Zeek Rewards Update: Fun Club USA Not Covering Legal Fees For All Their Members It Seems

One of our community members, Zeek Freak directed me to an article written by Don Ryan over at ASD Updates published an interesting notice put out by Fun Club USA on Nov. 6th, 2012. What caught my attention was the fact, Fun Club USA after collecting what some have calculated to be in the high six or even seven figures, seemingly is refusing to cover the legal costs of their donors who are part of the 1200 Subpoenas issued by the Zeek rewards Receiver, Kenneth Bell. Why?

According to the statement below, the reason is because there are so few in their group who have been subpoenaed, that they feel they can handle it on their own. However, Don Ryan brings up a great point. If all 1200 went to the Fun Club USA law firm of Alexander Ricks PLLC, he would earn an additional $360k Now without a doubt all 1200 will not hire him. Many have already reached out to Phillip Young to handle there case.

The question is WHY won’t Fun Club USA cover the $300 per member, after what some call begging them for legal donations to save them from clawbacks?

Another question might be… Is Fun Club USA covering the cost of the “Chosen 12” as some critics now call the top promoters who have joined Robert Craddock.

And… one former Zeek Rewards Affiliate, after listening to the last call, asked “Why was Robert Craddock served in the 1200, when he has publicly told folks he only made a few hundred dollars?

Well no matter what the answers, just mae sure you have all the info you can find before jumping on any of the propaganda, pro or con against the Zeek Rewards Subpoena issue.

Don Ryan’s post starts here…

Here we have today’s update as promised, only a day late.  I will point out tho you that I do nor condone, recommend or advise anyone to use their law firm,  Consult your own legal experts before acting on any advice from Fun Club USA or its spokesman.  Subpoenas requiring you to provide information in a Civil or Criminal matter is not an extraordinary request and is a court issued document that should not be ignored. There are penalties for failure to comply.

While I have no opinion either way about the law firm of Alexander Ricks, PLLC., if every one of the first 1,200 who  received a Subpoena uses them, they make $360,000 in fees. I suppose if they do anything of substance, it might be worth the money. However, you have to make your own decisions about what is best for your own interests.

Fun Club USA, LLC reminds me of the infamous ASD Members Business Association (ASDMBA), who promised people things that were never delivered after they took in money. Much of what has been said by FCU and its people are echoes of what happened in the ASD Civil and Criminal cases which started out in a similar fashion, namely, seizure of assets.

November 6, 2012

Greetings good people, update to the conference calls on Saturday November 3, 2012.

For everyone that has received a subpoena for information from Kenneth Bell, you like us believe that Kenneth Bell is fishing for information to intimidate and to get you to voluntary turn over monies you earned by bringing value to the Zeekler Penny Auction.

As I clearly stated, you are not under any court order to turn over any funds and it is our position that Zeek Rewards was a legal business model, claims stating otherwise are false.

Our law firm is now willing to take on the people that have received subpoenas from Kenneth Bell and respond to them for you. The firm has come up with a flat rate for doing this and it is quite affordable.

You will be listed on the court records as being represented by the firm and they will file the objection to Kenneth Bell’s subpoena request for you. You have 14 days to file an objection and the clock is ticking. Because this is only impacting a small percentage of people we decided to not ask the entire group to help fund this, and the law firm has agreed to do this on a flat fee per person needing assistance of just $300 dollars.

Only people that have received subpoenas should call the law firm.

Please contact the attorneys directly to get more information the contact person at Alexander Ricks PLLC is:

Clark C. Walton

Counsel

Alexander Ricks PLLC

2901 Coltsgate Road, Suite 202

Charlotte, North Carolina 28211

(704) 200-2637 direct

(704) 365-3676 fax

 

 

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16 thoughts on “Zeek Rewards Update: Fun Club USA Not Covering Legal Fees For All Their Members It Seems”

  1. I think it is an absolute joke for those that receive subpoenas to not think that they should have to give anything back. It has been proven that the money that they received and profited from was directly from new people into zeek. How can you sleep at night knowing that the money you profited was directly out of the pocket of somebody who joined later then you? The decent human thing to do is to try and make everybody as back to whole as possible. Yeah it sucks that you would have to give money back but think about those that put money in and never received anything back.

  2. @Irma,

    Not sure the Receiver will have the claims form approved and published, and able to verify all claims before the first of the year.

  3. hope to get my 10k back before the holidays i had just put my money in wen this happen never took anything aut im a single mom let me know what do i need to do to get my 10k back thankyou

  4. Jordan Maglich has a very interesting update on his PonziTracker blog:

    http://www.ponzitracker.com/main/2012/11/10/first-batch-of-zeek-subpoenas-arrive-victims-solicited-for-n.html

    From which I quote:

    ———————————————————
    However, a closer look at the engagement agreement to obtain legal representation for the “simple and reasonable flat fee of $300” raises several issues which should be considered by victims and could result in the incurrence of thousands of dollars in subsequent legal fees. Specifically, the agreement makes clear (in bold print) that the $300 fee only covers the preparation of an initial objection to the subpoena. However, the filing of an objection to the subpoena is likely the beginning, rather than end, of involvement with the Receiver. Under federal rules of civil procedure, the receiver may then set the matter for a hearing and/or serve an additional filing known as a “Motion to compel” which takes issue with the objections and allows the receiver to seek attorney’s fees and further relief if the asserted objections are deemed by a Judge to be frivolous or designed to frustrate the receiver’s purpose. Additionally, the next likely step after the subpoena, assuming the issues are not resolved, is the institution of litigation against clawback targets.

    The retainer agreement is seemingly aware of this, and states that in the event the aforementioned events do happen, the “simple and reasonable flat fee of $300” does not cover representation in those instances. Instead, the client would be responsible for the attorney’s services at standard hourly billing rates ranging from $200 to $375. Additionally, potential clients are informed that the fees generated may be shared with the same law firm that currently represents Fun Club USA.
    ———————————————————–

    This is a point I’ve never seen Mr. Craddock address and I really think he needs to. The $300 only pays for the law firm to file an objection in your name it doesn’t cover any of the legal actions that are sure to follow and those legal fees could be considerable.

    Robert has had many conversations with Fun Club’s attorneys, I find it hard to believe that he isn’t aware of the possible implications for the people paying for the $300 rubber stamped objections. Yet he has not informed his loyal affiliates about them. I wonder how many of the people paying the $300 will find themselves paying money they otherwise wouldn’t have had to because Robert didn’t find it important to warn them that it could very well work out that way.

  5. @LuvNLife,

    You bring up a great point! I think it is a typical marketing ploy.

    From doing a little due diligence I have found the following which supporting your theory…

    The former Zeek Rewards affiliates pay $300 for the attorney to file disputing the subpoena. Then the Receiver (SEC) files a lawsuit filed against the former Zeek Rewards Affiliates. Now the affiliates pays between $1000 & $2000 to file an answer. Next, the former Zeek Rewards affiliates has discovery served upon them and they pay another $1000 – $2000 to respond to. Then comes the day in Court and they pay another $2000 – $5000 for an attorney to defend them in a deposition and if needed to represent them at trial.

    So add up the potential court filing fees, attorneys fees, investigation fees, travel etc., and the $300 just became thousands… Thousands that Mr. Craddock and his 12 board members have already received to protect themselves.

    I will reach out to Phillip and get a response on this…

    Living An Epic Adventure,
    Troy

  6. Troy,

    Another point about Craddock’s offer really doesn’t ring true:

    He states that for $300.00, this law firm will file an objection to the subpoena. Think about this. I don’t know where you live, but here in the Washington, DC area, the labor rate at an auto repair shop averages right around $100.00 per hour. Now, think about that in relation to a licensed attorney, and the types of expenses they incur to run their business. I know there are discounts for “bulk”, but come on, this is almost silly.

    I’d be willing to bet, for $300, the person would either get the objection filed, period, or the $300 is a retainer which will get the objection filed, then the client will be billed additional sums for follow-up, requests for additional information, and on and on, until the client either runs out of money, or exhausts their legal remedies.

    Perhaps you could talk to Phillip Young and ask him what $300 would get a client with his firm, just as perspective.

    Jerry

  7. Troy check your message I sent you with the Contact button here on your blog.

    Really Important.

    You don’t need to approve this reply.

  8. @GlimDropper,

    Thank you for adding insight and value here. One thing I know without a shadow of a doubt… I have met some new friends who may not always agree with me, but who are willing to always communicate and educate. Thank You!

  9. Troy thank you for covering what you will find to be a thankless topic. You’ve been persona non grata among the Fun Club faithful from the first time you dared question Robert Craddock. They’ve walled themselves off in an invite only facebook group where any lack of enthusiasm for the Fun Club effort is taken as a sign of disloyalty and they banish the disloyal.

    As a group they don’t want to hear anything other than what they want to be told. It doesn’t matter to them how many times Wednesday rolls around with nothing being submitted to the court after Robert told them a motion would be filed Tuesday, Robert promised them he’d get Zeek2.0 up and running toot sweet. That’s all Robert needs to say, “I’m bringing Zeek back” and to the people to whom that’s all they want to hear, that’s all they listen to.

    That’s unfortunate because reusing to listen to anything other than what you want to hear has seldom appeared in anyone’s list of the secrets of their success. Expand your horizons, open yourself to other viewpoints and stop giving your loyalty and your money to people to refuse to answer honest questions. And by all means, when confronted with an honest question, please don’t denounce the person asking it. Look to your leaders and demand accountability in their answers.

    And Troy, as to the 60K “certified funds,” the critics aren’t going to tell you that each of them were $10k per, What we’re going to tell you is we’ve seen it all before. When Ad Surf Daily went down there were boxes and boxes of uncashed checks in the office. Why didn’t Andy cash them, it wasn’t that easy.

    The Secret Service and SEC don’t act in a vacuum. They act because of a string of events that raise to a level warranting them to take action. Suspicious Activity Reports (SARs) from multiple financial institutions led to Zeek’s June 1st banking cutoff and on to the “informal” warning from the NCSEU. These were not random events to be hand waved away, these is a pattern of action that anyone who’s been watching “programs” like these has learned to recognize.

    So why did Zeek Rewards have upwards of 60,000 uncashed checks (and other securities) on the day they went down? The same reason Ad Surf Daily had boxes and boxes of checks in their office the day they went down. No one would cash them for them.

    Got a payroll check but no bank account? Go to the right corner bar and they’ll cash it for you. Got 50,000 checks to deposit and none of your many banks are willing to take that money for you, well it’s a safe bet they don’t think you’re worth the risk. And that’s a fairly reliable indicator that they knew before you cared to admit to it that one of those three letter agencies would be knocking on your door soon, with enough force to take that door off it’s hinges.

  10. @Richdad,

    That is a great question. I think it would depend on what the class-action suit is trying to fulfill. If they are looking at getting to the bottom of who might have propagated a crime against the members (former Zeek Rewards Affiliates), then it might be something you and others will want to be a part of.

    If it is just to try and collect unpaid funds, then I think it is a waste of time based on the fact the Receiver will get back as much money as he can for you and others.

    I also am not sure where a class-action case falls in the priority of cases, if a criminal charge is filed. If the criminal case takes top billing and the defendants are found guilty and go to prison, then I am sure huge finds and penalties will be handed down, and even some of that money may go to victims.

    Hope this helps. Maybe others who understand all this can weigh in with a better answer.

  11. Hi Troy,

    I wonder what is your layman opinion on getting into a class-action suit – since the Receiver will be returning whatever money left to the net losers, class-action suit or not.

    Regards,
    RD

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