Zeek Rewards Legal Alert: Rex Venture Group Receiver Kenneth Bell Clarifies Several Important Issues

Kenneth Bell the Court appointed Receiver for Rex Venture Group aka Zeek Rewards and Zeekler Penny auction speaks out today to clarify several points.


One important point Bell clarified was that they are closer to two million affiliates. Since the SEC took action against Rex Venture Group and Zeek Rewards, I have made it clear based on information I had been told the numbers in the SEC Complaint were low. I mention last week that the affiliate numbers would be closer to 1.8 million, and that the liquid assets and income would be closer to double what is in the SEC Complaint.

Bell also made it clear that it would be a “long time” before any refunds are issued. Part of this is based on the amount of information he and his team must uncover. But there are also two pending lawsuits and a third on the way.

Bells, move not to issue refunds too soon is in the best interest of the affiliates who are owed money. Bell said “We want to have substantially all of the funds before we start to issue checks,” By making sure all funds are collected, the affiliates should get back a larger refund. Hopefully 100% if one of the lawsuits truly shows Zeek Rewards was build on a Ponzi model.

Bell also said “This is one of the largest Ponzi schemes to ever go into receivership…” Now since there has not been a trial on the issue, I must assume Mr. Bell is stating Zeek Rewards was a ponzi based off of the SEC Complaint. However, if this case never sees a day in court, I hope he will one day write a book explaining all the details.

One of the biggest questions I have received in emails has been on clawback laws, and if the Receiver would be going after affiliates who have already paid taxes on the incomes they earned legally last year. Bell stated “We are trying to collect as big a pool as possible for these investors,” Bell said. “Until we know how much we are able to collect, we just don’t know how much of a pool we have.”

I am not sure how that will affect all those affiliates who paid taxes. And I am not sure if any individual affiliates might seek some form of legal action to keep the Receiver from Clawing-Back any of the money they have already paid taxes on. Without a doubt this situations is getting more convoluted by the day.

Great summery of the call can be found at Forbes

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20 thoughts on “Zeek Rewards Legal Alert: Rex Venture Group Receiver Kenneth Bell Clarifies Several Important Issues”

  1. @73seven,

    It is easy to see you do not know the compensation plan or the structure of the business based on some of your comments.

  2. @BrotherMabe

    The receiver has to follow specific rules, and separate the different creditors into different classes, in case they have different rights. So he can't allow anyone to collect money outside that system.

    When people are cancelling a cashier check, they are trying to collect money that doesn't belong to them anymore.

    The class system means every person in a class has similar rights. If they allow ONE person to collect money by cancelling checks they must allow ALL people in the same class to do the same, collecting the money themselves (and maybe use other methods than cancelling checks).

  3. @nobull4me

    I browsed through your website, and checked a few of your arguments. It seems like you're ignoring some important facts, like the fact that Zeek never paid out actual profit — Paul Burks made up an imaginary profit each day and paid it to the backoffice as points (not as money).

    The people who believed the "Cash available" was money were misled, while the people who choosed to withdraw money got the real thing.

    The auctions never made any significant profit to support payout to the investors. Most of the payouts to the backoffice as "Cash available" wasn't backed up by real money, it was only an illusion of real money. For payouts in real money they used mainly new investments (both from old and new investors).

    Some of your logics seems to be flawed, but you had too much material there so I didn't check each and every detail. I only checked if you had understood the basics.

  4. I agree that's foolish. Why not cancel payment an let the chips fall where they may? I doubt there would be any legal ramifications.

  5. Look at it from a different perspective whether it's called points, tokens, or magic beans, its just a word. How that word is used in relation to the "investment opertunity" is what is most important. If I could kill a man by squeezing him to death, my "hug" defense probably wouldn't go that far with a jury, it just verbage.

  6. Please visit http://investamerica.biz and read the counterargument to the SEC claim. There is a line by line rebuttal of the SEC basically proving the SEC filed either because they were totally uneducated about the Zeekrewards model OR they have some other political or economic agenda.

  7. Why would a receiver not give checks back to the investor of the check that has not been cashed yet?

    It seems to me the easiest way to get people their money back, is to send back the checks if they have not been cashed?
    Unless there is an ulterior motive.

    I have some affiliates in my down-line that have already received their original purchase checks back! Why is that?

    Does the receiver get paid a commission of the total revenue refund?

    If so, that would make me understand why the receiver has decided NOT to simply send Cashier’s Checks back to the people that RVG has not deposited yet.

    I have one affiliate whose check was placed into the Zeek home office security box the day before the company shut down.

    That check was for $10K, now I ask you why and how hard would it be to just simply return that check to the person?
    This is absolutely ridiculous!

  8. @Steve,

    I do not believe it is to revive Zeek as much as it is to know the truth. Not just a Complaint filed (which we see has already had misinformation) but the truth facts, and have these facts heard under due process in an open court before a jury.

    And with or without the lawsuits, it could still be years because, if my calculations are correct, most of the income and affiliates were from outside the USA, and the Receiver does not have any authority over those funds. Which means the SEC will have to file in many other countries to ask those governments to get that money back.

    And even the eWallets may be in a pickle, if they give back any money in folks accounts who are not US Citizens.

    So thsi si going to go on for years, because there are international folks who will not wants their money taken without a fight.

  9. @vinesh9985,

    Paul has not publicly talked about what was said to him it private with his criminal attorneys. But whatever was said, he decided not to let his corporate legal team defend the business model. I would guess the words criminal suit was used more than civil.

    And I am sure before it is all over Greg Caldwell will have something to say inside or outside of Court.

  10. If I understood the call correctly, Was Paul Burks threatened by civil suit by SEC to shut down business? Folks, that is illegal and a crime in the US and brings grounds for a criminal lawsuit. I dont think something is right here, somehing is little fishy. Burks didnt have a choice, he had to turnover Zeeks business because otherwise he would go to jail. Thats why there is a receivership. Thats a big problem……. There was a witness, guess who? Greg Coldwell. So that should be brought up in court.

  11. There were 1,00's of attorney's who were Zeek affilitiates. Can they be all wrong? I could understand if the SEC would have frozen it for a few months and put it under review with an independent audit. To outright call it a ponzi scheme without proper due deligence on the SEC is an over reach of government authority. We would all like to see the actual financials of Zeek Rewards. The alogirthems of the software and the 90 day point retirement was suppose to counter market fluctuations. To charge someone with a criminal act without knowing if in fact what they were doing was criminal is also criminal. To quickly side with the government is very nieve on anyones part. We are slowly losing our freedoms. We are looking like many of the European countries where the government controls the media. I believe we all want to know the truth. The only way we will ever see the truth is if this goes to trial or with a fully independent review of Zeekrewards. The essence of truth is in the financial numbers and that is what we all want to see. Numbers don't lie.

  12. At this point what are affiliates trying to sue over? Do they really beliove that they can revive Zeekrewards after such a legal battle and down time. IMO this is done. Just let the reciever do his job and issue as much money back to "investors" as possible. I would rather get my cash back NOW rather then wait years for a court to decide on a court case. There are plenty of other opportunities out there. Lets move on. The other thing that you all seem to over look is that if Zeek is revived how many people will put thier pay out on 100% to get thier cash back asap. I assure you that zeek would fail to meet these payouts if the majority did this.

  13. @kschang777,

    I understand where you are coming from. However, at the specific time the taxes were filed and paid, it was legally earned income based on the fact the affiliate was under the full understanding they were running a independent zeek rewards network marketing opportunity.

    The fact that a regulatory agency as filed a complaint stating it is now a Ponzi, does not change the fact, that unless a court rules it is a Ponzi, that the fact these folks paid federal income tax, could bring a whole new set of lawsuits based on federal tax laws, not on Ponzi laws.

    Although, I not an expert on Ponzi and taxes, I would bet this not the first time this has happened.

  14. @jcb1014,

    Give me a couple of week sot get back on the island and get my life in order. Send me an email to schedule

  15. @vinesh9985,

    I know of at least two books in the works already, by insiders. A third from a different perspective should be good.

  16. This isn't related to this post, but I recently saw a list of "guidelines" or questions to ask yourself when trying to determine if a business is a ponzi scheme (I know the basic definition, so what I'm asking for went into more detail). It was under one of the more recent video's talking about ZR's news, but I can't find this now. Does anyone have that information? One question I have in particular involves the start up cost in a new business that seems to be rather expensive and doesn't include any products (or if services are being sold, then it doesn't include any services). If it just includes the standard information kit, starter marketing materials and some business cards, and the cost is $400 (or heck, even $200), I thought I had read that this wasn't a good sign. Any help would be greatly appreciated. Thanks!

  17. The receiver might as well start writing the book with all the details because at this pace they may as well just let the government decide on everything and not the people. Its funny that SRN Denton even exists, they may as well tell them to take a hike theyll handle everything, lol. Unfortunately, thats not how the justice sysem works in the United States. Lets get a fair trial! Fight on!

  18. Hey Troy,

    Is it possible to call you at some point? I know you have a lot on your plate but I'd love to have a good ol' chat.

    Jeff B.

  19. Technically speaking, there is no such thing as "legally earned income" from a Ponzi scheme.
    My recent post Bad Argument: The "You can't satisfy everybody" red herring

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