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