Why Does The Network Marketing Community Shoot Our Wounded? Zeek Rewards Affiliates Shot Dead

Yes a very brass title for any blog post, but the truth! Over the last 24 hours, not only have the critics who are not big fans of MLM run around taking potshots at the affiliates, but now we have some of the most respected names in network marketing doing the same thing.

Personally I do not care where you land on the Zeek Rewards situation, why would you feel it is ok, to belly kick the affiliates who have just had world come crashing down on them?

Sure there are some who are greedy manipulative leaders. But we have those in every network marketing company. But as in your network marketing company, most of these folks were looking to fulfill their dreams and gain freedom in their life like you in your company.

I really thought we were a community who supported each other, even when we screw up?

To all your MLM Pros, have you never made a bad decision? How did it feel when someone came up to you and said “I told you so!”

Here we are a community which preaches positive thinking, personal power, law of attraction, and the big one… Never engage with the negative haters, and yet today I have seen some of the most respected network marketers, men and women alike walking around shooting the wounded they see.

Over the last few years I have supported companies and leaders who were attacked unfairly and their organizations the target of unethical raids. I have supported leaders who were terminated unfairly, sued for the wrong reasons, and even supported companies and leaders from bogus critical information.

And, yet some of the very people I supported are not attacking the affiliates of Zeek Rewards, as if they have already forgotten what it feels like to be publicly humiliated for actions you may or made not have committed.

In my faith Jesus said to the judgmental leaders in one situation “You who have not sinned cast the first stone!”

Well let me ask you MLM Pros… which ones of you have not made mistakes, bad decisions, and just down right stupid moves in the past?

We should be coming together and supporting those who are not hurt due to the events at hand.

You want to attack someone then attack me! I stayed with this story, I supported the positive moves Rex Venture Group made over the last few months, and presented them with solutions to help the affiliates.

Living An Epic Adventure,
Troy Dooly

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97 thoughts on “Why Does The Network Marketing Community Shoot Our Wounded? Zeek Rewards Affiliates Shot Dead”

  1. @Spewing,

    1. Not sure where you get your info on me thinking Paul settled to make sure affiliates get their money. Where did you read to hear this? Because I have never once even came close to saying that.

    2. Where do you get I am cheering on Zeek? I have plenty of times made it clear I am pissed that a backroom deal was made and justice may not be played out in open court where all the affiliates and the world will know the facts. It doesn't matter to me if the SEC is right or that Zeek is not a ponzi. I just want the facts to be shown so once and for all everyone will know. Not a complaint filed, but a judge rendering his opinion as in the Burn Lounge case.

    3. Now where did you get the idea I asked for compassion for Paul?

    4. And by the way… Darryl Douglass launched the first penny auction with Paul Burks, not Dawn. DD was by Paul's side long before Dawn.

  2. Definitely agree on this one… and wrote an article about how these situations tend to expose the character of even respected leaders.

  3. Troy, enough is enough!! I dont buy the bullshit about Paul Burks settling with the SEC because he wanted to make sure affiliates get their money back. If he was so concerned with peoples welfare he would never have put so many people around the globe at risk with this ponzi scheme. Even if he didnt believe it was a ponzi (which I doubt is the case), he still would have known that his business model was high risk. Thats not the act of a man who cares!!! I think the truth lies more in the statement below made by one of the members of the zeek rewards consulting team, which was posted on Behind Mlm..

    “NOTE: I am the source from a previous article on Zeekler. My comments here are from first hand knowledge and experience.

    Paul Burks is no “great man” both he and Dawn who cooked up this scheme together knew exactly what they were doing.

    In fact, the last time I spoke with Dawn in May, she was trying to distance herself form the inevitable and stated clearly, she was betting on her new MLM with e-cigarettes to be successful by the time Zeekler crashed. So, they expected a crash of some king with Zeekler.

    The math never made any sense to me, so for all the time I was offered bids or a place in the “matrix” I never took them up on it. As a consultant, I wanted fair pay, simply because this entire program never made a lick of sense to me.

    And truth be told, I occasionally questioned if I was the dumb one when everyone around me was making major coin.

    I am saddened that Troy’s entire reputation will be tainted from his affiliation with Zeek. I expect that OH Brown will also have his reputation marred. They acted as cheerleaders for this organization, inciting thousands of new affiliates to invest their monies in it based on their respective reputations.

    Troy is making himself look the fool by continuing to cheer on Zeek and make bold statements and hypothesis that there will be no criminal charges, that Zeek shut down entirely on their own (I am sure they were heavily pressured into doing so).

    I am shocked he would ask for compassion for Paul Burks – what about all those affiliates he helped drive into this scheme that have now lost their money? That would be like asking compassion and understanding for Bernie Madoff.

    My personal opinion is that Paul and Dawn both need to be brought up on charges. As I provided to OZ, I had direct knowledge of their lies to affiliates regarding payment gateways and technologies to explain why payouts could not be made at certain times and knowledge that Dawn knew this was eventually going to end in an SEC inquiry as far back as February 2012.

    For those of you still loyal to Paul and Dawn. Here is the real history. Dawn worked with Paul on various projects prior to this. Her addiction to pills, opiates and cocaine affected her ability to continue being successful in business and raise her children. So, Paul helped her get clean.

    She went on a trip to the far east with her now boy toy, Alex. When they came back, Dawn came up with the idea for Zeekler, having seen many penny auctions in Asia. Together Dawn and Paul put together an MLM for penny auctions and launched Zeekler and Zeekrewards.

    Zeekler was never profitable and they never made money on anything other than the MLM side of the business. In fact, Dawn was nearly destitute prior to the launch of the rewards program.

    Both Paul and Dawn took large sums of money form the company in compensation for themselves and their family/friends. Dawns addiction to opiates became so extensive she was seeing 2-3 different doctors and purchasing pills from a local Vietnam Vet.

    Paul and Dawn’s personal character’s are suspect and while I hate airing their dirty laundry, I am sickened that Troy is trying to make anyone feel sorry for them.

    On a personal level, I am sincerely sorry to all those affiliates involved in this venture. Those of you that ever reached out to me know I warned against your continued involvement based on facts I knew. I am hopeful some of you took my advice.”

  4. Troy,

    Proverbs 1:10-19

    10- My son, if sinful men entice you, do not give in to them.

    11- If they say, “Come along with us; let’s lie in wait for innocent blood, let’s ambush some harmless soul;

    12- let’s swallow them alive, like the grave, and whole, like those who go down to the pit;

    13- we will get all sorts of valuable things and fill our houses with plunder;

    14- cast lots with us; we will all share the loot ”

    15- my son, do not go along with them, do not set foot on their paths;

    16- for their feet rush into evil, they are swift to shed blood.

    17- How useless to spread a net where every bird can see it!

    18- These men lie in wait for their own blood; they ambush only themselves!

    19- Such are the paths of all who go after ill-gotten gain (Greed); it takes away the life of those who get it.

    (Paul, Dawn et all.)

  5. @Glim_Dropper,

    As always thank you for taking time out of your community to come add some value here.

    I also re-sent my original email.


  6. Very interesting question Troy, but one I’m afraid might be above my pay grade, I’m not an attorney.

    First thing I’d look at is if that someone else was being charged in the same civil case as Paul (i.e. same case number) or if it was a separate action.

    If it is a separate action that someone else ~may~ perhaps not have standing to argue the same issues that Paul chose not to.
    I seem to be more confident than you that there will be a criminal trial where the basic facts will be at issue, that is unless another deal is struck to avoid such a thing. But even if that happens the government will still restate their argument with what I’m sure will contain a restated and updated set of facts and figures.
    As to the rest of your questions, it's never the same "course" twice so it's hard to say what "par" is. Certain comp plan experts have run afoul of the SEC for using their publication to promote an investment and failing to disclose that they were being compensated to do so as they did. I never read the particular issue of a respected industry publication which had a glowing recommendation of Zeek Rewards so don't know if it carried any sort of disclosure but sometimes history repeats it's self.

    Some might accuse me of schadenfreude for wanting to see Zeek Rewards in a criminal trial and I’ll admit there might be some truth in that. But when you look at all the questions involved here, a few of which you listed, I just want answers. At this point a trial is our level best chance to get them.

  7. @Chuck,

    Not sure why you feel there is any muddying of water. The SEC had not established a receiver until the Emergency Order was issues. The majority if not all of the internal numbers came from Burks law firm, not from having someone on the inside. They may have also gotten some numbers from the NC AG.

    But, since there are still other executives that we do not yet, know if they will be charged. (Dawn has hired a very well respected high-powered attorney), then I contend that the numbers are not accurate, and that once the Receiver gets inside those numbers could go up or down for that matter.

    If the numbers go up, it will show the company was not a ponzi, just grossly negligently (my wife will kill me for using two "ly" words together) managed, which caused credit card, banking and customer service disasters, causing management not to stay focused on the business or to implement the changed needed to keep it compliant.

    And, I am not saying that the complaint doesn't have merit. I do believe the SEC made the move based on what they feel needed to be done. I just find it strange that it came just one week before the announced qualifiers and other changes becoming mandatory. I love finite answers to questions… I hate backroom deals of all kinds.

  8. @ Troy
    The complaint may not show everything, just enough to get the Judge to issue the emergency order.

    Please show where this information is fact or just mere conjection. I’m not understanding why your attempting to muddy the waters regarding this point? The cynical side of me keeps thinking that it’s to support your theory that rvg was not a ponzi scheme. If that is the case, please help me understand, is there a news article, previous cases, etc.. where I can read about the sec withholding information?

  9. @Justin,

    The complaint states those facts. However, since the Receiver has not started auditing, and it does not seem that the SEC may realize there are audited financials which have been prepared for some of the financial institutions, this may not be a true statement. I have also been told by some reliable sources that there might be enough cash funds right now to pay back all affiliates all refunds for bid purchases.

    If this is the case, then 100% refunds should be presented. But, I am not sure how the Clawback laws would work, and what might happen to any additional assets that would be left in the company. I guess the Receiver might get that as his winnings (pun intended) for taking care of the liquidation. Or maybe the SEC takes it and puts it into some huge victims fund.

  10. @Chris,

    I think when we moved to dedicated servers this weekend, there are still some syncing going on between servers.

    You ask a great question. I know the SEC had made this claim. But having been inside the legal system as long as I have, I do not make any judgement without seeing the facts on which the claim is made.

    I already know some if not all of their numbers were provided by Paul's attorney, and not from the Receiver who was appointed after the voluntary closure. So without raising much frustration, until I know for sure what the real numbers are (and I do have some figures that are higher than the SECs, I will not pass judgement.

    But with that said, after I get the facts (if we get the facts) not sure how that works when a deal is cut, if those facts prove that Paul was cooking the numbers, then I will report the facts, and make it clear Paul snowed me and millions of others. But having been on both side of legal issues like these, I know that sometimes what the regulators put out in a press release and file in a complaint, are not proven out in a court of law.

    I really do believe in our Justice system, and just hate if when deals are cut and the facts do not come out in an open court of law.

  11. Why wouldn’t the government allow Zeek time to change its compensation plan? I know you don’t have the answer. But I really believe(d) in Zeek and truly believe they did not mean harm.

    I wish they release some sort of statement from Zeek soon. I did not make out as a winner in this. $4800 is a lot to our one income family.

  12. @Glim-Dropper,

    Thank you for sharing, this will help folks moving forward. And I will check with you on these issues.

    Hey quick question. What happens if someone else is charged, in a civil complaint and decides to fight it, will the real facts and figures then be presented so the public can really understand this whole situation, and use it as a real case study for the future. I understand the main issue we all disused the RPP, but I am talking about the banking issues, offshore accounts, comp plan experts making changes, then benefiting from those changes. Why it took so long to make the changes in the RPP and the lack of security that allowed the fraud, and any IRS issues?

    Or is this just par for the course?

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  14. That could be possible, but still difficult when money was scraped off the top with a ton of others in profit. I'm still hopeful though.

    Like I said, my main concern is how Paul Burks supposedly fudged the numbers and paid money into the RPP that he knew he couldn't support.

    Having talked to many people who met Paul and thought he was completely honest, this came as a surprise…especially since it should have been obvious to him that it would mean a collapse as well.

  15. @Mattmc419,

    There may be enough to pay refunds since the refunds will only be what is paid in. It is still too early to tell, because it is my understanding the receiver has not even been to the offices yet.

  16. First off, I was a member of Zeek and a Zeek supporter.

    Not anymore. I was wrong.

    I never was in big and didn't get anyone else in big, but tried to help everyone I could.

    The main problem, in my opinion, is not being discussed enough:

    The SEC alleges that Paul Burkes arbitrarily determined the RPP award percentage everyday. It wasn't based on 50% of incoming revenue as stated, or anything else for that matter. It was simply MADE UP.

    Had it been run correctly, each and every VIP Point in the system (be it from bids purchased with external funds or those repurchased) should have been backed up by a real dollar. However, the SEC states that with over 3 Billion VIP Points in the system, the company only had $225 million remaining. Even if you assume the company took no profit, Paul was knowingly paying out 13X what the revenue supported each and every day.

    I believe the compensation plan itself was fine. Sure, we could argue that more outside revenue should have been generated (the SEC stated just 10% came from Zeekler), and that's a valid discussion. However, that doesn't change the fact that it was doomed from the start simply because Paul faked the RPP numbers.

    Not running the business as your compensation plan states, and which your legal team and compliance officers have signed off on, and purposely putting the business into an inescapable deficit should be considered criminal. It is primarily his fault, not the compensation plan's, that so many people are now out of money.

    Also, by paying out 13X what the revenue would have allowed, it is nearly impossible that they'll have enough money to cover everyone's refunds.

    Sad for what could have, and should have, been a great program.

  17. Credit card processors are off shore (remember Laggos). SEC hasn't frozen yet. Just trying to help.

  18. Big red flag here Troy, a receiver is appointed only after a defendants claim on the assets has been settled. There no longer is a Rex Ventures Group to file a claim against, all claims will be settled by the court appointed receiver.

    In the Aftermath of Ad Surf Daily a Texas buisness man who was a piece of garbage wrapped in skin and a law firm which was just as bad as he was set up what they called the Ad Surf Daily Business Members Association Trust. Their promise was that if you gave them money they would "represent your interests" when it came to disbursing refunds.

    The fact is that's impossible, all victims (those who put more money in than they took out) will be treated the same by the court appointed receiver and no law firm you hire can change that. But that wont stop some of them from taking your money. The ASDMBA claimed they took in about $130k but I suspect it was more than that and the only people that money helped was the people who collected it.

    Troy, fact check me with your legal assets before you decide how to respond to any lawyer or law firm trying to represent Zeek's affiliates.

  19. For whatever reason, this comment system is flaky on my end. Keep getting session expired messages, so I try one here.

    Troy, do you believe that Paul Burks fabricating the daily RPP payout percentage is "doing everything they thought was needed to stay inside the letter of the law."

  20. Troy, yes that is what I am saying. As an affiliate you could withdraw your commission from day1! Please ensure that the powers that be are made aware of this. Although I am sure they would know.

  21. But but zeek rewards owed more money to its affiliates than they had availiable. If everyone were to cash out at one time zeek rewards couldn’t do it. Hmm this sounds a lot like the banking system and I don’t see the SEC shutting them down. But it was the newer affiliates paying for the older affiliates…sounds like social securiety, the only difference is that I could get my money when I need it. I know it is election year and all, but let’s fix things that are worth fixing.

  22. Coping with the fact I can’t go to my back office to check my VIP points. Also that warm fuzzy feeling that I am actually growing a nest or emergency fund so my family is a little more protected in this bad economical time is now cold and gone. But I am so happy that our government is out to fix everything. I am so glad that my hard earned investment will now pay for some politicians dream to become president, or pay for Michelle’s next voyage abroad for the latest Italian formal. And for all you wise MLM people who never supported zeek because you knew it was not a legit business….F U. Easy to talk your jibber ish now. Listen I did all the compliance coarses and studied all the zeek trainning. If you think that zeek affiliates did nothing and got paid you are stupid!!!! See we affiliates posted one ad everyday and made a little money everyday. We didn’t all get rich, nor was this a get rich quick ponzi scheme. If you did the work you got paid. As far as I am concerned I just worked for a company for 3 months and the sec just stole my money and time invested. Now the reality of looking for another POS business to throw more money away is setting in. You know what…Zeek Rewards worked. I would have rather woke up one day to learn that zeek imploded on itself than to find out it was all over the way it ended. The reason why our country is so in debt is because our government is to big and they have to try to fix everything. What ever happened to survival of the fittest. Bad companies fail on their own.

  23. For those of us who actually paid attention to every video and editorial of Troy's, we knew about the red flags with penny auctions and the potential risks with Zeek – because Troy told us! (In turn, responsible leaders shared those risks with their prospects and teams, so they could make a fully informed decision.) If you didn't pay attention to everything Troy reported, but only heard what you wanted to hear, you can't possibly blame Troy for the choices you made. While Troy praised Zeek's efforts to get compliant (rightly so), he never endorsed the company by saying that folks should join Zeek. To the contrary, he made clear the red flags and potential risks. My heart aches for those who were blindsided by this, but you were misled by rogue affiliates who promoted Zeek to you as an investment – not by Troy. It's those rogue affiliates who have lost their reputation – not Troy.

  24. @Troy, Yes, back in May when I suspected something fishy based on something I saw Dan do when I was at Dawn's house, I contacted the NC AG and provided all my contact details and a statement in an email. I did not contact the SEC because obviously, I did not know there was an SEC investigation. I am again, sorry for not trying you as well – after the first 2 people (I'm sure you can guess who) were so negative bordering on threatening to me when I disclosed the info, I didn't even consider contacting you. I certainly wish I had now. It seems like you are a straight up guy and I apologize for suspecting you. I hope you weather this storm and continue to do good in your industry. I am sincerely sorry that anyone got caught up in this. I realize completely how Dawn and Paul were able to spin the numbers to make them look credible to those they recruited into their program. What I saw concerned me, but I am not an MLM person so I even questioned reporting (I was told by the 2 zeekgeeks I contacted that was how all MLMs worked) it at the time but I knew it made me uncomfortable enough to do so. I hope the crack down does salvage money for those that would have been substantially injured by the scam. And I am sorry to have ever met Dawn or done any work for Zeeklers but now feel like I might have done a little good in reporting it and in going to Oz – again, in a perfect world, I would have to you as well.

  25. @KeithGr,
    The complaint may not show everything, just enough to get the Judge to issue the emergency order.

    There were plenty of changes that were taking effect, but for whatever reason the SEC decided it was time to cut a deal with Paul. Now we wait.

  26. @Mary McKight,

    Mary are you saying that you provided your full contact information so they knew exactly who you were? Oz is outside the USA, that will not work. But did you take this information to the federal regulators? If not I strongly suggest you do not just to be on the safe side of things.

    Mary, I always listen to everyone who comes to me with information. And when it is of a criminal nature, it goes directly to my investigator and contacts at a federal level. I learned a long time ago, never sit on suspected criminal activity.

    Living An Epic Adventure,


  27. @Troy Dooly, I did report my suspicions to the AG in NC and I reported them through BehindMLM back in May when I realized something was fishy. I saw something I felt was very wrong while at Dawn's house, quit immediately after that and reported what I knew to whom I thought it appropriate. So, I'm not sure where you get that I did not report my suspicions or information I had. Of course I reported it.

    Troy, I would have come to you with this but Dawn and a few other select people made some pretty serious threats against me regarding legal action and I assumed you were part of it. If I assumed wrong, I am very very sorry. I would have gone to you first if I had thought you were unaware of what they were doing. I went to Oz because the people inside of Zeek I contacted just did not believe what I was saying. Again, if you didn't know I regret not having come to you first. I know you and I thought you seemed pretty straight up but when I went to others I met at the red carpet event they did not believe me, called it sour grapes or lies meant to blackmail zeek. Those were never my intent and I made no money off of telling anyone what I knew nor did I ever try to make money off it. I was never an affiliate only their tech and marketing consultant and I did go to the NC AG and Oz when I quit.

    I never provided OZ with code – I am sure he can verify that. I do not write classic nor did I write code for them – I did design level work and marketing strategy and tried in vain to get them to secure their and code and rewrite it in a modern language but no, I did not touch their proprietary code ever. I did graphic and html/css/js for web properties and provided strategic council on tech stuff. I did not understand why they would not invest in a redevelopment of their site in a modern language until the very end when it became exceedingly clear to me that they were doing something very suspicious on the affiliate side. I'm not an attorney nor an accountant but I did work in VC long enough to know what I saw happen at Dawn's house and by the things she said that what was going on was certainly illegal.

    Again, my apologies if you had no idea. I figured anyone that close to Dawn and Paul had to have known as I found out some unsavory things while staying at her home for those 2 weeks which caused me to immediately quit. I wish you and anyone else who was taken in by these characters only the best and that everyone come out of this stronger for it. Believe me, I am sad that what I suspected in May is indeed true. Many people were lied to and hurt because of it and I wish I could have done more. I do wish I had come to you as well as Oz and I am hopeful you would have believed me then. It just felt like no one else did so why would you.
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  28. Hi Troy,
    Thank you for your comments. Some of the things stated in the SEC filing does not make sense. It was never endorsed as a stock or security and that was stated again during the Mandatory Kevin Grimes Compliance course. Also, the SEC never mentions the 90 day Point Retirement system that slows you down and recirculates pts back into the company pool. This is a major omission to the platform. Lastly, my friend, was at the last Red Carpet event and spoke to many of the higher income producing affiliates and many of the execs of Zeek. He said they spoke of closing the company to new affiliates at a certain point to meet their marketing needs and also preserve the intergrity of the daily cash award percentage. This was designed to let those affiliates to continue to benefit as the company grew. So with this in mind and if there is a business plan, or documentation of this, then that would defy what the SEC and government would consider a ponzi scheme. It all sounds very shady and I have no confidence in our government. For me to say this is very disheartening since I love this country and pray for our leaders(even if I didn't vote for them) and especially our soldiers in harms way that defend it. God bless.

  29. @Lakergirl44,

    I will be reporting on all this in the next few days.

    From studying past ponzis it seems that in most cases, if affiliates are asked to return money above and beyond their original purchase and maybe monthly subscriptions, it will be civil. But for some of the founding members, if they have knowing promoted other ponzi which have been shut down, there may be criminal charges filed against them.

    I am learning taxes will be owed on money you have received.

  30. @MaryMcKnight,

    Based on what you just wrote, I want to make sure I get things straight.

    1. You had access to inside information that RVG and at least some of its Executives were running an illegal Ponzi and you did NOT report your finding to law enforcement?

    2. The difference in you Mary being a "lowley Tech" which I saw in some pretty high level meetings" and someone like me, who has never been to Dawn or Paul's house is huge. This could make you an accessory to this ponzi. Especially as a tech working on the code. If I remember right the info you provided Oz mentioned that you had seen the backend code and it was unsecured Classic, if I'm not mistaken.

    3. If I got this correct, can you share why you did not go to the attorities ASAP, or why you never came to me with this information? Why wait until something happens to millions of people?

    4. If I were you Mary, I would not be having people reach out to you at this stage of the game, I would be contacting the NC DOJ and the SEC to make sure you can protect yourself from possible civil or criminal actions.

    5. And Mary any inside info we post going forward has to be approved by the SEC Receiver, so there is nothing you have we can use, unless he states it can go public.

    Living An Epic Adventure,


  31. I have first hand knowledge that both Paul and Dawn KNEW. First, based on the fact Paul was paying payouts out of new members subscriptions and fees, not profits – he clearly knew this was a ponzi and it couldn't last. Second, Dawn even SAID in a conference call that unless affiliates kept more money in their e-wallets, the company would cease to exist. I know everyone wants to give them the benefit of the doubt, but i spent 2 weeks at dawn's house with her and her team and I heard and saw things I found so atrocious as soon as I got home, I quit. I am not an MLM person – just a tech constant that thought I was working with a reputable company. I saw dawn and company act glib about the fact the company would eventually fail (and she did say that – in fact she was already working on her next mlm in e-cigarretes when I was there in April so when this failed, she'd have something else in the hopper). I am hopeful that Troy and the rest of the cheerleaders did not know this was a ponzi but I find it hard to believe because if a lowly tech consultant like me knew, how did they not? When I quit, Dawn spread vicious lies and rumors about me to keep me quiet. They were ruthless people who used the facade of do-gooders with infinite compassion to lure people into this ponzi. I'm so saddened this happened to these good people and I invite Troy to reach out to me if he does know what I know, I am more than happy to tell him so he has a fuller understanding of what really went on internal and what dawn and Paul knew. I invite anyone who plans to file a civil suit again Dawn or Paul to contact me as well and am willing to sign an affidavit to assist you recovering your monies. I had no skin in this game, so I have no reputation or money to lose, but I do sincerely feel sorry for those that have lost money or reputation in this including Troy (if, indeed he too was duped into believing this was a legal venture.) The SEC investigation did not come down to what affiliates were saying publicly, it came down to the business model. Dawn et al lied about the very nature of the business – they lied about the penny auction profits, they lied about affiliate monies being separate from penny auction money and they lied about payouts and solvency. The only compliancy that Dawn/Paul sought was superficial marketing/advertising/sales related – the business model was what was flawed. Paul cooked the books, made arbitrary statements of profits and in the long run guaranteed returns which is what made this look like a security. He regularly set returns at 1.5% which is impossible to maintain on long term investments. The compounded also was telling after 4 years when you run the numbers on it – would have left members with almost a trillion in profits. Running the simple math on the project is what got me to realize this was nothing but a scam. I am so truly sorry anyone ever got taken in this and am hopeful you all might see some of your monies returned through the receivership. Again, I invite any of you or Troy to contact me directly. My name is Mary McKnight.
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  32. Troy – do you think affiliates that signed up other affiliates but didn’t take out money have anything legal to worry about? For that matter, any average affiliate? I don’t even want to think about taxes..

  33. @Blondetarzen,

    Thank you for taking time to share. I stand by everything I have stated all along the way. I was very clear on several fronts.

    1. There are red flags

    2. The company has hired the right folks (we later found out Keith Laggos the comp plan mastermind was also a top affiliates) to get them fully complaint, but at the end of the day, the affiliates would make or break the company based on the noncompliant and illegal marketing I and the critics were talking about.

    3. I explained about the credit card fraud and how that affects the using credit cards. I also shared some contact with Zeek to help, but according to Dr. Laggos he told them offshore was the way to go.

    4. When they had banking issues I brought them contacts which were able to help get the US banks back on line along with some US processors.

    5. I agreed the eWallets suck, I hate them also.

    6. I shared info on the call center and the amount of connects per day, and why affiliates were frustrated. I made it public if you will send your complaints to me I wil send them directly to Executives in Lexington.

    7. When folks yelled about sucky communication I fully agreed and did everything I could to make sure communication was open and I believe answered each comment that has come in.

    8. I made it clear that in my opinion back at the end of June first of July I felt there would be a CID from the NC AG before the election. That was made public last week.

    9. I also made it clear I did not feel the federal regulators would do anything about penny auctions in general before the election.

    I also stated in comments I did not think the federal regulators would move on Zeek specific, because the company, it;s consultants, and legal team was publically making it known they were working on the weaknesses in the compensation plan.

    10. Like you when the word came down the SEC had cut a deal (Still have not seen any evidence Secret Service was on hand), with Paul Burks, I was as stunned as anyone.

    11. What doesn't add up is the following. If Paul took $11 million (which I doubt) and he has $4 million left (the fine), are the regulators stating he blew $7 million on crap with no fair market value in less than 18 months? If not, why not go after those assets also?

    I stand for the rights of all citizens of the USA to have their day in Court. I feel when a Federal Regulatory body moves on any company it should NOT include a deal so that a court hearing must take place. As it is now, we may never know the real truth, and the numbers I have and the number I am reading in the complaint are not adding up. This company had hundreds of millions. Close it down, not sweat, but every person shuold be able to get their bid purchases back with no trouble. Something is not adding up. Is it the company info, maybe, or it could be the government numbers. But without a trail we just may not know for sure. Which would mean any network marketing company might go through something like this, it enough folks yell ponzi.

    I have reached out to some great critics who disagreed with me in this whole situation, and they are providing me with more insight into ponzi's since that is not my experience.

    Living An Epic Adventure,

  34. @Roofersteve,

    If people are chargingback their credit cards as of anytime after the SEC stated it froze all the accounts, then something is not adding up! People can't chargeback anything once the accounts have been frozen.

    Not sure about money orders.

  35. Dave,

    1. the regulators have been on this site for months. They know everything I have said and written, and they know I never delete emails or private messages on FaceBook. You must not have read my bio, I have worked with regulators and law enforcement for years. Do you really think I would say and do anything to knowing promote any illegal business or person? I would not even let my son around my other kids when he was on the run because by law I would have had to turn him in. Seriously, I can't support my son's criminal activities (felonies), you think I am going to support a stranger's? (sadly since a deal was cut, we may never really know the truth now.)

    2. Please share what fat pockets. I am not the one who created the compensation plan, then took a top secret position in the company. You have me mixed up with Keith Laggos.

    But please share with the world all this profits. If you and others will take time to review all the penny auctions I have covered you will find the coverage is the same. And it is the same coverage as I do with other questionable companies. Nope you just want to fixate on Zeek. But yet, you want to yell at me, which I am cool with. But when the emotions cool down, and you start to really read and the new facts come out, then I think you will find there is plenty of money even today, to pay back most if not all the people who bought bids. Even after what has already been paid out.

    yes all along I called the red flags, did not back down from the red flags, but was willing to give the founders room to implement the changes that needed to be made. We will never know if the changes I and other suggested would have worked, but the math sure showed it would. It would have slowed the growth of the network and it would have driven high volumes of retail dollars from outside the compensation structure. And it would have driven off the real ponzi players.

    But Dave, I am sure you are well aware of what has happened and have all the facts I do.

    Living An Adventure,

  36. @DooleysDownfall (Edited By Troy Dooly),

    Well learning to spell the name might help in presenting your case. Let’s take a look at your thoughts.

    1. What does Kool-Aid in prison have to do with this situation? Try to stay on topic.
    ” target=”_blank”> http://tomchenault.com/the-tom-chenault-show/&gt;

    2. What does a college education have to do with knowing a business is going to be called a Ponzi without a court of law ever hearing the case or seeing the evidence?

    Let me get this right, you feel that because the SEC cut a civil deal with Paul Burks that this means their facts and figures are 100% accurate? This is the same agency which did not catch the Madoff Ponzi for decades?

    How about trying this hat on for size… Because you want Zeek Rewards to be a ponzi you are willing to accept anyone’s official word it is a pozni. But, as I have stated from day one, and will state again right here, unless a court of law hears this case, and determines on ALL the evidence, not just on the evidence in the complaint that Rex Venture Group was running a ponzi, then neither you or I will ever know the truth.

    3. It is easy to tell you are lacking in some of your logical conclusions, or maybe you just did not get the college degree. What you are stating to the world is that every affiliate who joined Zeek Rewards is ignorant and you are the God who knows all. Yet, I will contend you don;t know any more, and maybe a whole lot less than those who have the real numbers and story.

    4. Positive thoughts I will agree with, fairy tale… Well why don’t you enlighten all of us and show what I got wrong at the time I wrote each editorial and shot each video? See each one is a part of a timeline showing specific situations in the rise and fall of Zeek Rewards. Nothing more and nothing less. And not once will you find I ever suggested ANYONE join Zeek Rewards PERIOD. I did provide an opposing viewpoint to what most critics had to say, and used facts and figures from 3rd parties to show why I believed what I said, and for that matter still do based on what I wrote and said.

    But, please don;t watch this next weeks video and editorial because, you would be wasting your time. And don;t get on Tom Chenault’s show today because you might not get hat I will be talking about.

    5. Not sure sure who Leith Kacey is, so I have no comment on that one. I will state I do believe the general public and the affiliates are the ones who have lost out on knowing the real story, because a deal was cut. Maybe you don;t like the truth, but most of us are willing to use our real names, and want to know the truth.

    6. The downfall of zeek has to do with a lot of things, and that includes attorney’s cutting deals for their client, giving the SEC the ability to proceed without due process. I for one would liked for there to have been a civil trial if the regulators truly felt there was a ponzi. It would seem this would be what you want, since you seem to purport you are college educated.

    Here in America we still believe in “Innocent Until Proven Guilty” If all we are going to do is run around and let the popular opinion make the decisions, then we are no better than the terrorist we fight on a daily basis. Seriously are you this clueless?

    7. Final we agree on something Profits… I know you might not have known but Rex Venture Group did have a Net Profit last year… They filed their taxes… Since I do not cover Ponzi’s as a career, maybe all ponzi’s files taxes and show their books to the IRS, but from my understanding most pnzi’s run in the red. Rex as and isn’t now running in the red. And I will contend that the numbers of $162 million in revenue in the last 30 days is low, and new numbers will eventually show a higher income. As for the payout, it might have been $160 million.

    8. As for me. What profits… Heck I could not even keep my site up for two days due to traffic, I must have made a boatload of money. Seriously, have you really read ot listened to anything I did or are you just needing your 15 min of fame? Share facts, not subjective poppycock.

    9. Please show where I have ever promoted Zeek? It is humorous to me that you and so many other seem to forget or just don;t want to remember… Someone else created this compensation plan and benefited to the tune of $40K per month from it.

    If you knew at all what you were talking about, you would know there is one video where I made the following statements…

    “If there were three companies left in network marketing… Co2 Rewards, Zeek Rewards and Dubli Network, I would join Dubli Network, because one of my good friends is the Senior Director of Marketing”.

    Well Co2 Rewards closed their doors to change their business model, and Zeek Rewards was to late to change theirs. DubLi Network is still cranking and growing. So get your facts straight next time.

    10. One can argue anything, but the facts stand out at the end of the day. And sport I for one have no problem being called in and asked questions….

    Of course you assume this has not already happened. Just like you assume the regulators have not seen every word I have ever spoke or wrote. And if you really knew your stuff, then you would know this investigation was launched July 6th, I was at Red Carpet Day with regulators, they listened to all I said and in a few cases… might have even asked questions over coffee.

    Well, it has been interesting…

    Living An Epic Adventure,

  37. Dooley’s (Edited By Troy Dooly – Learn to spell it right!) Downfall#99
    August 18th, 2012 at 9:30 pm  (Quote)
    Concerning Mr. Dooley, (Edited By Troy Dooly) I have personally never been but am almost positive the Kool-Aid does not taste nearly as good in prison. Anyone with a college education should have known this was a ponzi. I will even include those who made C’s or better in high school (maybe you do not fit either of these qualifiers so you can claim ignorance and if so I apologize). .
    Furthermore, anyone that watched one of Troy’s videos knew he was and is completely full of shit. The best compliance attorneys in the world can not make up for the fact that Zeek’s business model was completely unsustainable. Do the math on a daily 1.5% ROI for a five years and you will see that Zeek would have to be the worlds most profitable company just to pay ten people who repurchased at 100% for the time.
    When the well ran dry what was going to pay the more than one million affiliates? I can assure you that it was not going to be Mr. Dooley’s positive thoughts and fairy tale assertions.
    People that benefited hugely from this Ponsi (and there are plenty) will continue, as they did last night on a conference call (will refer to you as Leith Kacey), to blame the downfall of Zeek on over zealous regulatory committees instead of a ridiculous business model, and for those I hope the claw of justice scraps every profitable penny from your bank account. Don’t even get me started on what should happen to Dooley’s (Edited by Troy Dooly) profits from this scheme. Last time I heard there are statutes, not civil ones either, that prosecute those who actively promote a ponzi scheme. One could argue that Mr. Dooley (Edited By Troy Dooly) was the biggest promoter of all.
    I usually do not find it necessary to say I told you so, but …

  38. Troy, somewhere down the line your name will be dragged through the ringer and will receive a letter asking you to show up to court. You knew all along this was a scam and backed it %100 with your fat pockets provided by zeek! I hope you serve some time Mr Clean!

  39. Troy: Thanks for the update
    I would imagine as you stated there were some very influential people in Zeek Rewards including Supreme court judges . That being said, there must be 100's of other highly influential people who have an interest in the success of Zeek and took part in it.
    We just need an advocate to fight city hall because maybe Paul just had his heart ripped from his chest, even by some of his former partners who turned on him motivated by personal greed. Paul probably caved in to the pressure of you cannot fight the government but Supreme Court Judges. They could at least lend moral support in a class action against the SEC.

    I believe if the top leaders do not step up and support Zeek the whole system could be in jeopardy as the SEC seeks to destroy them as well.

    Let us see if they have the balls to make a difference in a fight against government suppression of entrepreneur freedom. This is time for them to make a stand for Freedom for all business ventures or take the chance they will be nrxt.

  40. Troy,
    I know you want good things for people. I want to share some things I have learned in trying to help my team. My hope is that you will pass it on.
    1. It appears that RVG was only depositing (cashing) 10k checks after 7-6-12. I say this because many of my people have gone to bank Saturday and found that they could still put a stop payment on the smaller cashiers checks. Unfortunately, even the most recent 10k checks have gone through.
    2. Visa and MasterCard are being very cooperative in reversing credit card charges.
    3. Western Union money orders have a relatively simple process to stop payment send $15 plus the stub to request a refund.
    4. Most importantly, encourage leaders to be just that. Answer their phones, don't let their mailboxes be full. Show that yes times are tough, but let's step up and help our teams.
    Best wishes to you and yours.

  41. @Troy,

    I am one of them. I entered and put cash into ZR at 06/06/2012

    That means i am from the lucky ones?

  42. @Gen3benz1,

    We do not know it was 2%, we do know that is was under 10%. Burn Lounge was under 3% and that had become the benchmark we all started using to make clear customers are the answer, not just building a network. Kevin Thompson and I have been at this issue for the last few years together.

    In April, I made it very clear two Dawn, there was a solution, we talked and she said my info was not what Laggos as told them. He said a 1% ratio would be fine. In referring to the current Burn Lounge case which is pending appeal, the Judge made to very clear opinions.

    1. 3% of volume outside the compensation structure is not enough. 2. He did not feel commissions should be paid from ANY affiliate purchases.

    Since one judge felt that way, it was clear this could be a new trend the courts were moving towards. So I presented the cashback/shopping mall model, and used the statistics to show with the right qualifiers you would slow growth, and build solid retail driven revenues. She liked the idea and had me connected her with one of the top companies out there providing this type of platform. (Folks who were part of the founding team of Commission Junction) who knew how to do this right. However, for whatever reason, banking credit cards, customer service, the deal did not get inked until after July 6th, which we all know now was the start of the CID.

    2. Greg Caldwell closed the company a day before the papers were signed by Paul Burks and the SEC. Employees were told of the situation right before they were terminated and ask to get their personal belongings and leave the company. The only folks left as of my last information are Angie the new CFO, Greg Caldwell COO and Ken Kelby the Director of Compliance.

    More first of the week on all of this.

  43. @Kerry_Semper_Fi,

    I will be covering some of this on today's http://tomchenault.com/the-tom-chenault-show/ and first of the week will be doing several updates.

  44. Brad,

    I am looking for all the crew. I know where Paul is and he will not be able to speak on anything for a while if ever. Greg Caldwell, COO, the new CFO and I believe Ken Kelby (Lead compliance director) are the only ones left inside of corporate. Since both Greg and Ken are both detectives and work white collar crime, and Angie CFO is a well respected financial troubleshooter, I can see why this took place. (More on that story to come).

    As for the rest of the voices folks are use to hearing from… I am looking for them!

    Kevin Grimes was paid to create a compliance course which until August was never made mandatory. In the past several of his clients have not taken his advice to make changes and have been shut down. Burn Lounge was the latest to hit this same demise. When clients do not listen to consultants or attorneys then bad things happen.

    I talked to Peter Mingles on Friday, and he was as shocked as anyone. He had just been in Nashville with the marketing team to work on the details of the convention. Nothing seemed out of place at all.

    O.H. Brown and Robert Mitchem, I have not talked with yet. I know they wee also in Nashville, and they did not know or suspect anything was out of place.

    Gerry Nerha and Richard Waak, as the main MLM attorneys will not be talking due to the fact, this case is active.

    Keith Laggos… well we know as the person brought in to fix the compensation plan, he did change it from a 25 level program to a five level program, and took a top position as an affiliate.

    I have not seen anything from Dr. Kieth Laggos in weeks, and doubt we will hear anything for a while.

    I will continue to report and try and locate some of these folks to see if we can get their side of the story.

  45. @Brad,

    Several advertisers have provided new banners that will be going up. We are not accepting any new advertisers from ANY penny auctions at this time due to the fact, from the SEC complaint I am not sure if "unregistered security" is exclusive to Rev Venture Group, or if the Regulators are showing their cards in advance that they are going to call all Bids of a penny auction using a comp plan "unregistered securities."

    If that turns out to be the case, then no penny auction will last. And for those who are in Bids That Give, it is my understanding Randy copied the Zeek plan

  46. #Rami,

    I have been contacted by one law firm who is working to represent the affiliates/victims in the Zeek Rewards case. As soon as I have more info on that front I will release it. As to the process the SEC Receiver will use, that should go live on Zeek Rewards and Zeekler in the next few days.

  47. @Spewing,

    "No debt" does not mean "no creditors". There will be utility companies, call centers, media firms, attorneys and employees who will all need to be paid. There is a possibility that Greg Caldwell, when he terminated all the employees last week prior to this taking place, had received approval to pay them their final paycheck. But there will be the continuing pay to the three exec left in the company and the receiver, plus the above people or organizations I mention.

    In a case like this I am not sure who gets paid first. In a bankruptcy case, as an example, employees get first priority, then secured creditors, then unsecured creditors, then bond holders the shareholders.

    In cases where a network marketing company is deemed a ponzi, the first part will still ring true from what I have read so far. But, where as affiliates/distributors are always seen as unsecured creditors in bankruptcy cases, in this situation that might not be the case.

    I have a feeling that the affiliates may be broken into two different classes… victims and promoters. And I am not sure yet what criteria SEC Receiver (if that is who decided) uses to make this determination.

    I have learned there were at least 200 "founding affiliates" ( number may be smaller or larger) who seemed to have funded the compensation structure and set in the top seats in the matrix. How many of those were insiders will play a role in things. How many of those may have held more than one position and later sold those positions to consultants or other affiliates will play into deciding who are victims and who are promoters.

    I will be talking more about this later today on the Tom Chenault Radio Show. http://tomchenault.com/the-tom-chenault-show/ and tomorrow or Tuesday in a new editorial and video.

  48. Troy

    I met you at several Red Carpet Events… I do not doubt your character at all. I feel that you reported the best that you could have with the information that you were privy to in regards to Zeek Rewards.

    With any online or mlm company we all bear a certain amount of personal responsibility when we get involved. There is one thing that I have learned and that is that nothing in life is guaranteed.

    I earned a life changing income with Zeek and I worked hard to achieve it… Believe me when I say that success was not as easy as the critics like to say. (throw some money in and watch it grow). I worked harder than I have ever worked in my life and the rewards were great. But here we are today and it is over.

    Now…. Everyone that was involved with Zeek has a decision to make. Spend the next several months beating yourself up and complaining about what has happened OR roll up your sleeves … Pick a new company and get back to work.

    You see I have chosen this industry as my fulltime source of income. I do not have the luxury to sit back and feel sorry for myself. I have a family to feed and my confidence in this industry is not shaken one bit!

    I have always kept my eye out for a business that peaks my interest… About a month ago you reported on the company Vitel and I took a position with the company. Under Josh I might add. He is a very well spoken young man and you should be proud of him.

    I did not promote the company because I do not like to ride two different horses, but now it is time to go to work!

    Many people do not like that Vitel is offering free positions to displaced Zeek Reps. (for the first month) They think that they are preying on the weak. I personally feel that it was a great gesture to offer a free month to the people that still believe in this great industry and I commend them.

    I am going to put my link here for the Zeek Rescue program that Vitel has came out with… If you feel that it is inappropriate please feel free to remove it when you approve this comment,


    Everyone that has been injured by the Zeek Rewards events. Keep your chin, Screw your head back on straight. Decide if you still believe in this industry and above all GET BACK TO WORK!

  49. @Spewing,

    Those affiliates who have been in less than 90-days have not had the ability to draw down their original bid purchase/investment, from my understand. Those over 90-days had the opportunity to draw down some or all of their money. If you are saying that affiliates could buy bids day one, then turn around and start withdrawing their points as "Cash Available" this is the first I have heard of it.

    The receiver will look everything over and determine based on the $225 million and any funds laying around the office that had not been deposited, what percentage to send to each affiliate due money. It could be 100% or it could be less.

    He will also review the affiliate records to determine who is not entitled to any refund and in those cases if he deems they have received money that is due someone else (profits), then he will send a letter demanding they surrender a specific amount of money by a specific amount of time.

  50. @gen3benz1,

    You are correct in the quote. They were doing everything they thought was needed to stay inside the letter of the law.

    1. They hired attorneys and consultants which are regarded as the best in some cases.

    2. They had made it clear for months they were adding the qualifiers

    3. They inked the deal for the shopping/cashback mall

    Now maybe they hired too many consultants and attorneys and some of the information was contradictory and this slowed down the process.

    Maybe folks they trusted to help out had hidden agendas

    Maybe they moved too slow

    Or maybe they were lying all long.

    Right now, like you I have plenty of questions, and not many answers. I do hope to have more by Monday or Tuesday.

  51. The past few days have been really tough. If I had just put money into Zeek and lost it, I would not be so stressed. The thing that is hard is that I personally introduced 13 people and every single person I did it with good faith that I was changing peoples lives for the better. I wasn't being greedy, I was trying to help people who needed it. I am not concerned about me, I am just so sad to have hurt other people.

    Not only did I personally introduce 13 people but they went out and introduced a lot more. I tried to be a good leader so did team emails and helped people present weekly. I did whatever I could to help. I believe that if you help others and do good things, that good things come to you.

    I take full responsibility for making the decision to get started and don't blame my upline at all. I researched for a long time and every question or concern I came up with was answered to make me believe that Zeek Rewards was going to change my future.

    I am a single parent bringing up three children where most months there is more month than money. Zeek gave us the chance to dream again and open our mind up to a great future. I am very sad it did not live up to what I thought it promised.

    All I can hope from here is that my people, here in Australia, can at least get their initial investment back. They have all been in for under 90 day and a lot of them have put in $10,000 which is a lot of money and have not taken anything out yet.

    I will be doing anything I can to try to make that happen for them, so any information you can give us about this Troy, will be greatly appreciated.

    One of my downline today sent me a message to say what an amazing time she had had in Zeek, the best time of her life, and she said she has met so many amazing people, it may have been the most expensive thing she has ever done as her family had $30,000 involved and hadn't take any out but it was still the most fun she had ever had. What an amazing attitude she has…. We truly had a fantastic group of people in our team and I have definitely met lifelong friends through Zeek, just so sad it had to end this way.

    I will always be grateful for the friends I have met.

    I just hope with all of my being that we can get the initial investment back for these amazing people.

    Thanks for the updates Troy.

  52. Troy. One more question.Why do the regulators pay those affiliates that have been in for less than 90 days first. Just because you have been in for less than 90 days does not mean that you haven't got some or all of your money back. There was nothing stopping affiliates from withdrawing from day 1. There may have been affiliates that put in $10K and withdrew all commissions from day 1, in which case they would have retrieved their initial 10K, plus a profit of $3,500 by the time the 90 days expired. In my case, I bought $10,000 worth of bids and kept rolling over all my commissions. So after 100 odd days I never cashed out a cent. I've lost all of my initial $10K and haven't earnt a cent from it. So, just because you have been in for more than 90 days does not mean that you have retrieved some or all of your initial outlay. Priority should be given to those who have not received any commissions (in other words have lost all of their money), regardless of how long you have been in. Could you please pass this logical suggestion on to the regulators.

  53. This will probably be a double post, dont know what happened to original reply.

    The previous reply above was a quote of you saying RVG is doing all they can to stay well inside the letter of the law. I will look up more quotes of you selling zeek to people later.

  54. Troy. If there is still $225 million left in this company (and presumably no debt) why cant the receivers takeover and steer the company in another direction of business, leaving all the affilliates as shareholders of the company. A CEO and new staff could be appointed and a new venture could very easily be established (If the regulators are sincere about helping the affiliates wouldn't this make more sense than the alternative where the affiliates get burnt??

  55. Troy,

    What is the steps we need to do to get our money back?
    I was put 4K in ZR 2 months ago and i want them back.

    How do i do that?

  56. ZeekRewards was a ray of hope that would have gotten me out of this homeless state and reunited me with my daughter-there is no room in the shelter for her. Though she does have a safe place to stay. Now thanks to this FrakTard, my hopes have been shattered, and any chance of being reunited with my daughter as a family have been greatly delayed.____I’m sorry to be ranting at you Mr. Dooly, but Burks is not here in my homeless shelter dorm room right now…That sorry b**tard needs loose everything important to him, have to live in this homeless crap for a while, be offered a chance to become financially independent, and then have his hopes smashed by a greedy butthole just like him. How does that crap feel Mr.Burks? The mental anguish this jerk has caused me almost makes me wanna throw myself in front of a freaking bus.____I hope Burks rots in hell, because I’m living in it.____Thanks for allowing me to rant

  57. I am a 44 year old man, who has raised a daughter ALONE for the last 17 years. Now due to economic destruction, I am living in a HOMELESS shelter, and am currently separated from my daughter. (I drive a Taxi 12 hours a day, and I am still homeless. I have a few cabbie friends that live in hotels… Does that tell you how bad business is

  58. Troy,If you find that you have the time to actually read this…I realize that you have said that you know Mr. Burks on a personal level, and I am very sorry to hear that his wife has had a stroke and other complications from it, but he needs to realize that there are people in this world like myself:

  59. Troy,

    As time goes on it would be helpful to have updates on Dawn, Paul, and the rest of Zeek leadership. Also, what are the bevy of consultants saying about their involvement with Zeek. For example I remember you questioning if Kevin Grimmes could ever be involved directly or indirectly with a ponzi scam.

    My friends and family are shocked and hurt by what has happened. They basically said they trusted the various experts and that is why they discounted every warning I gave them. People are wondering how a $600 ponzi scam could have happened when they were told over and over again Zeek is not an investment and not a pyramid or ponzi scheme by these experts.

  60. Bingo on that one Troy, my main question is mostly about -where is this top shelf legal team???? That was a huge reason I got in! I know Grimes is solid, his compliance package was legit! I was and never saw zeek being solicited as security as alleged in the suit!

  61. Troy Glad your Blog is back up! There is so much mismatch info out there on what happen! At least you help give the facts. Its a very sad time for zeek reps.

    I just spoke to someone on FB that didnt even know zeek is not really coming back so he can get his money out.

    Very Sad Time. I am glad there is companies with a true product and services trying to help reps get back on there feet. I love network marketing and will never give it up no matter what!

    We Live We Learn & Move On and try to help bless as many people in this great industry.
    Semper Fi
    Never Give Up

  62. dtspharmd

    Your immediate mission in life? Who made you commander in chief? hahaha

    Ya know, I'm taking an investment course and one thing that snapped in my mind reading your little wussy rant on Troy is how you are supposed to think an investment idea all the way through. In other words, the investment idea needs to be more of your own and not really someonelses that you just act on because what happens is you actually create this dependency and when things go wrong your left in wonder.

    See, when you have taken the time to understand the risk involved you will have an easier time understanding what to do or in this case how to feel / cope because the idea becomes your own….

    Did you even ask yourself if you were prepared to lose it all? Did that convo happen within yourself?

    And can you tell us something that is guaranteed in this life? What did they say about the Titanic before it sank?

    So here you are whining how its not your fault because you listen to Troy and how its not your fault for investing the way you did. Look at yourself. Am I supposed to be feel sorry for you? I sunk 10k into this last month too.

    Troy didn't get me into this, my own mother did. Should I be strangling her? hahahah

    I can accept that greed got the best of me…and I knew I was gambling. I ignored my better judgement and pressed on.

    So man up and take responsibility and quit being a wuss and raggin on Troy.

    Besides, he's a good guy. If he wasn't he would have closed shop.

    Be more thankful…if you can't, invent a reason to be.

  63. Thnks Troy
    this is one of the most amazing Videoi that you made
    I am sute that it will Help Many Marketers to keep on their Buisness
    and to keep on their Energys



  64. And btw you are doing a wonderful job providing info when to me it’s the job of other people (legal) if you know what I mean. Didn’t fall off the turnip truck yesterday. Even mad off had a legal PR faster than this. Inside job buddy that’s what this is…..

  65. Cool I understand
    But also what’s the point of all the
    Laggos, Nehra and Waaks and grimes and yada yada if this is what comes out it? So abrupt so undisclosed so shady

  66. I was quoting you
    The SEC took control of zeekler because it was only making up 2% of the revenue(rest from affiliates). Did they close the door before or after Paul signed the company away?
    I will look up more quotes soon

  67. @BrotherMabe,

    Thank you for the kind words. Contact me through my contact page here o send me an email at TroyDooly@MLMHelPDesk.com with your best contact info, and I can get some additional information that will help me give a few ideas.

    Living An Epic Adventure,

  68. @gen3benz1,

    the FTC has never shut down an MLM unique bid auctions period. So far only the SEC has taken control of one, after it seemingly voluntarily closed its doors the day before.

    And DubLi changed their business model two years ago, and reverse auctions are promoted as ONLY entertainment. They main business these days are the cash-back gift-cards, shopping and entertainment portal. Well and the fact they are the backend for several other company's shopping malls.

    DubLi does over 10K gift card per day. With 3 to 5 million customers (not sure how many are active) but only 150K reps, their ratios are pretty solid.

  69. @gbetthel,

    I agree. But the complaint only shows $11 million, and $4 million of that is still in cash. That doesn't sound like someone who is trying to run off with the money. And with paying out $375 million it doesn't seem like they were trying to keep it for themselves. And so far I have not seen what happened to the other $7 million Paul got. It would seem to me that some of that $7 million would be in marketable assets that could have been sold and the money put back in the company. I now have more questions than answers.

    I am not sure how fast it was. I still find it a little strange that the cut a deal with Paul for only $4 million and have not mentioned any of the long term executives. With $600 million on the line, I feel there is far more that has not been told yet. I do not think the SEC just made a knee jerk reaction, but until we have more info we are left with far more questions. And I know the Regulators are not much better at communicating than Zeek was most of the time.

  70. "Now, knowing the SEC, Secret Service and FTC monitor this website, and have been watching the Unique Bid Auctions for close to two years, there is nothing that Zeek or DubLi is doing that these regulators do not know about. The fact, that the FTC has shut down far smaller auctions, than Zeekler, also leads one to believe, they can see that Rex Venture and MediaNet (a public company) are doing everything they can do, to stay well inside the letter of the law"

  71. Troy, fantastic message to our industry. You know I'm legally blind and I got into network marketing in 2002 so I could work from home and not have to live the rest of my life on $900 from disability. I soon realized that not only could I do that, but I could help a lot of other people achieve their dreams as well. Now more than ever, with the economy where it is, we ALL need to pull together and push as many people to the top as we can, no matter what program they decide to build. Like many, I had quite a few people on my team, good people, who left or set my program aside to build Zeek. Would I rather them stayed with me, sure, but the last thing you ever want is to have a company close down and crush the dreams of those who were putting their time and effort into building it.

    Come on guys, we can all achieve more if we stick together, work together, and extend a hand when people are down to pick them back up. 🙂
    My recent post Numis Network Review And Why I decided Not To Build It

  72. Troy, it has crossed my mind that Paul Burks fully expected that his company would pass any scrutiny the government would make regarding the way the business was being conducted. Perhaps that is why you saw them planning things as if they were going to happen as planned.
    Otherwise why spend thousands on an Income Disclosure Statement, compliance lawyers, new high tech servers, a new headquarters, hire a new CEO, hire hundreds of people when you were just out to close it all down and make off with people's money?
    None of what I have seen and read makes any sense, but then I have never been involved in a Ponzi scheme before, either.
    My head tells me to get used to the fact that Paul Burks and company pulled a fast one on us all
    My heart tells me to think that Paul did NOT think/know he was running a Ponzi, that he thought the actions he had taken to be compliant would make his business model pass scrutiny from the SEC. I have been wrong before but things just don't seem right somehow.

  73. Troy, I don't blame you a bit for taking money from RVG.
    A man has got to make a living right?
    And by the way, just because you were paid by RVG doesn't mean you were paid to talk positively about the business or that you condone illegal behavior.
    We appreciate you Troy!
    God bless you and your family.

  74. @Troy


    I was just being a smart ass.

    Troy I think your doing a awesome job of what you do.

    And it’s a shame it’s come to this with zeek, I guess in the future if a great company like ZeekRewards starts up again then maybe that awesome company should screen its affiliates for ignorance.

    I loved posting for Zeek, and I don’t want the money back.

  75. Thanks Troy for all of your advice!
    Most of us know that we are not your puppets or robots, and that we stand accountable for our own decisions in life whether they be financial, spiritual or anything else.
    But I noticed that you mentioned something concerning the Zeek Affiliates in your last video response, to the effect of some companies wanting to help us by letting us join their company for free because they just simply wanted to help. Well I have a terrifically understanding down-line that I would love to help by recommending another company to help them make money. Most of them are young married couples with children, like myself, wanting to see something positive happen with their finances, and all of them are very new to MLM. So if you could pass on some information to me it would be very much appreciated. My email address is BrotherMabe@aol.com
    God bless you and your family, my friend.

  76. @Fullthottle1,

    Don't throw the ZEC under the bus just yet. We need more facts to know what happened. I will be reporting on this first of the week.

  77. @Gen2benz1,

    Not true at all. I studied the compensation plan, and was very clear form day one, that the issue with the plan was the RPP. I also many times since Dec 2011, made it clear that in order for Zeek to fix that they needed real customer volume, and I was the one who both presented the DubLi model as an example and also provided the 3rd party partner to create and the Zee Bates platform. This was done at the first Red Carpet Day I attended in April. The contracts were not signed until time July of this year, and as we know I was right!

    I admit that I did not see the federal regulators moving in as they did and cutting a deal for $4 million dollars (less than 1%) of the $600 million and not explaining why they did not seize the assets of the other $7 million.

    And since I NEVER told anyone it was a good company to join, or that any penny auction was a good company to join, there would not be anything on that level to apologetic for.

    As a matter of fact, I did in one video if you go watch it state the following… "If the only three companies left in network marketing were Zeek Rewards, Co2 Rewards, and DubLi Network, I would join DubLi Network, because one of my best friends is the Senior Marketing Director"

    In thousands of emails, comments and how ever many posts, I have always made it clear I would NOT join Zeek Rewards, or any other penny auction.

    I have also been very clear, that ANYONE who does join any penny auction make sure they fully understand the risks of the business model, because it was new and had never been tested under regulatory scrutiny.

    You want to put words in my mouth make sure you fully know what I have said. You had better watch every video, read every editorial and read each comment… because that is exactly what the regulators from the Secret Service, AG and SEC have done over the last few months. Plus, some of them have listened and talked to me at the Red Carpet Days.

    I am truly sorry for all the affiliates who are hurting financially and emotionally. And I will continue to fight so they can get their money back, and help to pursue those of the 200 founders who promoted Zeek illegally to get many of these folks to join on the promise of unrealistic financial gains. Which if you take the time to read all that I have said and written you would know this already.

  78. I have so many concerns over this manuver from the SEC. _Im not looking at Zeek as the shame on you thing at all. _Im personally looking at the SEC for a host of reasons. _SO many things do NOT add up here. This smells like a rat and its not Zeek.

  79. Wow dtspharmd!
    How old are you? Do you know how to make decisions for yourself? How many people did you sponsor in the Zeek business? Have they asked you to try and restore your reputation? What a cop out! Why don't you stand accountable for your own choices and quit passing the buck. I'm surprised you didn't blame your wife! Did you promote Zeek Rewards because you thought it was legitimate or because you thought it was crooked? Everyone that was associated with Zeek Rewards was counting on it to change their lives, and their financial state, or else they wouldn't have joined the business. So why don't you just realize that it is one person's fault that you lost your money, and its not Troy Dooly, or even Paul Burks. So guess who that leaves? Or do you need Troy to hold your hand through that, as well! Give us all a break, man!

  80. But you did study the ponzi compensation plan and denied it was a ponzi over and over and over again.
    But at least you admitted you were wrong with your analysis and very sorry for telling potential affiliates it was a good company to join. And for that, we thank you.

  81. @Carl,

    Married couples could both be in Zeek, but had to be sideline. Another traditional network marketing policy.

  82. $20,000 for you and your wife?
    Is that compliant?
    Maybe I misread, thought married couples couldn’t do ZeekRewards, only one plus a child.
    Hell, I should have bought My wife bids to give away.
    Ok, start this ZeekRewards site again, I wanna Redo!
    Honey… Where our checkbook?

  83. @Gbetthel,

    Thank you for taking time to come by and leave your thoughts.

    I am sure there is much will will come our as the weeks go by. I also have questions. I would like to know what happened to the $7 million of the $11 million the complaint states Paul made. I never saw him leave Lexington except for medical reasons. So I wonder why the regulators agreed to settle for just $4 million in cash. It seems far fetched that one man could spend $7 million on things with no marketable value in less than a year.

    And even $11 million is just around 2% of the total $600 million and seems like of low for someone running a ponzi. From what I have read, I would figure multi-millions would have been taken or at the very least, very little would have been paid to the field so Paul and his staff could have taken it. But I admit I have never covered what has been called a ponzi like Zeek or any of the penny auctions.

    I did my best to report on this situation and all the penny auctions as I saw it. Even as late as last week several of the executives and marketing ream were in Nashville finalizing the convention. It was like none of them knew there had been an investigation going on since July 6th, or that the Secret Service and SEC were investigating. Yet, in a matter of days a deal was cut, and the company was closed.

    Like everyone else I sure did not see that coming at all.

    Now as for other MLMs being involved… WOW! If that comes to light, then it would go as high as Washington and the DSA! Although it is an election year, and the DSA does represent 16 million voters in the USA, I am not sure they would try and stop free enterprise. But, it does raise some thoughts.

    Well there will be more coming out Monday or Tuesday.

  84. @Gen3benz1,

    1. According to the latest SEC complaint.

    2. I have answered that before. Yes, although I was not paid for the last red carpet day event.

    3. But I never was hired as the compensation consultant to create what the regulators just called a ponzi, nor did I have a secret position in the ponzi compensation plan earning $40K per month. Remember that was Drl Laggos

    4. I reported the story as I saw it, as I have for years.

  85. @dtspharmd,

    Thank you for reaching out and sharing your heart.

    I did not know my reputation needed restored. I reported on Zeek Rewards as I report on all companies, I just gave it a boatload more coverage because it was what folks were asking about. I also reported all the facts I had on each editorial.

    I fully understand folks took what I said and made their decisions around what I reported. I will stand behind what I reported and in reviewing all I have said and wrote in the last few days, along with all the comments I answered, I provided a very balanced review.

    I have more to report and more questions and answers were are searching for. There is $225 million dollars for refunds, not counting the funds that have not yet been deposited. And I have learned there are around 200 founders which I had not known about that had special positions in the comp plan. The receiver will be reviewing all of this info and determining if the clawback rule will apply in specific situations.

    One situation that I figure will be reviewed very quickly will be the fact Dr, Keith Laggos was the self-proclaimed mastermind behind the current compensation plan, which he changed in 2012 when he became the comp plan consultant and a top level affiliate earning $40K per month. We did report on that when it was made public right after the last Red Carpet Day.

    So you can bet I will be doing the right thing and continuing to report on this and other situations surrounding the penny auctions.

    Living An Epic Adventure,

  86. Pingback: Zeek Rewards – Under Investigation | The Instant Downline
  87. Troy,
    Your immediate mission in life should be to try and restore your reputation. Mainly because of your blog and opinion of zeek is why I became an affiliate. 20,000 dollars total for my wife and I to "buy" bids and promote this business. Not one cent to show for it and a load of embarrassment. You need to do everything in your power to make sure people like me get their money back. I should have gotten a clue at the red carpet event when everyone was dressed like they were going to a MMA event. What a joke! Do the right thing Troy!

  88. Troy, I am one of the affiliates that has gone with Zeekrewards. I appreciate your statement above, because I recommended your site to everyone who wondered about the opportunity that Zeek presented to the ordinary person. I think it takes a big person to admit to and shoulder the blame that you are taking.
    I find it strange that other MLMer's are pointing fingers, etc at those of us who followed Paul Burks and believed that finally there was someone who wanted the little guy to finally make it in this internet world of con men. Even after all I have read, I find it hard to believe that Paul and Rex Ventures would go to the trouble and expense to build new headquarters (that I have never seen, mind you), while all the while they knew (as some people are saying on behindmlm.com) that they were going to make off with everyone's money.
    What strikes me as I think about things is that there is a segment of society that does not want to see the little guy make good as we were doing with Zeekrewards, and , what's more, I think a good many who are on the SEC are of that same mind set. Otherwise there is no explanation as to why they have fixated on the subscriptions we paid as being "stocks/bonds of a proprietary nature", when they were not. None of us as affiliates thought we were buying into the company nor did any one try to sell us on that concept.
    The fact that the people at the top were making a lot of money was something that we all (consciously or unconsciously) knew. It is a fact of life, but the fact that the program was set up so that we could also make money is exactly what is at the heart of this whole thing. The way this whole thing went down smacks of inside
    strings being pulled by other MLM companies that were losing their members to another company that did not pressure it's members to sell, sell, sell in order to meet preset limits and conditions. That would be unthinkable and imagine what would happen if we gave the common person the same opportunity to make money as the big guys, heaven forbid!
    Again, I am impressed that you took the blow and are ready to take the (at least some of it) blame for so many people making the decision to join Zeekrewards. Thank you.

  89. Troy- thank you for always being honest and upfront- you have brought light into this situation where there was none for Zeek Affliliates.

  90. WOW, What can I say about you Troy?
    You and I know where reward is.

    God bless you and yours
    Grace to you

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