Zeek Rewards Update: More Bold Face Lies Coming From Top Leaders At zBizTeam aka Fun Club USA Why?

Coming off the heals of one of the most talked about Zeek Rewards Updates, the Google Hangout hosted by Kevin Thompson, Phillip Young, Jordan Maglich and Walt Burton, I received an email where yet another of the top level insiders at zBizTeam and Fun Club USA, David Kettner published some bold face lies to the members of the legal defense fund… WHY?

Before we get into the email David Kettner sent out, you may want to watch the Zeek Rewards Google Hangout from last night to get a reference point from attorneys representing both “net losers” and “net winners”, along with Jason Maglich, who doesn;t have skin in this game on either side.

Below is the email David sent out…

Hey Team,

I have some Zeek updates that I wanted to share with you to keep you in the loop of what is going on. I know there is a lot of bogus information that is popping up around the Internet and I want all of us to be informed with the truth.

Our lawyers have put together a motion that will be filed in court no later then next Wednesday in North Carolina. I have personally reviewed this motion and was very impressed with the points that it addresses. The motion that our lawyers are filing is that all funds that have been frozen in all the ewallets by Kenneth Bell the receiver be released. This motion will be using three NXPay examples of Zeek Rewards affiliates who had and still have their funds frozen in their account. Do know that this motion though is focused on releasing everyone’s funds that are illegally being held frozen and not just the three people’s accounts being used as examples.

The approach that our lawyers are taking in regards to the subpoenas that were sent out to over 1200 people is that no one will be sending any funds to Mr. Bell as he had no lawful right to request that this be done. All people who were sent the subpoenas have sent objection letters notifying Mr. Bell of this and the reasons why. Currently no one has any obligation to pay back any funds to the receiver and it is not believed that anyone would ever have to.

Our lawyers are using this motion that will be filed next week and in the future steps moving forward to educate the court and the receiver of the Zeek business model and how business was conducted and not how it has been portrayed by the allegations made against Rex Venture Group. We know that this process has been taking lots of time, but it is important that our lawyers are careful with the filings of motions while providing accurate and factual information for the court and the receiver.

As I get more information, I will be sure to share it with you. I hope you are all having a wonderful week!

God Bless,

Dave Kettner

Now I want to make it clear, that I am in no way stating David Kettner is where this Bold Face lie is coming from. For all I know he may just be a victim like so many others.

Ok let’s look at the lie from above.

In David’s email he states that NO ONE who received a Subpoena will be sending any money to the Receiver, and everyone is objecting. Well that is not true. If you listen to last nights call, and I can personally validate on a couple that Phillip young is representing some of the 1200 and they are cooperating with the Receiver.

I fully understand that when situations such as Zeek Rewards hit our lives, that people will take sides. But to pass bold face lies and false hopes to the very people who are already hurting is not just unethical, it is close to being criminal in my book. It is like stabbing them in the heart one more time.

As much as anyone I never wanted to believe that people I had grown to know would purposely mastermind a ponzi to rape people out of the hard earned money. And I am still not sure that was the intent. But the laws and the evidence was strong enough that the owner of Rex Venture Group, LLC did not object to the allegations or did he deny them. Instead Paul Burks consented to the allegations and paid a $4 million dollar fine.

Another issue that the members who are funding the Fun Club USA defense fund might want to ask is why the purported attorneys representing Robert Craddock, have NOT once taken the time to publicly address any of your fears and questions?

None of us know for sure how this will all turn out, but we do know some things, and we should ALL stop pretending on some of the issues, and find a way to help all parties “net losers” who need to find new homes with legit companies. And the “net winners” who truly will need some individual legal counsel to work through this mess.

But, the BOLD FACE LIES have to stop!

Living An Epic Adventure,
Troy Dooly

Spread The News!

28 thoughts on “Zeek Rewards Update: More Bold Face Lies Coming From Top Leaders At zBizTeam aka Fun Club USA Why?”

  1. @Michael,

    Thank you for the kind words. I also love the network marketing/direct selling community. It is not always pretty, but heck even sports gets a black eye every now and then. The goal is to always learn from what we see and experience.

    I can tell you that in the old days (before the internet) we did not see the confusion we see today between direct selling (network marketing & MLM), affiliates programs (2 level or less) and illegal ponzi and pyramids.

    When the internet really got rolling in the 21st Century everything moved offline to online and things started to get blurred. We all at times have a hard time filtering through the structures to get to the core.

    Now, as for info/education/training programs. Most of them truly promote the system, more than helping folks build their primary business. This has now become an issue as many primary companies are terminating distributors for cross recruiting.

    We do have at least one traditional network marketing company which is selling ONLY educational and personal development tools as their product and their balance of customers to distributors seems to be staying very steady. And I think the reason for that is they are producing products that the average person is interested in… debt help, marriage help, raising kids etc.

    I am excited you are sticking with our community and looking for the right culture (company) to join.

    My suggestion, would be to really search the reason why the founders launched the company in the first place. I have found in researching the largest and most successful companies in America (in and out of direct selling) that the founders were looking to fill a void far bigger than making more money, or as some companies currently are promoting “trying to attract people to a legal Zeek Rewards compensation plan.”

    When you have founders who are on a mission bigger than themselves, and you find it fits what you feel your mission or passion in life is, then who knows how far you can go? 🙂

  2. Troy,

    Thanks so much for your continued response to my posts – you have gone over and beyond what others would have done and I truly appreciated it.

    I feel your last post is extremely valuable in ferreting out some of the main issues at hand and it has helped me greatly in understanding why there was so much concern surrounding Zeek. Hopefully others with the same questions will observe it.

    I love the MLM/Direct Sales/Internet Marketing industry and have a passion to succeed in the field. For me, it is time to do some soul searching to decide for myself what is ethical and what is not. I was never 100% comfortable with the Zeek model, but saw enough good in it to stay engaged.

    I am an Analyst by trade, and even so have difficulty in this evaluation. For instance there are several high profile companies whose “product” is “Information” and “Training”. They offer a boat load of this stuff to the affiliate and compensate handsomely for promoting said “Training/Information”.

    The ironic thing is in talking to some of the reps/affiliates involved in these companies, they don’t even use the training/information that is provided them. They are just interested in getting other reps to buy in, set aside the “training/information”, and get other reps to do the same….so on and so on…

    I am not an expert, but this model seems suspect as well does it not! You could easily swap out the “Training/Information” for a “10,000 page Yellow Page Directory” that I get free every year from my phone company and the system would function just the same. Reps would get paid, recruit other reps who would get paid, all using money from the monthly subscription for the “Training/Information”, or “Yellow Pages” or whatever!! And not many if any are even using it.

    There must be an answer to this and I will keep looking.

    There is a company that I like a lot who has a product line that is distributed via a direct sales organization, and 65-70% of the product is consumed by customers and not reps. This at least is a start in the right direction for me.

    Well thanks again, and keep up the great work that you do.


  3. @Michael,

    I always feel good dialog is what is needed to help all of us better understand all sides of an issue, especially this one. So let’s take a look at some of the gray area issues from the current case law that is on the books covering Pyramids to get a better understanding on some of these issues.

    1. Already on the books is the fact, commissions can’t be paid out on tools. So if the VIP (sample bids) must be given away, and can’t be used by the affiliates in the free auctions, then he FTC and many states will see this as a red flag and could try and hit any auction company as a pyramid.

    2. The retail bids, should be seen as a viable product being sold to retail customers, and bought and used by affiliates. Where the red flag is concerned here, is that from what has been reported from as far back as late May early June of 2011, was that the amount and quality of auctions had gone down. This caused a decrease in the amount of retail bids purchased by real customers, or used by affiliates. Then on top of that the credit card issues, stopped retail clients from having an easy way to buy and use bids. So by the time the SEC made their move, the overall amount of retail bid purchases were around 2% of overall revenue. Again pyramid laws come into play, because the 98% of revenue used in the compensation structure (Matrix and RPP) was from the purchase of VIP Sample Bids, which is illegal is seen as a sales tool.

    This was made very clear in the Burn Lounge decision that came down in April of 2012. I brought this issue front and center with Zeek leadership and they agreed something needed to be done. I introduced a well respected 3rd party vender to create the cash-back/shopping portal to clear this up. However, instead of adding completing the customer portal end adding the retail customer qualification (see thousands of comments on this issue) the field revolted and the leadership procrastinated in implementing the changes.

    Now don;t get me wrong, at the time there was also the purported banking issues and credit card issues, and if those issues were legit, then the focus was so split that trying to prioritize what was most important was a close call.

    3. Now in looking at the analogy, sadly there is no way to come to a logical conclusion, so I will need you to restate it. In your opening sentence you use the phrase “hired me as a sales rep.” Since use used the word “hired” then I have to conclude you are either an hourly or commissioned employee, or at the very least based on current laws a statutory employee, which is far different from an independent business owner (zeek affiliate).
    had for a pyramid.

    a. Allowing you to purchase tokens for personal enjoyment or to give away as an enticement to get others to come play, or buy other goodies so you can earn a percentage of the revenue is NOT in and of itself illegal, and is part of the overall business model of most sales organizations. However… If your percentage of the revenue is tied ONLY to the amount of tokens you personally purchased, and is not tied to how they are used, then in reality, you are not being paid on the overall revenue of the company, but in the small percentage of revenue tied to the tokens you personally purchased. WHich would also mean based on your analogy, that even if the people you gave tokens to, were to buy additional tokens, it would not directly or indirectly play into your percentage of revenue. And this was not the Zeek Reward Business Model as published on their sites.

    And it would not really matter based on your analogy if you used or gave away all the tokens.

    I do agree with you that the auctions and the online portals for the stores were the true product. And according to the accounting that has been publicly presented based on the Rex Venture Group Books, the amount of revenue outside of the compensation structure was around 2% as I mentioned above. You can see that in the complaint, which was based on over 100K documents turned over from Paul Burks.

    In studying the complaint and Paul’s consent, if that figure was not correct, Paul could have had his attorneys write something in the consent, which stated he did not agree with the numbers presented by the SEC. He did not debate that issue, and based on what I do know those numbers seem pretty close to the facts. But again, based on the fact retail customers during the Summer of 2012 could not use credit cards to buy bids, I can see how a huge decline would take place.

    Now, going back to your analogy… one of the other reasons, I can’t come to a logical conclusion in comparing with Zeek Rewards is the fact, you left out one huge item of importance… In your analogy you never mention if you can attract other sales reps and earn a percentage of their purchase of tokens. If in your analogy, you are able to earn commissions on the tokens they buy, and this compensation structure goes down 3 levels or more, and none of the compensation is tied to additional revenue generated by the customers who do come and play games etc., then it is a pyramid.

    In Zeek’s case, they did promote the fact total daily revenue was how the RPP was calculated. However, if the customer revenue is low (less than around 50% of the total daily payout) then it would raise issues.

    In what I have uncovered it seems the SEC saw the fact that Zeek Rewards was launched promoting a daily ROI (Return On Investment) of 125% daily. That was a huge RED FLAG for a ponzi!!! I hit them hard and then Dr. Keith Laggos and the attorneys got called and worked to clean on the issues. However, even those the company added disclaimers, brought in one of, if not the best compliance troubleshooters I know Greg Caldwell, the damage was done, the internet soon became full of videos, spreadsheets, and meetings promoting the daily ROI of the RPP.

    Without making huge changes and adding the retail customer qualifiers, the RPP could and was easily seen as an unregistered security. This was not an unknown fact by anyone, and was being worked on… But not fast enough, which brings up the question… WHY NOT!

    There is no way we can know the intent of Paul Burks and his top generals in launching Zeek Rewards and that will forever bother me personally. If the real reason was as Paul promoted “To prove his “EMM – Exact Marketing Method” system would work, then it is sad to find out it did not work and millions were effected adversely, at the pleasure of a few who earned six and seven figure incomes.

    If the true intent was to create the world’s biggest ponzi scheme (based on the 2.2 million affiliates) and walk away with tens of millions of dollars, then it would be criminal in my book.

    I am still not totally convinced that Paul Burks or anyone else purposely created Zeek Rewards as a ponzi or pyramid. But, I am pretty convinced, that when the money started rolling in to the tune of hundreds of millions per month, that logic and common sense went out the window and well meaning people, became as unstable as those who are penniless and can’t support their families.

    And I am convinced that there were those close to the founders, who were in the compensation structure from the very beginning, who fully understood the risk, and saw that the compensation plan, was borderline at best, and took advantage of the Flash Mob mentality to exploit the whole deal, knowing they could move enough money outside the system, into hard assets to take the risk.

  4. Hi Troy!!

    Thanks for your response and I truly enjoy all of your commentary. I realize all of this is water under the bridge now, and nothing can be done.

    What is still a bit confusing is that it is my understanding, and how I operated in Zeek, is that the VIP bids that were being purchased by the reps such as I were sales material to be used to promote the Penny Auction site. There were also RETAIL bids that could be purchased and used at the auctions as well.

    I like to use the analogy of a gaming arcade with pin ball machines, etc. Let’s say the local arcade hired me as a sales rep to promote their arcade, and the method of promotion was to allow me to buy gold tokens to be used in the machines, and give them away to entice folks to come down to the arcade, play the games, and hopefully buy more RETAIL tokens, play more games, buy hot dogs :-), etc! And my reward (commission) was a percentage of the profit generated by the arcade, the amount of commission being relative to how many tokens I purchased. And lets say I never used any of the tokens myself to play pinball – does that mean the arcade is a pyramid scheme? What I would like to know, is how much of the profit generated by Zeek was from the Penny Auction, and online retail stores that they operated? I think folks tend to look at the bids as the product – NO – the product was the penny auction and the online store. I was just a rep promoting both – what on earth is wrong with that??? I thought, and still think it is a brilliant business model i.e. Set up a Penny Auction, hire reps to promote it by allowing them to give away bids to folks to play the auction, generate HUGE profits form the bidders, and reward the reps! I really don’t see care if the reps ever play the auction or not – what does that matter??

    OH Well – such is life!

    Oh and congrats on your joining Ocean Avenue – now that is a company to be reckoned with! Will most likely be involved sooner or later!

    Keep on!!


  5. @Nicholas,

    Not sure where you get “Opportunity of a lifetime” I never promoted Zeek as an opportunity of a lifetime – PERIOD. As a matter of fact I even did one video where I made it clear I would NOT join Zeek personally.

    What I did do from Dec 2011 until today is cover the Zeek Rewards story. And many times when the critics came out in what seemed overally agressive I would do my best to balance to issues.

    But, outside of one video where I did quote from the Network Marketing Business Journal, which I later learned the Editor was a top promoter earning $40K per month, I never promoted Zeek Rewards as an “opportunity of a lifetime”.

    What false information are you referring? Again, outside of the Network Marketing Business Journal, which may have contained false info, I did not ever provide false information.

    Please provide the video and editorial where you feel my information was false?

    I covered ALL the issues, and if you take the time to review any or all of the editorials here then you will see where we talked about the issues many times. We even talked about the issues from stage at the Red Carpet Days.

    As for me stating “I am honest” again, where did you get that? I do not go around promoting myself being honest… I do strive to live my life ethically and beyond reproach, but Lord knows I am as human as the next.

    So Nicholas, please respond and link to the exact video or editorial you are referring so we can continue this conversation with specifics.

  6. @Michael,

    You do bring up a great point. However, based on what we saw prior to the shutdown and what the regulators have also claimed… There was less than 2% consumption PERIOD! The affiliates were buying the bids, giving them away, and for those who did use the free bids, the majority never bought additional VIP bids. Now that may have been due to the fact for a while they could not use their credit cards to purchase them.

    No matter what the reason, this was a known issue from as far back as April of 2012 when I got involved. What we will never know is if the announced and unannounced changes would have fixed the issue.

    Now, as for the “overpriced products” sadly over the last twenty years there have sure been many companies which due to wrong intent were formed around a compensation plan, then a product was placed on top of it to make it look legit.

    But not all products are overpriced.

  7. Wow! Listened to the hangout. I think the most interesting comment I heard came from Len where he said in a nut shell regarding the aspect of Zeek being a Pyramid Scheme:

    FTC does not care what % or products are purchased
    by distributors.They care about motive. Are
    you buying the product anyway because you want
    it, even if there were no income opportunity
    or are you buying it just to participate in
    the income opportunity.



    I love how these Bas…ds operate!! They use nebulous ideas such as MOTIVE to evaluate legitimacy.

    Come on now folks!! Let’s quit the BS and get real!!!



    They want to make money so they “BUY FROM THEIR OWN STORE”

    Their own store???????????????????????

    What a bunch of crap!!!!!!!

    If we are going to judge, lets judge fairly!!!

    If Zeek is a Pyramid 99% of MLM’s are as well!!!!!!

    Even a company with “Unique”, “Cutting Edge”, and the latest craze “Products with Science behind them” will cost you a FORTUNE to have your entire family on them.

    And 95-99% of people fail in them anyway!!

    I was in Zeek and am outrageously disgusted with the BS this government pulls.

    Welcome to America

  8. “Now, as to why I accept the allegations is because since April of 2012, I had been working to fix the issues, so this type of situation would not happen.”

    But so many people saw your videos promoting Zeek Rewards as “an opportunity of a lifetime”.

    So you’re telling me that you were paid or forced to say these false information? Because if you knew there were issues, then why promoted it? If you are as honest as you over stated so many times, then why???

  9. Consider this, if Paul Burk admitted to the allegations that would have resulted, in an admission of guilt. Alternatively, if he defended the allegation that would have resulted in a plea of innocence until proven otherwise.
    All that is currently on foot with regards to Burk, is that he has remained silent on the allegations.

    To make an assumption that the allegations put to him were that overwhelmingly clear and conclusive is drawing a long bow. What really went on behind the scenes, we don’t know. At this stage there is plenty of speculation and rumour but no proof.

    This has been the essence of my argument and a viable defence to clawbacks. Until the proof is put up by a reliable source, that been the SEC and the receiver, I encourage all to stand their ground and not concede an inch.

    I don’t understand why the proof is not been published and I am becoming increasingly suspicious. If one wants to claim money from someone, one needs to articulate why they are making the claim and on what basis. In short prove why it’s a valid claim and the money is owed.

  10. @maria1965,

    Not admitting or denying the allegations is not the same as admitting or denying guilt. The question was never specifically raised or asked about Paul Burks being innocent or guilty of anything.

    So within the letter of the law we are not talking about the same thing. You are talking about innocent or guilt, and I am just sticking to the admintence lor denial of the allegations. And if we apply a little loving to the letter of the law, we can come to the logical conclusion, Paul’s a
    Legal team did not feel they could beat the SEC allegations. If there were any other logical conclusion, his legal team would have pushed for a fight.

  11. Troy we are discussing the same topic and we say there is no dispute that Paul Burk gave it up without any admission of guilt or innocence or in the alternately it could be said this way ‘ Without admitting or denying the allegations of the complaint (except as to personal and subject matter jurisdiction, which defendant admits)’.

    The terms in the brackets refer to the jurisdiction that the judgement was made and that court has the power without dispute by Paul Burk to make the orders it did. We are referring to the same thing.

    I don’t follow your argument at this point. I guess we agree to disagree.

  12. @Marie1965,

    Thank you for the elegant and thoughtful reply. There does need to be a huge clarification in your response. If I am lack in making this clarification it might lead others to make the same mistake.

    You stated several times the following “Paul Burks and he accepted their demand to hand over Zeek Rewards, without any admission of guilt or innocence.” that is inaccurate. The actual statement is found under 2. of the consent which reads “Without admitting or denying the allegations of the complaint (except as to personal and subject matter jurisdiction, which defendant admits)” RVG Consent and Paul Burks Consent

    Paul Burks was never asked nor did he ask his attorneys to add any comment as to his innocent or guilt. So for anyone else to try and add additional words to the consents, is to try and change the context of the consent to fit their argument.

    And by the way the Judgement’s entered against both RVG and Paul Burks, also contain Paul Burks original statements, and do not include any additional mention of innocent or guilt. RVG Judgment & Paul Burks Judgement.

    Now to each of your rebuttals which were very well thought out.

    1. The allocations do not have to be trailed or proven. Like any case criminal or civil, after the defendant reviews the allegations, they believe a deal is in their best interest, then it is within their right to wave a jury trial and cut a deal. Which is what Paul Burks decided to do. It doesn’t matter if we like it or not, that part of things is done.

    Now as for the argument, that there are innocent 3rd parties innocent involved who do not have a say in what happened, I will agree with you on that issue. However, ignorance of the law is not an excuse, which in this case, is more than likely the biggest issue facing folks. However, the truth of the matter is, that for months it was made public that the compensation structure needed and was going to be changed, especially where the RPP was concerned. And for months, in many forums, blogs and social sites, the affiliates pushed hard for the company NOT to make any changes, especially if it included qualifications to get paid in the RPP. So to act as if, the powers to be, and the top promoters did not fully understand what these qualifications would seem to be somewhat of a dis-indigenous argument.

    2. The deal Paul made doesn’t bind any affiliate. However, it is not the Receiver who will have to prove anything. The Receiver will sue specific former affiliates who have been deemed “net winners”. They will object to the Receiver’s request for voluntary documentation or the refund of money. At which time the Receiver will sue the “net winners” and demand they turn over the documentation to prove they are not “net winners”.

    Some of these “net winners” as they have in the past will try and prove the SEC was wrong in their allegations. However, the Judge has already ruled on that issue, so it will be kind of hard to prove. But, they are well within their Rights to try. The question will be can they afford the long drawn out legal battle?

    3. Since you have read the allegations, then you have also read the consent and the judgement. When a person consents to allegations and pays a fine, without admitting or denying the allegations, the logical conclusion one can make is that the evidence shown to the defendant to support the allegations was so strong, that their legal counsel made it clear a deal was the bet way to go.

    Now, as to why I accept the allegations is because since April of 2012, I had been working to fix the issues, so this type of situation would not happen. There is not one person at the top of the executive branch that did not realize changes needed to be made. But for whatever reason, the change was put off until it was too late. I have dozens of editorials and thousands of comments on this very subject.

    4. You are correct it was totally out of compliance to promote Zeek Rewards with spreadsheets and ROI videos. However, Paul Burks and the company can and is held accountable. This is the law and has been for decades. I can show case after case where companies are held accountable for their affiliates actions. And not just in network marketing… It is called consumer protection laws!

    Your argument, is not a logical one. It is like saying that Wall Street should not be held accountable for what happened in the banks and mortgage companies on main street. When a fraudulent act is done against any consumers, then all parties, are held accountable. But it starts at the top and rolls down hill.

    5. I can fully understand your passion and applaud you in standing up for your rights in defending your position. However, I think the SEC and the Receiver, have far more resources in proving their case, than you do in proving yours. And if you are going to use the argument “I had know knowledge of any wrong doing” as your defense, you would be better off saving your money. Again, ignorance of the law, is not a defense.

    Now if you can show other compensation plans that are identical, which are not part of a current investigation, then you might be able to show prejudice.

    6. Well, I fully understand your position. But again this is not about “principles of fairness” it is about the “letter of the law”. And I fully support all parties who through legal counsel are not giving up their Rights. Fighting to make sure the numbers are correct is far different, than prolonging the final outcome.

    Fighting Clawbacks, may be in the best interest for some, if the numbers the Receiver sent were not correct. But to fight clawbacks because someone wants to try and deny that for months the whole conversation was about the out of compliance compensation plan, is not in the best interest of anyone.

    7. I would love to see an open trail for my own peace of mind. But the difference between myself and where you stand, is I do not deny the evidence. I saw some of it before and was fighting to protect the affiliates by bring in the cash-back shopping portal and the customer qualifications to fix the RPP.

    But I also have taken time to fully understand the allegations, which laws they fall under and how both the SEC and Paul Burks could come to a deal. What I don;t know that I would really love to know, is why did the company wait to make the changes, and a few other things, which may be part of sealed documents.

    8. You are 100% we are innocent until proven guilty… In this case the defendant through a deal made and a judgement handed down, was found guilty. Now the question is, will the net winners be made to surrender some or all of their winnings. I would guess that those willing to work with the Receiver, will keep some of their winnings, and those who fight may end up paying more in both refunds and legal fees than if they had worked a deal themselves. It is a tough call. I see both sides of this issue and hurt for all involved. There is no easy answer…

    9. Well, you will be in for a long drawn out fight. Unless you are not the first to file a case. Right now only two people have really entered an appearance on this issue. If either of them lose, your case just became harder to win.

    Again, your arguments are very well thought out, and you bring up some great points. I truly want you to keep us posted on your progress. When is your attorney entering their appearance and when do you plan on filing your case?


  13. In response to your reply, I will address each paragraph in the order that you have put it.

    Paragraph 1.
    The SEC has alleged a whole serious of allegations, in their claim. They put those allegations to Paul Burk and he accepted their demand to hand over Zeek Rewards, without any admission of guilt or innocence. No plea in short. Those allegations have never been trialled or proven in a court. I don’t think this is understood. Paul Burk did what he did for whatever reason, innocent third parties were not privy to Paul Burk’s dealings and cannot be responsible for his alleged sins. It’s as simple as that. I am sure many legal advisers would agree with me.

    Paragraph 2
    That is true. On what facts does the receiver rely upon? The allegations that have been made have never been proven to suggest because Paul Burk did a deal with the SEC, binds affiliates, is naïve. You must remember Paul entered into a deal with the SEC with no admission of guilt or innocence. Stop reading more into what that in fact means. The deal is this; Paul Burk handed over the zeeks assets and paid the fine. The receiver recovers from those assets and pays who they believe is entitled to the money, including themselves first. That’s it!

    Paragraph 3
    I have read the documents and again they are a serious of allegations that purport to breach certain laws pertaining to securities amongst other things. But again, what is so hard to understand, they are just allegations that have never been proven. You are not a judge nor am I.
    So why have you accepted this as been gospel?

    Paragraph 4
    I am not aware of any Zeek Rewards affiliates promoting the business in this fashion, but I accept this probably occurred, however you recall Zeek Rewards had forbidden this practice and was quite vocal about it, as you were. Paul Burk and Zeek Rewards cannot be held responsible for other parties’ wrong doing and this is not a sufficient course of action to move or close down an enterprise, even in the US jurisdictions.
    Plenty of case law on this topic around the world.

    Paragraph 5
    I hope the receiver and the SEC have sufficient resources to pay my damages and to compensate me when they lose! They are not entitled to money earned from affiliates, when those affiliates had no knowledge of any wrong doing. Its as simple as that Troy. Because its SEC or ultimately government, they don’t know better! These are bully boy tactics.

    Paragraph 6
    This issue is based on a principle of fairness. Put up the proof that it was all the things that the SEC and the receiver claims and I am sure the top earning affiliates would consider supporting the less fortune. Until that time I am certainly not recommending anyone to concede that the receiver is entitled to clawbacks, because the less fortune will never see any money in any event.

    Paragraph 7
    I agree with you. I found this discussion quite curious. But what is relevant is, if the SEC are making claims against affiliates for money paid by Zeek Reward and that money should never have been paid, because Zeek was engaged in illegal activities, than it only follows that it must be proven that it is a fact . Allegations made and a deal done by Paul Burks does not make it a fact and affiliates should resist any demand for clawback. You Troy should also be demanding the same.

    Paragraph 8
    I disagree with you. The Principle of Natural Justice is a lot broader than what you understand. But it’s not my intension to argue this point. But I will say US courts do operate within the boundaries of fairness and you are always innocent before your proven guilty.

    Paragraph 9
    I repeat I would hope that the SEC and the receiver have those resources because they will be up for a series amount of damages and compensation because they will not win. Let me tell you there will be not enough money in Zeek Rewards to indemnify them.
    That’s the long and short of it Troy. So let us not lick or dress their wounds or accommodate their demands in the absence of proof.

    Paragraph 10
    Thanks for the advice Troy, all the best.

  14. @Maria1965,

    I think you may not fully understand, that it is not the Receiver, who has to prove any innocent 3rd parties. But the SEC has alleged proof of a ponzi, and after reviewing the evidence Paul Burks, the owner of RVG the parent company of Zeek Rewards, did not deny those allegations, and consented to their validity.

    The SEC then presented both the complaint and the consent to the Judge, who then also approved the appointment of the Receiver, to do everything in his power to seize all the assets of the company, and the refund those in the compensation structure, who had not received more out of the ponzi/pyramid than they put in.

    If you have not gone through the court documents, or studied the ponzi/pyramid laws in the USA, you might want to do that to get a better understanding on how this works.

    And, if you are not fully aware, for close to 18 months videos and spreadsheets were published allover the internet by promoters of Zeek Rewards, showing the ROI of the compensation plan. ROI = Return on Investment. This was a huge issue, and one we fought 24/7. There is plenty of evidence of top promoters illegally promoting Zeek Rewards.

    Now, you do have a point on the fact as an independent former affiliate you have the right to fight any clawback that the government might raise against you. And I believe that in your heart, you feel this is you best move, and you have the unlimited resources needed to fight them on the issue to go for it!

    Just remember, there are far more former affiliates, who NEVER had the chance to get their money back, who want to at least see some of their money returned.

    By the way, as a former independent affiliate, you do not have a right to defend the SEC clams against RVG. The only way you would have that right, is to file a lawsuit stating you were an investor in the company and had a right to object. You might want to go back and read the policies and procedures you agree to uphold.

    And by the way… Nature Justuce doesn’t have anything to do with this case. US Federal laws take 100% precedent!

    And you might want to think about that fact that the Receiver has the unlimited resources of the SEC and DOJ to go after the Clawbacks… I have yet to see any former top promoter with the same amount of unlimited funds to fight the clawbacks.

    you might want to do a little due diligence to see how many successful defenses they have been against other clawback cases. Sometimes it is good to compromise, before going head long into being sued by the SEC.

  15. I think that the receiver stands little chance in securing any clawbacks because he has not provided any proof to innocent third parties, those been the affiliates that there was improper or illegal dealing at Zeek Rewards.

    The receiver has had months to investigate, the SEC has done the same before the closure. Why is there still no evidence been put before the affiliates?

    If Paul Burk and the SEC settled on an agreement, that agreement did not bind affiliates. They in fact had no knowledge of such arrangements or the opportunity to defend the SEC’s claims.

    The basic principles of Natural Justice apply here. The receiver knows this also, I cannot see how he proposes to recover on clawback without spending a fortune and with no guarantees to win.

  16. Hi Troy !

    one question on my mind. The net winners receiving cash back for the first time and then start the compensation? Because it will be a very long process. What do you think Troy?

  17. B.Radison,

    Please save and send all these Kettner’s emails to Ken Bell and the court to go after these monsters. I know some of the guys in Vietnamese community promoted Zeek the same way like these dogs. We need to be united in this effort to criminalize them.

  18. @LLye,

    The Receiver is working to get your money back. The claims process and claims form has to be approved by the Judge.

    I do agree that the “victims” did not make $600 plus per day. However, if the Receiver was not on the case right now, you might not get any money back, and RVG might have filed for bankruptcy protection, and you would not have gotten anything.

    Now if you have reviewed the Preliminary Liquidation Plan, then you will have seen where the Receiver is very clear that he hired three very important 3rd party venders to piece together the RVG accounting, transactions and documentation. The need for these three venders is congruent with the comments we have recorded here from former zeek rewards affiliates since Dec. 2011.

    If you review many of these comments, you see where folks had commissions issues, points issues, cash available issue, und-epostied funds issues, eWallet issues, and the list goes on and on. Now we see that there were well over 1 billion transactions inside the accounting of RVG in an 18 month period, so I think it is easy to see that not only the need for the venders are there, but that the fees they are paid will also be high.

    The fees being billed by the Receiver and venders are far less than what they have recovered for you and other victims. It does not look as if the Receiver is trying to milk the estate for his own rewards.

    By the way, the Receiver team is really made up of the following… Gilardi & Co. LLC., McGuire Woods, FTI Consulting Inc, Ricoh USA, and Kroll Ontrack. I reported on the background of all three companies a few weeks ago, and you can review that editorial here at MLM Help Desk if you so desire.

    Now, if we give this some thought… The Receiver and his team are working to piece together 18 to 24 months of documentations, transactions, and data, from several different locations, and an unknown amount of hard drives to determine who needs to pay, and who is owed a refund. So to act as if these folks much work for free, or should wait for their money is not reasonable…It might be desirable, maybe, but not reasonable.

    So, although although we may see the total amount of the Receiver’s fees as high because we do not make this kind of money. The same can be said about going to a doctor, being charged $150 for him to tell me, I have an ear infection and sends me home. Each of us are paid based on the value we provide to others. If Kenneth Bell and his team can return to the victims of Zeek Rewards, some or all of their money, then I am sure at the end of this sage, not one victim will complain about his fees.

  19. @B.Radison,

    WOW! Well several things come to mind.

    1. To sign up in Zeek or Zeekler this summer, your friend would have, had to use an eWallet because the credit cards had been stopped during several of these months. And the eWallets have continued to be a huge issue, as the accounting firm tries to figure out all the transactions between uplines, downlines and back and fourth between RVG and the accounts.

    Do you know if your friend, funded his own eWallet or if his Zeekler sponsor had access to it?

    2. Did you friend, signup himself or did his Zeekler sponsor, sign him up over the telephone? If your friend was signup over the phone, then there is a chance he was made an affiliate without realizing it. If this is the case, then his affiliate account may have had earning and it went to whoever controlled that account. Or it could very well be the Receiver team has misunderstood “point Value” as “commissions earned”.

    3. If the Subpoena just arrived yesterday, then your friend can respond by email, stating he just received the Subpoena, and did not have time to respond by the required date. This is his Right under Rule 45 of the US Code Subpoenas. I would then recommend your friend seek legal counsel who understands this case (that will save him some money) and get his story written and into the Receiver.

    4. And, there is a possibility, that every Zeekler member, was by default given an affiliate position inside the compensation structure. However, it would seem that if this was the case, your friend would have been notified through the email address he provided when joining the company.

    However, if he was signed up via the phone, then there is also the possibility that his Zeekler Sponsor, set up the account (it was free, or in this case a $10.00 membership) and changed the email to his own. If by some chance this is the case, then the upline Zeek Reward Sponsor would owe and additional $95K and not your friend. And your friend might have a some form of legal action against his sponsor.

    5. As for creating dummy accounts and who might have done that… I won’t speculate on who or why. But we already know that several top promoters and others throughout the compensation structure controlled more than one account and had stacked positions (although it was a violation of the P&Ps) to manipulate or sometimes called maximize the compensation payout.) But, to say this was taught or approved by executive staff, I do not think so, at least not publicly.

    Several times we discussed this at Red Carpet Days and made it very clear if was out of compliance and was a termination offence.

    6. I agree with you I do not think Kenneth Bell is just pulling numbers out of his hat. However, I do think it is very probable, that some of the dollar amounts shown on the Subpoenas could also include point values, or cash available that was not transferred into eWallets, and was never in the control of the former Zeek Reward affiliates.

    People want to point a finger at Kenneth Bell right now because of total dollar amounts being off. But I have thousands of comments on this blog, emails that are in my possession and spreadsheets sent by former Zeek Rewards affiliates, who complained for months that point values were off, and the money there were to receive was wrong. So this is not a Receiver issue, as much as an accounting nightmare on RVG side of things.

    7. You bring up another great point… “Collectively they were smarter than I gave them credit for.” This could be very true. Or it could be that since they opened up the administration side of the compensation plan to outside field leaders, that some major mistakes were made, with way to many hands moving things around, and trying to fix issues.

    It could also be that you are correct and some folks got together and figured out a way to manipulate the compensation plan, to put more money in their pockets.

    Or it could be some programmer made a mistake, or worse yet, programmed the system to default in a way, that one of his/her test accounts was really a live account stuck high in the compensation structure to earn money.

    Way to many “what ifs” to speculate, but without a doubt there is a huge issue for your friend, and my recommendation is his contact Phillip Young ASAP to help him out.

  20. We did not get a dime back but the receiver already wants his money how fair is that.? Is he just trying to get money while he can. What happend to putting victims first??? We did not make $612 a day he is charging that an hour…

    LEXINGTON, N.C. — In his first interim application for fees and expenses, court-appointed receiver Kenneth Bell requested about $768,102.23 for him and his counsel at McGuireWoods LLP of Charlotte. The receiver also requested about $85,389.06 for a retained forensic accountant and database consultant, FTI Consulting, for its work in the case.

    Bell, his constituents at McGuireWoods and FTI, the three entities that make up the “receiver team,” have been working since mid-August to recover money connected to Zeek Rewards. The company, headquartered in Lexington, N.C., under the parent entity Rex Venture Group LLC, has been charged by the federal government of operating one of the densest Ponzi schemes of all time. The company’s owner, Lexington resident Paul Burks, has already settled securities fraud charges filed by the U.S. Securities and Exchange Commission, without admitting or denying the agency’s accusations.

    The receiver is requesting compensation and reimbursement from Aug. 17 through Sept. 30. During that period, Bell said he and his team worked a total of about 2,226 hours on tasks ranging from operating the receivership estate, to investigating the company’s financial condition, to analyzing “terabytes” of information, to locating and identifying foreign bank accounts connected to Zeek Rewards or Rex Venture Group.

    Court records show that Bell, himself, charged an hourly billing rate of about $612 per hour and worked about 189 hours during the compensation period, totaling about $115,790. Bell, as well as his counsel of about 30 McGuireWoods attorneys, partners and paralegals, charged 15 percent lower than their normal rates, according to court records.

    FTI, the company retained as the forensic accountants, litigation and database consultants for the case, expended about 200 hours during the compensation period from August to September. They are seeking about $82,430 for work associated with the case, a discount of about 23 percent from the company’s normal rates, Bell said.

  21. Troy, Please give your thoughts on this latest event.

    Someone in my upline signed up a friend as an auction customer this summer in the Zeekler penny auction. The guy didn’t want to join Zeek Rewards as an affiliate but instead agreed to sign up as a PRC (Preferred Retail Customer).

    This guy bought retail bids to use at the auction for $10/month under the Silver PRC membership for the last 3-4 months before the shutdown. Total spent on retail bids, under $50. He was not an affiliate so he never invested a single dollar on sample bids.

    Yesterday this guy received a subpoena from Kenneth Bell’s attorney informing him that he earned $95,638.78 in “winnings” and they will take whatever legal action needed to get it back from him. Like all that have been subpoenaed he has been commanded to give up all his personal information. He received this letter yesterday via regular mail and was given only until today to answer all the demands requested.

    As you can imagine he is very upset at this and at his friend who he thought he was helping out by agreeing to be a retail customer.

    How is this possible? Could top management people like Dawn, Darrel or even Paul himself have sunk so low as to create dummy affiliate accounts from their customers to hide the money they were skimming off the top for themselves so they could steal it tax free and without leaving a paper trail back to themselves? It would make sense to pretend to dump the money on these PRC’s, most of them were fake anyway I’m sure.

    I find it hard to believe that Kenneth Bell is just randomly pulling dollar amounts out of a hat and throwing darts at who to subpoena next (although someone from Fun Club should be sending out that email soon). He had to get that dollar amount from somewhere in their data.

    It will now cost this guy thousands of dollars in lawyer fees to fight this injustice and he will probably sue his friend over this to get it back.

    Once again, more friendships lost, more innocent people hurt. I’m positive his will not be an isolated story.

    This may be the tip of an iceberg of Zeek management lies and corruption. Why is it taking so long to bring out criminal charges?

    Troy, I’m thinking that collectively they were a lot smarter than you ever gave them credit for.

    I would love to hear your take on this as well as any other contributors.

  22. @B. Radison,

    Thank you for sharing this back story. It helps us all to better understand. I am always amazed at how many of these early promoters never showed up at Red Carpet Days. I guess they did not want their faces to be shown.

  23. @GlimDropper,

    Thanks for posting. I always find antiquated markets humorous. Craddock, seems to think people are still sending emails to people on a regular basis. He should read up on the stats.

    I think I sent an email to my blog six months ago 🙂 Social media is the method of communication. It’s called let the people come to you, and if they find value they stay around.

    Again thank you for sharing.

  24. @Paul,

    I am reviewing Go Fun Place. I have seen some red flags that I do have some questions on. I have been very busy and have not connected with the owners to ask them questions. But they are open to talking and I am planning on connecting with them after Thanksgiving to get some answers.

    I know several people who are in the company, who were very successful at Zeek and the setup of the compensation at Go Fun Places is what drew them in. They have promoted it as a “Legal Zeek.” Which is to me an oxymoron!

  25. Hi Troy,

    I watched the Google Hangout last night. It brought up a question in my mind regarding the legality of a new MLM by the name of “Go Fun Places”.

    It appears it is set-up very much like Zeek Rewards which I was an affiliate.

    Do you know anything about this company? If you do, what is your impression?

    Thank you.

  26. It should be pointed out that Craddock and Kettner didn’t just start telling bald faced lies recently, they’ve been doing it all along.

    Arguably the first lie they told was that anyone who donated to their effort become members of a “protected group” being represented by their legal team. It was pointed out at the time and is now accepted as fact that only the “chosen 12” are being represented by the law firms the donors paid for.

    On a call in late August Robert was telling people that he’d never seen a situation where a court appointed receiver ever refunded any money to victims. He was quite emphatic on the point. He was either confident in his ignorance or just outright lying.

    When Robert became uncomfortable with the questions that Troy was asking him and more uncomfortable still when Troy recorded a video pointing out that Robert wasn’t answering honest questions, Robert turned Troy into public enemy #1 among his followers. But before that happened Dave Kettner sent out an update saying:

    “.,…This is hot off the presses…Troy Dooly has just released his newest video supporting our efforts and encouraging all Zeek Rewards affiliates to donate to the effort and spread the word of our efforts across the Internet to get the fullest support…,.”

    When Fun Club first started accepting donations they did it through PayPal. A few weeks later their PayPal account was closed. At first they were saying that it was because they were working to reopen Zeek and Zeek is MLM and PayPal doesn’t work with MLMs. More recently in a list of excuses for why nothing they said would happen has happened Robert pointed to the “rumors” the “critics” were spreading leading to too many charge backs and closing their PayPal account.

    And who can forget the classic:

    “.,…The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards.,…”

    You’ll notice how so many of their lies are tied to self promotion when from the same update David tells us that:

    “.,…In the conversation with the SEC, our attorney’s have already put forth the direction with moving forward with what they are calling “Zeek Rewards 2.0″…,.”

    And again from Dave’s same (Sep.8th) update:

    “.,…But the most important thing to know from all of this is that we have already succeeded in showing that the proof that we have fully proves that EVERYTHING the SEC accused Zeek and Rex in their August 16 complaint was gravely mistaken as they did not fully understand the Zeek business model and that it now looks very positive that there WILL be a Zeek Rewards business moving forward…,.”

    A few random and totally false quotes:

    “.,…The reason the NC DOJ was alerted about our company is because Zeek Rewards grew too big too fast and people were taking all of their money out of their banks and credit unions to purchase bids. The smaller banks and credit unions were losing money. They panicked and were working together to stop this by spreading lies about the operations of Zeek Rewards…,.”

    “.,…Our attorneys said there will likely be NO CLAWBACKS. They said Kenneth Bell was improper in saying that. All three of our attorneys have worked as receivers so they know exactly how the process works…,.”

    And on to a completely fresh Crock O’ Craddock:


    November 16, 2012

    Greetings good people, thanks for listening and understanding the motivation behind the targeted conference call by Troy Dooly and Kevin Thompson on Thursday November 15, 2012.

    Troy and Kevin effort to capture your information to feed you a steady stream of emails and proposals for business ideas all designed to strip you of your hard earned money has not panned out and now, Troy has lashed out in a tirade wanting to tout his and Kevin’s qualifications which has yet to be determined. I commend you for just saying no to the negative inaccurate messages they are delivering.

    The tone of their self-serving web posting has nothing to do with truth and honesty, and is evident of their frustration and lack of ability to capture your personal information. If you are receiving communication from Troy or Kevin and want it to stop just simply request they do so, if they do not I will be posting information how to compel them to stop by using the can spam laws now in effect.

    Good Job, also we are expecting additional filing by our attorneys today and Monday, you will see them posted here in your backend.

    Have a great weekend.


    Robert Craddock and Dave Kettner will not stop lying because lies is all they have to sell. They will not stop lying because their donors refuse to hold them accountable for what they say.

    I’d like to extend a gentle hand to all of their loyal affiliates, I know you don’t want to believe you’re being lied to and right where you are sitting now there’s nothing we can say to make you start thinking about what they say instead of just wanting to believe they’re on your side. Six weeks, six months from now when you start looking for the answers they wont give you, just remember we are not your enemies.

  27. @Troy

    “For all I know he may just be a victim like so many others” – Hahahahahahahah!!!

    Let me help you with that Troy.

    Dave Kettner was one of the top earners in Zeek Rewards. He was one of the privileged who got in early and worked it hard. His downline may have been in the 100’s of thousands. He was the biggest perpetrator of the early, illegal you tube videos that were later banned. When I was first approached to join by someone in his downline I was told to go watch a video by Dave Kettner. I was horrified at the blatant ponzi scheme he was openly promoting and refused to join.

    I finally came in over 6 months later after Zeek cleaned up much of the early concerns, revamped the comp plan, built a compliance plan, added all the right attorneys, employed the “network marketer of the year” and were having their penny auction hailed by industry experts like yourself as the “opportunity of a lifetime”.

    I have endless emails from Dave Kettner sent out while he was vacationing on different islands and saying hello to his downline in different tongues. He is was one of the chosen twelve, and you know that, so please do not give any of them the benefit of ANY doubt. CON MEN, CROOKS and THIEVES that would lie to their own children if it meant money in their pockets!

    People like Kettner, Disner, Craddock and the rest of them represent the scum of the industry and should be locked up for fraud. Until they are all exposed this will continue to repeat itself and manifest again at another program soon.

    Thank you for the pro-active way you are helping to draw some of them out.

    And why is the SEC not focusing on the root of the problem (going after the nest of known fraudsters) instead of going to great lengths to hurt so many people that never new what they were into while the real criminals continue to de-fraud innocent people out of more money in the name of wasted donations?

    Is the SEC just as corrupt and greedy? Are the innocent just an easier target/mark because they are naive and don’t know how to defend themselves?. Or is the gov afraid they can’t beat the real criminals in court?

    I feel so dirty I’m going to take a shower.

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