Zeek Rewards Legal Alert Updated Nov. 2nd: 1200 Subpoenas Now Being Delivered, Potentially “Hundreds of Millions” In Clawback Lawsuits, Claims Process Coming

Zeek Rewards News

Yesterday Rex Venture Group, LLC., aka Zeek Rewards Receiver Kenneth D Bell, issued the letter below. Which in part may contradict some other emails and letters floating around the internet that Zeek 2.0 is coming soon, and the 3rd party attorneys seem to have this case wrapped up in stopping clawbacks from the top Zeek Rewards promoters. Attorney, Jordan D. Maglich of PonziTracker.com also wrote a great editorial from a legal eye, that is worth reading. UPDATE NOVEMBER 2nd, 2012: Just got word the first of the 1200 Subpoenas Have Started To Arrive!

Update Nov. 4th 2012: There has been questions on if the Voluntary Subpoena Packs were legally served, and if the former Zeek Rewards Affiliates who received them should respond. Here is some clarity of this issue under Federal Rules of Law. Rule 45. SUBPOENA

Kenneth D Bell

October 30, 2012

I want to give you an update on our efforts to recover assets from which we will be able to refund victims of Rex Venture Group LLC.

Our preliminary analysis has identified more than 800,000 affiliate User IDs who put more money into Rex Venture than they took out. We estimate that losses will total between $500 million and $600 million. We have already recovered more than $300 million and continue to pursue millions more held in financial institutions. To fill the gap between what we have recovered and what victims lost, we will pursue recovery from those who took out of Rex Venture more than they put in. There are more than
100,000 User IDs in this category representing hundreds of millions of dollars.

This week we will issue subpoenas to approximately 1,200 affiliates who profited most from ZeekRewards. The subpoenas ask for financial information, including dealings with Rex Venture. Depositions and litigation will follow if necessary. With each subpoena will be a letter offering to negotiate voluntary surrender of profits (victims’ money, really) instead of going to Court. Additional subpoenas and demands for return
of profits will be served on thousands more in the weeks to come. I can’t tell you we will recover enough to make all victims 100% whole, but if we don’t it won’t be for lack of trying.

As soon as we are able we will submit to the Court for approval an Official Claim Form. Once approved the Form will be posted on this website. When that process has run we will ask the Court for permission to make a preliminary, partial distribution to qualified claimants from recovered funds. A final distribution will have to wait until we have finished collecting all recoverable assets. This will unfortunately take quite a while, and I appreciate your support and patience.

Finally, I have received emails from many of you asking if you need to, or should, hire an attorney or join a group that has hired an attorney to assist in your recovery of claims. I cannot and do not advise you one way or another about hiring an attorney. I can tell you that my direction from the Court, and my duty to you, is to seize all recoverable assets
and distribute them to victims as fully and fairly as possible. That, I will do.

Kenneth D. Bell
Receiver

If you are interested in learning more about your legal options, click the links below.

Zeek Rewards Recovery Group

Zeek Rewards Class Action Lawsuit

Sources: ZeekRewardsReceivership.com

PonziTracker.com

Zeek Rewards Legal Alert: Rex Venture Group Receiver Kenneth Bell Clarifies Several Important Issues

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Kenneth Bell the Court appointed Receiver for Rex Venture Group aka Zeek Rewards and Zeekler Penny auction speaks out today to clarify several points.

One important point Bell clarified was that they are closer to two million affiliates. Since the SEC took action against Rex Venture Group and Zeek Rewards, I have made it clear based on information I had been told the numbers in the SEC Complaint were low. I mention last week that the affiliate numbers would be closer to 1.8 million, and that the liquid assets and income would be closer to double what is in the SEC Complaint.

Bell also made it clear that it would be a “long time” before any refunds are issued. Part of this is based on the amount of information he and his team must uncover. But there are also two pending lawsuits and a third on the way.

Bells, move not to issue refunds too soon is in the best interest of the affiliates who are owed money. Bell said “We want to have substantially all of the funds before we start to issue checks,” By making sure all funds are collected, the affiliates should get back a larger refund. Hopefully 100% if one of the lawsuits truly shows Zeek Rewards was build on a Ponzi model.

Bell also said “This is one of the largest Ponzi schemes to ever go into receivership…” Now since there has not been a trial on the issue, I must assume Mr. Bell is stating Zeek Rewards was a ponzi based off of the SEC Complaint. However, if this case never sees a day in court, I hope he will one day write a book explaining all the details.

One of the biggest questions I have received in emails has been on clawback laws, and if the Receiver would be going after affiliates who have already paid taxes on the incomes they earned legally last year. Bell stated “We are trying to collect as big a pool as possible for these investors,” Bell said. “Until we know how much we are able to collect, we just don’t know how much of a pool we have.”

I am not sure how that will affect all those affiliates who paid taxes. And I am not sure if any individual affiliates might seek some form of legal action to keep the Receiver from Clawing-Back any of the money they have already paid taxes on. Without a doubt this situations is getting more convoluted by the day.

Great summery of the call can be found at Forbes

Breaking Zeek Rewards News: First Federal Class Action Lawsuit Filed By Patrick Miller LLC On Behalf Of Johnny Belsome and Class

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On Augest 24th, 2012 the first Federal Lawsuit was filed by Patrick Miller LLC on Behalf of Johnny Belsome, Timothy Allen, Jody Hinckley, Donald Marcel, Keith Hinkley, Starr Achinson, Edward Thiel, Brett Hunter, and Tara Belsome, on behalf of themselves, and all others simarly situated…Source ZRLawsuit.com

Patrick Patrick

Patrick H. Patrick graduated from the University of South Alabama and from Tulane Law School in 1984, where he served as articles editor for the Tulane Law Review. Prior to the formation of Patrick Miller LLC, Pat was a partner at one of the largest New Orleans law firms. Pat’s practice focuses on insurance and maritime issues. He also has a commercial litigation practice that includes intellectual property and antitrust cases. Pat is admitted to the United States Supreme Court, the United States Court of Appeals for the Fifth Circuit, the United States Court of Appeals for the Sixth Circuit, and all federal and state courts in the state of Louisiana. He has handled matters before agencies such as the United States Custom Service, the United States and Louisiana Departments of Labor, the United States Trademark Trial and Appeal Board, the Louisiana Insurance Commission, the Louisiana Commission on Public Ethics, all gaming regulatory agencies in Louisiana and Mississippi, and the Louisiana Department of Public Health. He is a registered lobbyist in Louisiana. Source Patrick Miller LLC

Pierre V. Miller II

Pierre V. Miller II received a Bachelor of Business Administration in finance degree from the University of Notre Dame in 1983 and a juris doctorate with honors from Tulane Law School in 1986. Pierre served as a law clerk for the late Earl E. Veron, United States District Judge, Western District of Louisiana. Prior to founding Patrick Miller LLC, Pierre practiced at one of the largest New Orleans law firms, where he gained invaluable experience and extensive training.

He is an experienced litigator who has handled bankruptcy, commercial litigation, and business tort cases in areas including intellectual property infringement and misappropriation, construction, contract, insurance, collections, breach of fiduciary duty, professional malpractice, maritime, and trade regulation at all levels of the state and federal court systems. Pierre handles successions and estates and related succession litigation. He advises clients on oil and gas and other transactional matters, including business formations and the negotiation and drafting of contracts and other instruments. Pierre has been named to Louisiana’s lists of Super Lawyers for Business Litigation annually since 2008. Source Patrick Miller LLC

Zeek Rewards Federal Class Action Lawsuit