Breaking Zeek Rewards News: 120 Days To File A Claim Or Lose Out Forever!

Zeek Rewards COO - This Week on ACES Radio Live 06-08 by ACES Radio Live - Blog Talk Radio

Jordan Maglich over at broke this news earlier today. I used his editorial to cover the most important parts of what this means for the victims and claimants of Zeek Rewards.


Troy’s Thoughts: It is clear from the filings that Kenneth Bell and his team are working to make the claims process, as cost effective for the estate as possible.  But, it is the responsibility of those who are victims to pay close attention and make sure you fully understand what you must do to get your claims filed and accepted.

Kenneth D Bell

Should the Court approve the Motion in its current form, the Receiver proposes that he will provide notice to all interested parties via several methods:

  1. Making the Claims Process publicly available on the Reeiver’s website at a soon-to-be-functional Claims Portal;
  2. Emailing all known affiliates through email addresses obtained from Receivership records and collected at the Receiver’s website;
  3. By U.S. Mail to trade creditors and other known, non-affiliate creditors; and
  4. Publishing the Receiver’s Notice on the Receiver’s website, certain multilevel marketing sites, certain newspapers, and sending the Notice to certain trade groups in the financial industry.

Within 14 days of court approval of the Motion and included in the court-approved notice to claimants, the Receiver proposes to have a Claims Portal active on his website,  According to the Receiver, the Portal is “designed to capture the claims of all Claimants…in the most cost effective way possible.”  Thus, all claimants, whether affiliates or non-affiliates, should files claims at the Claims Portal.  Indeed,

Failure to submit a validly completed claim on the Claim Portal (or by alternative means that are agreed to between such Claimant and the Receiver prior to the Bar Date) will preclude a Claimant from receiving a distribution from the Receivership Defendant regardless of the validity of the Claimant’s claims.

VIP Points Not Allowed

One issue of note is the Receiver’s proposal to omit any inclusion of “Retail Profit Points” or “VIP Points” in the calculation or determination of any claim.  Akin to interest, the VIP Points were accrued by purchasing sample or VIP bids and then re-distributing them to retail customers or back to Zeek.  The VIP Points then allowed the affiliate to participate in the daily percentage payout from Zeek, which averaged approximately 1.5%.  As is universally understood in other receiverships, victims of Ponzi schemes are entitled only to their lost principal balance, and not to any fictitious interest (or, in this case, points) that they may have accumulated.  Indeed, especially since the vast majority of Ponzi schemes are unable to accomplish a total return of victim losses, allowing interest as part of a valid claim would reward some victims at the expense of others. Source – 


Court Filings Regarding the above Motion


Exhibit #1

Exhibit #2

Exhibit #3

Exhibit #4

Exhibit #5


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?
unsubscribe from this list | update subscription preferences
The Law Office of Kevin Thompson • 265 Stanley Park Lane • Franklin, Tennessee 37069

Cradock Response

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

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


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

Zeek Rewards Update: Fun Club USA Not Covering Legal Fees For All Their Members It Seems

Truth & Justice

One of our community members, Zeek Freak directed me to an article written by Don Ryan over at ASD Updates published an interesting notice put out by Fun Club USA on Nov. 6th, 2012. What caught my attention was the fact, Fun Club USA after collecting what some have calculated to be in the high six or even seven figures, seemingly is refusing to cover the legal costs of their donors who are part of the 1200 Subpoenas issued by the Zeek rewards Receiver, Kenneth Bell. Why?

According to the statement below, the reason is because there are so few in their group who have been subpoenaed, that they feel they can handle it on their own. However, Don Ryan brings up a great point. If all 1200 went to the Fun Club USA law firm of Alexander Ricks PLLC, he would earn an additional $360k Now without a doubt all 1200 will not hire him. Many have already reached out to Phillip Young to handle there case.

The question is WHY won’t Fun Club USA cover the $300 per member, after what some call begging them for legal donations to save them from clawbacks?

Another question might be… Is Fun Club USA covering the cost of the “Chosen 12” as some critics now call the top promoters who have joined Robert Craddock.

And… one former Zeek Rewards Affiliate, after listening to the last call, asked “Why was Robert Craddock served in the 1200, when he has publicly told folks he only made a few hundred dollars?

Well no matter what the answers, just mae sure you have all the info you can find before jumping on any of the propaganda, pro or con against the Zeek Rewards Subpoena issue.

Don Ryan’s post starts here…

Here we have today’s update as promised, only a day late.  I will point out tho you that I do nor condone, recommend or advise anyone to use their law firm,  Consult your own legal experts before acting on any advice from Fun Club USA or its spokesman.  Subpoenas requiring you to provide information in a Civil or Criminal matter is not an extraordinary request and is a court issued document that should not be ignored. There are penalties for failure to comply.

While I have no opinion either way about the law firm of Alexander Ricks, PLLC., if every one of the first 1,200 who  received a Subpoena uses them, they make $360,000 in fees. I suppose if they do anything of substance, it might be worth the money. However, you have to make your own decisions about what is best for your own interests.

Fun Club USA, LLC reminds me of the infamous ASD Members Business Association (ASDMBA), who promised people things that were never delivered after they took in money. Much of what has been said by FCU and its people are echoes of what happened in the ASD Civil and Criminal cases which started out in a similar fashion, namely, seizure of assets.

November 6, 2012

Greetings good people, update to the conference calls on Saturday November 3, 2012.

For everyone that has received a subpoena for information from Kenneth Bell, you like us believe that Kenneth Bell is fishing for information to intimidate and to get you to voluntary turn over monies you earned by bringing value to the Zeekler Penny Auction.

As I clearly stated, you are not under any court order to turn over any funds and it is our position that Zeek Rewards was a legal business model, claims stating otherwise are false.

Our law firm is now willing to take on the people that have received subpoenas from Kenneth Bell and respond to them for you. The firm has come up with a flat rate for doing this and it is quite affordable.

You will be listed on the court records as being represented by the firm and they will file the objection to Kenneth Bell’s subpoena request for you. You have 14 days to file an objection and the clock is ticking. Because this is only impacting a small percentage of people we decided to not ask the entire group to help fund this, and the law firm has agreed to do this on a flat fee per person needing assistance of just $300 dollars.

Only people that have received subpoenas should call the law firm.

Please contact the attorneys directly to get more information the contact person at Alexander Ricks PLLC is:

Clark C. Walton


Alexander Ricks PLLC

2901 Coltsgate Road, Suite 202

Charlotte, North Carolina 28211

(704) 200-2637 direct

(704) 365-3676 fax



Zeek Rewards News: Receiver’s Zeek Liquidation Plan by Phillip Young What It Means For You “Zeek Victim” or “Zeek Winner”

Phillip G. Young Attorney At Law

Phillip Young, is an attorney with a strong background in working with receivers, and fully understand the system. You can learn more about Phillip Young and his law firm by clicking here. 

Attention: Do Not Contact Phillip Young unless you have received a Voluntary Subpoena Packet from Kenneth Bell, Zeek Rewards Receiver. 

Phillip G. Young Attorney At Law

On October 8, the Zeek receiver filed what he called a “Preliminary Liquidation Plan.” In reality, it was more like an analysis of the company and a status update rather than a liquidation plan. Nevertheless, there were several interesting tidbits buried in the 26-page pleading:

• There were approximately 2.2 million users in the ZeekRewards system, 1 million of which paid money into the program.

• The receiver has recovered $293.7 million in cash for the Zeek receivership estate, plus he has seized two commercial properties in North Carolina which Zeek owned free-an-clear. The value of this real estate is unknown.

• The receiver indicates that there is at least one foreign bank account holding an unknown amount that has not been seized.

• The receiver has disbursed approximately $56,000 for ordinary operating expenses (such as payroll, utilities, taxes, etc.) and he anticipates distributing another $922,000 for operating expenses incurred by Zeek prior to the receivership. This does not include the expenses of the receiver or his legal counsel, which will be very significant.

• Since the receivership began, the receiver has attempted to deposit over 60,000 payments from Zeek investors, totaling approximately $100 million. Almost 20% of those attempted deposits were dishonored by the banks, primarily because the check makers issued a stop payment on them. The receiver reports in his update that, with court authority, he is re-presenting these checks for payment and expects all banks to honor those checks.

• The receiver made clear in his update that he will aggressively pursue legal claims against third parties, including officers, employees, participants, professionals and others who benefitted from this ponzi scheme.

• The receiver goes into some detail about his pursuit of clawback claims, against “net winners” (i.e. those Zeek participants who received more in returns than they paid into Zeek). It is clear that these clawback claims are receiving much immediate attention. (For a more complete discussion of the clawback claims, see “What does this mean for net winners” below).
The receiver’s recent update gives us some idea as to the size of the receivership, assures us that there should be assets available for distribution to creditors, and allows us a glimpse into what the receiver views as his most pressing duties. As far as what this update means, it means different things to different classes of Zeek participants.


A “net winner” is someone who received more money from Zeek in returns than he/she originally invested. For example, if you invested $10,000 into Zeek and received distributions of $12,000, you are a net winner on your investment. The receiver’s “Preliminary Liquidation Plan” is all bad news for the net winner.

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. In fact, as of the writing of this article, we believe that over 1200 demands have been sent out to net winners, with accompanying subpoenas. If you are a net winner, you should expect to receive a demand letter from the receiver with a threat of litigation.

While I have not seen the demand letter, it is likely that the receiver is demanding the immediate return of all or a substantial portion of the “return on investment” received by a net winner. Having represented receivers and bankruptcy trustees frequently, it is my experience that a receiver will begin with a very aggressive demand accompanied by a threat of litigation in hopes that he can scare a large portion of potential defendants into an immediate settlement. Often, the receiver will negotiate down from that aggressive demand.

If you receive a demand letter from the trustee, you should carefully consider your options. Should you immediately pay the trustee’s demand and avoid future litigation expenses, or should you refuse and hope to negotiate a more favorable settlement as the process unfolds? These are options you should discuss with your legal counsel, especially if you receive a demand for a significant sum of money.


A “net loser,” as I will use that term in this article, means someone who invested more money into Zeek than he/she received in return. For example, if you invested $10,000 into Zeek but only received distributions of $5,000 in return, you are a net loser on your investment. The receiver’s “Preliminary Liquidation Plan” provides good news / bad news for the net loser. First the bad news: If you sent a payment to Zeek which you later attempted to freeze or stop payment, chances are that your bank is going to honor that check. The receiver asked for (and was granted) approval from the court to force banks to honor dishonored checks, as many of us anticipated. If you attempted to stop an uncashed check, you should contact your bank to determine whether it has been, or will be, honored.

Now for the good news: it seems very likely that there will be significant assets available for distribution to Zeek creditors, including net losers. There is no indication that creditors will be paid in full, but the receiver has already collected nearly $300 million before what seems to be rather aggressive litigation (which could result in more assets). While the claim process has yet to be established by the receiver, net losers should begin collecting bank records, credit card records, Zeek statements, and any other documents that will assist them in proving the amount of loss they have suffered as a result of Zeek investments. After all, it will be the creditor’s duty to prove the losses he/she has suffered. If a net loser’s losses are significant, he/she might want to consider retaining legal counsel to assist in preparing the proof of claim and its supporting documentation. The receiver has offered little guidance on how or when he plans to conduct the claims process.


Zeek Rewards Alert: I Received A Troubling Email That Is Not Totally Accurate And May Give False Hope To Victims & Promoters

Truth & Justice

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 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.

Email Begins

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.

Troy’s Thoughts: 

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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)

Civil Cases and Criminal Cases

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.

Troy’s Thoughts:

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 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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.

Troy’s Thoughts:

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.