Monthly Archives: October 2014

The president and founder of ZeekRewards, Paul Burks, has been indicted on federal charges for operating an Internet Ponzi scheme that took in more than $850 million dollars, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, USA
The criminal indictment was returned on 24 October 2014 by a federal grand jury sitting in Charlotte, charging Burks, 67, of Lexington, N.C., with wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy.
Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join U.S. Attorney Tompkins in making today’s announcement.
According to allegations contained in the indictment, from January 2010 through August 2012, Paul Burks was the owner of Rex Venture Group, LLC (RVG), through which he owned and operated Zeekler, a sham Internet-based penny auction company, and its purported advertising division, ZeekRewards (collectively “Zeek”).
The indictment alleges that Burks and his conspirators induced victims – including over 1,500 victims in the Charlotte area – to invest in their fraudulent scheme, by falsely representing that Zeekler was generating massive retail profits from

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Herbalife Will Be Exonerated After FTC Probe

by Tina Williams • October 24, 2014 • 0 Comments

Herbalife Ltd. (HLF), the nutrition-product maker facing allegations that it runs a pyramid scheme, expects to be cleared of wrongdoing when regulators complete an investigation of the company.

“We anticipate at the end of the day we will be exonerated,” Chief Financial Officer John Desimone said in an interview. “We will wait to say anything more until the investigation is complete.”

The U.S. Federal Trade Commission is probing the Los Angeles-based maker of weight-loss shakes and nutritional supplements following accusations by billionaire hedge-fund manager Bill Ackmanthat the company misleads distributors, misrepresents sales figures and sells a commodity product at inflated prices. The Federal Bureau of Investigation also opened an investigation and several states are looking into complaints.
“We will respect the integrity of the investigations,” Desimone said. “We will fully cooperate and we have complete faith in our members and our business model.”
With a $1 billion bet against Herbalife, Ackman’s Pershing Square Capital Management LP is trying to profit from a drop in the shares. He’s been campaigning to shut down the company since December 2012, saying it exploits distributors rather than selling products to consumers.
Looking Glass
Ackman’s latest salvo came yesterday. Christine Richard, a Pershing-hired researcher who first brought Herbalife to Ackman’s attention, posted

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Groups in 3 states question Entergy finances

by Successful IBO • October 24, 2014 • 0 Comments

A spokeswoman for the company that owns nuclear plants in Vermont, Massachusetts and New York says it will respond to any new requirements federal regulators might seek after a complaint by anti-nuclear groups.

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Shipping company pleads guilty in molasses spill

by Successful IBO • October 24, 2014 • 0 Comments

A shipping company pleaded guilty plea Friday to criminal charges from a 1,400-ton molasses spill in Honolulu Harbor that killed more than 26,000 fish and other marine life, but a federal judge said he wants to examine the legality of $600,000 in community service payments the company has agreed to pay.

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Ridesharing company Uber launches in Nevada

by Successful IBO • October 24, 2014 • 0 Comments

Ridesharing company Uber launched in Las Vegas, Reno and Carson City on Friday after months of rumors that included recruitment posts on Craigslist and cryptic front-page newspaper advertisements, but the company faces a battle with the state’s highly regulated and influential taxi industry.