Breaking Zeek Rewards News: You Can Now File A Claim For Your Money Back!

As promised Kenneth Bell, the claims process is now open for ALL who believe they have a claim against the estate of Rex Venture Group, LLC, aka Zeek Rewards.


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Registration ID and Password


Any entity or person (including, without limitation, persons, partnerships, corporations, joint ventures, estates, trusts, and governmental units) that believes that it holds a Claim* (each a “Claimant”) against Rex Venture Group, LLC d/b/a and (collectively “ZeekRewards”) should submit a Claim (a “Claim”) by completing the series of questions relating to its claim by following the links below (a “Claim Form”) if it would like to receive a distribution on account of its Claim.
All Claimants must submit a Claim Form to Kenneth D. Bell (the “Receiver”) on or before 11:59 p.m. prevailing Eastern Time on September 5, 2013, the deadline established by the District Court for the Western District of North Carolina (the “Court”) for the submission of all such Claims.
Failure to timely submit a Claim Form, submitting an incomplete Claim Form or submitting a Claim Form without supporting documentation may result in the complete disallowance of your Claim.
The Claim submitted on the Claim Form remains subject to a determination of the allowable amount, if any, of the asserted Claim. The requests for information on this Claim Form do not constitute and shall not be considered the basis for the determination of any Claim or distribution.
All affiliate Claimants (an “Affiliate”) who participated in ZeekRewards should submit a separate Claim for each ZeekRewards UserName that it registered and/or used in regard to
Points accumulated, awarded or otherwise held by Affiliates will not be considered in an Affiliate’s Claim and should not be provided.
* The term Claim means any (a) right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured; or (b) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured, or unsecured.

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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: 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 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 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 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?


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

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

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.

When we started 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.


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

**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

Robert Craddock

Do I have permission to email you occasional updates about the industry?

Description of what you need
I own 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


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: Find me under BPR # 024755.

Thompson Burton PLLC
Redefining the Art of Law.

Kevin Thompson
Phone: (615) 412-9876

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

Begin forwarded message:

From: Kevin Thompson []
Sent: Monday, August 20, 2012 2:19 PM
Subject: Zeek Recovery Plan

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

Aug 19, 2012


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, 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.

Sent to — why did I get this?
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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?


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

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


Zeek Rewards Alert: Public Google Hangout With Top Attorneys To Answer Questions Of The Zeek Rewards Subpoenas & Other Issues

Zeek Rewards News

Over the last month or so MLM Attorney Kevin Thompson has been working to put together a Zeek Rewards Google Hangout to help former Zeek Rewards affiliates to fully understand what they are facing, both “victims and promoters”. This Thursday night, November 15th, 2012 at 5:00pm CST, some of the most informed attorneys and critics will answers questions surrounding the whole Rex Venture Group Ponzi Case, and the current issue of the volunteer subpoena packs send out by the receiver Kenneth Bell.

Start Message From MLM Attorney Kevin Thompson

MLM Attorney Kevin Thompson

As many of you know, the Receiver in the Zeek case sent out well over 1,000 subpoenas to the “net winners” pursuant to the Zeek Rewards liquidation plan. In case you’re like most people and you’re not sure what a subpoena is, it’s a document from a court that compels someone to produce evidence (documents, verbal testimony, etc) pursuant to a lawsuit.

In this case, the Receiver is asking for a lot of information from the “net winners.” Specifically, he’s asking about their involvement with Zeek, how much money they made from Zeek, personal financial standing, and he’s also asking about large purchases made over the past couple of years i.e. cars, boats, homes, etc. As we mentioned in the past, the Receiver is responsible for making the pot of cash as large as possible to ensure the victims get a fair amount of the proceeds. Along those lines, the Receiver is obligated to pursue funds from the net winners.

Phillip G. Young Attorney At Law

As Phillip Young said in his article about the Liquidation Plan, “The receiver clearly considers any positive returns on a Zeek investment to be a fraudulent transfer, and his pleading indicates that he plans to immediately pursue the return of those funds.”

Since the subpoenas have recently been sent out, we now have a better idea of the Receiver’s plans before he issues distributions to the victims. The Contributors on this site along with Troy Dooly will be conducting a live Google Hangout to answer some of the common questions about this process. We’ll be conducting the hangout on Thursday, November 15th at 5:00 CST. The current roster of contributors is:

myself, (MLM lawyer)
Jordan Maglich (Ponzi Tracker)
Len Clements (Market Wave)
Troy Dooly (MLM Help Desk)
Walt Burton (Commercial Real Estate attorney)
Phillip Young (Corporate Litigator / Bankruptcy Lawyer)

We’ll be covering questions that are important for both the net winners and the net losers. The Hangout will be streamed live on this page AND on my personal website at I’ll embed the video player on these pages. Again, the Hangout will be on Thursday, November 15th at 5:00 CST.

In the meantime, please include any of your questions in the comment section below. I’m not promising that we’ll answer all of them, but it’ll help us all get a general sense of the information you need. NOTE: disparaging comments will be deleted. +Kevin Thompson

Breaking Zeek Rewards News: Kenneth D. Bell Rex Venture Group LLC Receiver Uncover More Assets

Zeek Rewards News

What started over the weekend with emails being circulated by David Kettner, that the SEC acknowledged that there are a couple of problems with the case against Rex Venture group. Has now made it to the desk of the Zeek Reward Reciever Kenneth D Bell, who denies these rumors “False information is being circulated by these claimants.” This backs up the information shared by Jordan D. Maglich of who published yesterday “SEC Admissions Of Weakness In Zeek Case “Inaccurate”; Tactics and Motivations of Zeek Victim Group Questioned”

[quote]September 13, 2012

Kenneth D Bell

Many of you are asking what the Receiver has been doing since August 17, 2012. Among a great many other tasks required by the Court’s Order, we have made it the first priority to secure Receivership Assets. As of today we have secured nearly $300,000,000.00 in Receivership Assets. There may be tens of millions of dollars more of recoverable assets. This process will take time, and I ask your patience while we seek every recoverable dollar for victims of Rex Ventures Group LLC. While many of you are understandably anxious to begin the claims process, we simply can’t do that until we are reasonably certain we have recovered all assets from which victims can be compensated. This process will take months, if not longer.

Among those from whom we intend to recover assets are those affiliates who took more out of Rex Ventures than they put in. Many of you received little or nothing from this enterprise. In order to make everyone as whole as possible, those who profited from participating should surrender their gains.

We hope to soon post an information template for you to complete. This is not an official claim form, but it will allow us to begin collecting your information for future claims processes, and better enable us to communicate with you.

Finally, I read in many emails and web postings that some affiliates claim to have spoken to me or the SEC. False information is being circulated by these claimants. I have not spoken to any of those claiming to have done so. I will communicate with you through this web site. If I could answer all of the hundreds of thousands of emails and calls from you I would, but obviously I can’t. I also recommend that you consider only what the SEC posts on its web site for its position on this matter.

Thank you for your patience and support as we work for the benefit of all victims of Rex Ventures Group LLC. I commit to keeping you as informed as possible.

Kenneth D. Bell

You can learn more information by visiting

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.

Representative Matters

Representation of Speaker of the North Carolina House of Representatives during federal, state and regulatory investigations.

Representation of a Fortune 500 company in federal grand jury investigation and civil securities litigation related to allegations of stock option backdating.

Representation of a national property and casualty insurance company in federal grand jury and civil investigations regarding federally insured program.

Representation of a national home builder and mortgage company in class action civil litigation regarding sub-prime mortgage issues.

Representation of a Big Four accounting firm during investigation by state agency of tax planning strategies.
Conducted internal investigation for major financial institution regarding commission compensation practices.

Representation of a principal of a hedge fund regarding a federal grand jury investigation.

Representation of a national construction company during federal grand jury investigation of municipal water project.

Representation of accountants and medical professionals before licensing boards.

Representation of officers and directors of financial and commercial companies during federal grand jury investigations.

Representation of major financial institutions, accounting firms and large corporations in matters of government and internal investigations.

Counsel of record for more than 100 cases before the U.S. Circuit Court of Appeals for the 4th Circuit.

Primary trial responsibility in more than 200 federal cases, with more than 75 jury trials.

Government investigations regarding commercial and financial frauds, Foreign Corrupt Practices Act, money laundering, public corruption, healthcare fraud, RICO, tax, terrorism, and environmental crimes.

Breaking Zeek Rewards News: The SEC acknowledged that there are a couple of problems with the case against Rex Venture group?

Zeek Rewards News
This message was originally sent on 09/08/12 under the Subject: “Important Zeek Update Sat Sept 8th” 
Robert Craddock, founder of Fun Club USA could not admit or deny the following information.


Hey Zeek Samurai Kazoku,
We just got off the phone with Robert Craddock in response to news going on around the Internet of rumors and other misrepresentations of the truth. So here is what we found out directly from Robert…

Due to this, SNR Denton told Robert on Friday, August 31 that they would no longer be able to represent us and sent back the retainer funds to Robert. They did however share a few law firms that they believed would be successful in representing us and Robert this past week has been able to retain another powerful law firm moving forward and has already made significant progress this week. Due to what happened with SNR Denton since people do not listen, the name of this law firm and our representing attorneys will not be announced until the filings are done early next week. At this time, the court filings will be made public.

Again, we ask that when the law firm is announced, DO NOT CONTACT them! If you want things to proceed, then take a step back and let them proceed. People that want more information delay the work that is happening including sending Robert, myself and other emails, calls and Skype messags asking us how are things going with the Zeek fight. Please people, trust in the fact that as we know things, we will announce them. Please be patient and know that if you do these things that we are asking you not to do, all you are doing is hindering the operation. If you want to help, then spread the word of the fight, spread the word of how you can help, and pray for the best and for justice to prevail.

Here is the great news…The law firm has already talked to the SEC and the NC DOJ. On Thursday, Robert got a call from one of our attorneys regarding the conversation that he had with the SEC. Here is what he said:

The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:

1. We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.

2. We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.

Based on their (the SEC) new knowledge of the Zeek Rewards business model, they are having a hard time moving forward in making their case. And they are now looking for a path or way to back out of this.

What are attorneys will be doing next week is filing a motion of appearance that they are now representing Fun Club USA, LLC. and the people that are now associated with them (the protected group). The receiver, Kenneth Bell, has now also realized that 2/3 of the Zeek Rewards affiliates are international which makes for the use of federal clawback laws being used to recover more funds impossible as they cannot collect them from the international affiliates and would not hold the 1/3 of US affiliates liable for the entire company.

You may have noticed that on the site, and had to pull down the PayPal donation button. This had to be done because PayPal found out that we were working to defend Zeek Rewards and since PayPal had to stop working with Zeek in the past due to the fact that Zeek is an MLM and PayPal does not work with MLM’s, they decided that they could no longer work with Fun Club USA, LLC. either. So, if there is anyone that has made a donation to Fun Club USA, LLC for their donation to the legal fight against the SEC and needs a refund for any reason, you can request that through Robert directly by sending an email to If more donations are needed for the law firm, these directions will be forthcoming. Please realize that all funds that have been received have been sent directly to the law firm and more news will be announced next week as the filings are made with the courts.

In the conversation with the SEC, our attorney’s have already put forth the direction with moving forward with what they are calling “Zeek Rewards 2.0”. They already have decided on another law firm where our attorneys would write an opinion letter which is something we have been told should have been done a long time ago with Zeek and had not been done. What this opinion letter will do is go to all regulatory agencies which will put them all on notice as to how this business, “Zeek Rewards 2.0” operates. Furthermore, if there should ever happen in the future like what happened with the SEC emergency injunction against Zeek, there will be a process that will have to be done first where they would have to go through a series of steps going through the law firm first that fully understands the business model. In other words, what happened to Zeek Rewards on August 16 which was a major mistake by the SEC, will never happen again.

It has also been our goal to fight the SEC allegations to prove that what they accused Zeek and Rex Venture to be false, and then to get Zeek Rewards back into operation. The SEC, since we have basically called them out to prove their allegations and put their feet to the fire, they now have to own up to this HUGE mistake on their part. They can no longer sweep this mistake under the carpet and are now going to be forced to assist us in getting our business back up and running more then likely stronger then ever. The SEC were the ones that actually have recommended how to set up the opinion letter with the law firm that they recommended to be sure that the new Zeek is protected from this ever happening mistakenly again.

Ok, well that is a wealth of information…Please be sure to share this news with everyone. Do know that these steps still need to play out in the court system and it will take time. But the most important thing to know from all of this is that we have already succeeded in showing that the proof that we have fully proves that EVERYTHING the SEC accused Zeek and Rex in their August 16 complaint was gravely mistaken as they did not fully understand the Zeek business model and that it now looks very positive that there WILL be a Zeek Rewards business moving forward. Again, please be patient and allow for the court system and our attorneys to do their job. Please also do not listen to the “talking heads” that claim they know everything online as the only thing that they are trying to do is drive up controversy which builds their own followers and gets more views to their websites.

I hope you all have a Blessed weekend…Keep the faith and look for further announcements from us a we get them.

God Bless,
Dave Kettner

This message was sent to you at regarding:
Zeek Samurai Kazoku UpdatesMessage Sender Info: Dave Kettner ( )
Dave Kettner | P.O. Box 5441 | Peoria, AZ | 85385-5441 | United States
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Zeek Rewards News: What And When Did Insiders Know About The SEC Investigation And SNR Denton NOT Representing Fun Club USA

Truth & Justice

Oz over at did an editorial last week titled Did Zeek Rewards management know about the SEC? After reading it a few times I started going through some notes and reaching out to some folks to verify some of what I had in my notes.

Zeek Rewards News

Also, before I get into the answers to some of Oz’s questions I need to let folks know. I did talk with Robert Craddock a few days ago, and he informed me that SNR Denton would NOT be representing Fun Club USA, but that he had hired a new law firm. He would not answer all of my questions, but did say that “hopefully by Friday” a lawsuit or press release would go out. It is still early so we will see what happens by days end.

Ok, to Oz’s editorial. I am only covering the few things I have information on, so to read the full editorial you will be to visit the links above to read all of it.

[quote] With many of Zeek Reward’s executive management holding affiliate accounts to participate in the company’s Ponzi scheme, one of the most pressing queries has been the question of how aware of the SEC investigation were Zeek Rewards corporate executives, if at all.[/quote]

June or July, I received a call from an MLM Attorney who had shared with me the SEC was investigating some companies which had appeared on a specific blog. Many of the penny auctions were listed on the site along with some other companies with similar pay plan. I know from reviewing my notes I had asked Dawn and Greg about any investigations around May or June and at that time they did not know of any that were directed specifically at Zeek from any regulator. There were some issues with the Montana filing, but I was told the paperwork had been turned in.

From what I have been told, is that when Dawn anf Greg had asked Paul of any investigations Paul was very clear, the SEC was asking questions about each of the companies listed on the site and that Noell Tin had it handled and the SEC “was satisfied”. In the June or July Red carpet Day I also heard Paul make it clear the regulators (I assumed the NC AG) was asking questions but everything was under control.

[quote]Knowing full-well that Zeek Rewards was a Ponzi scheme and being aware of the SEC investigation and a resulting shutdown is vastly important, as such knowledge (and the suppression of it) put Zeek’s management in a conflictingly advantageous position as investors.[/quote]

The above was not a question but the more I read it I did think it deserved some kind of response. If Oz’s statement was true, I’d agree. But as-yet it is an unproven supposition that (1) this was a Ponzi scheme and (2) everyone knew about it. I know that in talking with several of the legal team, Chief Compliance Office (a former AG investigator), Greg Caldwell, Keith Laggos, and the CFO, did not believe it was a ponzi.

It was my understanding that when the SEC did ask questions they were focused on the RPP which based on the complaint they considered to be an unregistered security. This was a fixable issue, and one that was being looked at and reviewed by many over the last few months by many of the top executives and outside consultants.

[quote]Whilst regular affiliates continued to re-invest the bulk of their daily ROIs and encourage new investors to come on board, continuing on unawares right until the precise moment Zeek Rewards was shut down, Zeek’s executive management, aware of the SEC situation and what was occurring, could have easily been quietly cashing out as much as possible from their personal affiliate accounts.[/quote]

Could have, yes. But did they? ONLY a few long term executives (and perhaps system admin in Florida) could manipulate the system like that. I was told by one insider that several top executives who were inside the compensation plan did receive what was called large payouts in the form of checks. And had their point ratio set lower than 80/20, which would lead one to believe they were drawing down larger than normal funds. But, I do not know when this started or if it would be called a normal business practice, for these three or four executives.

I have did confirm that after Greg Caldwell was instructed by the attorneys from the SEC not to inform anyone of the pending shut down just a few days before it became public because the SEC did not want anything that would tip the field off because it might cause a run on funds.

[quote]Former COO Dawn Wright-Olivares all but vanished from the public eye after informing affiliates Zeek Rewards would not be able to pay them unless they “deposited more money” into Zeek’s e-wallet accounts (June 26th). [/quote]

Again this is not a question, but clarity might be good. A statement was issued on Dawn’s comments that were due to the fact affiliates were buying bids through one eWallet and asking for commissions through another eWallet. And at the time the new bank accounts had just been set up and funds were still being deposited. A bad phrasing of the words by Dawn I agree.

Dawn, was out of the country in the first two weeks of July on vacation, but during that time she continued to hold her training calls. In August she and the marketing team were doing calls the first week and were in Nashville the weekend before the closure finalizing the convention plans for November. The week before the closure, all calls were stopped, then the Red Farpet Day was cancelled, then the company was closed. That was the last two weeks of August. her “vanishing” in August (when she was in Nashville).

[quote]A week later Zeek Rewards Sales Director Darryle Douglas disappeared off the face of the planet for “personal matters” on July 30th. Such “personal matters” were never elaborated on by the company and following the official announcement, Douglas was never publicly heard from again.[/quote]

Daryl Daniels on the other hand did disappear from Mid-July and has not publicly been heard form since. Dawn, did not drop off the map until the week of the closure.

[quote]In it, Caldwell claims he ‘was not allowed to participate in meetings with the SEC or the attorneys‘. What attorneys Caldwell is referring to is unclear (Paul Burks personal attorneys or Zeek Rewards’ own?), however the key piece of information Caldwell reveals is that he was aware of a dialogue existing between the SEC and Zeek Rewards.[/quote]

It was not under August 6th 2012 that Greg Caldwell became aware of the current SEC situation. Before that the only mention of the SEC was to ask Paul Burks if the SEC were asking questions based on the above mentioned website. As I mention above Paul made it clear the SEC had asked questions and were “satisfied”. And from the information I have gathered, Caldwell requested that Paul Burks personal attorney Noell Tim allow the corporate legal team to help out since that is what they are paid for. This request was not accepted.

[quote]Largely fuelled by nonsensical lawsuits filed by Zeek Rewards affiliates claiming the SEC had no idea about Zeek Rewards when they filed their complaint and Troy Dooly’s updates on MLM Helpdesk, it’s being heavily pushed that Paul Burks acted alone in his dealings with the SEC – with this ultimately resulting in a closed-door deal involving a $4 million fine and surrendering of Rex Venture Group (Zeek Rewards’ parent company) to the SEC.[/quote]

Sadly this is apparently is true! What I do know is that Paul had Danny Wright establish a VPN (Virual Private Network) connecting him to the corporate computers so he could work from home while taking care of his wife. The only reason I know a little about this is because the whole VPN Australia scene is pretty intense and when I was there I had to wrap my head around a lot of stuff I didn’t know.

I have also found out through insiders that Paul Burks was meeting Noell Tin outside the office and would not allow Greg Caldwell or anyone else to join them. This happened once or twice per month.

Sure if folks had been carrying out “hundreds of thousands” of documents with no one seeing them, then it would seem strange that no one knew what was happening with the SEC. But with Paul Burks having access to the system though his VPN, it was easy to transfer the aforesaid documents without anyone knowing that the SEC was actively investigating RVG and not just the NC DOJ. And for that matter since no one was around the office at night or on the weekend, there is also the possibility that folks could have carried out documents duing those hours.

Since RVG has always been an internet based eCommerce company, it was easy to remove these documents without anyone realizing it because not a single ream of paper needed to be printed. From info gathered so far, I would say Paul used his VPN. And, for the record based on the info I have gathered, Greg Caldwell was never given administrative access to anything.

And since the LLC is a pass-through, single-member LLC only one person takes the risks, gets the rewards and pays the taxes on those rewards… Paul Burks! So for 15 plus years Paul burks is the only one with full access. He had a gal that cut the checks when he told her to cut checks, but he as the one who signed them and as on the bank account. Until 2012 RVG never had a long-term CFO and/or CPA firm watching over the business. Like most small businesses there were no checks-and-balances or Board of Directors.

From info I gathered, it was right around the time Caldwell accepted the “Acting COO” position that the audited 2011 financials had been completed and presented to the CFO. Which, based on the professionals who have reviewed them, don’t suggest a Ponzi was being run.

By the way, it is also my understanding that only three people in-house had total access to the websites and compensation structure. But… There is now evidence that up to five top level Zeek Rewards Affiliates “leadership Liaison” also had full access to the compensation structure and could see total point values and who requested what checks and when those checks were issued.

[quote]Why would they do that unless they’d sniffed something was up? The finer details might have been kept from them but “Ponzi scheme + SEC investigation + requests for hundreds of thousands of Zeek Rewards documents” is an equation anyone even remotely familiar with Zeek should be able to work out. Let alone those running and who were directly involved in the day to day running and management of the scheme.[/quote]

One very important point here. When Greg Caldwell and other executives knew the shutdown was coming they were specifically instructed NOT to change anything and not to tell anyone because the SEC didn’t want a “run on the accounts”. And during the first two weeks of August when I was talking to these executives they never let on of any pending closure.

And remember Dawn flew the marketing team which included several 3rd party consultants to Nashville the weekend before to finalize the convention plans. During this weekend trip, I was called and asked to use my connections in the Biking world to find the cost of having a custom bike (chopper) build by Jessie James for the convention.

In talking to the 3rd party consultants who were present on that trip, they have all stated they knew nothing and were totally taken be surprise with the closure.

[quote]Whether it’s post Ponzi-scheme damage control or sheer ignorance on the behalf of someone who claims to have ‘30 years’ experience as a licensed private investigator‘ and founder of a company that ‘provides assistance in corporate investigations, security, risk management and compliance assessment‘, I have no idea how Caldwell can claim to be “stunned” that the SEC, upon examination of hundreds of thousands of Zeek Rewards documents, came to the conclusion Zeek Rewards was a Ponzi scheme.[/quote]

Oz’s conclusion would be correct if hundreds of thousands of documents had walked out the front door. Without a doubt the staff in Lexington would know something was going on; but that didn’t happen.

And in talking to Greg Caldwell many times I can say he was stunned because Paul Burks and his personal attorneys, up to August 6th lie to Greg Caldwell stating all is good with the SEC.

From doing some due diligence I have found Greg Caldwell was still dealing with the people (bankers, attorneys, IT people) that he was working with trying to fix the company’s infrastructure.

It seems Noell Tin never once told anyone anything about a problem. And maybe that is part of the problem. I wonder what would have happened if Greg Caldwell had not been used as a pawn in all of this also? If he had been told by Paul Burks or Noell Tin NOT to hire the CFO, CTO, Communication Director etc., because of a closure, I doubt he would have taken the job.

Just my thoughts, but it does look like maybe Paul Burks or his attorneys decided it would be a great cover to hire Greg Caldwell as “acting CEO” and allow it to look as if he was being allowed to clean up the company so the affiliates would not get wise and start pulling out their money.

I know that if I would have known about any investigation I would have reported it. I am sure others realized I would also report on the hiring of Caldwell and the new executives. And with the NC AG CID becoming public (although it was not published until after the SEC closure) causes one to ponder if that was leaked to also throw off the fact a more serious issue was taking place?

And, again my thoughts… But why was Noel Tin ONLY representing Paul Burks but no one was allowed to represent the company? Although that might be a legal issue since the LLC is a single-member LLC, but, Kevin Grimes is on retainer as were other very reputable attorneys who have dealt with regulatory agencies for many years and they are completely shut out by Noell Tin and Paul Burks.

I know based on personal conversations that Greg Caldwell was flat out told at the end, when he tried to insist Tin and company to talk to these other attorneys, “We don’t care about the employees; we don’t care about the Affiliates, we only care about keeping Paul out of jail.”

[quote]In an utterly bizarre and completely destructive reflection of the MLM industry’s open willingness to embrace the absurdity of believing that the mere renaming of banning of terminology is what constitutes legal compliance, to deliberate on whether or not Caldwell was indeed Zeek Rewards’ COO is to be sidetracked.[/quote]

I think it might be good to explain what Greg Caldwell’s agreement was when he accepted the “Acting COO” role. This was to be a very temporary and very specific role which would run until Dec 31, 2012 from my understanding. He was there to hire the internal staff and turn RVG into a functioning business. After hiring the CTO and his team, those issues were getting addressed. He specific objectives were (1) Get the Affiliates Paid; (2) Hire Management Staff (3) Establish Solid Banking Relationships; (4) set up Functional Debit Cards for the field and (5) begin unwinding all the ewallet systems like Payza, STP, etc. And I should also include that he was also looking for a competent and experienced CEO to take over so Paul could be the Director.

[quote]Greg Caldwell has accepted the role of acting COO for RVG where we are confident he brings all of the skills, experience and strengths required to take the RVG operation to the next level.[/quote]

Well since Caldwell was only on the job for around 16 days, he could not accomplish much, even if he had been IronMan! It would have been nice to see if he could have turned this ship around by hiring the right people and working with the SEC and AG to eliminate any issues.

[quote]“How much of the money we take in daily is from affiliates, and how much of this money is then paid out each day to affiliates?”[/quote]

From info I have gathered, this was a query Caldwell tried to get run for the Noell Tin and his firm to give to the SEC but they refused. It does seem like a basic question and a good one. But that information was NEVER provided to anyone, Caldwell or it seems the SEC based on the fact their numbers were low in the complaint.

[quote]As per Greg Caldwell, the SEC didn’t shut Zeek Rewards down because Paul Burks sat in his office inventing the daily ROI percentage paid out to affiliates, or that mechanically Zeek Rewards operated like an investment scheme with 90% of the money coming into Zeek Rewards being invested affiliate money, and 98% being paid out in daily ROIs also being invested affiliate money.[/quote]

I have found that the SEC had a very specific concern about the RPP being an unregistered security. Executives had very specific talks about doing away with it completely to appease them.

And although I can’t put words in Caldwell’s mouth, I do know that when a company gets on the radar screens of any regulatory body, the very first thing they do is begin to search the web for supporting information to their suspicions (remember the above mentioned website.) And as we all know many of the affiliated were promoting Zeek as an investment ponzi.

I know that the RVG compliance director was a former AG investigator and worked daily yo find anyone who was promoting Zeek Rewards illegally. But with plenty with websites out there for the SEC to find in spite of very specific efforts by compliance to find them and terminate the persons behind them.

[quote]No, Zeek Rewards was shut down because “idiots” and “morons” were running around the internet referring to the investment opportunity as well, an investment.

And Caldwell wasn’t an employee of Zeek Rewards because, you see, he “accepted” the position of COO as opposed to having been promoted as an existing employee of the company.

This is the idiotic linguistic psuedo- [sic] compliance battle that has raged between Zeek Rewards affiliates and its critics on BehindMLM over tens of articles and now thousands of comments.

Fuelled by ringleaders like Caldwell enforcing the “a Ponzi scheme is not a Ponzi scheme if nobody refers to it as such” angle, ultimately and as repeatedly predicted what you call your Ponzi scheme doesn’t matter. What matters is whether or not you are indeed running a Ponzi scheme.[/quote]

Caldwell might not have been an employee because his Agreement to accept the “Acting COO” role was done as an independent contractor and was just standard C-level title was used that folks would recognize. Not a huge deal, but important when it comes to court issues.

In talking with Caldwell his point above was more focused on the fact an unregistered security does not make a Ponzi scheme. But more importantly months before Noell Tin was dealing with the possibility of an unregistered security concern but “everything was okay”. A week before shutdown, Caldwell was still being told this.

Now, in reading through all of Oz’s editorial and through my notes and gathering more information I have come up with an interesting scenario.

There is a possibility that Noell Tin was told by the SEC several months before RVG to eliminate the RPP, and this was never relayed to any of the other executives. Or that those executives who were told to change it decided to drag their feet since they were part of the compensation structure.

Had the customer qualifiers, and other changes taken place, and the RPP was eliminated and the commissions inside the compensation plan were just raised, then maybe the SC would not have closed down Zeek Rewards… But then again its to little to late.