Zeek Rewards Alert: Public Google Hangout With Top Attorneys To Answer Questions Of The Zeek Rewards Subpoenas & Other Issues

Over the last month or so MLM Attorney Kevin Thompson has been working to put together a Zeek Rewards Google Hangout to help former Zeek Rewards affiliates to fully understand what they are facing, both “victims and promoters”. This Thursday night, November 15th, 2012 at 5:00pm CST, some of the most informed attorneys and critics will answers questions surrounding the whole Rex Venture Group Ponzi Case, and the current issue of the volunteer subpoena packs send out by the receiver Kenneth Bell.

Start Message From MLM Attorney Kevin Thompson

MLM Attorney Kevin Thompson

As many of you know, the Receiver in the Zeek case sent out well over 1,000 subpoenas to the “net winners” pursuant to the Zeek Rewards liquidation plan. In case you’re like most people and you’re not sure what a subpoena is, it’s a document from a court that compels someone to produce evidence (documents, verbal testimony, etc) pursuant to a lawsuit.

In this case, the Receiver is asking for a lot of information from the “net winners.” Specifically, he’s asking about their involvement with Zeek, how much money they made from Zeek, personal financial standing, and he’s also asking about large purchases made over the past couple of years i.e. cars, boats, homes, etc. As we mentioned in the past, the Receiver is responsible for making the pot of cash as large as possible to ensure the victims get a fair amount of the proceeds. Along those lines, the Receiver is obligated to pursue funds from the net winners.

Phillip G. Young Attorney At Law

As Phillip Young said in his article about the Liquidation Plan, “The receiver clearly considers any positive returns on a Zeek investment to be a fraudulent transfer, and his pleading indicates that he plans to immediately pursue the return of those funds.”

Since the subpoenas have recently been sent out, we now have a better idea of the Receiver’s plans before he issues distributions to the victims. The Contributors on this site along with Troy Dooly will be conducting a live Google Hangout to answer some of the common questions about this process. We’ll be conducting the hangout on Thursday, November 15th at 5:00 CST. The current roster of contributors is:

myself, (MLM lawyer)
Jordan Maglich (Ponzi Tracker)
Len Clements (Market Wave)
Troy Dooly (MLM Help Desk)
Walt Burton (Commercial Real Estate attorney)
Phillip Young (Corporate Litigator / Bankruptcy Lawyer)

We’ll be covering questions that are important for both the net winners and the net losers. The Hangout will be streamed live on this page AND on my personal website at www.themlmattorney.com. I’ll embed the video player on these pages. Again, the Hangout will be on Thursday, November 15th at 5:00 CST.

In the meantime, please include any of your questions in the comment section below. I’m not promising that we’ll answer all of them, but it’ll help us all get a general sense of the information you need. NOTE: disparaging comments will be deleted. +Kevin Thompson

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81 thoughts on “Zeek Rewards Alert: Public Google Hangout With Top Attorneys To Answer Questions Of The Zeek Rewards Subpoenas & Other Issues”

  1. @Daver,

    Although you shot this to Mike. I am going to clarify a couple of items.

    1. Your personal bank account should not be froze, nor is it a part of the Rex Venture Group, LLC., assets. So unless you just feel concerned that someone might take your money, as we have heard has happened from one off shore credit card processor, there is not a need to close your account.

    2. If you have money in the bank account your earned from Zeek Rewards and you think closing the account and taking out the money will keep the Receiver from claiming it, then again you have no reason to close your account. If you do close it for this intent, and he does win a judgement, then you may be looking at even bigger issues, if you do not disclose what you did with the money.

  2. @Curt,

    This has been covered several times here and by the Receiver. There were over 60,000 financial interments (if my memory is correct) that had not gone through any financial institution when the Paul Burks turned over the assets of Rex Venture Group, LLC., to the SEC. Those un-deposited funds are still being deposited by the Receiver.

    Now, the law which allows this type of situation, seems completely stupid to me, because it seems to cause even more victims out of this situation.

  3. @Jay,

    The reason, no one is in jail is because the criminal investigation is more than likely still going on. The SEC is a financial regulatory agency. They come in investigate civil issues. Once all the evidence is gathered, they then call in the DOJ to investigate any criminal actions. It is then that in most cases the Secret Service and FBI get involved. They seize assets, for the SEC to use to refund victims, and help expose the masterminds behind the ponzi/pyramid.

    If there is not enough evidence to prove criminal intent, then civil fines are applied, other class action or individual lawsuits are filed against the known leaders, and no criminal charges are ever filed.

    However, in most cases, criminal charges and jail time comes months after the civil case begins. I have predicted that a Grand Jury may be reviewing information right now, but at the very least, I feel criminal charges and possible raids on other locations nationally and or internationally sometime in the first quarter of 2013 after the Receiver and his team have followed the money trail to the end.

    These criminal charges may come against CPAs, Attorneys, Banks, Charter Zeek Rewards Affiliates, Top Promoters, Venders, etc.

  4. Maybe I missed the answer to this, I want to know why aren’t the people that devised this aren’t in jail, or at least have some sort of charge brought agains’t them? I haven’t even seen this on CNN or any news. For being the BIGGESTdishonest sceam ever I don’t understand. I lost $1000.00, I know that’s not as much as some people have lost, it is however all that I had. It’s criminal.

  5. @suzanne

    While it is nice to believe that your “upline” had your best interests at heart, it is likely far from being a fact, Many of the top winners knew full well that Zeek was a pyramid scheme, and yet they continued to recruit. Some were still recruiting after the doors closed.

    If it were my $10,000, I would go after it with a vengeance.

  6. @Rogelio,

    This was the topic of the Zeek Rewards Google Hangout last night. The Receiver has not said for sure. But we do know that his team is going through all the accounts. Some of the attorneys feel he may try and keep any funds uploaded into accounts tied to Zeek, the same way he is cashing the funds that have been laying around.

  7. Hi Troy,

    any word on getting our money back from zeek rewards receivership? on the accounts we haven’t earn any return income from zeekler. i just deposit my funds to my account and i haven’t made any withdrawals at all before SEC. just my initial deposit.

    -Rogelio

  8. @Wayne,

    You asked a great question and since might not get here to answer I will. BidiFy was almost the exact same compensation plan, before Kevin Thompson was brought on as their US attorney. He quickly provided changes to the BidiFy founders, and those were implemented. When the SEC told control of Zeek, others were also implemented, and changes were made once again to protect the affiliates from regulator issues.

    However, rumor is that the owners of BidiFy have decided not to take Mr. Thompson’s changes, and are moving back offshore and going back to the old plan because so many of their affiliates have left for more passive income opportunities. If this is the case, then BidiFy will not last and could also come under the same issues as Zeek. because they are offshore the US based affiliates will face the regulators first.

    And if this is true (the founders have not responded to my questions), then Kevin Thompson will NOT be representing them!

  9. @Mike,

    I still do not get that part of the law. Based on the law it seems that once we send money to a company, it becomes their asset. Yet, it seems strange, because of the services or product is not delivered, it seems that it is fraud, and we should get our money back. In this case you should have the cashiers checks or personal checks shredded or returned.

    To me that would be worth fighting more than clawbacks, yet none of the attorneys on either side question this law.

  10. How can you possibly explain the logic of cashing checks of people who never had the chance to participate in the program? The receivership has deposited potential millions in uncashed checks thereby creating victims instead of returning the money to these people! What logic is that?

    Thanks for your reply,

    Mike

  11. Mr. Thompson, you represent Bidify. What makes Bidify different than Zeek from a Ponzi. When I checked out Bidify it was identical to Zeek!!!

  12. I would like to listen to the streaming call regarding Zeek, I am not seeing the link on this page, it is suppose to be here, right?

  13. @Tanna,

    Hey young lady always good to hear from you. Give the big big a high five for me!

    Your deduction is correct. If money was uploaded into the account, and you or others would be classified “victims” then you should get those funds back, if you never bought anything. If you bought something, but not more than you pulled out, then you should get something back. If you took out more than you put in. The the Receiver will view the funds as “winnings” and will tell NXPay to transfer them to the Receivers account.

    When the Receiver does publish the claims form and the process, you will need to file all your documentation and individual situation.

    Living An Epic Adventure,
    Troy

  14. @John,

    Thank question will be answered today. But from what I have gathered, attorneys on both sides has warned against NOT answering. If you do not answer you could be giving up some of your future Rights.

    If you do give up your Rights by not answering, then you might end up with a real legal issue. The reason I say that, is because the next Subpoena will not be voluntary, it will be mandatory and delivered for your signature and more than likely will be the SEC Receiver making it clear he is suing you.

  15. @John,

    This has been a common question, and one that will be answered tonight. One of the reasons funds were frozen in ewallets and some bank accounts was to stop the tier one promoters and others from spending all the funds then going bankrupt.

    From talking with many attorneys, some who are deeply involved in this case and some who just know ponzi laws and the actions of receivers. The majority feel the receiver will not try and hurt those folks who do not have any way of paying back the funds. However, folks who paid off debt, received medical attention and maybe even paid off a home, might be seen with different eyes than someone who bought a new $200,000 vehicle, a new home at the beach, ot booked a worldwide trip for next year.

  16. What if the earnings were long ago spent on other debts, and there is nothing left to give back to the Receiver? I am a low-income entrepreneur with no assets. My father is retired and only has his house as an asset. We were both subpoenaed as earners in this case. What is likely to happen to each of us in the Receiver’s pursuit to recover this money?

  17. As one who received a subpoena, what would be the consequence for not replying? If I let this lie while thinking over my options, would I encounter more serious legal ramifications by not meeting the response deadline?

  18. Hey Big T – My previous comment made no sense – something happened to the verbiage when I hit send. So trying again…. 🙂

    I funded NXPay $10k via the Rex Venture Group) but my funds were in “pending” status up until 2 hours before Zeek was shut down. Can you believe that? If only my funds would have remained “pending” for 2 more hours, I think I would have been able to recover my $10k already given it would not have been considered “settled” in the Rex account.

    My funds were never transferred to Rex Ventures to purchase bids/subscriptions/etc.However, given they were “settled” only hours before the shut down, my account funds with NXPay are now frozen. Ugh!

    NXPay states, “…as part of our reconciliation process is separating funds that never left the NxPay® wallet to purchase bids/etc. from the funds that were already sent to Zeek Rewards. Once this information is presented to the Temporary Receiver, we will be given information on how the Temporary Receiver wants us to proceed.”

    In my opinion (which obviously doesn’t matter in a case like this – lol), it seems that the ones who never used their funds in their NXPay account to purchase subscriptions or bids should be able to pull out their funds before others that actually participated in purchasing bids, etc with Zeek. Especially given my money is still sitting in my NXPay account – versus in Rex Ventures account.

    My questions are….
    Do see my funds being released by NXPay (via the Receiver’s approval) anytime soon? And do I need to file any document(s) with the Receiver in the interim?

    Thanks for ALL that you do my friend!

    – lil t

  19. @Suzanne,

    I would wait until the Receiver makes public the claims form and the process for you to go through. Then at that time I would make sure I have every piece of documented evidence on exactly what happened. This will alow the Receiver’s team to realize that $10K dollars that went through your account was really your money and belongs to you, not your upline.

    This should not get her in any trouble once all the facts are presented. But if she did this for a boatload of people her taxes could be a nightmare.

    I think it you contact the receiver now, while his focus in on getting all the Subpoena’s back in this week, your issue may get lost.

  20. I have no pity on any one who profited from this POS!! The ones profiting from it were the ones promoting it the most!! No one cares about your sob stories!! The rest of us have our own “sob stories” I hope Kenneth Bell goes after the profiteers from his scam with an iron fist!! Who cares if you just took the profits and paid your little bills!! We have “little bills” to pay also!! I could have taken out 15k if I wanted to but never did, and if I did I know I would have had to pay it back! So excuse me if I don’t feel sorry for you, I will do whatever it takes to get my 10k back, and if that means Kenneth Bell beating your front door down to get it? SO BE IT!!!

  21. Thanks so much Troy for such a detailed and thoughtful response. I’ve not wanted to make her a target–as she was trying, in good faith, to help me keep my money safe. But, it seems like my only chance at getting my money back is going to put this whole transaction right in the Receiver’s radar. Do you have any opinion on whether it’s better to proactively contact the receiver about this? Or, just wait for the claims process, and roll my dice with a claim? (or just get an attorney …)

  22. I don’t know what’s wrong with some of you people, if you profit from a ponzi scheme you have to pay it back!! Doesn’t matter if you knew it was one or not!! It will cost you 10 times as much to fight it! Just pay it back! If you don’t….. You will be forced to!! Whether they lien your home or ruin your credit! That’s the chance you take when you get involved in these “work at home schemes” I put 10k in this racket and hope to get most of it back! Or at least some of it!! And if that means getting it back from you then so be it!!

  23. @James,

    I am just a country boy from the sticks. Can you be a little more articulate in your comment?

    Because when my granny would make fresh baked bread, and then I tried to put fresh hardened butter on it, it was truly a struggle to keep the bread from falling apart while I was spreading the bread.

  24. James, since this is in language I do not fully understand, I am not sure my answer will be correct.

    It seems you are referring to HomeBusinessTaxPro.com which is a site where folks can get in contact with Sandy Botkin, one of the authorities in Home Base Tax Issues. I will be having him on one of my radio shows in Jan 2013 to discuss the Zeek Rewards tax questions from affiliates.

  25. @Greg,

    Just a few clarifications.

    1. The SEC investigation had been going on form months, and Paul Burk through his legal team had provided over 100,000 documents to the SEC, prior to the voluntary closure of RVG by Paul Burks, and the surrender of the company to the SEC.

    2. Based on his consent, he gave up his Right to resend his consent or to appeal his decision. His decision was final!

    3. When the SEC gets involved in a case, it is usually due to two specific situations taking place. First it could be due to a different investigation, where they uncovered potential issues with Zeek Rewards, or some form of connection between another company they are investigating and Zeek Rewards. Or Two, based on the amount of inquiries they were receiving from US base and international financial institutions or other regulatory agencies like the IRS.

    Prime example… Every time a company or financial institutions receives $10,000 from an individual or business by law, they are required to file a Form 8300. If the financial institutions were doing as they are required, but Zeek Rewards was not (and based on the information at hand, we have not seen an evidence they were), then red flags would have been shot up inside the IRS, Secret Service, SEC, federal and state banking regulators, FBI and maybe other agencies inside the Department of Homeland Security, due to the amount of international inquiries on if Zeek Rewards was a good “investment”.

    Since we know for sure the Canadian Securities Administrators (Canada’s SEC) was also involved in the investigation, we can come to a pretty good conclusion, that there was a pretty large international investigation going on that included RVG, Zeek Rewards, and maybe specific individuals who were part of the compensation structure.

    What we do not know, is if Zeek Rewards and the affiliates are the only investigation or if other companies and individuals are involved.

    5. Few folks were paying for any advertising. And the company did not promote paying for advertising. They provided a list of FREE advertising sites.

    6. Now as for the banks in the USA going down and not being enough money to protect the depositors. This is not accurate. We do have a pretty sophisticated system in place due to the majority of our small state banks going bust in the Great Depression. And when you do the research, you see the reason those banks did not make it was because of a lack of a system. I am not a fan of the Federal Reserve System, but it has worked, and has some checks and balances, that warn the powers to be, what is happening, and they are able to protect their financial empires, which in turn has to date protected the average depositor.

    Although the odds of all banks going down, and if they do, then it would not be a bank issue, it would be an economic issue, and businesses would be belly up, the government would be at risk, and the End Times might be at hand.

    Between 2007 and 2010 we saw hundreds of banks collapse in the USA, some were top tier banks. Our system works, the FDIC stepped in, sold the assets to other banks, who also were strong enough to assume the debt, and now those banks are stronger and the depositors are safe.

    I am sure it is some how politically motivated, but it works.

    I agree 100% there are issues in more than one place, with the Zeek situation and many others. We as the people need to get out and start voting at a local level and move our way up in all countries if we want to see change!

  26. @Oscar,

    I truly appreciate your passion and ideas. Although the Receiver has been granted some broad authority to take care of this matter. He has to work within the boundaries of the Law. Based on the current laws, his only options, it to liquidate. He can do that with or without placing the company into bankruptcy. At this time he feels refunds will be granted without bankruptcy.

    I can say, one very sad issue, is how many of the former top level Zeek Rewards affiliates have already gone to companies where they are promoting some form of legal Zeek Rewards compensation plan. Please DO Not fall into this marketing propaganda for two reasons.

    1. The unspoken message in this form of marketing is that the former Zeek Rewards promoters are admitting the former Zeek Rewards compensation plan is illegal. And some of these folks are the same ones legally fighting the SEC against clawbacks.

    2. If “new” legal Zeek Rewards compensation plan was created then it will just be another multi-level marketing compensation plan. There is only so many ways to split a dollar legally in a compensation plan. Anything outside of that us funny accounting (or in marketing terms “unique payout). Enron tried it, MCI tried it, Stanford Financial tried it, Madoff Securties tried it… It doesn’t work, with current legal and accounting rules.

  27. @Suzanne,

    I have heard of this from several folks. Several things come to mind with this type of transaction.

    1. There should have been a Form 8300 sent to the IRS from the person you made out the cashiers check. As a matter of fact every $10K payment received by RVG, I believe should have had one of these sent to the ISA on each affiliate. When this does not happen it sends up Money Laundrying flags.

    2. Your financial institution and the financial institution where the cashiers check was deposited should have sent the form 8300 to the IRS, which will then be documented. If your upline doesn’t show this as income, then they will have an issue.

    You should be able to show a $10K cash payment for services never received from your upline. Although, your intent was to have bids bought, since you did not paid Zeek Rewards directly, you may have a legal case against the person who accepted your money.

    3. As the investigative CPA firm continues to uncover these types of transactions, this could cause the IRS to audit tax returns from 2010 – 2012 on all parties involved to figure out who so much money was flowing between two individual people.

    4. Now here is where some things can get sticky. If your upline becomes a defendant in criminal case, or a respondent in a civil case, you may get pulled in as a co-conspirator or a witness. Based on your story, I would believe you would more than likly get called as a witness to all the transactions.

    5. However, you may not be seen as a “victim” by the Receiver. Instead as they look and see that the $10,000 was (NOT) really money you put in, but rather that your upline transferred, into an additional account they indirectly-controlled you may get push back on your claim.

    To possibly avoid this issue, make sure you provide all the documentation with your claim that took place. Show the original check, who it was made out to, her relationship with you etc. And even them you may have to get an attorney to help.

    Word of caution. There is a remote chance, that of the DOJ opens a RICO or Money Laundering case (which I have predicted, and the promoters have laughed at), you may get a separate Subpoena asking questions about your transaction. Don;t sweat it, just be honest and above all else seek legal counsel.

    Living An Epic Adventure,
    Troy

  28. I’m a “net loser” who purchased 10,000 bids ($10k) just 7 business days before Zeek was shut down. I have the receipt from the purchase. And “should” be set to make a successful claim if/when that process becomes available. BUT, there’s a level of complication which i would love to see addressed in the call. ….

    When I initially set up my Zeek vip account, I was warned by my “upline” that sometimes it took a couple of weeks before cashier’s checks posted. I was concerned about that, as well as the fact that a $10,000 cashier’s check could get lost in the mail–and that’s a LOT of money. So, someone in my “upline” offered to have me send the cashier’s check to her (made out to her). And, she would then just fund my account by transfering money she already had sitting in an e-wallet into my new Zeek account. That way, my account was funded immediately (no delay waiting for zeek corporate to cash a check). AND I could be certain the cashier’s check wouldn’t get lost. She said she and some other affiliates had done the same thing a few times in the past.

    So, that’s what we did. I have a copy of my cashier’s check. It was made out to: “Her Name, for Zeek Rewards Account Load”. I have a copy of a receipt showing bids purchased. And my account (which I checked daily) showed I certainly had “purchased” and owned those bids, as well as subsequent bids purchased using the RPP gains.

    But, the payment type for that initial $10,000 purchase was obviously not “traditional” . I have contacted her since, and she says she is unable to refund the $10k I sent to her (she’s one of those “net winners” who’s in trouble–as she authentically doesn’t have the assets to return the money). But, she says I should be able to get it back through the claims process.

    I’m considering contacting the Receiver to let him know how this transaction took place. IF they’re clawing back–then this person in my upline may need to be “clawed back” for an extra $10k (that she took in Zeek’s name from me … ) BUT, I also fear that I may be raising the radar on what otherwise might go through as a successful claim if I just leave it alone… Any thoughts?

  29. Hi Troy
    I’m really desapointed hearing that Zeek cannot be back online, zeek was my last hope but…
    I know that you can reach the Receiver to suggest him that all those matters of forms to fill, checks to be sent to victims are really complicated. The simplest way to refund everyone shall be to start up again zeek’s servers and let us withdraw ourself funds into differents accounts.I think in that way nobody will suffer from this or that.

  30. Thanks Troy.
    1 ) The SEC just stopped the whole process. They don’t think the FSC and Zeekler were making enough money, so instead of finding out they just closed them down. now we will never know
    2 ) Can he not appeal the decision based on his health and mental state at the time. We have been told he wants to clear his name. This is the only way he can.
    3 ) So why did the SEC get involved in the first place
    4 ) We were paying for advertising. It was like using “shopper dockets” from the supermarket. They have a use by date. Securities, or shares do not expire. They may fluctuate in value, but they have a face value and exist forever.
    5 ) Yeah yeah sure Ted. We in Australia just had one of our HUGE country banks go bust leaving its customers destitute. Our govt threw its hands into the air in dismay, but we were all still screwed. If all of the banks in the US went down, there is not enough money available to bail them all out. We would have another Great Depression. As to printing money to satisfy the people, our old friend Adolf tried that. You have to have something to back it up with, and although the US might have a huge GDP, your economy would not cope.

    (Maybe the entire planet should declare war on itself. A War Economy was what pulled us out of the Depression in the 30. Maybe we should try again. All we need is a global enemy.) (rofl)

  31. @Greg,

    Thank you for taking time to comment. I can clear up a couple of items for you.

    1. I can see your point in the “Victim” .vs “Promoter” issue. Sadly there are many victims on both sides of that coin. But it was not the SEC or the Receiver who cased that to take place. It was the fact, that based on not moving fast enough for whatever reason, RVG caused the issue. The leadership was well aware that there were issues with the compensation plan, especially the RPP. Had they moved quicker, this might have been avoided. Since they waited for months to make the changes, the SEC made the change for them, and now the affiliates suffer. But with that said there were plenty of warnings from around the globe that issues were there.

    2. As for fighting the SEC. Paul Burks as the single owner of RVG aka Zeek Rewards had the opportunity to fight the complaint. He and only he has that right. Instead after reviewing the evidence he decided with the advice of counsel to consent and surrender his assets to the SEC for liquidation.

    3. The NC DOJ, only issues a demand letter for information. At no time did they ever imply they were looking to shut down RVG.

    4. I am not sure why folks pretend the RPP was not a security. This was the topic of every meeting I was a part of. How to do clean up the RPP. I talked about it from Dec 2011 until the now! And in the live public meetings, I do not think there is one mention of the RPP because no one knew how to present it, without it being presented as a security.

    5. Now you might have a point about the banks… 🙂 But at least they are insured by the FDIC, which is funded by the US Treasury, which does have a license to print more money when needed.

  32. @Don Morrison,

    As always you provide provocative thoughts.

    If you read through the complaint, it is pretty clear, that the SEC presented to Paul the fact that his math was not working. Now at first I was not clear on why they thought that, until I started to realize, there was millions in un-deposited funds laying around, there were four to six weeks where funds were not deposited, yet the average of 1.5% was being paid out of the RPP. Of the un-deposited funds, it seems that maybe up to 20% of those were returned or fraudulent.

    So based on the fact the amount of ready cash was going down not up, and the RPP was also going up not down. The SEC presented their facts to Paul and his attorneys on what would happen if RVG continued down the current path. Paul after seeing the facts, consented to turn over the company for liquidation and to pay the $ 4 million dollar fine.

    Just based on those facts, RVG laned inside the legal definition of ponzi. Now, from day one I had said it was a pyramid, but that with the launch of the shopping portal, the additional RPP customer qualifications and many of the other suggestions Greg Caldwell and others were ready to implement, that part could have been fixed.

    But the question is… why were these changes not made before the investigation was launched? Had they been implemented in the Spring, instead of the end of the Summer, it might have been a different story.

  33. Myself, Brother, Mother & Sister put in 31K in cashiers checks just 1 month prior to the shut down.We did not see 1 penny.. the 31 k does not include the upgrades, monthy dues, buying customers, taking the compliance courses Ect.. My cashiers check for 10k has still not even been cashed.I hope that something good comes out of this mess and the victims are made whole. Please keep up the good Troy. I watch everyday to see if you have new news.

  34. @Dale,

    The Receiver will publish a claims form. This will happen once the judge has approved it and the full process. You can stay up to date on the Zeek page here at MLMHelpDesk.

  35. @Teresa,

    I am keeping everything current here on the site under Zeek. The most current update form the receiver can be found and read on that page. All claims and refunds will not happen until next year from what it looks like.

  36. @Just Me,

    Yes, when you Hangout goes live we will stream it here on this post, and I will also do a new post afterwards with the video.

  37. @Joe,

    Phillip Young is representing “promoters” of Zeek Rewards, “Kevin Thompson” the “victims” it seems they will see things a little different, since they are representing two different classes.

    And I hope many of the affiliates will bring forth questions from both sides of the issue. This is not about pro or con Zeek, (well except for Len and maybe Jordan), this is about getting questions answered.

  38. @Joel,

    This is a great question. From what I have gathered, the money you or others may have made from Zeek Rewards may not be yours to keep, which would seem to mean you do not owe taxes so there would not be a 1099.

    Money you might have spent on a bad business deal would be educable. You can visit Sandy Botkin who is one of the most respected tax experts. I will have him on a radio show first of the year.

    I will also ask this question tomorrow night in the Hangout. Visit Sandy at HomeBusinessTaxPro.com

  39. One point that really seems like it should be common sense but I still see a lot of people not really appreciating is that in light of the receivership process there are two very different types of Zeek members. Those who are owed money from the Rex Ventures estate and those who owe money to it.

    Please understand that no one will ever revive Zeek Rewards, there will not be a Zeek2.0. Some people are spreading false hope not only as a fund raising tool but also as a distraction. What are they trying to distract you from? Read my first paragraph again.

    If you are owed money from the receivership estate you want to receive as much of the money you lost as possible and as soon as possible. But unless you’re willing to settle for pennies on the dollar Ken Bell will need to “claw back” the money from as many of Zeek’s “winners” as is economically feasible.

    But the winners likewise wish to keep as much of their gain as they can so they’ll make it as difficult and expensive as possible for Mr. Bell to recover their funds. Hiring lawyers, encouraging others to file objections, that sort of thing.

    Perhaps a good question for the panel would be how will organized legal efforts like some people are promoting affect not only the time line of refunds to those who lost money but also how they might affect the total amount of those eventual refunds.

  40. First of all Thank You for the updates Troy..:)

    Second question.. What about the IRS on the 1099’s?

    Please Advise

  41. Thanks Cyndi for this update. OK I will be looking
    out for the form. I hope that we’ll be getting enough
    time to fill the thing out and send back.
    I had high hopes for Zeek to work for all concern,
    but it seems that was not to happen.

    Sr.

  42. Troy,

    That’s a good group of professionals that you’ve brought to the table to educate former Zeek affiliates. It will be interesting if you can also bring a pro-Zeek affiliate to the discussion so that nobody is going to say that this is going to be an all con-Zeek gathering.

  43. My name is Teresa Alonzo and I also put money in and never took any out. I’d also like to know what I need to do to get my money back. And would also like to know if there is a reasonable amount of time to see results from this case?

  44. Troy, will there be a copy of this live session posted on your site? Unfortunately do to circumstances there are some of us who will not be able to attend?

  45. Troy –
    I went all in with 10K one month prior to it unfolding. I NEVER took any money out. I would like to know how an individual like myself and others can get the money put in returned. Thanks for the update.

  46. @Bob Blackall,

    Thank you for stopping by. Although I do not always agree with Robert, I am sure he is doing what he feels is best. However, like all of us, we can sometimes speak when we should be listening.

    Like you I would love to better understand which group or who is included in the group being protected. And what exactly are they being protected from. At times some of the things I hear sounds like a Kevin Trudeau infomercial.

    Bob, as for Zeek Rewards returning. That is a done deal. It would not matter if 100 different cases were filed to try and prove RVG aka Zeek Rewards was legit. Paul Burks has already given up full control of it on his own free will. His legal counsel is very competent and after reviewing all the facts, decided it was the best thing to do.

    This same propaganda was used (by some of the same folks) during the Ad Surf Daily case. Although evidence was mounting, and Andy was preparing to plead guilty to criminal charges, a small “group” of promoters continued to raise legal defense funds claiming they were going t prove the ASD was legit.

    I wonder what happened to those legal defence funds, and what might happen to all the legal defense funds in this situation. Kind of sounds like politics. Raise the funds and if you do not use them all, you keep them, you do not give them back to the donors.

    Now as to a new legal compensation plan (which many have stated they have already created) and a real penny auction to attract real customers (which we see worldwide) then you really do not have Zeek 2.0 you have any one of the other legal penny auctions that might have a legal compensation plan, generating revenues through auctions and product sales.

    So, maybe the legal defense fund will be used to launch a new company. By the way, info has already come out that Zeek Rewards and Zeekler are not trademarks of RVG, so I doubt whoever owns them will allow them to be used in this manner ever again.

    And in closing I do not think the Receiver will go after any small promoters. I think he will push and push hard at those who earned millions!

  47. @Brooke,

    You can get all the current info by keeping tabs here http://mlmhelpdesk.com/zeek-rewards-court-documents/

    Soon the Receiver should have approval on the Claims Form which you will fill out.

  48. My husband and I only put in 1000 and then our 100 monthly fee we never took money out, even though this is not “a lot” of money compared to others, will we see this back and how do we go about trying to get this back?

  49. Hi Troy, as Ive stated earlier in my posts. It seems there is a huge flaw in the “American Dream” If this was as the SEC says, a”Ponzi Schme” Pyramid scheme” and there were supposed to be Victims. Where is it? Where are they, The Victims? Or was this just a good old witch hunt? Im not being insulting or disrespectful to any one.
    Sure some made money..not me of course, but yes some did..Isnt that how network marketing is supposed towork?
    There were Lawyers in place to supposedly prevent this very thing from happening. Will any of these lawyers that were retained by Zeek, expected to make an appearance on the “Hang out” session? What is a person supposed to feel safe getting involved with in the future?
    Thank you for all you are providing. Much appreciated

    Don

  50. Thank you Troy for giving us all a valuable service, hopefully it will answer many unanswered questions.
    Many of us have donated to zteambiz but are disillusioned with their feedback which is about the same as ZeekRewards Support was. Robert Craddock sometimes says inappropriate things and then blames others for spreading rumours. Result is he is saying nothing and doesn’t reply to emails. We are feeling zteambiz is going nowhere.
    The purpose of zteambiz was to set up a `protected group’ (a term which still remains unclarified despite many requests for explanation) and then prove to the court that ZeekRewards was a viable business. Not well run but could continue on with a few tweeks.
    This I think would be a great idea as then the money that is left in the business could be used to get Zeek 2.0 up & running. I know you said it will not return, and Paul Burkes wouldn’t be allowed to run it anyhow I suppose. But if a new Compensation Plan is drawn up & `real’ customers are found for the Auction, there is great potential for Zeek 2.0, after all there are over 1 million affiliates and customers that are all ready to go and a database of people like that doesn’t grow on trees.

    Personally I think the Receiver would have a hard time getting any money from small international `winners’. It wouldn’t be worth the costs involved.

  51. Hi. Let me start by stating that I am one of the people who did take earnings out of Zeek Rewards. Not a lot, but I am in front. I was at the stage where I was nearly debt free, and for the first time EVER feeling like there was a light at the end of a very long tunnel.
    It seems to me that by dividing us into “winners” and victims the SEC and receiver have caused us to split and, from what I have seen in the various chatrooms, fight with one another.
    The lawfirm that has offered to represent the “winners” who have received subpoenas stands to make $300,000+. We the affiliates get bitten again.
    Can someone please ask the lawyers why we are not trying to fight the SEC and receiver on the legality, and even necessity, of their actions on the 16 August. They have shut down legitimate businesses. They have caused great harm and emotional distress to millions of honest people all over the world.
    The NC DOJ has not been heard from since they first stirred the waters. They have not laid any charges on anyone. Why is this. In my opinion this is because they cant find any wrong doing. No-one was being hurt, no securities were involved, and most of us were waking up in the morning feeling so much better about life.
    If our legal team are able to put a stop to the SEC/Receiver actions in court, everything else becomes a moot point, and the handing over of RVG by Paul Burks can be resolved and/or reversed. There are by all reports “Leaders” who would be willing to take up the reins. Lets face it, if it is the legally run business all of us affiliates believe it to be it is a license to print money.
    Would someone in the legal team please explain exactly what situation we are all in, and why. You state categorically in response to Katherine above that ZR will never be back because of PB’s actions. If his advice was not correct, why can this not be re-examined?
    As far as I can work out, again from the various chat rooms full of people who were affiliates, WE are all the victims. And we are victims PURELY because of the actions of the US government agencies involved.
    And finally, can we get a legal definition of a security. From my understanding, if our bid points, which evaporated after 90 days are a security, then every bank on the planet is a Ponzi scheme as well.
    Thank you for the opportunity for saying all this. It has been on my mind for a while.

  52. I sent in a 10,000.00 check the day they shut seeks down and the check has not been cashed. Why can’t they just send it back? If they don’t I would think that’s fraud. My bank said they was told that they could not put a stop on it.

  53. @Peggy,

    this is a great question. In reviewing everything the Receiver has published, not one times has he separated out :international victims” from “US based victims”. Like you I hate that word.

    I will make sure we talk about this in the Hangout Thursday.

  54. @LuvNLife,

    I do not believe anyone from the SEC has been contacted Receiver or otherwise. We did not ask anyone who is classified as a “victim” or “promoter” to be on the panel.

    As for the disclaimer, that will be done live by the attorneys at the start of the hangout.

  55. I have received the mailing that the receiver sent out I am considered to be one of those that made more then I put in and they are asking for the money back. I am 67 years old living on a very small pension and social security the money I made with Zeek I lived off of it I paid down some debt I had plus used it to pay bills buy food and just every day general expenses, Never bought any high price items such as cars, a house, boat nothing of the sort. What is a guy to do go into debt so people that made a bad business decision by putting in the limit of $10,000, which I I did not do, I placed my ad each day according to the business plan and allowed my business to grow in that manner. I got started just 6 months ago placing my ad. I was grandfather into this from the FreeStoreClub business that I was in back in 2002. The few people that I had in my downline were also grandfather in as I was. The money I put in was the commissions off of my downline which is how MLM Marketing works

  56. Troy/Kevin,

    Has Robert Craddock specifically been invited to attend? Also, was Mr. Bell, or another representative from his organization invited? If so, any responses?

    Also, you may want to add a disclaimer – most of the information which will be provided will be the opinion of the individual provider. Those “tuning in” will not be given specific legal advice about their individual situation. Stating this up front could prevent a tremendous misunderstanding afterward.

    Jerry

  57. Hullo Troy,
    Will international affiliates “victims” (a term I really dislike), be dealt with the same as US citizens in terms of claims for returns of funds. I am curious wether the process will be the same, as well as the equity of the arrangments. We are in Australia and like so many others worked very hard at what we believed was a legitimate advertising business opportunity.
    Peg

  58. @Cyndi,

    Thank you for commenting. There will be a claims form published in the future. At that time you will need to fill it out and then once verified you will receive a refund. You can stay up to date by watching this page… Zeek Updates

  59. @Katherine,

    Thank you for commenting. Zeek Rewards is not returning. The parent company of Zeek Rewards, Rex Venture Group, LLC. was voluntarily surrendered by Paul Burks to the U.S. Government, who through the receiver Kenneth Bell is liquidating the assets to pay back victims.

  60. @Rachael,

    Thank you for commenting. The checks have not gone out yet. A claims form will be published sometime in the future and once that is completed and sent in, then refund checks will start to flow.

  61. @Kathy,

    Thank you for commenting. First let me say, I have reported on the fact Subpoenas do not have to be served in person or by carrier or certified mail under specific situations. Since this is a voluntary subpoena requesting specific documentation and not requesting you in person, under Rule 45 subtitle c of the US Federal Code, the service is allowed.

    However, a blank subpoena is a whole different situation. We will add this to the questions.

  62. I received a packet in the mail that looks like a blank subpoena. Nothing is filled out I wasn’t served in person or by cert mail. This seems very odd for any type of legal document to be sent in this way as they have no proof that I have received anything and how can a judge make any type of ruling on my situation if I have just been left with blank documents that seem to be intended for Paul Burks and not for myself. Would like some clarification on a legal subpoena.

  63. Thanks Troy! How do we register for the Google Hangout? ~ Patrick Babcock, NY {Erstwhile Zeeker down 10K}

  64. Thank you so much for this great service you are providing!

    We are a family that would be classified as victims of Zeek. I recall hearing that checks already went out but we did not receive any. Neither did any of the people we recruited.

    Does anyone know the logic of how they dolled out that first disbursement?

    Thank you.

  65. I’m one of those that only put money in and never took any out. This was, for me, supposed to be a “super savings account”…… my “light at the end of the tunnel”.
    Is my name on the “roster”, and is there some form I need to fill out to be eligible for any return on my investment? What is a reasonable amount of time to see results from this case?

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