Breaking Zeek Rewards Update: Claims Process Is Now Closed, Next Subpenas & Clawbacks To The Net Winners

The Dispatch

September 6, 2013

To Affiliates and Other Creditors of Rex Venture Group, LLC:

Kenneth D Bell

On May 15, 2013, the claims process for Rex Venture Group, LLC d/b/a ZeekRewards (“ZeekRewards”) commenced pursuant to the Order Approving (I) Claims Process, (II) Setting of Bar Date, and (III) Approving Notice Procedures. The claims process closed as of 11:59 pm prevailing Eastern Time on September 5, 2013, and you are no longer able to submit a claim on the Receiver’s Claim Portal.  Thank you all for timely complying with the claims process.

As of the close of the claims process on September 5, 2013, 173,782 individual, final claims were submitted on the Claim Portal by almost 200,000 individual registrants.  The overwhelming majority of the claims submitted, approximately 99%, were asserted by Affiliate-Investors and Retail Auction Users. As of September 5, 2013, the aggregate total of all final claims was in excess of $550 million. Please note this data is preliminary, unaudited, and subject to change.

We will provide updated data regarding the claims submitted and the claims process in the Receiver’s Status Report for the Third Quarter of 2013.  That status report is due on October 30, 2013.

Throughout the claims process, we have been working with our forensic accountants and claims advisors at FTI and our claims agent, Garden City Group, to begin the claims reconciliation process.  The reconciliation process will establish the amount of a Claimant’s claim against ZeekRewards that we believe is legitimate.  In this process, we will also determine the amount of cash the Claimant received from ZeekRewards.

Due to the overwhelming response to the claims process and the volume of claims submitted, we cannot estimate how long this reconciliation process will take to complete.  However, we are undertaking every effort to complete the process as soon as is practicable.  To the extent Claimants submitted complete information supporting their claims, we will be able to reconcile those claims more quickly.  Once a material number of claims have been reconciled, we will begin issuing Claim Determination letters.  We will issue these Claim Determination letters on a rolling basis thereafter, and they will state whether a Claimant’s claim(s) has been allowed or disallowed, the amount allowed (if applicable), any amounts the Claimant received from ZeekRewards during its operation, and how the Claimant may object to the Claim

Determination.  These amounts established in the reconciliation process will be used to determine the distribution that will be paid to a Claimant.

It is still my intention to make an interim distribution to Claimants who hold allowed claims as soon as possible.  The amount available for distribution, the timing of the distribution, the distribution reserves, and the method of distribution all must be approved by the Court. Therefore, I anticipate filing a motion that will seek to, among other relief: (1) distribute Receivership Assets to Claimants on a pro-rata basis; (2) establish the procedures for the resolution of objections to claim determination amounts; (3) establish the priority of payments among all Claimants (if any); (4) establish the method for determining the amounts of the distributions to be made; (5) establish the method of distributions to be made (check, electronic payment, etc.); (6) address the application and allocation of expenses in making distributions; and (7) address how to treat de minimus distributions.  It is anticipated that this motion will be filed prior to the end of this year.  A final distribution will be made at the close of the receivership once all recovery efforts are complete.

Please note: If you did not complete and fully submit a claim through the Receiver’s online Claim Portal, or through alternative means expressly authorized by me in writing prior to 11:59 pm prevailing Eastern Time on September 5, 2013, your claim will not be counted and you will not receive a distribution on account of any amounts that ZeekRewards may owe you.

However, I plan to seek court approval to permit the late filing of certain claims by Affiliate- Investors or financial institutions in the following limited circumstance.  As some of you may recall, the Receivership previously demanded that financial institutions that improperly stopped payment on cashier’s checks, teller’s checks, and bank money orders presented by the Receivership make good on those items and pay the full value of those items to the Receivership. Many financial institutions complied with this demand in July and August 2013 (though some items still remain unpaid).

In the event that a financial institution pays the Receivership for stopped payment cashier’s checks, teller’s checks, or bank money orders, and financial institutions or affiliates were unable to submit or amend a resulting claim to the Receivership on or before September 5, 2013, I will ask the court to permit the late filing of such claims.  I will ask that the Court permit ONLY late claims or amendments of claims from (a) financial institutions seeking to file a subrogation claim on behalf of its affiliate customers after paying stopped payment cashier’s checks, teller’s checks, and bank money orders to the Receivership on or after August 1, 2013; or (b) affiliates whose financial institutions pay the Receivership on or after August 1, 2013 for stopped payment cashier’s checks, teller’s checks, and bank money orders, and are thereafter charged or debited by their financial institutions for these items.  Further information, including the date by which such claims must be filed, will be contained in the motion to permit the late filing of these claims.

Finally, as we have previously reported, I intend to pursue court action beginning this fall against those who profited from ZeekRewards because those profits came at the expense of ZeekReward’s victims.  Potential targets of such action include “net winners,” former insiders, and anyone else who knew or should have known of the inappropriate nature of ZeekRewards’ activities and yet facilitated those activities for their own gain.  Funds recovered from any such actions will be used to further compensate ZeekReward’s victims.

As always, thank you for your continued patience in this process.  I continue to be dedicated to returning to you the greatest percentage of the amount of your claims as is possible.

Sincerely, Kenneth D. Bell

Receiver for Rex Venture Group, LLC d/b/a ZeekRewards

ATTENTION Zeek Rewards News & Info: Last chance to file Zeek Rewards claim

LEXINGTON, N.C. — Victims of Zeek Rewards have one more week to file a claim to get their money back.

The federal government shut down Zeek Rewards last year, calling it a “pyramid scheme.”

Zeek Rewards COO Dawn Wright Olivares

A receiver is now in charge of getting as much money back as possible and giving it to victims.

The last day to file a claim in September 5.

Visit for more information.

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








Breaking Zeek Rewards News: Net Winners Have Sixty Days To Settle Or Face The Courts


Receiver’s Message to Net-Winners Regarding Settlement Opportunity

Kenneth D Bell

April 1, 2013

Since I was appointed Receiver of Rex Venture Group, LLC d/b/a (“Zeek”) I have tried to make clear to those who profited from Zeek that I intend to pursue claims against “net-winners” – regardless of amount – to recover their winnings which came at the expense of Zeek’s victims. Yet, I recognize that many of the net-winners also see themselves as victims of the scheme and are anxious to resolve their participation in Zeek without being drawn into court proceedings and the further cost and time involved in the legal process.

So, on several occasions, I have encouraged net-winners to come forward to discuss settlement of their claims. A number of net-winners have done so, and we have successfully negotiated payments which will, subject to Court approval, result in the release of the Receiver’s claims against those winners. The settlements take into account the amount of the affiliate’s winnings, the nature of their involvement and their involvement of others, their cooperation, their ability to repay the money (and the time period in which the repayment can reasonably be made) and other individual factors and circumstances. The amounts of the settlements have ranged from approximately 40% to 80% of the affiliate’s net winnings. However, not all net winners have

been or will be offered discounted settlements and the amounts of future settlements may vary from this range. The amount of the settlement offered to each net-winner will be based on the affiliate’s particular circumstances and ultimately must – in both my and the Court’s opinion – be in the overall best interests of the victims, considering the costs associated with the legal process.

The time for court action is drawing closer. I am sending this message to make sure that net-winners understand that there is an opportunity for settlement, but that the window for the opportunity is closing. To allow a reasonable time for all those who would like to pursue a settlement to do so, I am going to continue to make my team available to negotiate settlements for at least 60 more days.  Therefore, if net winners want to pursue a settlement they should contact us by no later than May 31, 2013.  After that date, I will assume that all

net-winners that want to avoid the legal process by discussing settlement have done so, and I will move forward with court action, likely in June 2013, against the remaining net-winners.

Again, my goal is to compensate Zeek’s victims and to the extent I can do that fairly without legal action against net-winners, all the better. So, I encourage any net winner interested in agreeing to a settlement prior to litigation to contact my team at


Kenneth D. Bell


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.