Breaking Zeek Rewards News: SNR Denton To Represent Zeek Affiliates United Against What is Believed to be Unlawful Action by the SEC

Robert Craddock who leads this effort on behalf of “ZEEK AFFILIATES UNITED AGAINST WHAT IS BELIEVED TO BE UNLAWFUL ACTION BY THE SEC“, contacted me today to notify me this group of Zeek Affiliates have retained one f the top 25 law firms in the world SNR DentonUpdate Added Below On August 27th, 2012 Update Added On September 7th, 2012 – Robert Craddock Reveals SNR Denten Returns Retainer

So far this group of affiliates is around 5000 strong and growing from reviewing their website.

There is also a recorded call for those who are interested that was provided at 530-881-1499 Pin: 228186

Robert Craddock, explained that early this next week the lawfirm of SNR Denton will release a press release notifying the Rex Venture Group, LLC receiver they are representing this group of Zeek Affiliates.

Update August 27th, 2012 (Per Request of the law firm and Robert Craddock, the bio’s of the Atorney’s were removed to stop enormous amount of calls and emails the firm was receiving.  If you have questions please email them to zeeklegal@gmail.com

Spread The News!

83 thoughts on “Breaking Zeek Rewards News: SNR Denton To Represent Zeek Affiliates United Against What is Believed to be Unlawful Action by the SEC”

  1. This seems an awful lot like the same extortion and blame-shift garbage that Storm-Drain did with 12DailyPro back in 2005.

  2. @Chris,

    No I have not been on any call by anyone pushing a lawsuit. I do not want anyone to use the fact I am on a call to promote I am supporting their efforts.

    Mr. Tin and his lawfirm are very good at what they do… including United States .vs S.L. where Miss Owen was able to get her client the smallest amount of prison time for being part of a ponzi. It is my understanding that both of these attorneys are working for Paul Burks, and without a doubt I feel they will provide him the best defense money can buy in this situation.

    And unlike others involved in lawsuits… Without a doubt we do know they represent ONLY Paul Burks.

    As for holding Craddock to any level… Not sure where that came from. I did report the facts as he provided them, and as you can see removed facts at the request of SNR Denton.

  3. @Chris,

    Thank you for sharing your thoughts.

    I do want to clarify one thing. My being impressed with SNR Denton has nothing to do with the amount of attorneys, it had more to do with the awards they have earned and the amount of lawsuits they have won for folks.

    I was also impressed that they would even take the case… But, as of yet, I have not seen where they have admitted they are representing anyone, and I have not received a response from my email to Robert Craddock on this issue.

    So, no matter how impressed I am with a law firm, if they are not going to represent anyone, or the party who states they are representing them, doesn’t provide proof, then being impressed doesn’t do much.

    I agree 100% with your last paragraph.

  4. BTW, did you happen to be on that call in late August where Craddock ran attorney Noell Tin into the ground, claiming that he and his firm were not qualified to handle such a case and making it look like Mr. Tin was completely inept?

    As it turns out, Noell Tin has represented numerous people that were in the same boat as Paul Burks, including Charis Johnson of the 12DailyPro autosurf ponzi.

    Couple their misleading statements of Mr. Tin’s qualifications with their comments that the receiver is there to run up as many billable hours as he can to siphon off as much money into his own pockets as possible and I have no idea why you hold Craddock with any level of high regard.

  5. In my fight with your comment system, I never did get to reply to this so here it is:

    That important fact should have been front and center immediately on the front of the Z Team Biz website, not after they had already started soliciting donations under the pretense that SNR Denton would be representing those sending in those donations. Are you really such a “positive” person that you don’t recognize the subtle nuances of people who make a living by manipulating others?

    First video around 2:05, “those that want to be a part of this class action suit are gonna need to go over to the website, put your name in, join to become a part of that”.

    Second video around 2:30 you refer it “your case”

    Second video around 3:13 “law firm working for Fun Club USA on behalf of all of you guys”

    It is not the affiliates case and SNR Denton has specifically indicated they are working for Fun Club USA, period. They aren’t working on behalf of any other affiliates.

    As of yet, I have not had the need to ever make use of a law firm(knock on wood),

    I didn’t say that it would be professional, or ethical for that matter, to do what I mentioned. I was just illustrating that I think claiming that the firm would be billing them for speaking to people that they aren’t representing sure could be abused. I would think that the law firm would not discuss anything with anyone who wasn’t approved by the few people that they are actually working for.

    And yes, you are pushing people towards them by how impressed you proclaim to be by SNR Denton being a Top 25 law firm, which is only true based on number of lawyers and not any other parameter BTW, and making it sound like SNR Denton is actually representing all the Zeek affiliates that are donating and signing up.

    It’s subtle little things like that coming from someone that many believe to be a leader and an expert which influence people in their decisions.

    While I fully believe that people need to take full responsibility for their own actions in joining Zeek or handing money over to people of questionable character and ethics in this case, I also believe that people like you need to take full responsibility in understanding how the way you word things influences those who look upon you as a leader, mentor, expert, etc.

  6. Gregg, you’ve said it all. Sadly many still think this guy is some sort of a hero. Anyone who thinks ZR can be back in business must be a fool.

  7. Hey Troy, I’ve been pretty busy, sorry. I’ll try to contact you Thursday morning. I’m available Thursday, Friday and then not again until next Tuesday. I’m sure we can figure something out.

  8. @Gregg,

    Sorry for the delay in getting this live.

    Having met several anti-ponzi advocates, I can fully understand your passion at protecting folks and at being jaded. I have realized that part of my own passion for wanting the facts out on Zeek is to know beyond a shadow of a doubt one way or another.

    Gregg, I would love to interview you. can you connect with me offline to schedule a time that works for you?

    By the way I have asked many of the questions you have brought up. I am waiting until after the holiday to see if I get a response. Gregg, my passion for network marketing run deeps, and I do not want to see folks hurt period. I know that people have a freedom of choice, and I understand what has taken place can't be changed. But there are so many facts that have not been published, that require answers.

    I look forward to talking live please email me at TroyDooly@MLMHelPDesk.com so we can schedule a time to connect. I feel that with answers to my questions and more insight from you as an expert, that some true educated value can be presented to the folks who are looking for the correct answers, and not just subjective opinion and at times depending on where they go false hope. As for me, I would never want to give anyone a false hope to what the future may be.

    Living An Epic Adventure,

    Troy

  9. I’d be glad to talk to you. I am, and have in the past been impressed that you don’t shy away from people like me. For what it’s worth I myself can be an arrogant SOB and I know that. Part of it is being jaded by fighting scams for about 10 years and honestly I’m kind of burned out that the scammers seem to adapt faster than the cure, like a virus.

    At first it was just blatant HYIPs and when they became hard to sell to the marks, the autosurf was invented where the promoters tried to say “See,there’s a product,you’re buying advertising” and that worked at getting the suckers in until ASD crashed. What has really lit my fire on Zeekler is I see many of the same people from ASD trying to find another way to twist a legitimate concept as a cover story for what is at the core just another 2 bit ponzi.

    Troy, if Zeekler had been dividing up the 2% of their revenue that was not affiliate income, it wouldn’t have been a ponzi scheme. It still would have been among other things an unregistered security, as that definition is tied to the expectation of a return based upon the amount invested. In other words, the “work” of placing an ad had no effect on the rate of the payments, it was based solely upon the amount “invested” though the whole “bids given away and then an ad placed daily” routine was just the cover story. Zeek owed it’s affiliates $3 billion dollars on the day it closed. The only thing that kept it afloat was that most of the participants were rolling over part or all of their balances. And that figure, the $3 billion, was due and payable within 90 days. General Motors is not going to generate $3 billion in profit int he next 90 days, who in their right mind would think that a poorly run penny auction site was going to. (really, they’d need to generate twice that much as they claimed to distribute 50%) In short,a legal way may have been found to share 50% of the profits with affiliates, but the only money available was the profits from the penny auctions. The first dollar of affiliate money used to make a payment to affiliates made this a ponzi scheme. There is no other issue.

    As to wanting to see a jury judge the facts of the case, don’t worry about that. It’ll be a few years but I feel pretty confident that Paul Burks is going to face a jury of his peers in a criminal case, and I’m willing to bet he’s convicted of host of charges unless he reaches a plea agreement there, too. The thing I’m not so optimistic about is some of the other people I hold just as guilty, his management team for starters, and the big time top of the downline team affiliates for another.

    But that’s another discussion for another day. For now, I’m glad you published my opinions and I respect you for trying to answer my concerns. I’m not really satisfied with your answers, but I don’t think you’re being malicious. As I stated earlier, I’d love to talk to you. I’d love even more to be interviewed on your video channel which I have watched several episodes of. Better yet, I’d love more than anything to be on with someone from Fun Club USA to talk to them about their ultimate goals and why they think they should let their victims pay for their defense.

    Because have no doubt, the people represented by SNR Denton are going to be defendants in legal actions related to this case. Are they willing to stipulate that no donated funds will be used in any case in which they are the named defendants? Are they willing to say that the money they themselves offer may be used for “PR and outside CPAs” will not be paid to companies that they themselves control?

    They have no standing to try to interfere with the SEC case, which by the way is already final and no one, not even Paul Burks, can appeal or overturn. What do they need, by their own admission, millions of dollars for? Why does their website, which states they alone are the clients, on another page refer to people as “People that are now being represented by counsel, to protect their moneys earned by Zeek Rewards and monies currently held by Zeek Rewards”.

    This statement on their site is a flat out lie, and they themselves know it because their home page has the statement that SNR insisted on, saying that only Fun CLub USA is represented. This statement is also not an oversite that was not corrected because they have updated it daily,with a new number of people who have donated. Have faith in RVGs business practices all you want, but the12 people soliciting these donations are being lied to and misled to think they’re being protected, when in fact they are likely paying to leave the people with their money from giving any of it back them.

    You have a trusting audience and I honestly do think you’re trying to help them, but by not asking Mr. Craddock and his friends these questions, you’re only letting them get taken by another scam.

    I think you’re a better person than that. Don’t disappoint me,or your audience.

  10. @Gregg,

    🙂 I do not embarrass at all. When I ask a question it is to learn. At times I have been known to make mistakes and at other times be completely wrong. But when those times happen I am also willing to admit them and move on. So at anytime you feel like you need to embarrass me to prove your point, feel free. No offence will be taken.

    I asked you my question, because there are several promoters who are from countries where we do not (or did not) have treaties, like Costa Rica, Seychelles, Cyprus, and Panama. So my question was not one of a lack o knowledge it was specific to a huge situation, of where the majority of the funds are located. We already know that Paul Burks was not hiding any funds, there were wide open for all to find. The question remains of those who were international players (as in the hour long video of a Brazilian group in Paul's office). By the way there is a very good chance that some of the big winners could be from North Korea. It has already been reported that South Korean banks were used for processing, and we know from reading about the North Korean's they love to cause financial disruption by hording real and counterfeit US funds then dumping them in European locations.

    I realized as educated as you are my questions seem irreverent, however most f the folks who come to this community are looking to well educated experts such as yourself for answers. If I ask a question, it is because many folks have asked me that question sir. And where I come from the only way to learn is to ask a question.

    I realize some of my ranting may seem ignorant to you. But let me clear up one small item. I have never asked for RVG or Paul Burks to have their day in court. I have however ranted that the Complaint is nothing more than an allegation and that the legal team should have their day in court to defend their position. This sir was NEVER allowed because Paul Burks and his criminal attorneys never allowed it.

    If any regulator is going to turn 2 million people into two classes of folks, victims and promoters, then the case like the other History Making Ponzi Complaints should have their day in court. And yes this is my ignorant opinion.

    Another point, you are correct on, is that Paul Burks was allowed to enter "NO Contest" to the Complaint. I sure did not see Madoff or Stanford awarded this same slap on the hand. So tell me, do you really think a mastermind of a purported $600 Million (more than likely closer to $1 billion) ponzi scheme, should walk with a no context and a $4 million dollar fine?

    By the way I am not an expert at anything, so I doubt if I give anyone a bad name. I have only covered one other purported ponzi and it was small, and did not last. So please do not think I am an expert at all.

    As for your question of responsibility. First of all, unlike you I will not see this as a scam, until I see the evidence presented in a court of law before a Judge and/or Jury and it is both defended and questioned by both sides. And as I have mentioned publicly at that time I will gladly abide by the final ruling. But unlike you I happen to know just a little more about the inside situation and have talked to the folks who are experts at the math and the business, and if they had been given the opportunity to present their case, I firmly feel the outcome would have been far different, than a backdoor deal.

    Not sure how much business I may or may not know. But, I know a little about direct selling. Without a doubt you are far more educated than I am, and I have learned a great deal from our small conversation. And for that I gladly thank you for taking time to educate both me and the community members.

    I can tell by your question about money for an educated man, you have done very little due diligence of you would know that answer. But to educate you, so you do not have to waste your time. I report news that effects the distributors inside of network marketing. And if you go take a look at all I have stated in editorials and in the comment threads, you will quickly see I covered the facts, and did my best to provide solid answers to each situation that came up. I went to the 3rd party legal teams, consultants and compensation experts. I went inside and also asked questions. Then I reported what I learned.
    That my friend was not done for money, it was done because this one company cased more division inside of network marketing than any other company ever.

    I did charge the company for my expenses when I went to speak on compliance at their events. From April until August I was paid $20K. And if you or anyone think that's enough to sway my reporting, then you may want to do the math. By the way this is old news. I have reported many times that the company paid my expenses. As an educated man, you seem to think money plays into everything in life. Ethics and principles are far more important than money. But with a little due diligence, you will find I am an open book, from my own colorful past and background to where I stand today. Again, for an educated man, you sure bring up a stupid argument.

    ROFLOL… Well you got the ignorance right. As for arrogance and avarice… Well you are entitled to your opinions. One day maybe we can meet or start a conversation on the phone and you may quickly find your opinion is based on some very limited information.

    Living An EPic Adventure,
    Troy

    Gregg, as a post thought, when you have time something take a risk and listen to my daily radio show. You may find your opinion is far from the perceived truth you have about me.

  11. @Gregg,

    Not totally sure as to what you think I am spinning? I have never debated anything about ponzi's and I fully support justice be applied to all people who knowingly promote a ponzi.

    I was in full support of your letter, and I am not sure why you would think I was not. I thought I was clear it was a well written letter. If that was not clear, then I am sorry.

    I do think it is clear at this time, based on what I have reported and what is on the front of the ZTeamBiz website, they represent Craddock and his company. And like you I am working to make sure if this goes through that a 3rd party administrator or the law firm themselves oversee the donated funds.

    I am not sure they are looking to reverse the SEC decisions at all. I do think they are looking to question the Complaint itself. RVG is dead, and will never reopen. But, allegations are not judicial rulings, and all complaints from any regulatory body can be questioned in open court by any citizen of the USA. Heck from anyone for that matter.

    You do have a point that since Paul Burks was the ONLY member of RVG LLC, he had the right to cut any deal he desires. However, since there are many lawsuits and possible criminal action still pending, this is far from over. And since the SEC has now alleged that close to 2 million affiliates worldwide were part of a ponzi. I am pretty sure that some of thes folks are going to push the issue. Personally, based on the facts and conversations I have had with folks, I do not believe it was a ponzi. I do agree it was flawed and that the RPP needed to be changed drastically (as I had presented both privately and publicly) or it needed to be removed. And as I have stated publicly, knowing the majority of revenue was coming from the sales of bids through the compensation structure, it could be seen as a pyramid, if outside sales were not drastically risen and fast. But I would love to see this case taken completely through the US Justice System to either prove the SEC allegations or prove the legal and compensation teams opinions.

    Now I agree 100% that all folks who donate to this lawsuit need to be added officially if at all possible. They should not be used to finance someone else's legal defense. And I have sent a detailed email to Craddock asking for far more clarification.

  12. @Mortenxx,

    Thanks for stopping by and adding value to this conversation. Let me clear up a couple of items.

    1. Paul Burks doesn't own anything at all, and his interests are done. This lawsuit would possibly protect the business model and prove the allegations made by the SEC as false. If this were to happen and a judge and jury rule Zeek's business model was legit but flawed or weak, and the legal and compensation team are able defend their positions, then maybe folks might get some of their funds back. I am not sure if they could go after the SEC since Paul Burks signed a Consent.

    2. Robert Craddock did do contract work for several MLMs including RVG. But as to how all the paperwork was arraigned and who he was contracted with is not fully clear at this time. I do know his work was focused on internet reputation management.

    3. Greg Caldwell through WHS has a contractor and under contract as acting COO did work for Paul Burks through his company RVG.

    4. So there are no other interests except his own and those affiliates who join his cause that he is protecting. All assets of RVG have been surrendered to the SEC and are under the control of the Receiver.

  13. In case I have misunderstood something here …

    Greg Caldwell worked / works for Paul Burks / RVG, through his company White Hat Solutions?

    Robert Lee Caldwell works for Greg Caldwell’s company? And has worked for Paul Burks and RVG?

    So Robert Lee Craddock has to protect Paul Burks’ interests through the lawsuit?

    Then why are affiliates signing up and donating money, when he clearly has to protect other interests than their own? The owner of a company and independent affiliates will never have exactly the same interests in a case, and you can’t expect Robert Craddock to sacrifice the interest of his client.

  14. And you know, I didn’t even address the fact that my letter had little to do with clawbacks and was about the legal ethics of getting the victims to pay the legal fees of the winner. You do realize that at a minimum 88% of people in a pyramid scheme are net losers. Don’t try to spin that, Troy, math is well, math.

    My letter is asking the attorneys to clarify who they represent and what legal theory they’re going to pursue. I know you and a lot of MLM people don’t know much about the law, but any first year law student who thought he could gain standing to reverse this SEC decision already finalized wouldn’t never be a second year law student. That legal case is over, RVG is dead. Learn to adjust. They had their day in court and they used to to cut a deal.

    My problem is the magic 12 people, who according to one side of their mouth are the ONLY people who are being protected by this legal effort, and whose interests are directly opposed to anyone who lost money, asking the same people who lost money to pay their legal fees, so that they don’t have to return money that was stolen from the contributors. And you’re deflecting any criticism of this legal travesty. If I didn’t think so highly of you, I’d be tempted to ask if you’re getting paid by someone, “As an affiliate?” or otherwise.

  15. Troy, I’m not a big MLM exoert like you, I didn’t stay at a Holiday Inn Express last night and I didn’t learn everything I need to know about business on a webinar. That said, I do have a Doctorate in International Business, so I’ll try to answer your question without embarrassing you too much.

    The Receiver is charged by law with recovering everything he can, from whatever source. Yes, going after overseas winners is complicated and surely some of them will be left alone, not because they’re entitled to it but because it would cost more than would be recovered.

    The US is signatory to many treaties that permit us to file actions in most industrialized countries so unless your big winners are in North Korea or Somalia the legal mechanisms are indeed there to pursue them. I will say that in at least one country, Norway, ponzi schemes are not exactly legal but the government there doesn’s prosecute them. I’m hoping they don’t have an Albania moment before they change that policy.

    Your second point is irreverent, the law doesn’t say you get a pass if you were “just good business folks and made money through building their organization,” The only solace in the law is that people so positioned are not likely to face criminal charges, but they still have stolen funds, and they still have to give them back. There is in fact a legal mechanism for people who have made some profit to not only return their ill gotten gains, but to put them on the same basis as victims who took no funds out they may have to actually return a portion of their initial investment..

    And please make it stop with your ignorant ranting about them having a day in court. Paul Burkes on behalf of himself and RVG did have their day in court., they stood in front of a Judge, agreed with the charges of every fact in the SEC Complaint, entered a plea of “no contest” and were found guilty. I don;t know if you’re trying to twist the truth to make some pitiful point or you’re really just that uninformed but either way you’re only further embarrassing yourself with that.

    My goodness, you give experts a bad name. I really hope you abandon this business, and I really mean that. This scam was bad enough but do you not feel any responsibility? Even were I to give you the benefit of the doubt and conclude you’re just a very gullible fool who thinks he knows a lot more about business than he really does, there’s a point were you have to stop just because it’s damned irresponsible of you to keep doing it. You’re like a 9 year old left to his own devices in a room full of antiaircraft missiles, it doesn’t really matter if you don’t know they’re not just a nintendo game or if you do know but don’t care because blowing stuff up is lot of fun, it’s just going to end badly.

    And that is assuming that you’re just dumb. Although I do think that’s part of it, I’m curious as to how much you were paid to be so supportive. And no, I don’t mean “As an affiliate?” Do you care to tell us how much money you were paid by Rex Venture Group FOR ANY PURPOSE? Everything, consulting, advising, training, breakfast with Dawn? A final dollar amount of how many checks you cashed for how much. You do realize that information is going to be available to the public when this investigation ends? It might be better for you if you tell us all now when you can explain it away than when the mob is storming the tower later.

    Sorry Troy, you don’t seem like a bad sort, but you are, through a combination of arrogance, ignorance and avarice a very dangerous person, and if you had any shame at all you’d fold up your little tent revival and get an honest day job. People like you being the “experts” in this field are the reason most people put your industry in such regards normally reserved for politicians, used car salesmen and low level gangsters.

  16. @Gregg_Even,

    Well written letter. There are a couple of items that might be up for discussion.

    1. I know the Receiver wants to collect all the funds he can. But, he has NO or limited authority outside the USA. Many of the affiliates at the top were located in countries where the US doesn't have any form of Treaty to clawback the funds, and in a few counties where there are no laws governing what a Ponzi is or is not, so he may not be able to clawback funds. If that is exactly what he was referring.

    So clawback on US citizens who were just good business folks and made money through building their organization, could be harmed by a clawback. Just because a person made money doesn't mean they were purposely doing anything illegal. Especially since this is just a complaint and the SEC has not had to defend their position in a court of law.

    2. Do you not feel there needs to be a day in court in order for those effected to not know for sure if the SEC complaint can be defended or not?

  17. I have sent the following letter to SNR Denton, asking just who they represent….

    Gene R. Besen
    Partner
    SNR Denton
    2000 McKinney Avenue
    Suite 1900
    Dallas, TX 75201-1858
    Dear Mr. Besen:

    I am an online journalist researching matters related to Rex Venture Group and Zeek Rewards and their current troubles with among others, the Securities and Exchange Commission.

    As you are aware, a group of Zeek Rewards affiliates have apparently retained you as their attorney in regards to this case. My question is, I would like some clarification on exactly who you represent.

    A Mr. Robert Craddock has been saying that you have been retained on behalf of all affiliates who contribute to this effort through a website he has set up to accept contributions.

    In a letter to potential donors dated today, Mr. Craddock states

    “Also, to clarify any rumors that are going around the Internet, yes, if you make a donation to Fun Club USA, you are a plaintiff in the lawsuit and in the group protected by SNR Denton. “

    I find this statement hard to believe, as in this case the court appointed receiver has indicated he intends to pursue clawbacks of ill gotten gains and while Mr. Craddock and the members of his group are net winners in this scheme and the people from whom he is soliciting donations are very likely net losers.

    If your representation goals are to protect your clients from clawback actions, those interests would be in direct conflict of those who would benefit from the receiver maximizing the amounts he recovers from ill gotten profits.

    All the communications I have found in regards to this eventually point to Fun Club USA, a site and company controlled by Mr. Craddock. They have the site set up to collect donations for their legal fund, with a disclaimer I am guessing your firm has insisted upon.

    More in line with what I expect is the statement that Fun Club USA has on their website, to wit:

    “SNR Denton US LLP represents Fun Club USA and all inquiries about this representation should be directed to Fun Club USA at zeeklegal@gmail.com.

    SNR Denton’s legal representation is limited to Fun Club USA; SNR Denton does not represent and does not have an attorney-client relationship with affiliates of Zeek, Zeek Rewards, Rex Venture Group LLC or with any individual or party that chooses to provide funds to Fun Club USA.”

    As a writer covering a story I’d like some clarification on just exactly who you and your firm represent. As a concerned citizen, I’d like to ask you to clarify to your client the same question and urge them to not confuse the issue.

    I realize I’m not exactly The New York Times but I still think it would be in everyone’s interest that you and your clients clarified these issues. I intend to cover it and I’m sure other, more mainstream publications will, too.

    Sincerely,
    Greggory Brian Evans, PhD

  18. @Chris,

    This important fact is front and center on the main website Z Team Biz. I think this might have happened after the Law Firm continued to get calls from affiliates 🙂

    I disagree that we fed any lies or deception. If you take the time to listen to both videos I never mentioned a class action suit, and on the conference call, and the emails sent to those affiliates who joined the cause led by Craddock, and that Craddock was leading the charge.

    Now the big concern is if the funds donated by affiliates to fight this will be administered through escrow of he law firm or a trust administered by a 3rd party.

    I listened to both videos, and did not hear where I ever mentioned this was a class action suit. Many times I made it clear I was not fully clear on how it was working.

    Now as to your answer on the Law Firm. When a law firm represents a client, and folks are calling asking about the case they have been hired for, then they will bill their client. If I call a law firm (and have many times) and they agree to talk with me, they bill their client. Not sure how many law firms you may have worked with, but they do not work for free. Even the small ones. 🙂

    By the way, you do not have to pose anyone you are not. Just call and ask questions about Zeek and Craddock will get billed. It would be unprofessional of you or anyone else who is only wanting to use up the legal funds, but hey to each his own.

    Chris, I have not pushed anyone towards any lawsuit. I have made it clear which lawsuit is focused on what. I have no skin in this game, but would love to see justice served for all. If after a public trial a Judge and Jury rule Zeek was a Ponzi based on the preponderance of the evidence, then fine. It the evidence points that Zeek was not a ponzi, then that fine also.

    But all sides should have their day in court, and I will continue to report on things as they become known.

  19. Gee, what an absolute shock that Mr. Craddock left out that small detail about SNR Denton not actually representing all the affiliates that he is soliciting money from.

    Even though you did mention it in your second video, I think it bears repeating in print as it was finally updated on the zteambiz site.

    “SNR Denton’s legal representation is limited to Fun Club USA; SNR Denton does not represent and does not have an attorney-client relationship with affiliates of Zeek, Zeek Rewards, Rex Venture Group LLC or with any individual or party that chooses to provide funds to Fun Club USA.”

    More lies and deception fed to the Zeek affiliates with the help of MLMHelpDesk.

    Great idea to trust the guy that lied to HubPages about trademark and copyright infringements in a failed attempt to get KS Chang’s hub permanently removed.

    You call it a class action suit Troy. What is it, a class twelve?

    Also, how can a law firm bill a client for calls from people that they don’t represent? If that’s the case, maybe all the Zeek critics will start calling them asking questions posing as members who have signed on to Fun Club’s little scheme. That should drain the retainer pretty quick.

    You really aren’t doing these affiliates any favor by pushing them towards people like Craddock, Disner, and company. Whether intentionally or not, that is exactly what you are doing.

  20. @73seven,

    The Receiver has already shown the numbers in the complaint are flawed. If those are flawed, then there might be many other items flawed.

  21. In case someone is interested, here's the 29-page court order (PDF) from the court hearing August 17. 2012.
    http://www.ponzitracker.com/storage/order.pdf

    The receiver gets control over all of Paul Burks' assets, and most of his rights.

    The receiver also have wide rights when it comes to assets in the hands of third parties, but belonging to the receivership = money they have paid ot in general. That includes suing people in foreign countries, so jurisdiction isn't a problem here.

  22. The SEC has relavent info on money sources in there complaint. As time passes the details reguarding this ponzi scheme will become more and more concrete, and I for one will not blame others for my own shortcomings. The SEC is following there mandate, as well as the AG, (what there payed to do) I only blame those who knowingly hurt simple working folk (zeek) and my self. If you choose to blame the goverment, so be it, but remember when the next great thing comes around, either your a easy mark or your not.

  23. I think your missing the point Ben, there was no Peter. New pauls money was paying older pauls. I'm not preaching I'm trying to help others understand the nature of a ponzi scheme. Your point about how it changed to a ponzi over night, I understand, but don't let the circle talk confuse you, it was always a ponzi. There were experts in the field saying it was a ponzi, although they were drowned out and discounted by some. Your up lines will just have to give back there gains, no biggie unless it's spent. Your 14k I'm hoping you will see it, remember ASD, all the players who filed with the receiver got all there cash back (guessing: because most didn't bother to file) good luck

  24. Your missing the point. People always get payed in ponzi schemes, that's what makes it work so well. Look at me I'm makeing $$$ a month all you have to do is send in $$$ an your going to make $$$ a month and as long as people keep signing up there is $$$ to pay out. Where things go bad is when the $$$ coming in isn't enough to cover the $$$ going out.

  25. To all zeek affiliates I would like to advice you not to send any money to the Zrteambiz at present until certain criteria have been met…We need to know what evidence they claim to have to support their position that zeek is not a ponzi ( I believe zeek was a legitimate business and the SEC closed it illegally) but to avoid throwing good after bad we must be cautious when dealing on-line opportunities. Secondly, ZTeam should first enter into an agreement with Denton to represent the affiliates, this has not be proven to be in place, thirdly, We need an accounting of how much has been collected in donation toward the retainer for the denton law group. I believe if the cause is worth value then this group must be vertical and transparent … with millions of affiliates and thousands on both side of the fight we need real leadership with someone who will be open and straight forward with answers… keeping us informed daily and available to answer questions when needed… as zeek attempted to do in their news letter…jsut sayin

  26. Why does the SEC keep talking about investors i did not invest i purchased bids to give away to customers i just dont understand them.

  27. I find it interesting that the only place where a full counter argument to the SEC is posted with real action for affiliates to take is voted down by the trolls, anti-MLMers and legal teams.

  28. I trust and I know that Zeek will return and the truth will triumph.

    Only very much not clever people can argue that Zeek is a pyramid. Zeek – lawful business, and a coma it not to know, how to us, partners of Zeek

    And we will make everything that our darling of Zeek returned. America positions itself, as the country of free people. But how it can be called as free if are violated the rights of people?

    We will defend the rights. I hope that the president of America the honest person and will do the utmost, that his people received the business back.

  29. As a former Zeek affiliate I have to say that its all over. Petitions, class action lawsuits are not going to bring anything back. I do feel the government acted unlawfully but none of are going to bring Zeek back. Not a single person anywhere has any facts about the income with Zeek. How can you fight for something that you don't have information on? The sad part about it is that we may never get the information we seek. Think about it fellow Zeeksters…if Zeek were to ever come back, what retail customers would ever sign up after all this publicity? I truly believe is challenging the government, signing petitions, etc….but whats the point when we have no substantial information? If Paul Burkes was such a savy businessman than why would he fold so fast? Because his wife has health issues?? Lots of people have health issues but you bend over and take it up the a** if because the SEC scared you? Get a grip you all…stop blaming Troy and others…..we all got into the business and its been shut down. It's nobody's fault except horrendous management. MLM work is interesting but you have to WORK at it. There is no freebie people.

  30. Thank you Troy, and my best wished to you and yours with the coming storm.

    I'd love to be proven wrong here but you will be told the law firm can not take the donor's money. That may well be true because the donors are not clients. I suspect there are only 12 clients in this suit and it may be improper for the firm to accept funds from people it does not represent.

    Which brings up a very interesting question, when you donate money to a lawsuit which hasn't been filed yet and you are not party to, what is the responsibility of the people receiving you donations to you? If past experience is any indication, pert near none. You gave them your money gratis.

    And please remember, Todd Disner is the kingpin here and he has done this before. Ad Surf Daily was closed down in 2008 and Andy Bowdoin is in jail yet Todd's lawsuit against the government has still not been resolved. If you donate money to this lawsuit don't count on a resolution this year, or next, or the year after that. If you took out more money from Zeek than you put in, I don't care what you spend it on. If you put in more money that you took out, the court appointed receiver will get you a better refund and will do it faster than Todd can.

  31. @Glim-Dropper,

    I am on it already. I fully agree 100%. Working through travel today and making sure my family is safe ahead of the Hurricane, working a detailed email on this issue now!

    And, if they do not agree and can't provide a logical and detailed explanation why not, then you can bet I will be adding my voice yours my friend.

  32. @Bengivin,

    You have a pretty good picture of things. If there is not a public trial or any trial for that matter, then the SEC Receiver will continue to locate and liquidate the company without anyone really knowing what happened, until someone writes a book on it.

    Or if during a trial a judge or jury decided the SEC was correct and Rex Venture Group was running a ponzi, then the Receiver will continue.

    The attorneys hired by the company were never given (at least not yet) a chance to defend their opinions in a court of law.

    Not the largest ponzi in history. But if the SEC Complaint proves out right, it may be become the largest based on the amount or people involved. Which brings up another question… Since it has now been revealed that the SEC started investigating Zeek and other companies several months ago, why they waited this long if they thought it was a ponzi? Especially with the Anti-Ponzi Advocates shouting about it so loud.

  33. @chances1234,

    I am not sure either of them are hiding. But I am sure their legal teams have made it very clear that with all the lawsuits flying, and potential criminal charges with or without a Grand Jury, most attorneys will not allow their clients to speak at all.

  34. A friend of mine told me that he had a bad habit and couldn’t wait to kick it. Attorneys was his bad habit, he said it was leaving him broke the last couple of years waging a battle in court (attorneys laughing all the way to the bank), over his case. I am not picking on attorneys, they are an important part of the legal system but at the same time pray on it as well for their existence.

  35. Wow! What a crack-pot. If it wasnt bad enough that Zeek was a ponzi scheme, now people are being lead to believe even more bs. People, wake up!

  36. I understand your concern. However the challenge with Zeek was that few if any understood the compensation plan. When you know the math you will realize the pool system was a clever way to pay 45% of revenue a month. MOST MLM companies try to hit a 50% payout. The extra percent was paid through the matrix payout for the sale of internet wholesale stores and other services typical of thousands of companies.
    My recent post Contact Links

  37. If you really want to help restore Zeek, then there is only one real course of action. You must get your political members to investigate the motives of the SEC shutdown of Zeek and hope for Congressional intervention to restore capitalism. You hired Congress for this purpose and that is to PROTECT YOUR RIGHTS. AND it is FREE to contact them frequently and constantly until they take action. Visit the site link for details.
    My recent post Contact Links

  38. Thank you for weighing in Mr. Thompson and I think you raise some excellent questions. So far I haven’t seen them claim that all donors will be represented in the suit but the imply it fairly heavily. The “single point of contact with the court appointed receiver” would imply some level of a class action but in an e-mail from Mr. Kettner today he states that are “only 12 people allowed” to contact the attorneys. This makes me wonder if there may only be 12 clients and the rest are simply “donors.”

    One possible way to clear this up is if some respected people in this industry suggest to the people running the donation effort, instead of having people send their money to an individual, send the donations directly to the law firm instead. And I wrong in thinking that if the “donors” are not also “clients” the law firm shouldn’t be accepting the donations? And if the donors aren’t clients what are they paying for?

    What I worry most about this will turn out the same way a similar effort that took place in the aftermath of Ad Surf Daily. A man who was quite literally a used car salesman and an attorney friend of his took in well over $100,000 from ASD victims and the donors there got nothing in return. In that case the only people who received a refund were the people who sent their money to the lawyer, sadly, most sent it to the used car salesman and had to kiss their money goodbye.

    I guess I simply wish to amplify Mr. Thompson’s skepticism in making donations here.

  39. If you really want to help restore Zeek, then there is only one real course of action. You must get your political members to investigate the motives of the SEC shutdown of Zeek and hope for Congressional intervention to restore capitalism. You hired Congress for this purpose and that is to PROTECT YOUR RIGHTS. AND it is FREE to contact them frequently and constantly until they take action.

    Here is a website that takes the correct action and every member should join in and especially file the zeek petition on the website to your Congressman and Senators. http://investamerica.biz. This is a HOT political issue of big government taking over business, destroying millions of jobs and redistributing the wealth for political interests. Every congressman on all sides do not want to be against you on this. We have big numbers and all know how to recruit so flood the system.

    There are FACTS on the website and some opinion. Most of the questions like is it legal, what is a ponzi, why did Paul roll over and should you join a bunch of lawyers are covered. Read and educate yourself so you have a chance to understand the issues. There is a complete counterargument to the SEC filing on the site for “lawyers” to know the issues instead of emotionally taking people’s money via PayPal without any basis on how they are going to attack the issue or support you.

    The website monitors comments heavily so trolls will not get their opinions posted. Only comments relative to helping people return zeek are posted. General comments like great website and a link to your current program will just be deleted. If you want to post comments then do it and mlmhelpdesk and on the other sites intent on information exchange and critical thinking.

    Personally, I have not seen any reason to join any legal team that has little if any chance to attack the SEC. We need a Grand Jury investigation into the SEC and the INDIVIDUAL motives for the suit through congressional effort.

    Also, shame on you people filing suits against Rex Venture by using the illegal wording of the SEC. I hope zeek is restored and EACH one independently suing for personal purposes have their accounts inactivated. Come on you guys, you knew what you were getting into and none of the people that really studied zeek felt it was a ponzi. If you felt it was a ponzi, why did you join Zeek? That is the ONLY question the judge needs to ask you in court to prove you knowingly entered a valid contract via contract law and accepted the business dealings as presented. If you want to get zeek running again, drop your suits against Rex Venture and take the route via congress.

    Check http://investamerica.biz for real action.
    My recent post Recommendations

  40. Troy,__Why aren't Paul and Dawn emerge from where they are hiding and say something. It's hard for everybody to know who to believe at this point in time when the company itself didn't even defend themselves. I'm sure that they must have some type of agreement with the feds not to say anyhting but I'm pretty sure that their lawyers can coach them on what to say just to reassure the affiliates that they are still around.

  41. Important point by Kevin about how the entire class benefits in class-action litigation, regardless of whether they've paid or donated anything.

    I recall a few years ago I was (unknowingly) part of a class action against a contact-lens manufacturer, and subsequently received a payment – even though I never paid a retainer or donated to any defense fund.

  42. As reported by Jordan Maglich, contributor to Forbes magazine, following the news briefing today by the Court-appointed receiver:

    "Mr. Bell was also asked to address the recent news that some investors had filed class-action lawsuits against Zeek and Burks. While Mr. Bell indicated that he had not been provided with copies of the lawsuits, he did give his opinion that, under the order appointing him as receiver, any and all litigation brought against Zeek or its subsidiaries would be stayed and prevented from moving forward."

    Note that last part, about "any and all litigation brought against Zeek or its subsidiaries would be stayed and prevented from moving forward". Something to consider if you donate to "defense funds".

    More here, including Mr. Bell's position on cashiers' checks (they *will* be deposited) and the very real possibility of claw-backs:
    http://www.forbes.com/sites/jordanmaglich/2012/08

  43. Hi Troy,

    Am I understanding this right?

    The way I see it, if ZeekRewards is classified as a Ponzi then the SEC has the right, and will probably exercise that right to take back all the money that anyone has made above their personal buy in. This does not affect me, I have lost 14,000.00. My up-line however…….some of them are in some big trouble. I know one guy who has made 64,000.00 and he only started out with 4,000.00.

    I find it sickening that August 16th, Zeek was a legitimate company and on August 17th it was a Ponzi. Not only a Ponzi, but the largest Ponzi history, all because the SEC said so. How many attorneys and “experts in the field,” looked at this company and gave it two thumbs up?

    I heard a lot of nasty things said over the past week. The truth is, I run a small business and I often borrow from Peter to pay Paul, in this economy, that is the only way I can stay afloat. If Zeek did the same thing, who cares? It’s not like it was an investment. We all performed the daily task of placing an ad for the company, and giving out bids to potential customers and were paid in return.

    If what I heard on the conference call is true, the SEC and our government have some serious answering to do. Millions of people have lost their jobs, some folks are running and hiding out for their lives, an entire industry, probably several industries have been adversely affected and I have lost 14,000.00.

    If the SEC is allowed to do this without opposition, where will it end?

    Come on people, WAKE UP…….

  44. @Kats1223,

    Thank you for reaching out. I think I can answer most of your questions. However, some of the anti-ponzi advocates may be able to shed better light in some areas.

    1. Paul Burks cut a deal, based on reasons only he and the SEC knows. He did not allow the corporate legal team to defend their position that Rex Venture Group was running a legit network marketing company. Not that he has Consented to give the SEC the company, he is out of the picture totally, and will never be able to gain it back. Unless he were to hire a new law firm and sue the SEC for pressuring him into signing the deal. And I personally do NOT see that happening.
    2. Dawn has hired a top rated legal team out of Florida to represent her in all the upcoming civil and possible criminal lawsuits. Since she was NOT an owner of Rex Venture Group, she has no leg to stand on to defend it. However, since she was given the title of COO (although, I do not think she was ever listed on official paperwork, or signed any official documents), she can still be sued. So with lawsuits already filed her legal team has not yet allowed her to talk. When they do I will be notified.

    3. The affiliates are fighting on two fronts at this time. Some affiliates have decided based on legal counsel to accept the SEC's complaint and Paul Burks Consent as without question, so they can get their money back as soon as possible, and to conserve as much of the assets as possible. There is another group of affiliates (those who made large sums of money down to just average earners) who are fighting the SEC complaint to prove the company was legal and hopefully avoid any clawbacks and possible criminal charges. (Since Grand Juries meet in secret, we do not know if any high level indictments are pending, but it is a possibility. )

    It is very common for the owners and executives in companies under investigation or in lawsuits NOT to make any public statements.

    Hope this helps

  45. @Tissa,

    That is a true statement. The reason I was focusing in on K.Chang's little issues, is because Craddock got K.Chang's site taken down temporarily at HubPages when he was working on behalf of Rex Venture Group, under Greg Caldwell's Guidance, so I wanted to focus in on the issues items first.

    With the Hurricane making landfall, in the next two days, it will be towards the end of the week before I may have the answers on the legal funds and how those funds will be transferred and/or administered by the law firm.

  46. The end-sequence in “A few good men” with Tom Cruise, 1992, could probably guide you. It’s the movie with Jack Nicholson answering “You want the truth? You can’t handle the truth!” when pushed to answer “Did you order Code Red?” in the military court.

    From Wikipedia:
    Downey does not understand why they are being given dishonorable discharges, but Dawson accepts the verdict, and explains to Downey that they had failed to stand up for those too weak to stand up for themselves, like Santiago. As the two prepare to leave, Kaffee tells Dawson he does not need a patch on his arm to have honor. Dawson, who had previously been reluctant to respect Kaffee as an officer, barks “Ten hup! There’s an officer on deck!” and salutes Kaffee.

    Fighting for what we believe is right isn’t always right. That’s doing it in the wrong order, we should first verify what we believe in before we start to fight for it.

  47. @athlyngreen

    “It’s interesting that SEC has admitted that members were receiving actual payment”.

    The point balance in July was around 3 billion VIP points = 45 million per day, payout in POINTS = 1.2 – 1.4 billion points per month.

    Payout in MONEY in July was around $160 million, where 98% of the money derived from new investors. That’s why affiliates started to have payment problems in the last 3 weeks. New investors didn’t fill up the company’s eWallets fast enough, so some of the payouts failed.

    Money coming in from investors in July was $162 million, barely enough to cover payouts to old investors. Zeek was about to collapse already in the last part of July. They had probably started to draw money from internal funds in the first 2 weeks of August.

  48. Hello Greeting from Malaysia. I am not a clever person. In-fact some call me a dick-head. This is my thoughts. If zeek can pay 1.5% returns a day, then may be the governments of all third world countries should invest in this program and save the whole world. Maybe Greece, Italy, Spain all the European countries should be affliates in Zeek.

    Even the most experienced Fund Manager cannot give you this kind of returns.

    One don’t have to be a genius to find this out. Zeek is a ponzi, ponzi and ponzi. Whichever way you look at it it is still a PONZI. My question is why the SEC wait so long before clamping them down.
    Wake up SEC.

    Cheersmate.

  49. Troy, with regard to #1 in your response above:

    Paying a mere $70 to reinstate a corporation filing does nothing to provide transparency and independent accounting of how the PayPal funds will be used.

  50. Hey Troy – I am 100% behind supporting Zeek – I just have a few questions that dont add up.

    Why have we not heard anything from Paul Burkes or Dawn???

    Why are the affiliates fighting the fight and not the company?

    I dont want to believe the doomsters and nay sayers but something doesnt add up here. Do the Zeek affiliates believe in Zeek more than the company’s owners or do the company owners know stuff about the running of the company that they are not willing to share?
    M
    Mayhaps people would be more inclined to trust the situation if something (anything really) would come from the Zeek company owners!!! I know I for one would love to hear their take on all of this….. and also to see some fight back – in them!!!

  51. I'm with you Shirley,My name is Tim. I just donated $20,not much but if i can do more I will.
    I have NEVER made a dime online UNTIL there was Zeek Rewards!!!!!!
    We ALL have to stand up to the SEC & to what we believe is the truth,that Zeek Rewards was a legit business model changing ALOT of lives,me & my family included. God Bless Zeek & America!!!

  52. As an attorney, I’m puzzled by this effort. Who are the clients in this case? Are all of the donors the clients? If so, are they all signing engagement letters? The answer, I think, is no. ?And yes, I actually listened to the phone call.

    Based on my knowledge, there’s no advantage in “unionizing.” The receiver is communicating with everyone via the Zeek website and the individual reps, whether they’re organized are not, will not be given preferential treatment. Do you really think the receiver will pay these donors faster than anyone else?

    If there’s going to be litigation, it’s going to be done as a class. And in class action litigation, the entire CLASS benefits regardless if they’ve formally retained (or paid….or donated to) the firm. This seems like a shoot first aim second sort of strategy. As for expecting a legal opinion validating Zeek’s business model, which was hinted at during the call, it’s not going to happen.

    This case is larger than just a ponzi case. There’s more issues involved, namely the issue of whether the Sample Bids constituted “investment contracts.” I would recommend that Zeek affiliates sit tight and wait for a signal from the receiver. The class action litigation has already begun and if there’s any benefit to be had, it will trickle down to all participants, equally, regardless if they “donate” money.

  53. Hello i was in zeek why do people keep saying the word invest i did not invest in Zeek i purchased bids to give away to customers. When you purchase bid and give them to customers it show up as profit for the business and you hope your customes will buy bids after they use the free bids. it will be interisting to see what happens. i am eight thousand in the hole i did not make any money. I have joined a new company http://www.ultimatepowerprofits/atwoodel This company is fixing to start in a few days it is best to get in early you can sign up for free. After they get started the membership will be from 10.00 to 100.00 per month. No sample bids to purchase. I think this company will do well

  54. So he set up this FunClub USA thing as a sting operation? 😀 That’d be an interesting story to hear, if I weren’t at the receiving end of one of his “removal” efforts.

    Oh, I agree absolutely that “if Craddock does have inside information”. The big question is… does he really?

    I mean, if this information was available to Burks, then you *knew* Burks would have fought tooth and nail, probably put up a much better fight than Andy Bowdoin of ASD. After all, Burks have 4 mil, and Bowdoin, after ASD’s shut, got bupkis.

    But Burks sign a deal with the SEC and gave up RVG and his 4 million. he chose NOT to fight, after evaluating the information available to him.

    So what would Craddock know that not even the owner, Burks, know about? And what are the chances that Craddock would have it, vs. any of the OTHER officers who had been there from the beginning? Like Dawn or Darryl? How long had Craddock been in? Two months?

    There needs to be some SERIOUS questions asked about this effort before ANY affiliate give it money.

    Consider the worst case scenario: your money is completely wasted, and the only thing it achieved is it delayed the receiver doing his job… giving back your money.

    The top affiliates, who had been “earning a million a month” according to latest RCE, should be able to bankroll the lawyers without needing any donations. So why is Craddock and Kettner asking at least $20 per head, with recommendation donation of $50?
    My recent post EDITORIAL: People in denial do some crazy things…

  55. As for whether folks should send money to this ‘defense fund’: Glim_Dropper already covered that above. And by the way, I’m one of those ZR affiliates Glim_Dropper mentioned “who took more out than I put in”. If, after due process, the Court-appointed receiver determines that I should return my earnings, I will.

    I read the “Breaking news” on the “Zteambiz” Web site, about how they’re working to re-open Zeek Rewards and Zeekler.

    Remember that scene in Pulp Fiction, where Butch (Bruce Willis) says, “Zed’s dead baby, Zed’s dead”?

    Zeek’s dead folks, Zeek’s dead.

    Any money spent on trying to resurrect Zeek is throwing good money after bad (and lining the pockets of others).

    Unfortunately I think a lot of people are still in denial over the loss of easy money, and it’s clouding their judgment. Just like their judgment was probably clouded when they first joined Zeek, under the lure of easy money. What’s that saying, “Fool me once, shame on you; fool me twice, shame on me”?

    My advice is to monitor the Court-appointed receiver’s Web site, and submit your claim once a formal claims process been established and approved by the Court:
    http://www.zeekrewardsreceivership.com/

    The receiver will be holding a news briefing for members of the media tomorrow, August 27 at 2 PM Eastern:
    http://www.zeekrewardsreceivership.com/pdf/Zeek%2
    <p.
    I know you're braving the storm Troy, but if you're able to attend the news briefing, I look forward to your report afterwards.

  56. Apparently Mr. Craddock don't check his own company status, because I posted the observation about his company's inactive status on 24-AUG-2012, a full DAY before he decided he needs to renew the company.

    Either that, or I have a secret admirer. 😀

  57. Like I said before on my blog I feel bad for the people who lost money in this but at the end of the day all the lawyers are going to eat up all the money including the receiver who get paid by the HR.

  58. WOW! Too Much! I just want to get my check back. I sent a cashiers check and it has not been cashed so the bank did a stop payment but they can’t give me my money back until the SEC releases it. I hope this does not go on forever.

  59. Troy, I want to say, that I certainly do not know all what has happened and if Zeek was in fact runnig anything illegal, but the supposed smoking gun that Paul Burks admitts ZR was a ponzi is not a smoking gun at all. True, paul did use the word Ponzi, but near as I can tell, he did not claim ZR was a ponzi. All I want is the truth, not the allegations or the aha! I told you so's! Some of those that I know that "told me so" are more gloating as to their superiority as there fears were founded, even though, they know no more about it tham anyone else. People love to have the "I told you so" attitude. Makes them feel smart. Not all that have questioned ZR falls into that catorgory at all, Not even all on behindMLM do, but certainly it is there. Those that have gone around and around with you, do not (for the most part) have that attitude. Oz, KSChang to name a couple, that I do believe do not have the, "I told you so" attitude.

  60. I know of several people that are willing to sign up with these attorneys to at least investigate the allegations to see if in fact they are legit or not. It is worth it, at least to see. In looking at the attorneys site, I am not exactly sure where we can contribute to make sure the contributions are directed to the correct place. Can you once again give the direct link?

  61. One other point, Troy you know a lot of people are hurting and a lot of other people are preying on ZR’s victims. It only makes sense to do all we can to insure that these people have as much legal protection as is possible.

    Please Troy, reach out to Robert Craddock and ask him to have the law firm handle all the donor’s money. Instead of having the affiliates send money to Robert, have them send it directly to SNR Denton. There is a very good reason for this, the law firm has very specific legal, professional and ethical obligations to handle the money with propriety and accountability.

    Ad Surf Daily had a piggyback scam called the ASDMBA in which a bozo named Bob and his scumbag attorney bilked about $130k out of ASD victims promising them some for of representation. When it became clear that Bob was a bozo and the attorney was a scumbag, the only people who got refunds were the ones who sent their money directly to the law firm.

    I am not saying that Todd Disner, Dave Kettner and Robert Craddock are going to do the same thing to Zeek victims but it only makes sense that Troy, as an advocate for the affiliates, makes this simple request of them. And if they refuse to do it I would respect Troy for adding his voice to mine in calling that refusal a gigantic red flag.

  62. @KsChang777,

    Several things did happen before I took Mr. Craddock’s information live.

    1. I asked about the inactivity I found at the official Florida Corporation web site <a href="http://www.SunBiz.org” target=”_blank”> <a href="http://www.SunBiz.org” target=”_blank”>www.SunBiz.org.

    Several hours later I was provided the following; (now understand because it is the weekend and we are now in a State of Emergency in Florida this information below may not show up until the middle of the week.)

    “Thank you for submitting your payment to Florida Department of State, Division of Corporations. This email will serve as confirmation that your payment was received by our office.
    Your filing will be posted on our website http://www.sunbiz.org/ within 1-3 business days.

    The transaction information is listed below:
    Receipt Number: 3573128149
    Transaction Date/Time: 8/25/2012 4:51:15 PM
    Card Number: XXXX XXXX XXXX (Edited by Troy Dooly)
    Card Type: Visa
    Approval Code: 175414
    Payment Amount: $70.00
    Document Number: NEW ”

    2. Robert Craddock as you know is an investigator who does work for several companies and has close ties to Greg Caldwell the former acting COO of Rex Venture Group, LLC. In the above mentioned information about FHTM I took the liberty to ask Mr. Craddock about that yesterday and here is what he provided me:

    “2011 Help FHTM deal with Joe Isaacs in his quest to post false information including filing UDRP complaints to remove fhtmclassaction.info fhtmclassaction.in fhtmscamnews.com”

    So I do hope that does clear up a little of the confusion on who Robert Craddock is and some of the roles he has responsibility for inside of network marketing.

    By the way, I do hope to be able to shed some light on his public activities outside of network marketing in the next few weeks and his ties to some of the former legal team who have run the State of Florida protecting our citizens.

    Now on a different thought. It should make this lawsuit interesting if Mr. Craddock does have inside information that might prove the SEC complaint has holes and inarticulate information, based on his ties to Greg Caldwell.

    By the way, I always enjoy reading your editorials because they give me many things to ponder and give serious thought to.

  63. Glim_Dropper,

    As always thank you for dropping by and adding value in areas I have very little knowledge and even less wisdom.

    One small clarification, it is my understanding from talking with Robert Craddock, ne made less than $1000 above his original bid purchase. Now I do not know how much that original bid purchase was, but I did want to clear that up.

  64. Did Mr. Craddock mention that any donations you are giving this fund is going into his FHTM affiliate organization account?

    Fun Club USA is owned by Robert Craddock http://i.imgur.com/CjImI.png

    And Fun Club USA is a "support" website to support Fortune Rep, i.e. Fortune Hi-Tech Marketing http://i.imgur.com/6m7nX.png

    And Mr. Craddock identified himself as a FHTM rep, and Zeek rep http://i.imgur.com/5WVlc.png (he had since deleted this account)

    But he also identified himself as a Zeek consultant, working for Caldwell. http://i.imgur.com/FZFaz.png

    I believe Mr. Craddock needs to come clean about who he really is, and what is he REALLY going to do.
    My recent post EDITORIAL: People in denial do some crazy things…

  65. we all in ISRAEL hope soon the truth will shine on all of us.
    we Loved zeek and we pray these nightmare will end by mornning.
    many people lost their dreams/beliefe/money/friends

    i remember talking personally to Paul and the rest of the stuff asking many questions almost about everything
    and me and my friends didnt see any kind of persons who chits and do bad things to human
    kind in them.
    i do want to believein some conspiracy here. hope i am right

  66. Troy, After that recorded conference call I heard this morning I am urging our team to join the cause.This will protect anyone who joins the lawsuit, and make it one point of contact with the receivers. They will also protect us from these people who continue to Spew untrue statements or quote them. They could be involved in a lawsuit themselves.

    We deserve a Jury trial, we need the truth to come out. If it is proven that it was what the SEC is calling it. Then I will be willing to hear all the I told you so’s, but until the facts come out, please keep your BS opinions to yourselves.

    This call shed a lot of light on what happened and how quickly or should I say how hastily the SEC pounced on ZEEK. I for one am looking forward to see what comes of this over the next days, weeks, and months. To all my fellow Zeek business partners, listen to this call, fight for your business!!

    If you believed what we were doing was right, then get involved, do something about it, join us in this fight to see ZEEK vindicated. Don’t let what we all worked for be ripped away without a fight. Until it is proven in a court of law I still believe we are innocent.

    SO don’t be a victim DO something!
    like Troy always say’s “if your in network marketing ,ACT LIKE IT!!!!”

    Join the Legal Fight: http://zteamiz.com/
    If you cant give $20 dollars to the fight, then make sure you get everyone in your group’s info on an excel spreadsheet: Name, Address, Phone #, Zeek Username
    And get it to your upline or email them to zeeklegal@gmail.com

    You will be included and protected in this lawsuit.
    My recent post Welcome to Z Team Biz

  67. I would strongly urge people not to contribute to this legal effort and I’ll give you more than one reason.

    First of all at this time there are two types of ZR affiliates, the ones who put in more money than they took out and those who took more out than they put in. This lawsuit only helps the latter. For the people who lost money here your best hope, as i believe Kevin Thompson indicated, was to cooperate with the court appointed receiver. This lawsuit can only delay that process and make it more expensive which will dissipate the money available for refunds.

    But for people like Todd Disner, Dave Kettner and Robert Craddock who took out substantially more money than they put in this lawsuit might delay them having their winnings clawed back. Mr. Disner attempted to do the same thing in the Ad Surf Daily case and to just give you an indication of how long these things can drag on, even with Andy Bowdoin sitting in a jail cell Mr. Disner’s case has not reached final disposition yet.

    Another reason, this case has very little chance of success. The money people put in no longer belongs to them, it belongs to RVG and now the receiver who will be giving it back to the victims. But the specific legal issue is that you do not “own” the money you lost, you are “owed” it. What’s the difference? Standing. Here is a link to one of the case files from ASD’s forfeiture action, this was the response to several ASD members who tried to intervene in the case :
    http://docs.justia.com/cases/federal/district-cou

    From which I quote:
    ———————————————————-
    Fraud victims who voluntarily transfer their property to their wrongdoers do not retain a legal interest in their property; instead, such victims acquire a debt against their wrongdoers. See United States v. Agnello, 344 F. Supp. 2d 360, 372 (E.D.N.Y. 2003) (finding that standing in a civil forfeiture action requires a showing of an ownership interest in the forfeited property, not merely a right to payment); United States v. $3,000 in Cash, 906
    F. Supp. 1061, 1065 (E.D. Va. 1995) (claimant/victim could trace his money to seized bank account
    but title to the money passed to perpetrator, making claimant an unsecured creditor without
    standing).

    2 The generalized legal interest movants may have in the assets of ASD does not equate to the necessary particularized interest in any specific asset of ASD required for standing.
    ——————————————————————–

    In short, ZR members were not a party to and lack legal standing in the SEC action against RVG. Paul was the only one who could have contested the SEC’s actions and he chose not to.

    My prediction, this suit will drag on for as long as fresh donations can be found and then it will be dismissed when the donors dry up. I further predict that the total amount of money spent on litigation will be substantially less than the total amount donated. I also predict that not independent accounting of the funds will ever be made available.

  68. Hi Troy,

    Your Zeek Rewards updates are so appreciated.

    Points to ponder: SEC contends that they did not think this business model was sustainable in relation to pay-outs but anyone who is familiar with the Zeek Rewards system knows that most people would have continued putting the greater percentage of their earnings back in to build a lifetime income, rather than withdrawing their total earnings, which, with a point expiry of 90 days, would have spelled the end of their earnings as soon as their bids/VIP points expired.

    I find it interesting that the SEC has admitted that members were receiving actual payment.

    Zeekler was becoming a serious contender and I'm sure many of us have considered how competitors viewed this business and potential machinations behind the scenes.

    Now, the true story may be told.

  69. I want to thank you, Troy, for everything you'r doing for us all.
    Hopping to see Zeek back in business soon.

  70. Hello

    In my opinion no matter what side of the fence you are sitting, in my opionion we have an obligation to fight what we believe. If you believe it to be a ponzi, join the group that is working for you.

    I personally do not believe it to be a ponzi and am donating to the legal fund and imam going to do everything I can to support the zteambiz and fight for our business.

    Shirley Crawford

  71. @Spewing,

    Well I sure hope whoever wrote this has a good attorney, because if they are not right about the first part, they may find themselves sued for slander on the second half.

    I did not realize there was any million dollar homes in Ozark Arkansas.

    And Dawn's wedding from the invitation I received is next month.

  72. The following is taken from Behind MLM
    SOURCE#30
    August 25th, 2012 at 1:20 am (Quote)

    FYI – Having spent plenty of time with Dawn and some with Paul – both of them, in my opinion, were not terribly business savvy. Neither have advanced degrees – neither have financial, accounting or legal backgrounds. So, it is no wonder they were able to pull this off – they may have not known this was a ponzi.

    However, enough people around them told them it was. Even when i was there – those questions were constantly asked. And in my opinion, Dawn and Paul both knew by at least February this was nothing but a Ponzi.
    >p>
    As for Greg Caldwell and Kevin Grimes – how on earth could they have come into this company and not ASKED to SEE the books? They have the pedigrees to question these things and know better.

    I was a tech person w no MLM experience or involvement as an affiliate who was concerned enough about things I saw and questioned to quit and pull my name out but these people with reps in your industry to lose NEVER asked to verify the books?

    Why didn’t Keith/OH or Troy do that? I, personally, hope the SEC calls me – I don’t understand MLMs at all but I certainly understand economics and financials and know this was a ponzi and believe that criminal charges should be filed on Paul/Dawn and Darryle.

    Dawn is living in a million dollar home with a 250K motor home, fresh off a European vacation and luxury wedding – is that really fair when that money came from affiliates who have lost millions?

    And I might add, i recommend the DEA look into raiding her home. She goes to up to 3 doctors a week, is on methadone, pills and still has to buy other prescriptions from a Vietnam Vet in her town.

    She also passes out her prescriptions to the “employee” who live with her and her high school aged daughters/their friends. Its extremely concerning. I don’t even know who to report those things to in Arkansas.

    Facts are – none of these people are ethical or good. This is just karma coming back to bite them in the butts. Its time they stop pulling the wool over others and just accept what they have done is nothing more than a scam.

  73. HEY Troy!! The whole “donate money to us for a legal defense fund” is total BS. If there was a legal fund and it was truly representing a specific person or entity, then the fund would be managed by the law firm.

Leave a Comment

shares