How the Zeek Rewards Receivership intends to go after Zeek investors who are outside of the USA, has made clear in his status report for the second quarter of 2014.
Receiver Kenneth Bell:
Counsel for the Receiver prepared a request for proposal, which it distributed to a select number of law firms in countries where the largest ZeekRewards net winners reside.
The Receiver Team has been in discussions with multiple overseas law firms regarding the logistics, strategy, and costs involved with pursuit of net winners residing in these firms’ various countries.
Claims against foreign net winners will likely be grouped by the country in which these individuals reside, with some actions being initiated here in the Western District of North Carolina and other actions being filed in the foreign net winners’ home countries.
The Receiver is evaluating the most efficient means of pursuing these individuals that will generate the greatest possible return for the Receivership Estate.
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Zeek Rewards – Former Management Agrees To Pay $600 Million Back
by Ted Nuyten • • 0 Comments
As first reported by Behind MLM, Paul Burks, Dawn Wright-Olivares and Daniel Olivares have agreed to pay $600 million back to the Zeek Rewards receiver.
In his status report for the second quarter of 2014, Receiver Kenneth Bell has revealed that: “By the filing date of this report, the Receiver had reached settlement agreements with Paul Burks, Dawn Wright-Olivares, and Daniel Olivares, pending Court approval.
Each of these defendants agreed to a consent judgment of $600 million to be satisfied with substantially all of their assets.
How the $600M figure will be paid back, in particular who is paying what amount, is unclear. Ditto how much of the judgement will be distributed to the scheme’s victims by the Receivership.
What is clear though is that it appears to be a lump sum, and after it’s paid – those primarily responsible for the creation and operation of the Zeek Rewards Ponzi scheme will have absolutely nothing left to show for it.
Full story: Behind MLM
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Zeek Rewards Receiver Sues MLM Attorney Kevin Grimes And Howard Kaplan For $100 Million
by Ted Nuyten • • 0 Comments
Kenneth Bell, the Zeek Rewards Receivership, filed a request for permission to file separate actions against two of Zeek Rewards attorneys, Kevin Grimes and Howard Kaplan.
The Zeek Receivership:
From January 2011 until August 2012, RVG operated a massive Ponzi and pyramid scheme through ZeekRewards, an internet based so-called “MLM” (multi-level marketing) program.
Kevin D. Grimes served as legal counsel to RVG from around January 2012 until August 2012, when RVG was placed into receivership.
By virtue of his knowledge of RVG and ZeekRewards and his legal expertise, Grimes knew or should have known that RVG was perpetrating an unlawful scheme which involved a pyramid scheme, an unregistered investment contract and/or a Ponzi scheme.
Despite this knowledge, Grimes actively encouraged investors to participate in the scheme by creating a so-called “compliance” program that provided a false façade of legality and legitimacy and knowingly allowed his name to be used to promote the scheme.
Grimes knew or should have known that insufficient income from the penny auction business was being made to pay the daily “profit share” promised by ZeekRewards.
Grimes knew or should have known that the money used to fund ZeekRewards’ distributions to Affiliates came almost entirely from new participants rather than income from the Zeekler penny