Behind MLM Reports: BidXcel bites the dust

bidxcel

In what can only be described as yet another blow to the MLM penny auction niche, BidXcel quietly closed their doors last week.
bidxcel

Launched in late 2012, the company’s website (“bidxcel.com”) and penny auction (“xcelbids.com”) were pulled offline a few days ago with no official explanation provided regarding the closure.
Both websites currently announce to visitors that they will be ‘will be unavailable until further notice…

Read the full report by clicking here!

See The Full Article At http://BehindMLM.com

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 News: Rex Venture Group Receiver Kenneth Bell Answers The Hard Questions & Clarifies The Myths

news

Last night’s public call where Rex Venture Group LLC., receiver Kenneth Bell answered the hard questions sent in by former Zeek Rewards affiliates (net losers and net winners), clarified the myths from the facts in the case. Instead of recreating what others have already written, I have included three different sources from the call.

Patrick Pretty Reported The Following…

UPDATE 5:18 p.m. A claims form for victims should be ready by the end of January, Bell said. It’s doubtful that victims can be made 100 percent whole.

UPDATE 5:21 p.m. There are some sad, Zeek-related stories of loss out there. Bell said he had emails from people who’d lost anywhere from $49 to $10,000.

UPDATE 5:25 p.m. Bell said some people have questioned whether he is dragging out the receivership to drive up legal fees. He asked listeners to trust him, and he denied foot-dragging. His “goal is to be the most cost-effective receivership in history,” Bell said.

UPDATE 5:33 p.m. Bell said he did not know if other people will be charged by authorities in connection with Zeek. (Zeek/Rex operator Paul R. Burks is the only person charged to date — civilly by the SEC.)

He added that he’ll be prepared to prove Zeek was a Ponzi scheme as he pursues winners in clawback litigation. A motion by Zeek winners to appoint attorney Michael Quilling  examiner was “absurd,” he said. He did not reference Quilling by name.

UPDATED 5:44 p.m. Zeek’s database “is a real mess,” Bell said. He is studying a means by which victims could gain access to their back offices to gain access to information, but such a capability could be cost-prohibitive.

Read Patrick Pretty’s Full Editorial Here!

 

Don Ryan of ASDUPdates Reported The Following…

  • a proposed claim form will be submitted to the Court the end of January; people should begin accumulating their records for the upcoming claims process
  • Mr. Bell said he would like to have a Preliminary dispersal of funds as soon as the claims process begins and determinations can be made regarding records file vs money requested; this will have to be approved by the Court
  • He mentioned getting affiliates access to their back offices, the database is a mess and will have to be restructured; he is trying to get this done but with accurate information available; Zeek/Rex Ventures didn’t keep very good records
  • Clawbacks are coming soon; also mentioned several affiliates are cooperating and returning money to the Receiver
  • he thinks the Motion to appoint Examiner is absurd, conflict of interests since he represents 100′s of net winners
  • Briefly mentioned the motion filed to Dissolve the receivership, hopes the Judge doesn’t allow it
  • Someone asked about bids purchased but not used;  Also said that Zeek is not coming back, ever! Read Don Ryan’s Full Editorial Here!

Attorney, Jordan Maglich of PonziTracker Reported The Following… 

 

Claims Process

One of the most popular topics was the establishment of a claims process in which investors could eventually be permitted to receive distributions based on their loss amounts.  Mr. Bell stressed that he is working strenuously to institute a claims process, which would first require the submission of a proposed claim form and procedure to United States District Judge Graham Mullen.  According to Mr. Bell, he has set an internal deadline of submitting this information to Judge Mullen by January 31, 2013.  Once the claims form and procedure receives court approval, the claims form will likely be posted to the website and distributed to victims, who will have until a court-imposed deadline by which to submit relevant requested information.  The claim form will also specify what proof is required to substantiate claims. Upon the approval of claim forms and submission by victims, Mr. Bell also indicated his preference to proceed with an ‘interim’ distribution rather than waiting to make one final distribution at the end of the Receivership.

Clawbacks

Another popular topic was the issue of “clawbacks” against those ‘net winners’ that were fortunate enough to profit off their investment by withdrawing funds in excess of their investment.  The Receiver sent out a first wave of 1,200 subpoenas to those ‘net winners’ that were deemed to have profited most off Zeek.  According to Mr. Bell, “scores” of investors responded in a cooperative manner seeking to pay back their false profits.  However, a “whole lot” of recipients have fought back against the requests for information.  If the Receiver is not able to reach an amicable resolution with each clawback target, he will likely proceed with the filing of a lawsuit.  The Receiver took steps last week to ensure that he may properly bring clawback lawsuits in various federal districts around the United States by filing a copy of the SEC Complaint and the Order Appointing Receiver in districts where clawback suits are likely under 28 U.S.C. 754.

Opposition Efforts

Mr. Bell also addressed the various recent filings that have sought to both contest his authority as receiver and challenge the SEC’s decision to shut down Zeek in the first place.  This included the filing by Fun Club USA of a motion seeking the appointment of an examiner, as well as a filing by several clawback targets seeking to dissolve the Receivership.  Mr. Bell saved his harshest words for these efforts, calling them “absurd” and disputing their accuracy.  As to the motion for appointment of examiner, Mr. Bell pointed out (as Ponzitracker did here) the inherent conflict of interest that would present itself since the nominee for examiner currently represents “several hundred net winners,” as well as the implications of paying such an examiner our of receivership funds.  Mr. Bell also indicated he will oppose the  motion seeking the dissolution of the receivership, saying that the “receivership is here to stay,” and represented the only and best way to make victims whole. Read Jordan Maglich’s Full Editorial Here

Kenneth Bell’s team before & during the call filed the following Court Documents…

Consent MOTION for Extension of Time to File Final Liquidation Plan by Receiver for Rex Ventures Group, LLC.Responses due by 1/7/2013 (Attachments: # 1 Proposed Order)(Bell, Kenneth) (Entered: 12/17/2012)

RESPONSE in Opposition re 77 MOTION to Appoint Attorney ad Litem /Examiner for Affiliates by Receiver for Rex Ventures Group, LLC. Replies due by 1/2/2013 (Attachments: # 1 Affidavit of Kenneth D. Bell and attachments, # 2 Exhibit B through E)(Bell, Kenneth) (Entered: 12/17/2012)

 Securities & Exchange Commission filed today December 19th, 2012…

RESPONSE in Opposition re 77 MOTION to Appoint Attorney ad Litem /Examiner for Affiliates by Securities and Exchange Commission. Replies due by 1/2/2013 (Bowers, John) (Entered: 12/17/2012)

Zeek Rewards News: WARNING This Will Be Offensive, Founder Of ZTeamBiz aka Fun Club USA Spreading Bold Face Lies?

Truth & Justice

This morning I was sent a series of email threads purportedly from Robert Craddock, the founder of ZTeamBiz.com and Fun Club USA. What caused me concern was the fact the bold face lies were so easy to undercover and find the truth, that even a fifth grader could do it!


MLM Attorney Kevin Thompson
Now to the issue at hand. Below you will see a series of email threads that have taken place, where Robert Craddock the founder of Fun Club USA and ZTeamBiz.com purportedly makes slanderous, defamatory statements… well really if he truly wrote these statements, they are bold face lies about the MLM Attorney Kevin Thompson.

I will cover each real quick for those who don’t like to read.

1. He alludes to the fact Kevin Thompson holds a secret position in BidiFy as a distributor.Bold Face LIE! If Robert truly made the statement, then Robert provide the documented evidence that Kevin Thompson directly or indirectly holds a distributors position in BidiFy.

2. Kevin Thompson offered his a piece of the action to send former Zeek Rewards affiliates to his firm. – Bold Face LIE!

The true (you can read the full thread below.)

“I own www.ZteamBiz.com and along with being a Zeek Affiliate with over 2,000 people in my downline I also provided customers to affiliates for their Zeekler Penny auction. I noticed you represent Bidify and wanted to know if there was an opportunity to speak with you reguarding simular services I provided for Zeek but was unable to ramp up fully due to the closing. I was working closely with Greg Caldwell, and others at Zeek.

Robert Craddock”

Follow-up email from Craddock

On Aug 20, 2012, at 7:03 PM, robert craddock wrote:

Kevin if I could direct a lot of Zeek people to signup with your firm what would be in it for me?

Robert

Response from Thompson:

“We’re not asking for people to signup with our firm. We’ve asked for people to sign-up for a mailing list. We’re providing the information for free, Robert. There’s nothing to share.

Thompson Burton PLLC
Redefining the Art of Law.
___________________________

Kevin Thompson
Phone: (615) 412-9876
E-mail: kevin@thompsonburton.com
Website: www.thompsonburton.com”

3. Kevin Thompson is not a licensed attorney in the state of Tennessee, Robert Craddock checked.Bold face LIE!

Here are the facts:

The Board of Professional Responsibility - Tennessee Supreme Court

Kevin Prescot Thompson - The MLM Attorney

Feel free to click on either image above and verify the information personally!!!

Now this raises a age old question… If someone will lie (and yes this is a purported lie, due to the fact I can’t provide the email headers from the original thread) about one issue, then what else will that person lie about.

Seth Godin is quoted as saying “All Marketers Are Liers”, and I have strongly disagreed with that statement. But, if it does hold a shred of truth for some folks in marketing, then God help us all!

Email thread as I received them this morning.

“From: Scott [mailto:@hotmail.com] (Name and Email edited by Troy Dooly for privacy of the sender)
Sent: Wednesday, November 14, 2012 10:28 PM
To: ‘Robert Craddock’
Cc: @yahoo.com (Email edited by Troy Dooly for privacy of the receiver)
Subject: Attorney Kevin Thompson called me

LATEST NEWS
November 15, 2012

The following is a response to an email I received.

Scott the attorneys are not going to contact Kevin Thompson, Kevin is working for Bidify if you did not know this. Troy does and this is kind of funny that Troy is also behind this.

http://mlmhelpdesk.com/breaking-mlm-news-bidify-owner-frode-jorgensen-has-history-of-legal-issues-in-the-usa/
http://www.youtube.com/watch?v=PDzfr8P_B_0
http://www.youtube.com/watch?v=RN0l3hcc1_Q

When we started Zteambiz.net and com Kevin contacted me and wanted to get access to the database, he offered to pay me for the data and place people below me in the program so I would benefit financially, I told him he was a scum ball, and question if he really was an attorney, and my opinion stills stands. All I can say that I contacted the Tennessee Bar association and they did not have a record of him. Feel free to do the same.

Kevin is trying to get your information and a conference call will allow him to capture your information to pitch you on a different penny auction

I’m here to tell you the experts in this type of law all agree that Zeek did not sell any investment or security, it was not a Ponzi. Yes Kenneth Bell is calling it and that is why we have a legal process to go through. Please understand that Troy and Kevin have an agenda and, their past action do not appear to be to the benefit of this group.

Robert”

I wrote to Kevin Thompson asking for an official response to these allocations. I received the following information.

Craddock’s message is a complete lie. Read the thread below and call me ASAP. Craddock CONTACTED ME and I never, ever, ever offered to give him anything. I have never solicited ANYONE for Bidify. Ridiculous.

Thompson Burton PLLC
Redefining the Art of Law.
___________________________

Kevin Thompson
Phone: (615) 412-9876
E-mail: kevin@thompsonburton.com
Website: www.thompsonburton.com

**Please refer to our email disclaimer page for important disclosures regarding this electronic communication.

Begin forwarded message:

———- Forwarded message ———-
From: LEADS – MLM Attorney
Date: Mon, Aug 20, 2012 at 7:38 AM
Subject: New submission from Contact Kevin Thompson
To: kevin@thompsonburton.com

Name
Robert Craddock
Email
btmcraddock@gmail.com

Do I have permission to email you occasional updates about the industry?
Yes
Phone
(386)405-0855

Description of what you need
I own www.ZteamBiz.com and along with being a Zeek Affiliate with over 2,000 people in my downline I also provided customers to affiliates for their Zeekler Penny auction. I noticed you represent Bidify and wanted to know if there was an opportunity to speak with you reguarding simular services I provided for Zeek but was unable to ramp up fully due to the closing. I was working closely with Greg Caldwell, and others at Zeek.

Robert Craddock

Thomspon Response

From: Kevin Thompson
Subject: Fwd: Zeek Recovery Plan
Date: November 15, 2012 9:45:48 AM CST
To: Don Ryan

Don,

Thanks for sharing Craddock’s message. It’s a complete lie, start to finish. I never, not once, offered him ANYTHING. He called me asking for an introduction to Bidify. I declined, informed him that it was not my place. When he said he was an internet marketer, I told him he should help promote the Zeek Recovery site to get the word out there. He sent me the below email basically asking “what’s in it for me?” Read my response. I never offered him a single thing. He’s dangerous. As for my record with the Bar, find me here: http://www.tbpr.org/Consumers/AttorneySearch/ Find me under BPR # 024755.

Thompson Burton PLLC
Redefining the Art of Law.
___________________________

Kevin Thompson
Phone: (615) 412-9876
E-mail: kevin@thompsonburton.com
Website: www.thompsonburton.com

**Please refer to our email disclaimer page for important disclosures regarding this electronic communication.

Begin forwarded message:

From: Kevin Thompson [mailto:kevin@thompsonburton.com]
Sent: Monday, August 20, 2012 2:19 PM
To: btmcraddock@gmail.com
Subject: Zeek Recovery Plan

You are receiving this message because you opted in to receive blog updates via email on themlmattorney.com

Aug 19, 2012

ZEEK REWARDS RECOVERY

It’s been a busy few days in the MLM industry, to say the least. We recently had one of the fastest growing companies in MLM history, Zeek Rewards, come crashing down after being shut down as a ponzi scheme by the SEC. On my site, I summarized the SEC’s action and wrote about the implications for the MLM industry in general. The article can be found here. After writing the article, I was literally flooded with hundreds of messages from people that were affected by this disaster. The stories were remarkable. People left their jobs, cashed in on their retirements and drained their savings in an effort to maximize their earnings with Zeek.

The funds in Zeek Rewards have been voluntarily placed with a court appointed receiver. Zeek is not contesting the allegations in the SEC’s complaint. The receiver is now obligated to take stock of the assets and distribute funds back to the investors. Given the volume of victims, it’s going to be a very long process, in our opinion. Due to the volume of investors in Zeek, which is projected to be close to one million, we’re not sure how the receiver is going to effectively communicate with the class of investors. In an article on Forbes.com, the author put it into perspective when he wrote:

“While investor losses pale in comparison to those experienced by Madoff or Stanford investors, the sheer number of Zeek investors is on a magnitude that has never been dealt with before in a receivership or bankruptcy context. To illustrate, assuming Zeek had one million investors, a simple 1-page summary for each investor summarizing contributions and withdrawals, stacked together, would be 101.3 meters high, or roughly 300 feet. The staggering number of victims suggests that investigation of the fraud and establishment of a distribution process will likely be a drawn-out process involving hundreds, if not thousands, of people.”
Given my expertise in dealing with MLM law, and my partner’s experience with receiverships, our firm is uniquely positioned to communicate with the receiver on behalf of Zeek victims. Instead of getting lost in the stack, we can build numbers and collectively get a seat at the table.

If you invested in the Zeek program, please fill out the form below. If the form is not showing up in your inbox, please click here. There are no obligations after filling out the form. We’ll be publishing an action plan on Friday.
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Sent to btmcraddock@gmail.com — why did I get this?
unsubscribe from this list | update subscription preferences
The Law Office of Kevin Thompson • 265 Stanley Park Lane • Franklin, Tennessee 37069

Cradock Response

On Aug 20, 2012, at 7:03 PM, robert craddockwrote:

Kevin if I could direct a lot of Zeek people to signup with your firm what would be in it for me?

Robert

Thompson Response

From: Kevin Thompson
Subject: Re: Zeek Recovery Plan
Date: August 25, 2012 8:56:07 PM CDT
To: robert craddock

We’re not asking for people to signup with our firm. We’ve asked for people to sign-up for a mailing list. We’re providing the information for free, Robert. There’s nothing to share.

Thompson Burton PLLC
Redefining the Art of Law.
___________________________

Kevin Thompson
Phone: (615) 412-9876
E-mail: kevin@thompsonburton.com
Website: www.thompsonburton.com

**Please refer to our email disclaimer page for important disclosures regarding this electronic communication.

 

Breaking MLM Penny Auction Update: Randy Jeffers Launches Bids That Give To Support Underprivileged Children

Randy Jeffers Official Website

Randy Jeffers is not new to Network Mareketing. As one of the most colorful founders in current MLM history, he has experienced both ups and downs. Randy rose to fame by launching one of the fastest growing network marketing companies in history Destiny TelCom, just to see it fall when regulators came busting through the doors.

After fighting off regulators on every front, all that was left was Randy’s drive to build another company. Liberty International was born, and for years Randy run under the radar, creating a very successful company, with thousands of networkers earning their products and services for free, and several hundred became financially independent.

In 2009 – 2010 during the MLM Wireless Wars (you can read more on this site), Randy Jeffers and his team launched WOW Mobile, quickly taking on all the other pre-paid MLM wireless companies and dominating… for a short period of time. Soon, it was exposed that WOW Mobile through no fault of their own (except Randy didn’t see something in the fine print of his agreement between T-Mobile and himself), that both he and his LLC were responsible for all international calls maded by customers and reps of WOW Mobile. Long story short, Randy bankrupted the company, and distributors purport they are still owed missions in back commissions.

Randy, went on to help launch Liberty International network, and went back to creating a solid program, where thousands get their products/services for free, while a few long time leaders are still enjoying financial freedom.

Which brings up to the current MLM trend Unique Bid Auctions aka Penny Auctions aka Reverse Auctions. DubLi Network is the first such company to launch in the USA back in 2009 – 2010. DubLi slowed down to correct some of their early issues, and then focused on international expansion.

In 2010 Rex Venture Group, launched their penny auction house Zeekler, and in 2011 added Zeek Rewards, their Network Marketing affiliate organization to help market and advertise Zeekler. In nine short months, they quickly became the fastest growing, and largest MLM organization of any first year startup (source Network Marketing Business Journal) in modern history.

BidiFy launched in 2012, to become the first competitor of Zeek Rewards and is quickly coming on strong internationally. They have just launched their new penny auction house Bidsson.com and are growing steady in the USA as well as worldwide.

Today, July 4th, 2012, Randy Jeffers has opened for prelaunch his “Bids That Give” penny auction house and MLM Income opportunity (although Randy Jeffers is stating Bids That Give is NOT mlm).

Next week I will be doing a deeper investigation into the whole business model. But I do caution anyone who is looking at Bids That Give to fully understand a couple of concerns I have.

1. Although I personally do not think penny auctions fall under the U.S. Code of what is defined as a direct selling company, at this time that is the only reference point the regulators have to work with, and if any penny auction house is stating “we are not MLM” that is a red flag to be concerned with.

2. History has proven that when a for profit company (with a compensation plan) leads off with “giving to the needy” the SEC, FTC and State AGs feel the hair on the back of the neck’s start to prickle. Several very successful networker marketers have tried this in the past just to have regulators get involved. Randy is a smart businessman and has access to great legal minds, so only time will tell, but this is a red flag concern.

If you love the unique bid auction niche, and you are reviewing Bids That Give, just realize this is a young niche and is still very vulnerable to regulatory actions.

I have always enjoyed speaking with Randy Jeffers and have found he doesn’t back down from the hard questions. I look forward to chatting with him in the near future on this new venture.

Plus in seeing some of the growing pains the other auction houses have or are going through, just be very careful.