Breaking Zeek Rewards News: Receiver Asks Judge To Approve Over 135 Settlements With Net Winners


Since around April 1st 2013, Kenneth Bell, the Receiver for Rex Venture Group, aka Zeek Rewards, aka Zeekler sent out a Voluntary Subpoena to over 1200 Zeek Rewards Net Winners (Click Here To Read Editorial). What we did not know then was what criteria was used to determine how much a former Zeek Rewards Affiliate much have won, to come under the watchful eye of Kenneth Bell and his team. We learned this and much more last Friday June 28th, 2013. You can review all Rex Venture Group aka Zeek Rewards Court Documents By Clicking Here!





The following are excepts from the above linked Court Document!

In an attempt to resolve as many of the claims against net winners as possible prior to litigation,  the  Receiver  has  encouraged  the  Zeek  “net  winners” to  voluntarily enter  into settlement discussions with the Receiver.   Most recently, after consultation with SEC counsel, the Receiver sent an email on April 2, 2013 to all those who won over $1000 notifying them of the upcoming litigation and offering to discuss settlement of the claims against them on or before May  31, 2013.

In the above, and as mentioned on, for maybe the first time in current history, and specially in regaurds to the Rex Venture Group aka Zeek Rewards case, the receiver is going after net winners with as little as $1000 in winnings!

Patrick Pretty pointed out in his editorial the following…

URGENT >> BULLETIN >> MOVING: (UPDATED 8:05 P.M. EDT U.S.A.) From the standpoint of avoiding financial accountability, it may have become more difficult for serial scammers who foist HYIP scams on the international public to thumb their noses at law enforcement and the courts. The court-appointed receiver in the Zeek Rewards Ponzi scheme case has revealed the threshold dollar number used to determine who received emails offering a settlement: That number, according to filings by receiver Kenneth D. Bell, was only $1,000.

The lowness of the number could send shockwaves across the HYIP Ponzi universe. On well-known Ponzi-scheme forums such as TalkGold and MoneyMakerGroup, serial HYIP scammers routinely pooh-pooh court actions and claim that neither the government nor receivers will bother to seek recoveries from low-level players and “winners” in scams.

Confident that they’ll never be held accountable, some purveyors move from one HYIP fraud scheme to another.

Let’s look at a few other highlights from the above Court Document…

When claims are brought against Ponzi scheme investors, “the general rule is that to the extent innocent investors have received payments in excess of the amounts of principal that they originally invested, those payments are avoidable as fraudulent transfers.

Donell v. Kowell, 533 F.3d 762, 770 (9th Cir. 2008); In re United Energy C01p., 944 F.2d 589, 596 (9th Cir. 1991) (Ponzi scheme winners should not be permitted to “enjoy an advantage over later investors sucked into the Ponzi scheme who were not so lucky.”) See also SEC v. Infinity Group Co., 993F. Supp. 324, 331-32 (E.D. Pa. 1998), affd,  212 F.3d 180 (3d Cit. 2000) (disgorging innocent third parties’ gains in a Ponzi scheme for distribution to defrauded investors).1

1 Indeed, several courts have ordered that winning investors’ profits and principal should be divided pro rata among all investors. See SEC v. George, 426 F.3d 786,798-99 (6th Cir. 2005) (ordering winning investors to return profits and principal because “hundreds of other investors were victimized by this scheme, yet they will recover only 42 percent of the money they invested, not the 100 percent to which the relief defendants claim to be entitled”); SEC v. Credit Bancorp, Ltd., 290 F .3d 80, 89 (2d Cir. 2002) (“[T]he use of a pro rata distribution has been deemed especially appropriate for fraud victims of a ‘Ponzi scheme,’ … in which earlier investors’ returns are generated by the influx of fresh capital from unwitting newcomers rather than legitimate investments.”)

I have received many contacts from folks who have been scared, feeling that people will think they were criminals or trying to do something illegal. In the above paragraphs, it is clear, that being called a “net winner” doesn’t necessarily mean one was knowingly part of an illegal ponzi. However, it does make it clear, that when one is part of the winning class of an illegal ponzi scheme, they will need to give up their winning profits.

Each of the settlements recites the acknowledgement of the Zeek winner that he or she received a fraudulent transfer from Zeek, although there is no admission of personal wrongdoing.

Many people have asked “if I accept agreement does it mean I have done something wrong. In the above paragraph, it is clear the receiver, in accepting agreements, is more interested in recovering assets of the estate, than trying to cause undo mental or financial harm against any Zeek Reward net winner.

Now, I am not sure the same will be said against those who have not willingly come forward to work with the Receiver. As this case proceeds, and the new subpoenas come out, the Receiver has made it clear, NO MORE DEAL! Now I think he is going to play hardball.

2  Some of the settlement agreements involve family members with two or more accounts where some of the accounts won money and the others lost. In those situations, the losing account holders have agreed to forego their opportunity to make a claim as a Zeek victim (or make a claim in a limited amount) in return for the Receiver’s agreement to offset a portion of that claim against the liability of their relative’s  winning account.   These settlements are referred to as “walk away” agreements in the list of settlements attached as Exhibit 2.    

Many former Zeek Rewards Affiliates have mentioned additional accounts under the names of friends and family. Some have even said they gave cash and financial instruments to their upline sponsors. Well in the above paragraph we can at least see that the receiver, is not allowing anything to slip through the cracks. He and his team are looking at every possible way net winners might manipulate the claims process to keep some of the profits.

The Zeek Ponzi Scheme will likely give rise to numerous claims and causes of action on behalf of victims and the Receivership Entities, including claims against numerous defendants seeking to avoid and recover fraudulent and preferential transfers made as part of the scheme. The Receiver believes that RVG’s  basic legal claims to recover net winnings from those who profited from Zeek are strong and straightforward; yet, Zeek itself was an extraordinarily large and complex scheme which will unavoidably create complexity in the litigation to· assert those claims. The Receiver intends to pursue those claims both individually and as class claims in the manner that will be most efficient. But, litigation against thousands of net-winners will still involve substantial costs. So, while the Receiver believes there is a significant likelihood of success, the path to obtaining Judgments against the Zeek “net-winners” may not be quick or easy, and early settlement of at least sonie of the claims without the expense of litigation is worthwhile.

Notice in the above paragraph one very important sentence… “The Receiver intends to pursue those claims both individually and as class claims in the manner that will be most efficient. Maybe for the first time we can see the Receiver is indicating he will go after the remaining Zeek Rewards Net Winners “individually and as a class.” This will make for an interesting situation for those who feel they can escape justice, may find that Kenneth bell and his team will not sleep until they know they have done all they can to make things right for the net losers.

As discussed, the proposed Settlement Agreements will minimize the risks, costs, and delay of litigation with the settling “net-winners” and the costs and risks of collection. The Receiver believes the settlements reached as part of the negotiation process are fair and equitable and that even with the expenditure of additional funds to obtain a  judgment there is not a likelihood of a materially increased recovery for the eventual distribution to the Zeek victims. Further, these settlements minimize the burdens on the Court and the “net-winners” who want to resolve the claims against them promptly and fairly. In sum, these settlements provide an immediate and concrete benefit to the RVG estate in a fair and efficient manner.

Although, there are actions that have been allowed under law, that I question, such as the depositing of certified funds by the receiver after the closure of Rex Venture Group, I have to commend his move in doing all he can to preserve and add to the estate through the above mentioned settlements.

There have been millions of lives disrupted by the Zeek Rewards sage, and at least hundreds of thousands who have been financially effected in one way or another. So the faster this case can come to a close and the net losers made whole the better for all.


Click Here to Review EXHIBIT 2








Zeek Rewards News & Court Info: Kenneth Bell Issues 4th Quarter Report On Rex Venture Group


Rex Venture Group, LLC receiver, Kenneth Bell issues his 4th-quarter report on what his team has been accomplishing in the Seek Rewards case. Jordan Maglich of Ponzi Tracker wrote a short but very defined synopis of the report. Our goal at MLM Help Desk is to provide the most current Zeek Rewards news and information to help all former affiliates make informed decisions.

I also want to caution all interested parties, if you are looking at Penny Auctions with compensation plans, Daily Payout Deals, or any other form of High-Yeild Investment Programs (HYIPs), I personally beleive these business models, have proven not to be the most condusive to a direct selling business model. In the matter of Daily Payout Deals and HYIPs, there is enough compliance and legal issues, let alone case law to substanciate the fact these business models, at best boardline on being illegal inside of North America and other countries across the globe.

The main questions that most former Zeek Rewards affiliates have been asking is…

1. Are we getting 1099s for 2012?

2. When can we file claims?

Kenneth Bell, answers these questions and much more in the report. Here is what the Rex Venture Group, LLC., Receiver stated in the RECEIVER’S STATUS REPORT FOR THE FOURTH QUARTER OF 2012! For all court documents click here!

5. Issues Concerning Federal Taxes

During the fourth quarter, the Receiver Team worked to determine which federal tax filings needed to be made with respect to income taxes, payments made to service providers, and payments made to Affiliate-Investors. The efforts were focused on the latter two issues because of the earlier filing deadline (January 31, 2013). The Receiver Team, including FTI, had discussions with RVG’s outside tax and accounting advisors to ascertain what had been filed for 2011 and earlier. After analyzing the issues, consulting with these various entities, and reviewing RVG’s records, the Receiver Team determined that it would be necessary to file and issue 1099s to certain Affiliate-Investors and began the process of compiling the data necessary to issue the 1099s.

8. Work to Establish a Claims Process

Since the outset of this case, the Receiver has understood that creating an efficient and accurate claims process, while keeping the administrative costs as low as possible, is imperative to providing the creditors of the Receivership Defendant with the greatest possible recovery on their claims. Specifically, with more than two million unique usernames registered on and approximately one million usernames investing funds in the Receivership Defendant, the claims process represents an immense undertaking that may comprise the largest single expense for the Receivership Estate. Because of the gravity of this expense and the need for the process to be done properly in the first instance, the Receiver has enlisted numerous members of the Receiver Team to formulate this process, including lawyers at MW and advisors at FTI and The Garden City Group (“GCG”), the claims agent recently retained by the Receiver.

During the fourth quarter, the Receiver Team worked to create a claims process and the necessary claim form. The Receiver anticipates filing a motion seeking approval of the Claims Submission Process by the conclusion of the first quarter of 2013. The Claims Motion will seek (i) approval of the claims submission process, (ii) to establish the date by which claims must be filed against the Receivership Defendant (the “Bar Date”), and (iii) approval of the noticing procedures to be used in providing notice of the Bar Date and the claims submission process. More detailed information about the proposed claims process is set out in the Final Liquidation Plan to be filed January 31, 2013.

Zeek Rewards News: Receiver Files Motion For Court To Compel Production Of Documents From, Craddock, Kettners’ & Sorells Recent Movants

Kenneth D Bell

I was not sure what we might see this week moving into the Christmas recess. But based on this latest filing we can see the Receiver is ready to push Robert Craddock, David & Mary Kettner and Daivd Sorells to show their hands. With Craddock, now taking somewhat of a lesser role over at zTeam and letting Greg Baker take the lead, it may be that his attorney has asked him not to be so vocal. Sorells and the Kettners have already backed off some of the propaganda and are moving to launch a new company they have code-named zeek 2.o. We now know this new company is not a re-launch of Zeek Rewards, or Zeekler, but is Offer Hubbs 

Many “net winners” have hired attorneys to work with the Receiver, while others will fight until the end. One of the interesting observations I have seen, is the fact Todd Disner, DD, Jerry Napier, Dawn, Roger, Keith Laggos and others have not entered any motions fighting the clawbacks. Makes you wonder, if maybe they are working with the Receiver and cutting deals. If this ends up being the case, then one has to wonder, will they be called to testify as to why they cut deals instead of fighting trying to prove Zeek Rewards was not a Ponzi! Hopefully we will learn more in the near future.

MOTION to Compel Production of Documents from Recent Movants by Receiver for Rex Ventures Group, LLC.Responses due by 1/7/2013 (Attachments: # 1 Exhibit A, # 2 Memorandum in Support of Motion to Compel, # 3 Exhibit B, # 4 Exhibit C)(Bell, Kenneth) (Entered: 12/19/2012)

Let me also add, that over at the Zeek Page here at MLM Help Desk to read the most current filing. 

As a side note, the Receiver has been granted by the Court his request for payments and fees to those working on Rex Venture Group LLC., liquidation.

Some of our community have been asking for more updates on other MLM Penny Auction News… After the first of the year we will see if we can bring some updates out.

Zeek Rewards Update: Fun Club USA Not Covering Legal Fees For All Their Members It Seems

Truth & Justice

One of our community members, Zeek Freak directed me to an article written by Don Ryan over at ASD Updates published an interesting notice put out by Fun Club USA on Nov. 6th, 2012. What caught my attention was the fact, Fun Club USA after collecting what some have calculated to be in the high six or even seven figures, seemingly is refusing to cover the legal costs of their donors who are part of the 1200 Subpoenas issued by the Zeek rewards Receiver, Kenneth Bell. Why?

According to the statement below, the reason is because there are so few in their group who have been subpoenaed, that they feel they can handle it on their own. However, Don Ryan brings up a great point. If all 1200 went to the Fun Club USA law firm of Alexander Ricks PLLC, he would earn an additional $360k Now without a doubt all 1200 will not hire him. Many have already reached out to Phillip Young to handle there case.

The question is WHY won’t Fun Club USA cover the $300 per member, after what some call begging them for legal donations to save them from clawbacks?

Another question might be… Is Fun Club USA covering the cost of the “Chosen 12” as some critics now call the top promoters who have joined Robert Craddock.

And… one former Zeek Rewards Affiliate, after listening to the last call, asked “Why was Robert Craddock served in the 1200, when he has publicly told folks he only made a few hundred dollars?

Well no matter what the answers, just mae sure you have all the info you can find before jumping on any of the propaganda, pro or con against the Zeek Rewards Subpoena issue.

Don Ryan’s post starts here…

Here we have today’s update as promised, only a day late.  I will point out tho you that I do nor condone, recommend or advise anyone to use their law firm,  Consult your own legal experts before acting on any advice from Fun Club USA or its spokesman.  Subpoenas requiring you to provide information in a Civil or Criminal matter is not an extraordinary request and is a court issued document that should not be ignored. There are penalties for failure to comply.

While I have no opinion either way about the law firm of Alexander Ricks, PLLC., if every one of the first 1,200 who  received a Subpoena uses them, they make $360,000 in fees. I suppose if they do anything of substance, it might be worth the money. However, you have to make your own decisions about what is best for your own interests.

Fun Club USA, LLC reminds me of the infamous ASD Members Business Association (ASDMBA), who promised people things that were never delivered after they took in money. Much of what has been said by FCU and its people are echoes of what happened in the ASD Civil and Criminal cases which started out in a similar fashion, namely, seizure of assets.

November 6, 2012

Greetings good people, update to the conference calls on Saturday November 3, 2012.

For everyone that has received a subpoena for information from Kenneth Bell, you like us believe that Kenneth Bell is fishing for information to intimidate and to get you to voluntary turn over monies you earned by bringing value to the Zeekler Penny Auction.

As I clearly stated, you are not under any court order to turn over any funds and it is our position that Zeek Rewards was a legal business model, claims stating otherwise are false.

Our law firm is now willing to take on the people that have received subpoenas from Kenneth Bell and respond to them for you. The firm has come up with a flat rate for doing this and it is quite affordable.

You will be listed on the court records as being represented by the firm and they will file the objection to Kenneth Bell’s subpoena request for you. You have 14 days to file an objection and the clock is ticking. Because this is only impacting a small percentage of people we decided to not ask the entire group to help fund this, and the law firm has agreed to do this on a flat fee per person needing assistance of just $300 dollars.

Only people that have received subpoenas should call the law firm.

Please contact the attorneys directly to get more information the contact person at Alexander Ricks PLLC is:

Clark C. Walton


Alexander Ricks PLLC

2901 Coltsgate Road, Suite 202

Charlotte, North Carolina 28211

(704) 200-2637 direct

(704) 365-3676 fax



Breaking Zeek Rewards News: Zeek Receiver Files Preliminary Liquidation Plan With Updates on Asset Recovery, Clawbacks, and Claims Process

Zeek Rewards News

Jordan Maglich of and contributor at Forbes reported today today on what Kenneth D. Bell’s Liquidation Plan for Rex Venture Group, LLC, aka Zeek Rewards means for the former Zeek Rewards affiliates… Victims and Promoters.

All Court Documents Can Be Found By Clicking Here

The court-appointed receiver overseeing the $600 million ZeekRewards Ponzi scheme has filed a preliminary liquidation plan providing the most detailed look thus far of ongoing efforts to recover assets for victims, as well as the implementation of a claims process and “clawbacks” against certain investors. Kenneth D. Bell, with Charlotte law firm McGuireWoods LLP, was appointed by a North Carolina federal court on August 17, 2012 in the wake of an emergency action filed by the Securities and Exchange Commission (“SEC”) to halt what it called a “massive Ponzi scheme.” The scheme has been pegged as one of the most complex Ponzi schemes to date in light of the estimated millions of victims. In the Preliminary Liquidation Plan (the “Plan”), Bell provides updates on assets recovered, the claims process, and efforts to recover funds from investors who profited from the scheme.

Since assuming control, Bell has retained several third-party forensic and data consultants to assist with re-constructing Zeek’s financial records. His investigation thus far has revealed that there were approximately 2.2 million unique users in Zeek, with 1 million of those users having paid money into the ZeekRewards program. While Bell disclosed at an earlier press conference that the initial damage estimate of $600 million was likely low, an updated estimate of investor losses was not contained in the Plan.

To date, the Receiver has recovered approximately $293.7 million for the benefit of defrauded investors. This includes nearly $200 million in domestic financial institutions including Global E Telecom, First Premier Bank, and Bank of America. Additionally, nearly thirty million dollars were seized from foreign accounts and payment processors. The Receiver also disclosed that he had presented nearly 61,000 non-negotiable financial instruments (such as cashier’s checks and/or money orders) totaling approximately $100 million for deposit. However, over 10,000 items totaling approximately $30 million were unable to be deposited, with Bell disclosing that a majority had been returned following the issuance of stop payments. The issue has since been resolved.

While the Receiver has primarily focused on locating and securing assets since his appointment, he has indicated that he intends to begin focusing on “recovery efforts to include claims against officers, employees, participants, professionals, and others who benefited from the Scheme.” The “professionals” the Receiver alludes to include individuals or entities that provided services to Zeek and helped to facilitate its operation, such as banks, law firms, or accountants. Additionally, Bell issued his strongest statement to date that he intends to pursue those “net winners” who profited from the scheme, stating that

These claims will include common law claims and “clawback” claims under applicable fraudulent transfer statutes against those who ran the operations and “net-winner” participants, i.e. those who received back more (of other Affiliate-Investor’s money) than they paid into the [Scheme].

As I wrote back in August, any clawback efforts are likely to be expensive and complex due to the estimated tens (or even hundreds) of thousands of potential clawback targets, and I had hinted that Mr. Bell would possibly consider “pre-litigation” efforts to allow the return of profits without instituting litigation. This speculation is seemingly confirmed in the Plan, with Mr. Bell stating that he plans “to offer those who are required to return money to the Receivership Estate the opportunity to do so cooperatively in an effort to avoid costly litigation for all concerned.” In similar receivership proceedings, this offer is often accompanied by a small “discount” to encourage settlement and avoid litigation expenses.

The Receiver continues to work towards implementing a claims process, noting that he is working to enhance the receivership website and has not yet decided on the appropriate method to accept claims. He notes that he has received communications regarding the claims from various creditors, including “organized groups of affiliate-investors of the receivership defendant.” While the Receiver has taken note of those needs, none of that information will function as a valid submission of a claim until a formal claims process has been established. Once a decision has been made on the claims process and the appropriate basis to calculate the allowed amount of claims, the Receiver will then seek court approval and permission to distribute forms to investors. These issues, as well as the types of allowed claims, will be fully addressed in a to-be-filed Plan of Liquidation. It remains to be seen what method the Receiver will adopt to calculate claims, though it is highly likely that the “net investment method” will be used. That method deducts any withdrawals from the total amount contributed to arrive at a calculated amount.

Finally, the Receiver informed the Court that it was unlikely he would seek to convert the receivership proceeding into a bankruptcy filing. According to Bell, a receivership provides more efficiency and cost savings than a bankruptcy, which would also result in substantial transition costs and no real advantage in recovery of assets compared to a receivership. While the Receiver indicated this decision remains under consideration, it seems highly unlikely that Zeek would be converted to a bankruptcy proceeding.

In closing, the Receiver reiterated that the investigation remained ongoing, and that he was facing a “time-consuming” process in reconstructing over 18 months of “missing or incomplete” financial information. The scheme’s complexity, coupled with the high number of transactions and investors, will “require additional and significant investigatory efforts.” Bell expects to file a quarterly status report by October 30, 2012.

The Liquidation Plan Can Be Found Here!

Jordan Maglich is an attorney at Wiand Guerra King P.L. in Tampa, Florida whose practice includes white-collar crime and securities and financial litigation. He also covers Ponzi schemes on his blog, PonziTracker. Follow him at @PonziTracker.

Zeek Rewards Legal Alert: Letter from the Rex Venture Group LLC Receiver Kenneth Bell


August 27, 2012

On August 17, 2012, United States District Judge Graham Mullen issued an order naming
me as the receiver of ZeekRewards’ recovered assets. According to the Securities and
Exchange Commission, approximately one million people have been victimized by this
scheme, although our early investigation shows that the number of victims could be
double that. The SEC also estimates that the scheme involved $600 million. By sheer
number of victims, this is one of the largest, if not the largest, Ponzi scheme to go into
receivership in U.S. history.

I have received thousands of emails and voice messages from victims of the scheme.
Some of those have shared heartbreaking stories. Rest assured I have heard your concerns
and my team and I are committed to recouping and dispersing as much money as possible
to the victims. To be sure, this will be an immense undertaking that will require careful
consideration and time.

As receiver, my first task has been to locate and lock down known assets. This means
seizing both electronic and physical assets from ZeekRewards, as well as making sure
those who had access to those funds no longer do. We are also tracking payments
transferred across financial institutions both in the U.S. and abroad. The larger the pool of
resources we can collect now, the more funds each victim will receive later.

I know many of you have two simple questions. When will I be refunded the money I
invested and how much will I receive? While we are in the early stages of tracking and
locking down assets, it is difficult to predict with certainty the timeframe in which
monies will be returned to the victims. However, we are committed to communicating
with the victims so they are informed throughout the investigation.

As you may have read in the news, I recently gave a press conference updating the media
about the beginning steps we have taken over the past week as receiver. We will continue
to provide updates on the investigation to the media and to the victims directly via over the coming weeks and months.

This website also serves as a forum for victims to voice their questions and concerns to
my team and me. Due to the sheer volume of messages I have received from victims, I
am unable to respond to individual questions so I encourage those affected to email
questions as well as relevant account information to
There, every message received will be read and catalogued. An official claim form will
also soon be made available on this site and each filed claim will be considered at the
time the assets are allocated back to the victims.

We understand that many victims have suffered significant financial losses and we are
dedicated to working over the coming months to recover as much of the funds as
possible. We appreciate your patience throughout the process and will keep you apprised
of future developments.

Thank you,
Ken Bell