June 19, 2013 21:22

Zeek Rewards News Update: Former Zeek Affiliates File Class Action Suit, ViTel Pulls Rescue Plan

Aug 23 2012 in MLM Legal Alerts, Paul Burks, Vi-Tel Wireless, Zeek Rewards News, Zeekler, ZeekRewards by Troy Dooly

Scott Rogers called me today concerned over the report that his company ViTel was lumped in as some Penny Auction Reload Program for Zeek Rewards Affiliates. He told me after talking with his Board, they are pulling the plug and issued the following statement.

ViTel Wireless

Vitel has announced that it will discontinue the “Rescue Offer” to Zeek affiliates.

Our heart goes out to any and all of the individuals and families worldwide that were affected by this unfortunate travesty. We, as industry professionals and human beings saw a need to reach out and help in any way we could. We did not want to sit back and do nothing while our fellow colleagues suffered a great loss. Thousands of lives have been turned upside down by this tragedy and it has left yet another black eye on the industry.

Initially, Vitel decided to launch a “Rescue Offer” or Free enrollment to anyone affected. The intentions of Vitel, have and always will be, to look out for the independent business owner and operate above and beyond expectations of just another company.

Our company has always operated with the highest level of integrity, heart and commitment to the fellow network marketer. We believe in this industry and the entrepreneur, who seeks to change his or her lives. Vitel believes success comes from hard work and a strong commitment to do the basics. Our representatives earn commissions from selling Name brand products and services in the wireless, home services and energy markets. We also offer an exclusive benefits network that saves members on a variety of services from travel to roadside assistance. We do not promote or support, get rich quick programs or investment opportunities.

Vitel does not want to be associated with any company or companies looking to gain advantage from victims of the Zeek scandal. In the wake of all the negative publicity surrounding re-load scams and companies targeting fallen victims of this fallout, Vitel will no longer promote the “Rescue Offer” to Zeek affiliates.

For more information on the products and services we offer please visit www.vitelwireless.com or www.myvitel.com.

Affiliates file class-action lawsuit against Zeek, Burks

By Nash Dunn
The Dispatch
Published: Wednesday, August 22, 2012 at 5:29 p.m.
Last Modified: Wednesday, August 22, 2012 at 8:32 p.m.

Nearly 100 Zeek affiliates have filed a class-action lawsuit against Rex Venture Group, Zeek Rewards and chief executive officer Paul Burks, claiming damages from the company’s “fraudulent, unfair, deceptive and illegal acts.”

The state court action, filed in Davidson County Superior Court about 4 Wednesday afternoon, seeks damages for all affiliates and demands a jury trial.

The lawsuit is being brought by about 82 named affiliates. Numerous other unnamed individuals could be inserted into the lawsuit at a later date, the filing said.

Most of the affiliates included in the lawsuit are from North Carolina, including numerous individuals from Davidson County. Affiliates claim to have lost amounts ranging from $1,000 to $10,000.

The lawsuit targets Rex Venture Group and Zeek Rewards, which was shut down by the U.S. Securities and Exchange Commission last week after an investigation that alleges the company was operating a $600 million Ponzi scheme. It also targets Burks, the company’s top executive who allegedly personally took and siphoned off millions of investor funds.

The lawsuit is also aimed at upper-level affiliates who, over time, solicited others to join the program, knowing it was a Ponzi scheme all along, according to the filing. Those upper-level affiliates, who were not named in the lawsuit, allegedly received significant sums of cash from Zeek Rewards in the weeks and months leading up to the SEC action.

The SEC put a halt to Zeek’s assets Friday, in fear that the company would soon collapse.

The affiliates who filed suit Wednesday are mostly from North Carolina, and in particular the Triad region. All are seeking various sums of money. Two plaintiffs, Jose and Sara Chavez of Davidson County, invested $7,000 in Zeek Rewards, claiming they need their savings to provide medical care for their daughter who has leukemia, according to the lawsuit.

Another plaintiff, Davidson County resident Preston Everhart, invested $3,000 in Zeek Rewards and is deployed in Kuwait with the Army National Guard.

Lexington Attorney J. Calvin Cunningham, who represents the plaintiffs, was unavailable for comment Wednesday afternoon.

Several affiliates listed in the lawsuit were also unavailable for comment.

The court-appointed receiver, Charlotte attorney Kenneth Bell, began his investigation into Zeek Rewards on Monday. Bell, who will collect and marshal remaining investor funds, has also set up a website, www.zeekrewardsreceivership.com, and email, info@zeekrewardsreceivership.com, for affiliates.

You can read the full article by Nash Dunn of The Dispatch Here

Troy Dooly

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies. Dooly is a speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network. He is a founding member, and currently serves on the Board of the Association of Network Marketing Professionals

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11 Comments »

  • susantaylor2013

    Do you believe that this is a legit group of people? – http://zteambiz.com/

    Anyone that has been associated with Zeek Rewards for any duration of time knows that not only was the SEC indictment inaccurate, but it was so inaccurate that they were able to turn a viable company into a Ponzi scheme. Since we believe t
    his statement to be true, we sought out legal advice in defense of what we believe to be a major injustice to all of us affiliates.

    The SEC has tried to make us all believe that Zeek Rewards was an “investment” and a Ponzi scheme. All the pages that were submitted by the SEC indictment has all been one sided and what we believe to be a misrepresentation of the truth and facts of what Zeek Rewards was as a viable and legal business. The SEC mislead the judge in its claim against Zeek Rewards convincing him that emergency action needed to be made against Zeek to shut them down before they collapsed in their words saving the affiliates from losing everything and they did this without even having to provide the judge proof. Therefore, we needed to get the facts and real numbers to defend against these accusations.

    Over this past week, we have sought out to get the proof that was needed to prove that Zeek Rewards was not a Ponzi scheme and not an investment but rather a legal viable business that was thriving and paying out its affiliates daily profit sharing from the proceeds from the Zeekler auctions and Free Store Club and not that of the proceeds from purchasing of sample VIP bids by its affiliates. We now have the proof that we need to defend Zeek Rewards against the SEC allegations and to bring this proof before the courts to defend Zeek Rewards and all of our independent businesses as per our legal rights of due process.

    We have set up a website to unify our collaborative actions together as one united legal front to fight for our due process rights as independent Zeek Rewards affiliates. We also have set up a PayPal button to accept donations from as many Zeek Rewards affiliates as possible to protect each of you legally moving forward allowing us to be a protected group with legal council secured by Fun Club USA. These funds will be used to obtain the retainer needed to petition the courts to remove the emergency injunction by the SEC against Rex Venture Group and Zeek Rewards and demand that the SEC provide us (the united Zeek Rewards represented affiliates) with proof for the indictment filed on August 16, 2012.

    Furthermore, we will petition the court to allow us to provide the legal proof that we have attained from the corporate office of Zeek Rewards, legal statements of Zeek Rewards corporate officials, and accounting records which will disprove ALL accusations by the SEC to be false and severely misrepresented.
    <p.
    We have also been advised by legal counsel that if these SEC accusations are not challenged, that all Zeek Rewards affiliates will be impacted most likely in a negative way for both affiliates who made profits and by those affiliates who are expecting to be refunded. Therefore we all lose if we sit back and do nothing and be led like sheep to the slaughter. We cannot allow our legal rights to justice be taken away by our government, and so I ask you all to STAND UP AND FIGHT with us!

    If you would like more information and have further questions, an email has been set up by Robert Craddock at zeeklegal@gmail.com. He will be addressing all questions and comments into further announcements on the site at http://zteambiz.com/.
    <p.
    There is finally hope for our business and justice to be done! I am now cautiously optimistic that this fight will lead one day to Zeek Rewards being proven that it is a legal viable business and be back in operation if due process is followed and we are allowed to prove our case to the courts.
    My recent post Welcome to Z Team Biz

    • http://MLMHelPDesk.com Troy Dooly

      @SusanTaylor2013,

      Although, I am not an attorney and not an expert in Ponzi, I have hung out with plenty of Attorneys over the years have two top law firms (outside of the network Marketing Arena) who represent folks in class action suits on contingency of this magnitude. So I question any organization who is trying to raise funds for an attorney.

      So be careful believing any group trying to take your money.

      • SheronV

        Troy do you have a link to how to join the class action suits?

        Also I wanted to add Cashier checks sent out a month ago to zeek rewards (even if they were added to your account) may have not been cashed. I have disputed all Zeek transactions with my bank.

  • Live1Dream

    Another good article Troy. I believe it is unfortunate that we have thousands of people left out in the cold. It is even worst when others come to their aid only to be called “Vultures,” “Bloodsuckers,” and “Reload Scam.”

    Before the media falsely labeled Vitel as a “Reload Scam” members of the community criticized Vitel for our “Rescue Plan.” Where I come from if someone falls off the boat you through him a life raft.

    I think people either missed the point or chose to ignore the fact that Vitel was offering Zeek affiliates the opportunity to join for “FREE” at a financial loss to Vitel. This is something that Vitel has done in the past and not something that is new. When I had the rug pulled from under me in the past I wish I was given the same offer as well.

    Vitel has worked very hard to build our name and reputation and we are not going to allow ourselves to be labeled and grouped as a “Reload Scam.” It is a shame that even when you attempt to do something positive it can be turned into a negative. Vitel does already have a package in place for anybody who wants to try our company out for free called our “Agent” program. We wish everyone the best, but we will continue to conduct business as usual.

    Brandon Ivey

    • http://MLMHelPDesk.com Troy Dooly

      @Live1Dream,

      You are so right.

      Hey, after I figure out where Hurricane Isaac is headed, I want to schedule an interview.

      Lets connect offline next week to schedule.

  • imagirlfriend

    Hi Troy, I notice there is a new attorney Cal Cunningham fighting for us zeek affiliates. Should we sign up with him as well as Kieth Thompson? Is Kieth also going to take 30% of funds he collects?

    • http://www.themlmattorney.com Kevin Thompson

      In case you meant to say "Kevin" Thompson, I just put together some experts to provide a central source of information on the subject. http://www.zeekrecovery.info. We might be able to help you with the claims process. We'll see how all of the litigation shakes out. There's going to be more class action litigation, likely on the federal level.

      • Boo

        Hi Kevin. A friend of mine got heavily involved in Zeek and at present doesn’t have a dime to show for it. What are his prospects of recovering his investment? Guy doesn’t even have a job. Thanks in advance.

  • Ken L

    Troy, at one point I was very sceptical with Zeekrewards and I questioned my joining the company Dec 2011.

    There was so many red flags that I began an exit strategy to quit Zeek, and then my upline sent a Video of you claiming Zeek was a legit company.

    It was reassuring to have an external analysis from a supposedly guru of MLMs. It was your sanctioning of Zeek that gave me renewed confidence and I decided to continue and even invest more money.

    I still held reservation to recruiting and denied signing others up (thank goodness NOW). I said all this to let you know that your advice is not respected any longer and you should not be giving any I mean ANY advice to anyone on business investments.

    You need to retire from this business before misleading anyone else. Go ahead and face it, we have had enough of your misguided advice and just quit already. Thank you.

    • http://MLMHelPDesk.com Troy Dooly

      @Ken L,

      Thank you for taking time to share your heart. A couple of clarifications.

      You are correct when you say "supposedly guru of MLMs". Not sure where you might of heard that phrase ever given to me, because it would be totally wrong. I am not a guru of anything, and I report based on the facts we uncover and find publicly. As facts become clear we report. If you had taken time to watch all the videos I have done and read all the ediorials, including the comments, you would have had a far better understanding of my positions in each area. I still beleive the underlying business model is legit (as does the SEC). However, all along I have not questioned the issue of the RPP being top heavy with affiliate bid buys. Because of my concern I made suggestions to the company, and they accepted those suggestions and many of them along with some others were to be implemented at the Red Carpet Day.

      However, I can tell you that if you thought from day one, you were investing money in Zeek Rewards, then your sponsor promoted Zeek Rewards to you illegally and outside of the company compliance and the current state and federal regulations. Feel free to be angry at me, but you may want to explore why your sponsor lied to you.

      I got out of the investment consulting business in 2000, and have not given anyone investment advice since. I do handle my own investments, and those of my family, but outside of that I am not licensed to provide any public investment advice and do not!

      So, it seems your misguided direction, did not come form me, but started with whatever your sponsor told you. Based on his information, you seemed to feel when you watched one of y videos, that I was telling you Zeek Rewards was a legit investment company, and sadly your were flat out misinformed.

      Living An Epic Adventure,
      Troy

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