Zeek Rewards Update November 29th, 2012: Former Affiliate Nathaniel Woods Exercises His Rights Asking Judge To Quash Subpoena

On November 14th, Nathaniel Woods, after contacting several attorneys and reaching out to me with some questions decided to protect his Rights, and sent Court a Motion to quash the subpoena sent by the Rex Venture Group receiver Kenneth Bell. Now after reading over the motion it does raise some additional questions…

Updated November 29th, 2012: Receiver Filed Motion Against Quashing The Subpoena… Worth Reading!!!

Opposition to Motion of Non-Party to Quash Subpoena

Exhibit A – Exhibit A Revised Subpoena to N. Woods

Exhibit B – Proposed Order

Woods is suggesting in his motion that the Receiver violated Rule 45 of the U.S. Code governing subpoenas.

However, since this was a “voluntary subpoena packet”, meaning the Receiver has not sued anyone specifically yet, and from my understanding the subpoenas were not signed by the court, then it seems these packets act as NOTICE that in the future anyone who doesn’t work with, or at least respond to the Receiver, will be sued, and there is nothing to quash.

If this is true, then although I support Mr. Woods for exercising his rights, I do not see that the Court will quash his personal subpoena or any of the others.

I do however, after talking with some of the attorneys, feel the judge might see the subpoena as over-reaching and have the Receiver tighten up some of his requests.

In other Zeek Rewards and Fun Club USA news, the attorney for Fun Club USA, Rodney E. Alexander, entered his appearance on behalf of David Kettner, Mary Kettner, and David Sorrells. Now we do not know if this is why Fun Club USA is now requesting additional donations for the legal fund, or if after months of promising action, their TX attorneys are about to file Motions, and have asked for additional funds.

There is some special call tonight for Fun Club USA, and more news will be leaked I am sure by morning.

You can review all the Rex Venture Group, LLC. aka Zeek Rewards .vs SEC by clicking here.

Living An Epic Adventure,
Troy Dooly

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24 thoughts on “Zeek Rewards Update November 29th, 2012: Former Affiliate Nathaniel Woods Exercises His Rights Asking Judge To Quash Subpoena”

  1. @Dave,

    Since the Federal Case is the relevant case, he had no chose but to deny the alligations. It will make for a good PR piece, but doesn;t change the outcome of the federal case.

  2. @GlimDropper,

    It is truly a nutty issue. I am getting ready to take live a new post on some breaking news that will shed some (a little) light on the NXPay issue. And a motion finally filed by Fun Club USA… But NOT what most folks were waiting for.

  3. Hey Troy, well at least it is now official that Burks has denied the charges in court. What does this mean for the deal he done with the SEC.

    By Nash Dunn
    The Dispatch

    Published: Tuesday, November 27,

    Former Zeek Chief Executive Officer Paul Burks said he denies allegations that his company was a large Ponzi and pyramid scheme.

    In a formal response filed Monday in North Carolina Business Court, Burks addressed a class-action lawsuit filed against him and his company in Davidson County in August. Going through the complaint paragraph by paragraph, Burks largely denied allegations that he defrauded millions throughout the world through unregistered offers and sales of securities through Zeek Rewards and penny auction site Zeekler.com.

    This is the first time Burks has directly addressed accusations against his former company since mid-August, when he quickly settled securities fraud charges filed by the U.S. Securities and Exchange Commission, without admitting or denying anything. Burks, a Lexington resident, was forced to pay a $4 million penalty and relinquish his reigns to the company. The case has since gone into receivership, and Charlotte attorney Kenneth Bell is actively pursuing what he estimates is hundreds of millions of dollars to eventually return to nearly 1 million people who lost money in the alleged scheme.

    The complaint Burks is now responding to is a separate class-action lawsuit filed by about 82 local Zeek Rewards affiliates on Aug. 22. The lawsuit, targeted at Burks, Zeek Rewards, the program’s parent company, Rex Venture Group, and profiting investors, seeks damages for all affiliates and demands a jury trial. The lawsuit was originally filed in Davidson County Superior Court but was transferred to North Carolina Business Court in October.

    In his response filed Monday, Burks denied nearly the entire original complaint. The only things he admitted to included that he is a citizen of Davidson County, that his former company was shut down by the SEC, that Zeekler.com started in 2010 and allowed participants to purchase “bids,” and that Zeek Rewards was created in 2011 and that affiliates were able to join, among other things.

    Burks requested to the court that the affiliates “have and recover nothing,” and that their complaint and claims be “dismissed with prejudice,” according to the response. He also requested to the court that he recover his costs incurred in the lawsuit and that those costs and attorney’s fees be taxed to the affiliate claimants.

    Burks also argued that the class-action suit be stayed. In the SEC case against Zeek Rewards, the original order appointing Bell receiver imposed a “stay of litigation” for any litigation related to the federal case. Burks, who filed a motion to stay the class-action lawsuit Oct. 4, reiterated in his filing Monday that the affiliates’ lawsuit falls under the category of related litigation.

    “Mr. Burks’ response to the lawsuit against him is to hide behind the receiver and blame the victims,” said Lexington attorney Cal Cunningham, who represents the affiliates who filed the class-action lawsuit. “We are prepared to prove our case and have proposed a cooperative arrangement with the receiver to do so. We look forward to a lift of the stay that allows us to go forward.”

    Cunningham said if his party is able to work out an arrangement with the receiver in federal court, there won’t be a need to enter an order staying the lawsuit in state court. While he could not discuss specifics of the arrangement, he said both parties plan to target multiple categories of defendants.

    Neither Burks nor his attorneys could be reached for comment this week.

  4. Troy,

    I have just heard that Paul Burkes has had his fine of 4 Million Returned to him.

    Hve you heard anything about this?

  5. Troy, you might want to check Don’s file site, a response to Mr. Wood’s motion to quash has been entered. The receiver explains that he attempted service through the mail as a cost saving measure but has served Mr. Woods with a new subpoena in a more formal manner. I would expect anyone else who similarly objects will have a subpoena hand delivered to them as well.

    As to the e-wallets Robert and Dave are exceeding their own already formidable standard for spreading disinformation. The fact that NXPay’s auditing process is nearing completion has nothing to do with Fun Club or their attorneys.

    We’ll all have to wait for official word from NXPay or from Ken Bell but if history is any guide here’s what will happen. If you only used an e-wallet to put money into Zeek and if you are owed money from the estate your e-wallet account will be released to you. However if you received funds from Zeek into that account and particularly if you owe money to the estate, the money in that account will go to the receiver.

    Robert and Dave are claiming that all e-wallet accounts will be unfrozen and of course they are taking credit for that happening. Both of those things are completely false. Time will prove me correct here and their “loyal affiliates” wont care.

  6. @Ribamar,

    I have publicly stated there are victims on both ends of this situation. Now as for the victims before or after August 17, 2012 when this case was filed in Court. Or if we go back to December 2011, when I first raised the red flags, we will find the same victims as defined by the SEC.

    1. Those who were not able to get their funds converted back from points to available cash.

    2. Those who truly thought they were investing in a cool company providing a daily ROI of 1.5%

    3. Those who form months prior to the SEC’s public actions, complained that their certified funds had been lost or un-deposited and they were being ignored by customer support.

    4. Those who for months had complained that the RPP points were not correct and they could not get an answer. I have spreadsheets from some of the top Fun Club USA promoters complaining to me to get Paul to look into it.

    5. The 1.1 million who had never made a dime out of Zeek Rewards and based on the facts presented by the SEC and not denied or confirmed by Paul Burks.

    Now you are correct their were some happy people… who were part of organized crime organizations, 1% bike clubs, and top leaders in drug cartels. Just because they were happy and their families were making boatloads of cash, and they kids were in the best private schools, doesn’t mean it’s legal.

    Being happy isn’t part of the laws governing running a company with a legit compensation plan.

    Now as for being victims of the SEC… without a doubt there are some folks who got caught up in this crap, who had their funds frozen, when they not classified “net winners”.

    But at the end of the day, it was not the SEC or any other regulator who caused the victims. This is the same crap I heard when people wanted to point the finger at Wall Street for the crash of the Mortgage and Real Estate industries. Sadly this is not true… We as individuals have to learn to take full responsibility for our own actions.

    The great Philosopher Glenn Frey stated it best… (Smugglers Blues)

    It’s the lure of easy money, It’s gotta very strong appeal.

    See it in the headlines, You hear it ev’ry day. They say they’re gonna stop it, But it doesn’t go away.

    It’s a losing proposition, But one you can’t refuse.

    So, believe what you want, the reality is ZEEK is NEVER coming back. As a matter of fact the top promoters who are asking you for money to defend their legal actions have all joined and are promoting other companies… That should be a great sign for you that YOUR faith is Zeek is far bigger than theirs!

  7. @Dave,

    We have all been on the same page since the very beginning when it comes to un-deposited funds, be it cashiers checks or money that was frozen in eWallet accounts where the account owners had in some cases never transferred or earned money from Rex Venture Group, LLC.

    If you review this site you will see where many former Zeek Rewards affiliates and possibly retail customers complained that their accounts were frozen, and they had never made a dime from Rex Venture Group. Without a doubt some had bought bids, but from talking to hundreds of these folks, very few had ever made a dime.

    And if you read through the Receivers letters and the case documents you quickly see where 1.1 million former Zeek Rewards affiliates NEVER paid into Zeek Rewards or made any money. These are the eWallet accounts that are now being un-frozen.

    Many of these accounts are international accounts, and these folks use eWallets similar to how we use banks, and they deserve to have their funds released.

    The actions of Freezing all accounts in the eWallets is common in these cases. If the financial institutions do not freeze the funds then they can be charged criminally.

    I had learned last week that the merchant gateway used by NX Systems had just about finished their audit and had already informed NX Systems that they would be releasing funds in specific accounts.

    It is my understanding the same will be happening to each of the eWallets as the audits are completed. This could leave about 1 million accounts frozen until the Receiver is done going after clawbacks, since he has already stated that around 800,000 to 1,000,000 people were “net winners” in one form or another.

    Now how much influence Fun Club USA, attorneys had in hurrying this process along is not known at this time. I doubt they had any real influence in this issue, because there has been no press release from the attorneys themselves (and they are known for issuing press releases when they influence anything positive for clients). There has been no letter or press release from the Receiver on this issue, outside of making it clear he will go after ALL net winnings. And we have NOT seen any press release from NXSystems on the issue, which tends to make be believe this is just common business when a regulator freezes funds.

    Having talked with one of the larger venders who was working with Rex Venture Group, LLC on setting up their new bank accounts this summer, I have learned all their funds were also frozen until the auditors could determine what was tied to Rex Venture Group, and what was not.

    I would doubt if any of the 1200 IDs who just received Subpoenas will have their accounts un-frozen, and I expect that at least 100,000 or more of the “net winners” accounts will not be unfrozen as they are the ones who earned the most money. As for the other 800,000 only time will tell.

    If the Fun Club USA Attorneys were the driving force behind getting NXSystems to release these funds great. But, after reading through their website, I truly think they would have already issued a press lease sharing how they pressured the Receiver to contact the parties involved, and that hasn’t happened.

    I also think the Receiver would have issued a press release ot called a press conference which he has done along the way. And that hasn’t happened, yet either.

    So we will just see how it pans out. Personally, I do not care who takes the credit, as long as the “victims” get access to their cash both here in the States and internationally.

    Living An Epic Adventure,
    Troy

  8. Трой
    Всё, что связано с компанией Zeek Rewards, никого не оставляет равнодушным. В основном люди разделились на два лагеря: те, кто “за”, и те, кто “против”.
    Мне вот интересно, Вы на чьей стороне?
    Вы “за” Zeek Rewards или “против” него?

  9. Troy,

    I would really like you opinion or any of the attorney’s that were on the google hangouts opinion of the following statement that has come from Funclub.

    statement:

    November 28, 2012

    Greetings good people:

    Its official, the e-wallets are now starting to allow Zeek Affiliates access to their funds. Here is the latest. And how this mess was created; NXpay uses a company called LST Financial to do the transfers from you to the bank. The money is sitting in Four Oaks Bank in Charlotte NC, and waiting for an accounting from LST Financial on what is really valid to be in which account.

    If you can imagine when the events of August 16, 2012 unfolded there was money sent by Credit Card transfers and so on, some of these transactions were challenged by people not wanting to have their money frozen, in addition others found other ways to access the funds which caused additional confusion.

    As of right now $10 million has been made available and they are making blocks of 5 million at a time available to the Zeek Affiliates and we do not have a list but we can only recommend that everyone go and log into their accounts and when you see it is available use your funds wisely and place it in an account you can control.

    We will be giving more updates in the next few days.

    Again, we are happy to finally be providing this news and are extremely sorry for the hardship this has caused so many.

    How is it that the court’s or receiver would allow the net winner’s access to the frozen funds?

  10. Troy Ok, you said victims? points me a victim of ZeekRewards then? 16/08/2012 until day there were not a Victims, by contrast, there were happy people working hard and changing their lives for the better and their families. We were victims of the SEC so yeah … But God is bigger and we will have our Zeek back …

    While not eventually come good, why is not over yet!

    Spend well

    Ribamar

  11. @Ribamar,

    Interesting comment. First of all where do you get “anti-Zeek”? Especially since Zeek is a company and if you have listened to my videos, you should know it has never been about Zeek, it has always been about the affiliates of zeek. And right now over 800,000 are classified “victims” and another 100,000 are so confused on if they are going t have to go bankrupt, pay money they don;t have or fight the system, that could also be classified “victims”… well at least all of them except maybe some of the 1200 ID numbers who received subpoenas.

    Now exactly how have I lied and taken folks for their money?

    As for the “expensive ads… ROFLOL… Let’s see $75 for 90 days for a 125×125 or $150 for 90 days for a 250×250. Sport you might want to do some due diligence on what folks charge for advertising. We have the lowest prices in network marketing because all we want to do is cover band width.

    But, hey I don;t mind giving you the ability to share your opinions. Now let’s see if you will come back and answer the questions.

    Living An Epic Adventure,
    Troy

  12. Troy is now anti-zeek. He wants the audience anyway, to call what he speaks.
    he is using to search for information from members to focus on their public site MLM H. D, and for that invents, speculates, lied and hurt you all for money, so the more he’s hearing, but they sell the expensive advertisements on his site and thus sells handkerchief as others weep …

  13. @James,

    That is a great question. Without knowing if you are classified a “victim” or a “net winner” I can’t give you a specific answer. However, I would guess that the “victim” then I would guess somewhere between 50% to 100% before this is all said and done.

  14. Troy,

    How much of my $10,000 can I expect to regain when this is all said and done? What is your opinion?

    Thanks,

    James

  15. @LuvNLife,

    I had read the document and it is also above where folks can review it. Your question was did he mention that to me personally, and he had not.

    And from talking with several affiliates and attorneys, in a couple of cases the numbers have not been completely accurate in the subpoenas. Which is why it is good for affiliates to round up all documentation and hire a good attorney to help walk them through this process.

    I am being very careful on the numbers not to case judgement on what someone will owe until we know for sure the final amount.

    I also want to make it clear, that in several subpoenas the numbers are deadon… which also could be the case above.

  16. Troy,

    When Woods replied with the quash notice, he included as Exhibit A, the original paperwork sent to him. It indicated he received $496,106.34, “but paid in only $0.00.”

    The document is on the ASDUpdates site, as ZeekDoc73-1 for anyone that would like to verify.

    It’s funny (ironic) that nobody has mentioned this before: The subpoena specifically requests the names of anyone recruited, or downline. No wonder Disner, Kettner and Craddock have gone off the deep end. Not only would they be compelled to “out” their downlines, for sure they’d lose them as a source of income in the future when the next great opportunity comes along. Poor babies…

    Jerry

  17. @LuvNLife,

    Now that is very interesting. I do remember some rumblings of such a thing, but can’t say it is Mr. Woods, he never mentioned that part it if is him 😉

  18. Troy,

    Just to add a little bit of perspective to this for your readers…

    Isn’t Mr. Woods the person who invested $0.00 (zero) dollars in Zeek, but received $495,000.00 from them?

    When he “reached out” to you, did he happen to share just how he’d managed to do that?

    Jerry

  19. You people are a joke that are trying to fight the clawbacks!! That money is NOT yours!! Stop wasting the victims time and money and give it back!!

  20. @Mike,

    The receiver has stated he has submitted or is submitting the process and claims form to the court for approval. Once it is approved then it will go live and we will let everyone know.

  21. Have you heard anything on the form from the DA for filing to get our money back from ZEEK. I put in a large amout to buy bids and would like to know how close we are to fill out the form

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