – Dawn Wright-Olivares pleads guilty to fraud
IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA CHARLOTTE DIVISION
SECURITIES AND EXCHANGE COMMISSION,
DAWN WRIGHT-OLIVARES and DANIEL OLIVARES,
Civil Action No.
CONSENT OF DEFENDANT DAWN WRIGHT- OLIVARES
1. Defendant Dawn Wright-Olivares (“Defendant”) waives service of a summons and the Complaint in this action, enters a general appearance, and admits the Court’s jurisdiction over Defendant and over the subject matter of this action.
2. Defendant has entered into a written agreement to plead guilty to criminal conduct relating to cetiain matters alleged in the Complaint in this action. Specifically, in United States
v. Dawn Wright-Olivares, Crim. No. (W.D.N.C.), Defendant agreed to plead guilty to (1) Conspiracy [18 U.S.C. § 371] to commit wire fraud in violation of 18 U.S.C. § 1343, and securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 [15 U.S.C.
§§ 78G)b)] and Rule lOb-5 thereunder [17 C.F.R. § 240.10b-5]; and (2) Tax Fraud Conspiracy in violation of 18 U.S.C. § 371. In connection with that plea, Defendant admitted the facts set
Case 3:13-cv-00700-FDW-DCK Document 1-1 Filed 12/20/13 Page 1of 6
forth in the Factual Summary filed contemporaneously with her Plea Agreement, which is filed on this date in the criminal action. This Consent shall remain in full force and effect regardless of the existence or outcome of any further proceedings in United States v. Dawn Wright Olivares, Crim. No._ (W.D.N.C.).
3. Defendant hereby consents to the entry of judgment in the form attached hereto (the “Final Judgment”) and incorporated by reference herein, which, among other things,
a. permanently restrains and enjoins Defendant from violation of Sections 5(a), 5(c), and 17(a) ofthe Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)], and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15
U.S.C. § 78j(b)], and Rule 10b-5 thereunder [17 C.P.R.§ 240.10b-5], and from directly or indirectly participating in, or facilitating, the solicitation of any investment in any security or in the offering of any security, provided, however, that such injunction shall not prevent Defendant from purchasing or selling securities listed on a national exchange for her own personal account; and
b. orders Defendant to pay disgorgement in the amount of $7,846,900.95, plus prejudgment interest thereon in the amount of$337,163.99, for a total of
$8,184,064.94, but provides that Defendant’s payment of disgorgement and prejudgment interest shall be deemed satisfied upon entry of a restitution order and/or forfeiture order requiring Defendant to pay an amount equal to or greater than $8,184,064.94 in United States v. Dawn Wright-0/ivares, Crim. No. _ (W.D.N.C.).
4. Defendant agrees to disclaim and relinquish, and agrees that the Court shall order Defendant to disclaim and relinquish, all legal and equitable right, title, claim, or interest in Rex
Case 3:13-cv-00700-FDW-DCK Document 1-1 Filed 12/20/13 Page 2 of 6
Venture Group LLC, including: all subsidiaries, whether incorporated or unincorporated; all businesses or business names under which it does business and; and all assets in Rex Venture Group LLC’s possession, custody or control, including assets held in accounts in any financial institution.
5. Defendant waives the entry of findings of fact and conclusions of law pursuant to Rule 52 of the Federal Rules of Civil Procedure.
6. Defendant waives the right, if any, to a jury trial and to appeal from the entry of the Final Judgment.
7. Defendant enters into this Consent voluntarily and represents that no threats, offers, promises, or inducements of any kind have been made by the Commission or any member, officer, employee, agent, or representative of the Commission to induce Defendant to enter into this Consent.
8. Defendant agrees that this Consent shall be incorporated into the Final Judgment with the same force and effect as if fully set forth therein.
9. Defendant will not oppose the enforcement of the Final Judgment on the ground, if any exists, that it fails to comply with Rule 65(d) of the Federal Rules of Civil Procedure, and hereby waives any objection based thereon.
10. Defendant waives service of the Final Judgment and agrees that entry of the Final Judgment by the Court and filing with the Clerk of the Court will constitute notice to Defendant of its terms and conditions. Defendant further agrees to provide counsel for the Commission, within thirty days after the Final Judgment is filed with the Clerk of the Court, with an affidavit or declaration stating that Defendant has received and read a copy of the Final Judgment.
Case 3:13-cv-00700-FDW-DCK Document 1-1 Filed 12/20/13 Page 3 of 6
11. Consistent with 17 C.F.R. 202.5(±), this Consent resolves only the claims asserted against Defendant in this civil proceeding.
Defendant acknowledges that no promise or representation has been made by the Commission or any member, officer, employee, agent, or representative of the Commission with regard to any criminal liability that may have arisen or may arise from the facts underlying this action or immunity from any such criminal liability.
Defendant waives any claim ofDouble Jeopardy based upon the settlement of this proceeding, including the imposition of any remedy or civil penalty herein. Defendant further acknowledges that the Court’s entry of a permanent injunction may have collateral consequences under federal or state law and the rules and regulations of self-regulatory organizations, licensing boards, and other regulatory organizations. Such collateral consequences include, but are not limited to, a statutory disqualification with respect to membership or participation in, or association with a member of, a self-regulatory organization.
This statutory disqualification has consequences that are separate from any sanction imposed in an administrative proceeding. In addition, in any disciplinary proceeding before the Commission based on the entry of the injunction in this action, Defendant understands that she shall not be permitted to contest the factual allegations of the Complaint in this action.
12. Defendant understands and agrees to comply with the Commission’s policy “not to permit a defendant or respondent to consent to a judgment or order that imposes a sanction while denying the allegations in the Complaint or order for proceedings.” 17 C.P.R. § 202.5. In compliance with this policy, Defendant acknowledges her guilty plea for related criminal conduct described in paragraph 2 above, and agrees: (i) not to take any action or to make or permit to be made any public statement denying, directly or indirectly, any allegation in the Complaint or creating the impression that the Complaint is without factual basis; and (ii) that
Case 3:13-cv-00700-FDW-DCK Document 1-1 Filed 12/20/13 Page 4 of 6
upon the filing of this Consent, Defendant hereby withdraws any papers filed in this action to the extent that they deny any allegation in the Complaint. If Defendant breaches this agreement, the Commission may petition the Court to vacate the Final Judgment and restore this action to its active docket. Nothing in this paragraph affects Defendant’s: (i) testimonial obligations; or (ii) right to take legal or factual positions in litigation or other legal proceedings in which the Commission is not a party.
13. Defendant hereby waives any rights under the Equal Access to Justice Act, the Small Business Regulatory Enforcement Fairness Act of 1996, or any other provision of law to seek from the United States, or any agency, or any official of the United States acting in his or her official capacity, directly or indirectly, reimbursement of attorney’s fees or other fees, expenses, or costs expended by Defendant to defend against this action. For these purposes, Defendant agrees that Defendant is not the prevailing party in this action since the parties have reached a good faith settlement.
14. In connection with this action and any related judicial or administrative proceeding or investigation commenced by the Commission or to which the Commission is a party, Defendant agrees to cooperate fully and truthfully, regardless of the time period in which the cooperation is required. The full, truthful, and continuing cooperation of Defendant shall include, but not be limited to:
a. producing all non-privileged documents and other materials to the Commission as requested by counsel for the Commission, wherever located, in the possession, custody, or control ofDefendant;
b. appearing for interviews, at such times and places, as requested by counsel for the
c. responding fully and truthfully to all inquiries, when requested to do so by counsel for the Commission, in connection with these proceedings;
Case 3:13-cv-00700-FDW-DCK Document 1-1 Filed 12/20/13 Page 5 of 6
Editor’s Note: Page six would not transfer for this article. You can read the full Settlement and other court documents by clicking the links below.
According to an iWowWe YouTube Video posted June 26th, 2013, Dawn Wright-Olivares, Alex de Brantes, Jon Wright, Aaron Baker, and Andrew Young are all former Zeek Rewards and Savage Traders team members. Dawn as the COO was publicly proclaimed as the creative genius behind turning Paul Burk’s company Rex Venture Group, from a dying internet based shopping store into an Online Penny Auction venture. On August 17th, 2012, Paul Burks, agreed to a Complaint filed in Federal Court by the Securities and Exchange Commission (SEC) that Zeek Rewards, was in reality a $1.2 Billion Dollar Ponzi Scheme and agreed to allow the Security and Exchange Commission (SEC) to take control and liquidate it. You can read all the court documents by clicking here!
iWowWe was founded back in 2007 by Bill Starkey, and a team fo techies dedicated in creating a forward thinking communication platform.
As of the posting of this editorial all mention of a corporate staff, the founders etc, have been removed from the iWowWe website. I assume this temporary as the team creates new bios and put up new pictures on the staff. Based on the video I mentioned above here is the line up of staff members.
Chief Marketing Officer Dawn Wright-Olivares
Internet Marketing Director – Alex de Brantes,
Compliance Director – Jon Wright
Market Research Analyst – Aaron Baker
Support Services – Andrew Young
Now, what really caught my attention was an article written at Behind MLM by Oz. At the bottom of the article in the comment section, a person claiming to by Bill Starkey, wrote a comment supporting his move on hiring Dawn Wright-Olivares and her team. It is some of the things Bill states that I want to cover. (Oz did edit out some of the full comment, which would have teken the comment thread off topic.)
This is Bill Starkey, CEO of WowWe, Inc. I want to address a few things here right away. First and foremost, Dawn and her team are unable to comment on anything relating to Zeek as it is a legal matter and their attorneys are handling as it should be and as is critical in all cases like the one they are dealing with.
When I approached Dawn and her team to come on board with iWowWe, I did so because they are the absolute best in the industry and broke every record in MLM history. I was honored to meet her and am THRILLED that they came on board with iWowWe.
Troy’s Thoughts: If Zeek Rewards had truly turned out to be a new cutting-edge MLM, then I would agree. But just because a company claims to be a network marketing company, doesn;t make it so. In the case of Zeek Rewards, Paul Burks the founder of its parent company Rez Venture Group, LLC. agreed, after long SEC investigation to turn over the company to the SEC accepting their findings that it was a Ponzi. In the complaint filed by the SEC, Paul Burks agreed (without admitting or denying, signed and accepted that Zeek Rewards was in fact a Ponzi and Pyramid Scheme, NOT an MLM.
So to state that “Dawn and her team broke every record in MLM history” is false.
1. Cases like these are how innovative business models get worked out. That doesn’t mean there was any “wrong-doing”, regardless of the final outcome.
Bill, if you have not read every court document, then I suggest you do! In March of 2012, I also, after talking with Dawn, and other well-respected consultants and legal minds saw Zeek Rewards as a possible “innovative business model.” However, again, after reading through hundreds of court documents, it is clear that the compensation model used at Zeek Rewards was not innovative. (I should point out Paul Burks has publically been proclaimed as the designer of the compensation structure and not any of Dawn Wright-Olivares’s team.)
But at the end of the day, acording to court records pulled from the Zeek Rewards databases, 2.2 million joined and only 80,000 earned more than they put into bids, monthly fees etc. Those numbers are NOT innovative.
2. Zeek brought in the best compliance minds in the industry to try to help work out that business model, all while trying to manage record-setting growth, outside fraud attacks, and over-zealous affiliates.
I do agree that Zeek hired some of the best compliance minds, but that doesn’t mean the leadership of Zeek Rewards took the advice of those consultants. And in the end, Paul Burks did not see that it was necessary to allow those consultants and legal minds to defend his business model and compensation structure. Which does cause one to ask… Did he and his team take any of the advice, or maybe I should say the most critical part of their advice?
3. Who knows better how to deal with a challenge — someone who’s never had an issue, or someone who’s been through trial by fire?
Well, when the fire was turned up, Dawn was removed from her role as COO, and someone who had dealt with the regulatory issues was put in to replace her. A War Time COO, if you will!
Continuing on that thought… In light of the increasing scrutiny of the government into the direct selling business model, I want someone with first-hand experience dealing with that scrutiny — not someone who’s just been lucky to avoid it.
I can fully understand Bill Stakey’s point above. However, when the leaders of a direct selling, MLM, Network Marketing business well inside the rules and by the DSA Code of Ethics, then they should be able to weather and even welcome regulatory oversight.
Since Dawn had already been removed as a corporate officer, and replaced by a War Time COO, your statement raises the question… “What experience does Dawn and her team have in truly dealing with the regulators at a State or Federal level?
4. RE: Dawn speaking out publicly about her involvement with Zeek, simple answer: There’s an ongoing case. She can’t talk about it publicly. DUH.
I agree 100%, and it is good that she has a friend, and business partner like you to support her. I know Peter Mingles another long time friend of Dawns, feels the same, and I appriciate that in both of you!
5. Bottom line: I’ve known Dawn and seen her work for years. She’s a brilliant — BRILLIANT — marketer, with first-hand experience in the increasingly challenging regulatory environment, and that’s why I hired her.
Hmmm… I love brilliant marketing. But at times Brilliant Marketing can cross the line to down right fraud causing regulatory issues, or worst. One of the issues Zeek Rewards faced was “brilliant marketing” that crossed the line both at a corporate level and in the field.
Is the industry just supposed to forgive and forget? She’ll have to deal with whatever consequences come as a result of the case. But she gets to move on, in an industry she has dedicated most of her professional career to. I’m happy to be giving her a second chance, and feel very confident in my decision to do so.
The industry is NOT suppose to FORGET! And the profession should hold each other accountable for our actions! As for forgiving… I am a firm believer in giving people a second chance. However, until everyone who was a part of Zeek Rewards that lost money is made whole, I doubt if most will be willing to forgive anyone who was in a position of leadership at Rex Venture Group, LLC aka Zeek Rewards!
(Ozedit: attempts to take discussion offline removed)
There are many companies now entering the space that iWowWe has been pioneering since 2007.
Two new companies who have entered the space is ViTel Wireless with their ViSocial platform and SocialZing with their complete online social platforms. And then we have largest of the bunch Talk Fusion.
Living An Epic Adventure,
MLM Executive Interview
Zeekler COO Dawn Wright-Olivares Speaks With Troy Dooly
On Some Of The Red Flags Surounding Zeek Rewards
A couple of weeks ago Dawn Wright-Olivares, COO of Zeek Rewards took time out of the Association of Network Marketing Professionals annual convention to sit down with me and talk about some of the red flags surrounding Zeek Rewards and what she and her compliance team have done to clear up any possible issues.