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

This is the first Zeek Rewards Editorial I have done in a while. But to sit back and say nothing while former Zeek Rewards Affiliates go on thinking there is a chance Zeek Rewards is coming back, is wrong. With maybe 100,000 voluntary surrender packets now arriving in mailboxes and 1200 Subpoenas hitting next week, and conference calls and emails going on telling people  “Kenneth Bell is fishing for information and is using, in my opinion, scare tactics to shake you good people up in turning over money you have earned from your efforts in building the penny auction known as Zeekler.com for Rex Venture Group.” I decided to write this editorial! My thoughts are in RED below.

Update Nov 3rd, 2012.: Phillip G Young Jr., attorney at Law can help those who have questions about the Clawback Packets they have received.  “Do not contact Phillip unless you’ve been served with a subpoena packet from the Receiver.”  

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

This email started making the round a week or so ago. Since I had not heard or Richard Trotter I decided to wait and see what came of it. Very quickly Robert Craddock made a public statement to distance himself from the email. Don Ryan reported on this…  Robert Craddock distances himself from Trotter’s “Update”, then Don Ryan wrote another editorial which provided more info from a reader who seems was on the call where this email originated from. Clarifications on the “Trotter” Update & Craddock’s part in the call. In this editorial it seems that Robert is credited for items 1, 2, 3, 7, 12. Since I was not on the call I can;t say for sure. But what I can say is that there is a boatload of misinformation in the following email. I have written my thoughts, and linked to Court Documents to provide proof.

Now without a doubt those of you who do not want to believe Zeek Rewards is done should STOP reading right now. For those of you who are trying to get to the facts, should continue to read and gather information.

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 MLMHelpDesk.com and there is no Motion to “vaporize anything!” All one has to do is read the most current Preliminary Liquidation Pan to see what a Bold Face Lie this is.

The second lie is to state “Our attorney are fighting this motion” The attorneys for Fun Club USA have filed an appearance but that is all as of this date. So one must ask themselves… Is this person purposely lying for some unknown agenda, or are they just clueless? 

7. Our attorneys said there will likely be NO CLAWBACKS. They said Kenneth Bell was improper in saying that. All three of our attorneys have worked as receivers so they know exactly how the process works. One of our attorneys is only 1 of 2 in the nation who has the highest credentials for fighting this. He was a senior enforcement officer with the SEC, was a federal prosecutor who knows all about insider trading, bank fraud, mail fraud and tax fraud. He also knows all of the members of the SEC personally.

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.

 

Spread The News!

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

  1. @Tell The Truth,

    your comment seems to be half a thought. You start it off with “again”, it seems you had something to say before that.

    If you could explain a little more we could better understand. By the way, the Receiver has already stated he does not see a reason to bankrupt the company, and that he is pretty sure the majority if not all the money will be refunded.

  2. again you see the gov spending money that to be for the people that are victims but its just a ploy to tell you that yes we stole your money and that they are no victims but came in to just plan steal our money and yes thats the truth or how come like any biz let go bankrupt and then oh cant do that gov we cant ploy and steal your money

  3. Pingback: Zeek Rewards !! How to get to $3K a month, starting as a free member ! - Page 48
  4. @Alan M.

    Thank you for commenting. I will do my best to shed some light on a few issues.

    1. The mailing of the Voluntary Subpoena Packets was not done “Improperly”. If you read the Federal Rules covering Subpoenas you can see the Receiver was well within the law (Click Here)

    And if he had paid to have each one served by a U.S. Marshal, county Sheriff or private process server, then folks would have complained that he was wasting money.

    Although, I am sure the Subpoena request may be seen as over-reaching, if I were a receiver, I am sure I would have done the same thing and asked for everything including the Kitchen Sink to fulfill my responsibilities to the “net Victims”. Sadly this situation has victims one both sides.

    2. I have to disagree that the SEC created the victims. True, their move may have caused more short term victims, but the real damage was not done by the SEC, it was done by those who since day one was promoting the Zeek Rewards income opportunity based on the ROI of the RPP. My first video in December 2011 covered this. And there are hours of my speaking at Red Carpet Days where I WARNED Zeek Rewards Affiliates worldwide what would happen if they did not STOP promoting Zeek Rewards as an investment money deal. The ROI spreadsheets have been recorded on videos from YouTube, and it became such a large issue that Rex Venture Group hired Greg Caldwell to create a team that traveled and closed down meetings.

    So to blame everything on the SEC is not accurate.

    3. I cover the 3% myth of MLM. That is not accurate period. I have written several articles on this issue and have shown that the net income earners in network marketing based on the evidence is closer to 20%. The 3% is those who make seven figures in the USA. And if you put that into a number it is over 440,000 multi-million dollar earners.

    4. I agree that Free Enterprise is the backbone of our country and overall economy. I also believe that ALL U.S. Citizens have the right when presented with the evidence and through the guidance of their counsel the right to hand over their assets to whomever they decide. In this case Paul Burks decided to handover Rex Venture Group, LLC. to the SEC and to pay a civil fine.

    Although each individual former affiliate also has the right to fight the clawbacks. The fact Paul agreed to doing this, and also agreed not to change his mind, there is nothing anyone can do on that issue. It was his asset, and his alone.

    5. You are correct that we did have plans for changes. Those plans were presented and accepted back in April. However, it was not until after the investigation started that the plans took priority. Had these changes and qualifications taken place months earlier, then maybe the SEC would not have made a move. Could they have made other decisions… I think so, but they may have far more records than I do. But either way, Paul Burks made the decision as the sole owner of the company.

    6. There is another major issue also that was never addressed. Many international affiliates did not complete a W-8 stating they were exempt from Income Tax inside the USA. They also did not have an official EIN or IITN to do business in the USA. Which means 30% of all commissions to these folks and entities were to be held and then transferred to the IRS. I am waiting to see if the IRS decides to make a big deal about this.

    Thank you for adding some good debate to this situation.

    Living An Epic Adventure,
    Troy

  5. Don’t you think an improperly mass mailed “subpoenas” that does not conform with legal requirements, a sign of desperation by Kenneth Bell? Also I agree 100% that the only “victims” being those cause by the SEC. Your contention that so far only 10% are making money with Zeek is still above the traditional MLM succes rate of 3%, and if SEC did not shut the company down, maybe by now it has risen to 20%. I strongly believe that our free enterprise system is the backbone of our growth and dominance in the world economy. Closing down a healthy company based on a future forecast and projections does not serve well in our “free enterprise system”. Are we empowring SEC now, that ZR becomes the precedent of this horrible conduct by SEC to shut down corporations because they see that in the near future, the business enterprise will get bankruft sooner or later? What about if a projection, just for the purpose of discussion, Apple or maybe Microsoft, due to a strong and cheaper competition posed by China and South Korea will fold up in 10 years, can SEC now pre-empt with the pre-text to protect the investors of those firms because of future projections? This is what they did to ZeekRewards, isn’t it? By pre-emptive closure, SEC took the management decision making powers to prevent this from happenning to their enterprise. A prudent and wise entrepreneurs, I am for sure has already plans in their drawing board to counter the forces that will lead to their demise. Unfortunately SEC actions did not give opportunity for ZR to execute their Plab B, that is why this is a bad precedent. I myself is thinking of registering a corporation in the US at first, but with too much government intervention coupled with rigorous regulations, I have second thought. I’ll be better off setting up my corporation in a foreign country, where the atmosphere is more corporate and business friendly, than being hostile like the USA. How can we improve our economic outlook, with the attitude our bureaucrats are posing?

  6. Brian wrote: “Suppress as many people as possible and make thugs like Bell Rich!!”

    My God, Brian. How could you possibly believe that this is an appropriate way to “defend” Zeek?

    The man you are calling a “thug” once successfully prosecuted a terrorist cell operating in the United States. It is BEYOND THE PALE that you’d call a man appointed by a judge who has sat on the bench for 22 years and was a formal Naval officer a “thug.”

    From a March 3, 2003 article in U.S. News & World Report that referenced the man you call a “thug.”

    ________________________________________

    Hezbollah’s rap sheet is long: 19 Americans dead in 1996 at the Khobar Towers in Saudi Arabia; 28 murdered in 1992 at the Israeli Embassy in Argentina; 300 killed in 1983, at the U.S. and French barracks in Lebanon. The group also was behind the hijacking of TWA Flight 847, the kidnappings of 18 Americans, and the torture and murder of CIA station chief William Buckley in Beirut. Last week came news that Argentine prosecutors have asked for arrests stemming from another Hezbollah strike, the 1994 bombing of a Jewish community center that left 86 dead. Among those on their wanted list: Hezbollah’s Mugniyeh, the former Iranian ambassador to Argentina, and Iran’s top ayatollah, Ali Khameini.

    Source: http://www.usnews.com/usnews/news/articles/030310/10hez.htm

    ________________________________________

    Brian wrote: “Where is this $55,000 going . . .”

    The receiver who once successfully prosecuted a terrorist cell operating on U.S. soil and was appointed by a senior federal judge with 22 years on the bench and whom you describe as a “thug” already has explained where this $55,000 has gone.

    BTW, the senior judge (and former Naval officer) who appointed the receiver you call a “thug” once was chief judge of the North Carolina Western District.

    Brian wrote: “There should be an investigation of this guy!!”

    The receiver you call a “thug” who should be investigated is experienced as both a defense attorney and a prosecutor. He is a member in good standing of the Bar. Beyond that, it almost certainly is the case that he passed an extensive background check, given that he once worked as a federal prosecutor and presided over a case that U.S. News & World Report called “one of the most significant terrorism prosecutions in recent years.”

    Your comments are OUTRAGEOUS — and the damage you are doing to MLM is incalculable.

    Brian wrote: “NO CHECKS and balances on these guys and they know it so they try to strong arm as many people as possible!!”

    “These guys” now are “strong arm[ing]?” My God, Brian. Have you spent so little as 30 seconds contemplating why MLM has so many critics? I thought it couldn’t get worse when ASD’s Andy Bowdoin described the U.S. Secret Service as “Satan.”

    But here you are calling the receiver a “thug” and suggesting he is engaging in “strong arm” tactics while implying a senior federal judge is turning a blind eye.

    FYI, the senior federal judge (and former Naval officer) who appointed the receiver is the “check and balance” you claim does not exist. The judge’s check and balance is the federal judiciary in North Carolina all the way up to the U.S. Supreme Court, along with the members of the Bar — including the North Carolina attorney who submitted the appearance notice for Robert Craddock’s Fun Club USA and the Texas attorney the North Carolina attorney sponsored for Fun Club USA at the North Carolina federal Bar.

    Those attorneys must be mortified by the sideshows put on by the Zeek apologists.

    You are living in fantasy land if you believe a senior federal judge (and former Naval officer) appointed a “thug” as the Zeek receiver and that no “check and balance” exists to keep all of the parties honest.

    Brian wrote: “SEC has wrecked WAY MORE lives than the spin they use in saving these ‘victims’ as they cash the victims checks!!!”

    Some of ASD’s most noted apologists claimed there were no victims and that the government was wrecking lives.

    It turns out that Todd Disner, one of ASD’s most noted apologists, also is emerging as a Zeek apologist. His theory in both cases seems to be that it is impossible to commit securities fraud. His apparent “evidence” is that he says so and that Keith Laggos (a figure in both the ASD and Zeek stories) is smarter than all of the prosecutors and judges who’ve ever been involved in a Ponzi scheme case — this AFTER Laggos had his own well-docomented problems with the SEC in a case about the touting of penny stocks.

    Not only do these claims strain credulity, they are the stuff of fantastic idiocy and only fuel the notion that MLM is a cult.

    The “evil government cashed the checks” claim also was made by the ASD apologists. Their conspiracy theories broadened with each passing day to a point that went beyond absurdity.

    History shows, Brian, that ASD’s Andy Bowdoin blamed the judge, the prosecutors and his own defense counsel for his legal predicament — this AFTER he had posted a couple of felony securities convictions in Alabama BEFORE he launched ASD.

    History also shows that any number of ASD’s apologists played the “evil government” card. Disner, later of Zeek, was playing it even after Bowdoin pleaded guilty to a Ponzi-related charge of wire fraud that put him in federal prison for 78 months and resulted in his ban from Internet “programs.”

    Meanwhile, history shows that the current narrative by the Zeek apologists is more or less the same as the narrative advanced by the ASD apologists: The “evil government” is picking on an old man, the receiver is corrupt, the judge is intellectually lazy and/or a political hack and the government is trying to destroy commerce and keep the little guy in chains.

    Both ASD and Zeek created one bad headline after another for MLM — and still the apologists surface with new tubes of lipstick to paint the latest MLM pig.

    PPBlog

  7. @Brian,

    I can fully understand your frustration and even anger in all of this. Not sure why you do not think other companies do not get bothered. If you read some of the reports I have done you will see that many companies get hit by regulators. It is one of the reasons, I work so hard to protect distributors by getting companies to toe the line.

    Bell isn’t getting rich. If you do a little digging you will see there is a predetermined fee schedule for Receivers. And to date, only $55K has been used out of the hundreds of millions of dollars in assets. From a percentage standpoint that is nothing.

    Now I am not a fan of big government or heavy regulation. But, if you take some time to review the current laws in place, you will soon find this is not a Zeek ONLY situation it is the law.

    And we would not have all these laws if so many folks were not ethically challenged and always looking for ways to take advantage of others. Stanford, Madoff, Eron, Health South, MCI and so on… Even the mortgage meltdown to some degree causes some in Washington to over regulate.

    I understand you do not think there are “victims” but ask those who had just paid $10K which might have been their last 10K and want it back, if they are victims, and they will say yep!

    There are victims on both sides of this situation, and without a doubt the SECs move may have caused some additional short term victims. And I truly feel for those who spent all their Zeek Rewards cash and are not back where they were months before Zeek. I pray the Receiver and the law has ways of protecting them from going bankrupt.

    And I sure don;t understand the check cashing. I agree it seems those checks should have been trashed not cashed. But then again I do not fully understand all the laws.

  8. What victims!! What amazes me is how money orders and checks can be processed as late as Oct 2nd and a couple of cases where Checks were cashed TWICE AFTER Zeek closed!! I think ALL MLM’s should be set up outside the US because there are WAY too many starving lawyer VULTURES looking to CASH in on these so called victims!! They don’t bother the other MLM’s because 98% dont make any money which is exactly what the government wants!! Suppress as many people as possible and make thugs like Bell Rich!! There should be an investigation of this guy!! Where is this $55,000 going straight to Bell’s account and probably cashed the other ‘victims’ checks after Zeek closed!! NO CHECKS and balances on these guys and they know it so they try to strong arm as many people as possible!! SEC has wrecked WAY MORE lives than the spin they use in saving these ‘victims’ as they cash the victims checks!!!

  9. @Frank Sndberg,

    Thank you for stopping by. We do need to clear a few things up.

    1. I was never a paid promoter of Zeek Rewards. I was a 3rd party consultant who spoke at events on compliance. I also covered the story as a reporter like I have hundreds of other stories inside of network marketing.

    2. I did report the truth based on the public and private facts I had access to at the time. And one of the reasons I have continued to cover this story to make sure the facts as they come out are made available to the public who is involved.

    3. As for pointing fingers… you might want to get your facts straight yourself. I have publicly already covered areas where I fell short in reporting.

    Now as for the credibility in the Network Marketing profession… 🙂 That sport is debatable. But for me, I was never and will never be out for credibility. I just want to make sure information is out that is important to those in the field.

    If you don;t like what I write or shoot, then Frank don’t read or watch it 🙂

    Living An Epic Adventure,
    Troy

  10. @Fire4Life,

    Thank you for taking time to comment. Thank goodness I have a team that works with us in running our blog and communicating with the network marketing profession.

    As for my Ocean Avenue business… That is my wife’s business and I do help her. But my priorities and responsibility is to continue to report on information that impacts distributors from all companies.

    So, to you this may be seem like a waste, but you are not the one who gets the emails and phone calls. 🙂

    Living An Epic Adventure,
    Troy

  11. I really shouldn’t stoop to comment but I can’t resist saying that your time would really be better spent developing your business instead of relishing in the destruction of another’s. Just think if you had taken all the time you spent commenting on the notes of Craddock’s conference call and spent it recruiting for your Ocean Avenue business, you could claim you accomplished something positive and useful rather than wasting precious time.

  12. It would of been nice for you to have reported the truth about zeek rewards while it was in business, instead of after the facts. You were a paid promoter of Zeek rewards and all the time you know the truth about Zeek. I would stop pointing fingers as you are just as guilty of misleading people about Zeek rewards. You have no credibility with the MLM community.

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