This is the first Zeek Rewards Editorial I have done in a while. But to sit back and say nothing while former Zeek Rewards Affiliates go on thinking there is a chance Zeek Rewards is coming back, is wrong. With maybe 100,000 voluntary surrender packets now arriving in mailboxes and 1200 Subpoenas hitting next week, and conference calls and emails going on telling people “Kenneth Bell is fishing for information and is using, in my opinion, scare tactics to shake you good people up in turning over money you have earned from your efforts in building the penny auction known as Zeekler.com for Rex Venture Group.” I decided to write this editorial! My thoughts are in RED below.
Update Nov 3rd, 2012.: Phillip G Young Jr., attorney at Law can help those who have questions about the Clawback Packets they have received. “Do not contact Phillip unless you’ve been served with a subpoena packet from the Receiver.”
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
This email started making the round a week or so ago. Since I had not heard or Richard Trotter I decided to wait and see what came of it. Very quickly Robert Craddock made a public statement to distance himself from the email. Don Ryan reported on this… Robert Craddock distances himself from Trotter’s “Update”, then Don Ryan wrote another editorial which provided more info from a reader who seems was on the call where this email originated from. Clarifications on the “Trotter” Update & Craddock’s part in the call. In this editorial it seems that Robert is credited for items 1, 2, 3, 7, 12. Since I was not on the call I can;t say for sure. But what I can say is that there is a boatload of misinformation in the following email. I have written my thoughts, and linked to Court Documents to provide proof.
Now without a doubt those of you who do not want to believe Zeek Rewards is done should STOP reading right now. For those of you who are trying to get to the facts, should continue to read and gather information.
Subject: Very important Zeek update from Richard Trotter…
The following are some of the items touched on by Robert Craddock on the ZeekRewards conference call I listened to. I was taking notes as fast as I could but I might have missed a few things.
1. We have 3 attorneys working on the case and their first order of business is to get the money being held in all of the eWallets released back to the affiliates.
This would be a great move, as we know there are former Zeek Rewards Affiliates who have claimed they had joined Zeek Rewards with the intention of buying bids, but who had never initiated any transfer to a Rex Venture Group, LLC., controlled account.
If the attorneys have documentation of who these affiliates are and can prove to the Receiver, these should not be part of the frozen assets of Rex Venture Group to be used as funds to be paid to “victims” great!
The SEC claims that NxPay was an extension of ZeekRewards and that is why the money was frozen in there. NxPay has to show that they are an independent eWallet company and not owned by ZeekRewards.
Although, there has been questions that have arisen about NxSystems Inc., those have been taken care of. As a matter of fact unlike all other websites owned by Rex Venture Group, LLC., both NXPay and NXSystemsInc are still up and live. Plus NXPay provided additional information as have all the other eWallets to further prove exactly how much of Rex Venture Group Assets they have under management. (Review Court Document 25 or Court Document 30-1)
Our attorneys are typing up motions that are going to be submitted to the judge in the
next few weeks to have the money released from the eWallets. This is ONLY the money sitting in the eWallets, not any potential commissions that were requested and still pending in ZeekRewards.
Again, this is great information for those former Zeek Rewards Affiliates who never paid a dime to Rex Venture Group, LLC., but who have money locked up in this whole situation. Although eventually these funds would be released, it is good to see these attorneys willing to help these folks without charging each one of them individually. However, the question that arises based on what the Preliminary Liquidation Plan, is as follows… Are there any funds left in the eWallets?
It seems these funds may have already been transferred to the Receiver Defendant Account #2 (Review Preliminary Liquidation Plan – IV Summary of Receivership Operations and Finding to Date. Sub-paragraph A. Establishing and Operating the Receivership Estate (page 7.)
And if you read down on page 8 of the Preliminary Liquidation Report – 1 – Assets Marshaled As of October 5th 2012, you will see where the Receiver has already been authorized to seize ALL the assets. So based on Exhibit 4 of the Preliminary Liquidation Plan there are no funds left in any of the eWallets. The U.S. Secret Service has already seized on behalf of the Receiver ALL liquid assets which were held or perceived held for or on behalf of Rex Venture Group, LLC.
Now don’t get me wrong. There may still be cash in some of the individual eWallets, and if that is so, then let’s all hope these attorneys can get it released if it is due to folks.
However, I also need to be clear, that I doubt the majority of any funds held in individual eWallets of former Zeek Rewards Affiliates will be released until the Receiver can determine through the process explained inside the Preliminary Liquidation Plan, if these former Zeek Rewards Affiliates are “victims” or “Promoters” and which ones are willing to relinquish, their “winnings” or are going to fight clawbacks. Those who decide to fight the clawbacks will not see their funds released until which time they win their case.
2. The attorneys see NO VICTIMS (except at the hand of the SEC) and NO Securities being bought or sold through ZeekRewards. The SEC was required to file their motion in front of the judge for
the liquidation process.
The preliminary liquidation plan was filed in October 2012, and to date no one has come forward to file any motion against the plan filed. Now this may be because they are waiting to see if the Judge will approve it. But, since it was accepted as the quarterly report, there is a good chance it will be accepted in part or fully. (Review Court Document 51 and Document 53-2)
The judge is not obligated to grant their request. The SEC did not anticipate anybody standing up and fighting for ZeekRewards. Our attorneys said that the information the SEC received is not accurate and the SEC made it look like Paul was guilty, when he was in fact innocent.
Well this does not seem to be accurate for several reasons. First the SEC is almost always challenged in anything they do. And within days of the Seizure of RVG at least two cases were filed (the only cases to date.) One in state court in N.C. and one in federal Court in LA. And according to the Preliminary Liquidation Report IV – Summary of Findings To Date pg 20. – D. Analyzing Claims of Third Parties. In the state case the Receiver has already moved to stay the state action, and is prepared to do so in the federal action if needed.
To so say the SEC or the Receiver was not expecting or prepared for such action is downright misleading. This is one of the same regulatory body’s that also is involved in the Ad Surf Daily case, which shared some of the same promoters based on public records. Logic would conclude the SEC would anticipate these promoters would engage in the same legal tactics in the Zeek Rewards clawbacks as they have in the ASD clawbacks.
Now to say that “the information received by the SEC was inaccurate, is as much as saying Paul Burks lied under oath to the SEC, which would place him in contempt and could put him in prison as a felon if found guilty. If one read the original Complaint, it is clear Paul Burks provided 100,000 documents to the SEC. Although I will agree not all the information was provided prior to the final Judgments, the information acquired since the August 17th Seizure has pretty much validated what Paul Burks has already provided.
Paul Burks never admitted whether he was guilty or not. However, that does not mean that someone was not guilty or that that Zeek Rewards was not created for the sole purpose of acting as a Ponzi. Sadly, we may never know those answers, or at least not unless criminal charges are filed in the future.
But to act as if Paul Burks purposely provided false information to the SEC and they then twisted said information and Paul Burks attorneys stood by and did nothing to stop it, is just plain ludicrous.
3. Robert Craddock and the attorneys will be announcing the court date and want at least 2000 people to come to North Carolina to support ZeekRewards and to show that there were no victims and that they need to release the funds from the eWallets. This will get the attention of the media and show everyone that we support our company. The only victims are the ones that have been created when the SEC took our company and stole our money.
Well, For Robert Craddock or anyone else to announce any court date, a motion or new Case must be filed and accepted by the Judge in this case. As of October 31st 2012, the only two cases filed were in State Court in N.C. and Federal Court in LA. I find it disheartening that anyone would pretend a court date is close when even the first two cases which were filed days after the Seizure of Zeek Rewards have not had court dates set yet.
I do agree when thousands show up for a court hearing it will attract media attention. It also causes more expenses to those who are already out thousands of dollars and are not sure if they will get their money back or not. It also allows the media to twist the words of those who do respond for interviews, and could cause more issues to arise. Since the #1 concern while Zeek was up and running was folks promoting Zeek Rewards in a manner that was out of compliance, I can only imagine how the media might twist the words of a good meaning former Zeek Affiliate, and those words could then cause more legal issues for them or others.
If a new case is filed or a motion to be heard is accepted, then I petition the former Zeek Affiliates who may show up to be very careful on who you talk with, and what you say.
Now as for the SEC taking “our company” Paul Burks surrendered the company after seeking wise counsel, and going over all the evidence.
One thing is for sure, if 2000 plus former Zeek Affiliates descend on Charlotte N.C., it will be a big boost in the economy for the town.
Now as for the only “victims” being those caused by the SEC. Based on the current numbers released by the Receiver (I realize many of you will not believe them), it would seem that the Zeek Rewards compensation structure did not empower the majority. If 2.2 million folks had joined Zeek at the free level up, and only 1 million had paid in any form of money, then in just looking at the facts as presented 100,000 made more than they paid in, and 1200 were the major winners. It seems that 10% were making money, and 1.2% became major winners.
So because the size of Zeek Rewards was larger, the noise on the net was louder, but the overall ratios were the same as other income opportunities, legal or illegal! If this is close to the truth, then we have to go back and look at the facts that Paul Burks decided not to fight against, and ask the following question… Could Rex Venture Group, LLC., sustained the daily payout of .80% to 1.5%?
Short answer is no! This is why for months, on the training calls, Zeek Rewards News, and Red Carpet Days, the leadership was making it clear, new qualifications were coming! Without a doubt, we will never know if these qualifications would have worked. But an even more important question is… Why did they wait so long?
4. The reason the NC DOJ was alerted about our company is because ZeekRewards grew too big too fast and people were taking all of their money out of their banks and credit unions to acquire bids. The smaller banks and credit unions were losing money. They panicked and were working together to stop this by spreading lies about the operations of ZeekRewards.
This is not an accurate statement at all! I talked personally with the NC DOJ. The reason they were alerted is because folks were calling from inside N.C., the USA and internationally asking if Zeek Rewards was a good “investment”!
I do agree that folks who had no clue what they were doing, because they had been presented Zeek Rewards wrong… “just put your money in” when asked by their bank and financial institutions why they were pulling out so much money, they told them about the ROI of 1.5% per day!
But to say they panic is a stretch. And if we want to call it panic, maybe we should say they were looking out for their customers. The compliance issue was HUGE at Zeek because people were promoting the ROI of the RPP. You might be buying bids, but what was talked about was the ROI of the RPP!
5. When Paul Burks received the civil request from the NC DOJ, his small town attorney advised him to give up. Noel has no experience in this area and he gave Paul Burks extremely bad legal advice. Paul admits he was under duress when he handed ZeekRewards over and now wants to clear his name. He knows we are fighting for him and fighting to reopen ZeekRewards.
Well, this is complete propaganda by someone who did not take the time to review the law firm or the personal atorneys of Paul Burks.
Noel Tin is one of the most respected criminal attorneys in the USA. (Read Here!)
Melissa Owens is the daughter of one of the most successful criminal attorneys on the East Coast, maybe the nation. She is classified as one of the “super attorneys’ in the nation. (Read Here)
Here is a link to some of the most successful cases they have represented (including Ponzi)
Paul Burks did not state he was under duress at all. The reality is, he admitted just the opposite. You can read his signed consent by clicking here. And yes I understand many of you might not believe this to be true. But, if not, then Paul Burks has committed perjury and lied under oath. If that is the case, then logic would lead us to the conclusion, he might also lie about other things. So you either believe Paul Burks would not lie, or you believe he is a liar.
And, by the way, there is no fighting for Zeek Rewards, the assets or Rex Venture Group, LLC., or anything else that once belonged to Paul Burks. The current issue at hand based on the websites of Robert Craddock is “ClawBacks”. So before you believe things that folks put out in the name of Robert Craddock, it might be wise to fully listen to what he states!
Although Robert and I might not agree on everything, he has been very clear from day one to me… He is fighting the potential of clawbacks. And that is what is prints on his websites etc.
All one has to do is read the Judgments to realize a Free U.S. Citizen decided for whatever reason to voluntarily surrender his assets to the U.S. Government upon the advice of his well competent personal legal team.
6. The SEC wants to vaporize the entire data base of ZeekRewards so nobody has any documentation of the company or anything that has happened; but our attorneys are not letting that happen. Everything in the back office is currently still there. The SEC has filed a motion to vaporize everything and our attorney’s are fighting that motion. If we prevail, what happens to all of that information is up to Paul Burks.
Well, this brought a gut laugh! According to the Preliminary Liquidation Plan, the Receiver is NOT trying to vaporize the database. The reality is he has hired one of the most respected forensic accounting firms in the world FTI Consulting to help weed through the accounting. Ricoh USA to capture hard copies of all documents, and Kroll Ontrack to recover damaged and destroyed data on the hard drives.
So, again for anyone to propagate the opposite is either purposely trying to mislead folks, or at best, have not done their own homework in this case, and are relying on false hope.
One outright lie is the fact the above person states “The SEC has filed a motion to vaporize everything” I have listed all court documents at MLMHelpDesk.com and there is no Motion to “vaporize anything!” All one has to do is read the most current Preliminary Liquidation Pan to see what a Bold Face Lie this is.
The second lie is to state “Our attorney are fighting this motion” The attorneys for Fun Club USA have filed an appearance but that is all as of this date. So one must ask themselves… Is this person purposely lying for some unknown agenda, or are they just clueless?
7. Our attorneys said there will likely be NO CLAWBACKS. They said Kenneth Bell was improper in saying that. All three of our attorneys have worked as receivers so they know exactly how the process works. One of our attorneys is only 1 of 2 in the nation who has the highest credentials for fighting this. He was a senior enforcement officer with the SEC, was a federal prosecutor who knows all about insider trading, bank fraud, mail fraud and tax fraud. He also knows all of the members of the SEC personally.
There is no doubt in my mind that the attorneys for Fun Club USA are well competent in representing their client, Fun Club USA.
And since the attorneys were not on the call, what they might have said is at best coming from 2nd or 3rd parties and we really don’t know what was said.
But let’s look at the legal team.
Rodney E. Alexander is a well-respected Pro Bono attorney. Once that fights for the best interest of his clients.
Michael Quilling is a Texas Super Attorney who is well qualified to handle the Fun Club USA case. He has acted as a receiver himself and fully understands the system. And Mr. Quilling’s law firm is ot just one of the best in Texas but in the USA.
I looked for a 3rd attorney and do not see one listed in the court documents representing Fun Club USA.
As for the rest of the propaganda above… All of these attorneys including Kenneth Bell the Receiver are well respected and some of the best at representing their clients. To act as if one is better than another is nothing more than propaganda.
8. When Kevin Grimes was brought on by ZeekRewards it was solely for the compliance video. There was nothing he could do when Paul was advised by his personal attorney to give up.
9. If Paul does not want to step back in and run ZeekRewards he has two choices. He can appoint someone to run it for him. There are a few people who have already volunteered to take over and run Zeek 2.0. Or he can sell it and there are some people who have already said they will take it over.
This is again propaganda by someone, or just ignorance to the facts. Paul Burks consented NOT to run any company remotely like Zeek Rewards directly or indirectly. And Paul Burks has nothing to sell. As a FREE U.S. Citizen he paid a $4 million dollar fine, and surrendered his asset Rex Venture Group LLC., and them agreed not to fight to get it back.
Now, if someone wants to file a case to question if the Zeek Rewards Compensation Model was viable and legit, then I would welcome such a case to see both sides of the coin. But since Paul Burks, nor any of the officers of Rex Venture Group, LLC had decided this was a worthy cause, I question anyone else doing it also. Maybe this will come out in the case that I am sure will be filed to stop the clawbacks of Fun Club USA.
But, if we use history as a guide, then we can see in the current case of Ad Surf Daily, that the Clawback case has not stopped the government from winning and getting a conviction that ASD was a illegal Ponzi, and has already started paying back victims.
Trying to stop clawbacks will not stop the liquidation of Rex Venture Group, and paying the “victims”. It just may slow down the full payment to those who are owed refunds.
10. After the verdict is handed down (and we win), it will take at least 2 months to have ZeekRewards back up and running. Robert Craddock said everything is looking really good right now but we are walking on thin ice so that is why everything is taking so long. We have to be extremely careful with all of the
motions that are filed.
Well, again either this person is totally clueless of just trying to propagate a hidden agenda. Now a verdict can be handed down if we see a Jury trial on the Clawbacks. But as to the Rex Venture Group case, it is NOT coming back! This is the same propaganda we saw surrounding ASD in the beginning. Lord knows I did not want to think Zeek Rewards was a Ponzi, and I still wonder deep inside, that if the changes had been made back in the Spring and early Summer of 2012, if this situation could have been avoided. Sadly we will never know!
I have no way of knowing what Robert might or might not say. But in the few times I have talked with him, he does not seem like the type of would make a stupid statement as he is claimed to make above.
Since he personally knows his attorneys have not filed anything to date, there is no way he would be ale to say “things look good” unless he is talking about the amount of donations they have received to fight the clawbacks.
And if someone states “we are walking on thin ice” then that doesn’t come close to saying “everything is looking good!”
It would be good to see at least one motion filed. Although, I would guess it will be more than a motion it could be a new case filed. We will see… maybe!
11. The reason the North Carolina DOJ dropped all of the charges is because they found NO VICTIMS and NO SECURITIES. The SEC might have a different opinion. Robert Craddock has to attend all of the court hearings. He believes that Zeek will be proven to be a solid and legal business model. He said they will be able to prove that the money being paid from ZeekRewards to the affiliates was from the success of the auctions. The points that everyone had was not money. They were just points. We were only paid from the profits from the auctions. This has been proven by the profit and loss statements that were requested by the SEC. Paul Burks attorney (Noel) said he wished he would have known this information before he gave Paul such bad legal advice.
Well, there was never a case filed by the NC DOJ. They did issue a Civel Demand Letter asking for additional information which Greg Caldwell the acting COO was able to provide. But before they could render a decision on the information they had received, issued a fine or anything else, the SEC stepped in. And since this case was across state and international borders and included wire, internet, banking and postal fraud, the SEC takes control.
I am sure without a doubt Robert Craddock believes Zeek Rewards was a “solid and legal business model.” I do not think he would waste is time blowing smoke if he did not. To think anything else, would be to think he was just trying to raise money through donations, and from what I have been told by him, he is not hurting for money. I am sure this is a crusade for him. Sadly I am just no convinced it is in the best interest of the majority of the former Zeek Reward Affiliates.
Most of the former affiliates need their refunds to pay bills, and to get ready for the Holiday Season.
To state that the RPP was only profits from the auctions it just STUPID! There was never a debate that the majority of the RPP was NOT from the profits of the auctions. As a matter of fact even the Zeek Rewards website stated the RPP was the net of the daily revenue of Rex Venture Group!
I do agree the points were not money. But, unlike a rewards program, these points were traded for cash at .80% to 1.5% per day. Again, this is public knowledge and to propagate anything else causes one to get concerned about the authors understanding of this case or Zeek Rewards.
As for the P&L, I would love to see it. Especially now that the Receiver has stated he found off shore accounts and unaccounted for certified funds. If those are not on the P&L or audited financials, then we have more evidence pointing towards fraud, and that is scary.
Plus the Receiver has now stated he is going after the CPA, Banks and Attorneys in clawbacks. Why, if the documents are correct?
By the way…Noel Tin, would NEVER give bad advice and would have had access to the documentation. Read above on Noel Tin’s background.
12. Robert said that the Judge is not dismissing our arguments so we are able to move forward with everything. Robert also said that the SEC has spent about $50,000 to $60,000 of ZeekRewards money so far on this case. He said right now the money that we all have donated is enough to pay our attorneys. He did say that at some point in the future we might be asked to donate $10 more.
What arguments? Nothing has been filed yet! To see what the Receiver has spent to date you can click here! $55,707.18 as of October 5, 2012.
When the first donations poured in, 2/3 of it came from outside of the United States.
I can believe this without a doubt. Sadly, again because of how hard it is to fully understand what is happening in the USA legal system, these folks may not realize all that is and is not happening!
We need to stay positive and know that our attorneys are doing everything in their power to prove our company should be restored to us as soon as possible.