by on August 20, 2013 Leave a Comment

SUBMIT YOUR CLAIM FORM!

keep-calm-and-please-hurry-upThis is likely going to be our last post / email blast regarding Zeek Rewards. It has been a little over a year since the company was shut down by the SEC. I know the company’s demise resulted in a lot of frustration, anger and pain. I’ve talked with people that literally lost their entire life savings. I’ve even talked with people that walked away with six figures in earnings and blew it all on frivolous expenses, stressing over ways to pay it back. Bottom line: it was bad for a lot of people.

But for those of you that lost money, there’s an opportunity to get most of it back. SUBMIT YOUR CLAIM! The receiver is charged with doling out the funds to the net losers in a fair and equitable fashion. He’s not able to do it unless you submit your claim. The deadline for the submissions is September 5. In his most recent letter sent two weeks ago, Ken Bell said,

If you have not completed and fully submitted a claim through the Receiver’s online Claim Portal or through alternative means expressly authorized by me in writing prior to 11:59pm prevailing Eastern Time on September 5, 2013, your claim will not be counted and you will not receive a distribution on account of any amounts that Zeekrewards may owe you.

The official website for the claims process is: http://www.zeekrewardsreceivership.com/. There’s a “FILE A CLAIM” button right in the middle of the site. Push it. Since it’s in electronic format, the submission process could not be any simpler. This firm actually considered helping participants file their claims. But the online portal is so simple, there’s just not much for us to do. Please submit your claims before the deadline. According to the receiver, hundreds of thousands of participants have not filed their claims. And when you submit your claims, try to follow the instructions as closely as possible. If you miscalculate your investments in Zeek, it may result in serious delays and / or a rejection of the claim.

Promises Made / Promises Kept

When we first created this site, we made four commitments: (1) we were going to provide the information for free; (2) we were never going to use your email address for anything other than posts from this site; (3) we were going to make it easy for you to stay informed; and (4) we were going to help with the claims process. The 4th commitment is a moot point. The online claim portal is simple. We’ve honored the other three. I want to send a special thanks to all of the contributors on this site: Walt Burton, my law partner; Jordan Maglich, Ponzi Tracker; Phillip Young, bankruptcy attorney and receivership specialist; and Len Clements, MLM consultant.

If you want to stay informed on what’s happening in the MLM industry, please provide your email address below. I’d love for us to stay in touch. If you’re getting this message via email, please click the link to subscribe to my newsletter.


Sincerely,

+Kevin Thompson

Ken Bell’s most recent update can be found below. If you’re reading this in your email inbox, it can be found here.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: , , ,
by on March 29, 2013 Leave a Comment

Zeek Receiver Seeks Approval of Claims Process, Notice Procedures, and Proof of Claim Form

The court-appointed receiver overseeing the $600 million ZeekRewards Ponzi scheme has filed a motion seeking approval of a claims process to compensate what could be nearly 1 million victims.  In a 21-page motion (the “Motion”), the receiver, Kenneth Bell, seeks court approval for the proposed procedures and manner of filing claims to be used by victims, as well as the use of an online claims submission form. Victims would be notified by email, would have 120 days from the Order approving the Motion to submit their claims, and any late-filed claims would be disallowed in their entirety.

The Proposed Claims Process

In the Motion, the Receiver estimates that while approximately 1 million affiliates paid money into Zeek, over 800,000 suffered losses, and the remainder were fortunate enough not only to recoup their principal investment but may also have profited.  Should the Court approve the Motion in its current form, the Receiver proposes that he will provide notice to all interested parties via several methods:

  1. Making the Claims Process publicly available on the Reeiver’s website at a soon-to-be-functional Claims Portal;
  2. Emailing all known affiliates through email addresses obtained from Receivership records and collected at the Receiver’s website;
  3. By U.S. Mail to trade creditors and other known, non-affiliate creditors; and
  4. Publishing the Receiver’s Notice on the Receiver’s website, certain multilevel marketing sites, certain newspapers, and sending the Notice to certain trade groups in the financial industry.

As previously alluded to in earlier articles on Ponzitracker, the Receiver cites the “great cost” of serving the over-2 million claimants by any other method and seeks court approval for the proposed notice procedures.  As a last resort, should an email be found to be no longer valid, the Receiver will attempt service of the notice by an alternative method, which includes a different email address or postcard to the last known address.

Within 14 days of court approval of the Motion and included in the court-approved notice to claimants, the Receiver proposes to have a Claims Portal active on his website, www.zeekrewardsreceivership.com.  According to the Receiver, the Portal is “designed to capture the claims of all Claimants…in the most cost effective way possible.”  Thus, all claimants, whether affiliates or non-affiliates, should files claims at the Claims Portal.  Indeed,

Failure to submit a validly completed claim on the Claim Portal (or by alternative means that are agreed to between such Claimant and the Receiver prior to the Bar Date) will preclude a Claimant from receiving a distribution from the Receivership Defendant regardless of the validity of the Claimant’s claims.

The Receiver proposes that, if a Valid Proof of Claim is not received by any claimant within 120 days from the date of the Order approving the claims process, that claim shall be forever barred and precluded from sharing in any distribution.  As the Receiver has already collected over half of what he estimates are the $500-$600 million in losses, this could be a substantial penalty for those who fail to timely follow the claims procedures.

The Claim Form will allow each claimant to upload supporting documentation, if any, for its claim that may be helpful to the Receiver and his team.  The failure to provide any documentation will not automatically cause that claim to be disallowed, but could delay approval – and payment – of the claim. Before submitting any claim, each claimant will be required to attest under penalty of perjury that the supplied information is accurate.

VIP Points Not Allowed

One issue of note is the Receiver’s proposal to omit any inclusion of “Retail Profit Points” or “VIP Points” in the calculation or determination of any claim.  Akin to interest, the VIP Points were accrued by purchasing sample or VIP bids and then re-distributing them to retail customers or back to Zeek.  The VIP Points then allowed the affiliate to participate in the daily percentage payout from Zeek, which averaged approximately 1.5%.  As is universally understood in other receiverships, victims of Ponzi schemes are entitled only to their lost principal balance, and not to any fictitious interest (or, in this case, points) that they may have accumulated.  Indeed, especially since the vast majority of Ponzi schemes are unable to accomplish a total return of victim losses, allowing interest as part of a valid claim would reward some victims at the expense of others.

A copy of the Motion is here.

See below for a copy of the proposed online Claim Form. If you’re reading this via email, click this link to see the claim form.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: , , ,
by on January 31, 2013 Leave a Comment

Zeek Receiver Issues Quarterly Report; Claim Form Expected Today

The court-appointed receiver for the $600 million ZeekRewards Ponzi scheme filed a quarterly report yesterday that provides a clear recap of his efforts to date, including asset recovery, the ongoing investigation, and clawback litigation.  The Receiver, Kenneth Bell, was appointed on August 17, 2012, and has since been tasked with the Herculean effort of reconstructing a complex Ponzi scheme that counts over one million investors as victims and over 80,000 that were fortunate enough to realize a profit.  A key part of the report, in what is undoubtedly a topic of interest for these victims, outlines Bell’s progress on establishing a claims process by which victims may be able to recoup some or more of their losses.  Of note, a sample claim form is expected to be filed today.

Asset Recovery Efforts

Bell first outlined the progress of his asset recovery efforts, indicating that Receivership bank accounts under his control held approximately $310 million.  This amount includes $221 million that had previously been seized by the United States Secret Service and was transferred to Bell’s control on January 15, 2013.  All cashier’s checks in Bell’s possession have been cashed, and efforts are ongoing to recover funds held by various third parties including E-Wallets and various foreign bank accounts.  At least one foreign entity is believed to hold over $12 million belonging to the Receivership and has resisted the Receiver’s efforts thus far to return those funds.  Bell indicated that he has enlisted the assistance of the Secret Service, the SEC, and the U.S. Attorney’s Office for those recovery efforts.

Clawback Litigation

Clawback lawsuits remain ongoing, and Bell clarified that he had filed proper paperwork in each of the 93 federal districts where he believes Receivership assets may be located and subject to recovery.  Bell’s investigation has revealed that at least $295 million may have been fraudulently transferred to “net winners” and thus subject to clawback claims.  In the clearest indication of how he intends to pursue clawback actions against the estimated 80,000 potential clawback targets, Bell indicated that

the Receiver’s clawback litigation is likely to be a combination of individual actions, group actions, defendant class actions, and possibly administrative damages hearings. Such proceedings will establish the key findings applicable to most, if not all, recipients of fraudulently transferred funds (findings such as the existence of a Ponzi and/or pyramid scheme). They will also separately provide a forum for the efficient determination of the proper amount of each net-winner’s repayment obligation.

The Report also states that foreign “net winner” will also be pursued, both as parties to domestic litigation based on their connections to Zeek in the United States and through foreign litigation where necessary.  Many of the foreign litigants’ countries of residence are signatories to the Hague Convention, which provides an established method to provide service of process.  Bell also indicated that he is considering claims against not only Zeek’s ‘insiders’ such as employees and contractors, but also third-party advisors that “knew or should have known of the inappropriate nature of [Zeek’s] activities and yet facilitated those activities for their own gain.”  While Bell did not expand further on the potential third-party targets, the potential claims he identified suggest that Bell may pursue law firms, accounting firms, and/or payment processors.

Claims Process

During a public conference call held on December 17, 2012, Bell devoted substantial time to providing information about an upcoming claims process by which victims could submit claims for their losses and receive future distributions.  While Bell had hoped to make these submissions by the end of January 2013, he indicated in the Report that, due to the extensive and time-consuming efforts to reconstruct receivership records that will form the basis for the claims process, he now hopes to make these filings at the conclusion of March, 2013.  With more than one million potential victims, Bell estimates that “the claims process may comprise the largest single expense for the Receivership Estate.”

Bell did say that he intended to file “screenshots” of the draft online claim forms that will be an exhibit to the Final Liquidation plan which Bell plans to file today, January 31, 2013.  Assuming the Final Liquidation plan is not filed under seal, these forms may provide the first indication for investors as to both the information Bell currently has relating to investor claims and the required information needed to dispute or affirm these calculations.  Ponzitracker will be providing both coverage and guidance as to these claim forms.

As indicated above, the Receiver’s Final Liquidation Plan is due to be filed today.

A copy of the Quarterly Report is here.

Previous Ponzitracker coverage of Zeek is here.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership
by on December 18, 2012 2 Comments

Zeek Receiver Updates Investors On Recovery Efforts, Has Harsh Words For Opposition

NOTE: The domain for the Thompson Burton Zeek Recovery site has been relocated to: www.thompsonburton.com/zeekrecovery. If you’re receiving updates via email, nothing will change. Jordan Maglich provides a great update below about receiver’s conference call with Zeek participants. In summary, the information presented on this site has been accurate to date. Zeek Rewards is not coming back. If you are a net winner, ignoring the subpoena or fighting the receivership is ill-advised. Lawsuits WILL be filed. If you lost more than you spent, organizing with net-winners is not in your best interest. As stated by Ken Bell, there’s an obvious conflict. The needs of the net winners and net losers are completely different. +Kevin Thompson

Zeek Receiver Updates Investors on Recovery Efforts

The receiver appointed to recover assets for victims of the massive $600 million ZeekRewards Ponzi scheme hosted an hour-long conference call earlier this evening in which he provided new updates on the eve of the four-month anniversary of his appointment.  In the call, Receiver Kenneth Bell revealed a wealth of new information, including estimates on total recoveries, the establishment of a claims process, and the number of victims and clawback targets.  Mr. Bell also addressed several recent filings challenging his authority and the legitimacy of the receivership, dismissing them as “absurd.”

With the benefit of now having several months to comb through financial records and other documents detailing the inner-workings of Zeek, Mr. Bell provided an update on loss and victim figures.  First, Mr. Bell estimated that approximately 840,000 affiliate ID’s invested more with Zeek than they withdrew.  Conversely, Mr. Bell estimated that 77,000 affiliate ID’s were fortunate enough to withdraw an amount in excess of their total investment.  In total, and in adherence with previous estimates, Zeek investors suffered collective losses of approximately $500 million to $600 million.  Since his appointment, Mr. Bell has secured the recovery of over $300 million – with a majority of that recovery consisting of funds returned from various financial institutions.

Claims Process

One of the most popular topics was the establishment of a claims process in which investors could eventually be permitted to receive distributions based on their loss amounts.  Mr. Bell stressed that he is working strenuously to institute a claims process, which would first require the submission of a proposed claim form and procedure to United States District Judge Graham Mullen.  According to Mr. Bell, he has set an internal deadline of submitting this information to Judge Mullen by January 31, 2013.  Once the claims form and procedure receives court approval, the claims form will likely be posted to the website and distributed to victims, who will have until a court-imposed deadline by which to submit relevant requested information.  The claim form will also specify what proof is required to substantiate claims. Upon the approval of claim forms and submission by victims, Mr. Bell also indicated his preference to proceed with an ‘interim’ distribution rather than waiting to make one final distribution at the end of the Receivership.

Clawbacks

Another popular topic was the issue of “clawbacks” against those ‘net winners’ that were fortunate enough to profit off their investment by withdrawing funds in excess of their investment.  The Receiver sent out a first wave of 1,200 subpoenas to those ‘net winners’ that were deemed to have profited most off Zeek.  According to Mr. Bell, “scores” of investors responded in a cooperative manner seeking to pay back their false profits.  However, a “whole lot” of recipients have also fought back against the requests for information.  If the Receiver is not able to reach an amicable resolution with each clawback target, he will likely proceed with the filing of a lawsuit.  The Receiver took steps last week to ensure that he may properly bring clawback lawsuits in various federal districts around the United States by filing a copy of the SEC Complaint and the Order Appointing Receiver in districts where clawback suits are likely under 28 U.S.C. 754.

Opposition Efforts

Mr. Bell also addressed the various recent filings that have sought to both contest his authority as receiver and challenge the SEC’s decision to shut down Zeek in the first place.  This included the filing by Fun Club USA of a motion seeking the appointment of an examiner, as well as a filing by several clawback targets seeking to dissolve the Receivership.  Mr. Bell saved his harshest words for these efforts, calling them “absurd” and disputing their accuracy.  As to the motion for appointment of examiner, Mr. Bell pointed out (as Ponzitracker did here) the inherent conflict of interest that would present itself since the nominee for examiner currently represents “several hundred net winners,” as well as the implications of paying such an examiner out of receivership funds.  Mr. Bell also indicated he will oppose the  motion seeking the dissolution of the receivership, saying that the “receivership is here to stay,” and represented the only and best way to make victims whole.

In closing, Mr. Bell stated that his goal was to ensure that the Receivership was the most cost-effective Receivership to date, and urged victims to regularly check his website, www.zeekrewardsreceivership.com, for updates.  A copy of the conference call is expected to be available on the website as well.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: ,
by on November 22, 2012 Leave a Comment

Panel Discussion re. Zeek – Google Hangout

The panel discussion regarding Zeek Rewards last week was a huge success. Surprisingly, there were hardly any glitches with the technology. We got over an hour of solid content locked down in the video below. It was a great discussion with multiple lawyers and professionals familiar with the Zeek Rewards case. As many of you know, the Receiver sent out approximately 1,200 subpoenas recently requesting information from many of the “net winners.” This batch of subpoenas re-ignited a host of questions from both the winners and losers affiliated with Zeek. It’s my strong professional opinion that the needs between the winners and losers are unique and at odds with one another. The “net losers” want the receiver to recover as much money as possible so as to maximize the payout to the victims. In order to make the cash pot larger, the receiver is compelled to recover funds from the people that earned more from Zeek than they “invested” / spent into the program. In other words, the net losers want / need clawback litigation to occur. On the other hand, the people that earned more money than what they invested / spent, they’ll likely want to hold onto the cash. They’re going to argue that they earned the money, spent the money, etc. Both sides have unique issues. With lawyers positioned on both sides of the issue, we compiled a panel to answer the following questions:

Can the receiver pursue Zeek participants that reside overseas?
When does it make economic sense for a receiver to sue a net winner?
If a receiver gets a judgment against a net winner, what can he do with it?
What does the claims process look like for the net losers?
When can people expect a distribution of cash?
If an affiliate paid taxes on the income, how do they get the tax money back?
And we address a host of other question.

In the Hangout, we had the following participants

+Kevin Thompson, (MLM lawyer)
Jordan Maglich (Ponzi Tracker)
Len Clements (Market Wave)
Troy Dooly (MLM Help Desk)
Walt Burton (Commercial Real Estate attorney)
Phillip Young (Corporate Litigator / Bankruptcy Lawyer)

The information is free of charge. We hope you find the video informative. Also, as a reminder, if you’d like to unsubscribe to these updates, there’s an “Unsubscribe” button on the bottom of this email.


If you’re not able to play the video in your inbox, click here.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: , , , , , , , , , , , , , ,
by on November 12, 2012 36 Comments

Google Hangout with Contributors

As many of you know, the Receiver in the Zeek case sent out well over 1,000 subpoenas to the “net winners” pursuant to the Zeek Rewards liquidation plan. In case you’re like most people and you’re not sure what a subpoena is, it’s a document from a court that compels someone to produce evidence (documents, verbal testimony, etc) pursuant to a lawsuit. In this case, the Receiver is asking for a lot of information from the “net winners.” Specifically, he’s asking about their involvement with Zeek, how much money they made from Zeek, personal financial standing, and he’s also asking about large purchases made over the past couple of years i.e. cars, boats, homes, etc. As we mentioned in the past, the Receiver is responsible for making the pot of cash as large as possible to ensure the victims get a fair amount of the proceeds. Along those lines, the Receiver is obligated to pursue funds from the net winners. As Phillip Young said in his article about the Liquidation Plan, “The receiver clearly considers any positive returns on a Zeek investment to be a fraudulent transfer, and his pleading indicates that he plans to immediately pursue the return of those funds.”

Since the subpoenas have recently been sent out, we now have a better idea of the Receiver’s plans before he issues distributions to the victims. The Contributors on this site along with Troy Dooly will be conducting a live Google Hangout to answer some of the common questions about this process. We’ll be conducting the hangout on Thursday, November 15th at 5:00 CST. The current roster of contributors is:

myself, (MLM lawyer)
Jordan Maglich (Ponzi Tracker)
Len Clements (Market Wave)
Troy Dooly (MLM Help Desk)
Walt Burton (Commercial Real Estate attorney)
Phillip Young (Corporate Litigator / Bankruptcy Lawyer)

We’ll be covering questions that are important for both the net winners and the net losers. The Hangout will be streamed live on this page AND on my personal website at www.themlmattorney.com. I’ll embed the video player on these pages. Again, the Hangout will be on Thursday, November 15th at 5:00 CST.

In the meantime, please include any of your questions in the comment section below. I’m not promising that we’ll answer all of them, but it’ll help us all get a general sense of the information you need. NOTE: disparaging comments will be deleted. +Kevin Thompson

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: , , , , , , , , ,
by on November 1, 2012 1 Comment

Zeek Receiver Posts “Subpoena FAQ” for Clawback Targets

Yesterday, the court-appointed receiver tasked with gathering assets for victims of the$600 million ZeekRewards Ponzi scheme provided various updates on the claims process, asset recoveries, and his intention to pursue those who actually profited off the scheme.  Kenneth Bell, the receiver, indicated he would begin sending out subpoenas this week as part of his plan to institute “clawback” litigation against those “net winners” that, according to Mr. Bell, withdrew hundreds of millions of dollars in profits from Zeek.  As Mr. Bell stated, the first batch of subpoenas would be sent out this week, and “thousands” more would follow in the coming weeks.

The Receiver has now added a “Subpoena FAQ” to his website established for scheme victims, www.zeekrewardsreceivership.com.  Under the tab, the Receiver lists nine commonly asked questions, and in doing so, provides several new details on the clawback process.  First, he indicates that a possible target of a subpoena can include an affiliate, participant, agent, or employee of Zeek Rewards, suggesting that he is not limiting the search to just participants in the scheme.  Second, it appears as if the scope of the subpoenas is more broad than simply the turnover of financial documents, as electronic documents and communications are being sought.  Thus, in addition to bank statements, the Receiver is also likely seeking any communications those “net winners” may have had with the Receiver or possibly other affiliates.  Finally, as speculated yesterday, the Receiver confirms that the first batch of the subpoenas are indeed sent to those “the Receiver currently believes may have won the most money.”

The FAQ’s also contain a section not only for those who have received a subpoena and do not want to proceed with litigation, but also for those who wish to avoid receiving a subpoena in the future (i.e., profited from the scheme but were not the recipient of the first batch of subpoenas).  FAQ # 9 provides that those who wish to reach an arrangement with the receiver to return those profits without “the necessity of lengthy and expensive legal action” may contact the Receiver atzeeksettlement@mcguirewoods.com to discuss the possibility of a settlement.  There is no explicit mention of a slight discount as an incentive to settle, but the wording does suggest that there may be some wiggle room.  Of course, if there is a discount offered, it would likely be an ‘across-the-board’ discount to avoid the appearance of favoritism or unfairness.

A link to the FAQ’s is here.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership
by on August 24, 2012

What can I do NOW to get my money back?

Unfortunately, there is nothing immediate that you can do or file right now. The receiver will take a few months to ramp up its operation and we don’t expect a formal claims process to start for a while. The best thing you can do now is stay informed. The e-mail updates and blog posts on this website will be a great source of information regarding news updates and claims deadlines. Also, start gathering your paperwork for the eventual claims process.

The claims will certainly require your Zeek membership information and account numbers. The claims will likely also require you to document the exact amount of investment that you made in Zeek. Gather bank statements, wire transfers, credit card receipts or other information that evidences the amounts you paid into Zeek. The claims form will likely also ask you to report any disbursements or commissions that you received from Zeek. It would be a good idea to gather this information as well. Once you’ve gathered the above information, secure it in a safe place and wait for the claims process to start. When the claims process starts, we will have a better idea of timing and sense of when you might receive a distribution from the receiver. Watch for our e-mail updates. If you have not subscribed already, please provide your email address on our subscription page.

Filed Under: Claim Form, Ponzi Scheme, Receivership
by on August 24, 2012

What is a Receivership?

Receivership statutes are very complex and are often misunderstood, even by experienced attorneys. A receivership is similar to a bankruptcy proceeding, but with a few important differences. First, unlike bankruptcies, receiverships can be filed in either state court or federal court. In a receivership, the person appointed to take control of the assets (the “receiver”) is generally bound by the powers and restrictions contained in the court’s receivership order. In Zeek’s case, the receiver is Ken Bell.

IF I AM OWED MONEY BY A COMPANY IN RECEIVERSHIP, IS IT JUST GONE?

Not necessarily. While each receivership is different, many receiverships return money (called a “distribution”) to its creditors. If you’re reading this, it’s likely that you’re a “creditor” looking for answers regarding your piece of pie. Some receiverships result in a 100% distribution; others result in little or no distribution. A receiver is charged with protecting all receivership assets, liquidating those assets, evaluating all claims filed by the receivership’s creditors, and making a distribution to all legitimate creditors. The receiver is also charge with pursuing assets from some of the “winners” in the scheme i.e. investors that pulled out significant gains. This is known as “Clawback Litigation.” The receiver may also file suit against third-party vendors that profited by supporting the scheme. The receiver ordinarily files periodic reports with the court, updating it on the value of the receivership’s assets and the amount of money spent by the receiver in carrying out his or her duties. A distribution is normally made near the conclusion of the receivership matter, which can be months or even years into the proceeding. In this case, we expect this to be a very long and complicated matter.

IF I AM A CREDITOR OF A RECEIVERSHIP, WHAT CAN I DO TO PROTECT MYSELF?

First, try to stay well-informed. Carefully read any notice or update that you receive from the court or the receiver. If other information is readily available, keep yourself updated on the status of the receivership case. Most importantly, it is vital that you complete a proof of claim form within the timeframe established by the receiver. If you are a creditor of a receivership, you should receive a claim form and instructions in the mail once the claim process has been approved by the court. It is critical that you carefully and accurately provide all of the information requested (including supporting documentation) and return it within the time allotted by the receiver. If you fail to submit a claim, if you submit incorrect or incomplete claim forms, or if you fail to submit the claim form in a timely manner, the receiver may refuse to allow your claim and you may miss out on a distribution.

Filed Under: Blog, Claim Form, Receivership Tagged With: , , , ,
by on August 23, 2012 1 Comment

Zeek Recovery, update 1

On Sunday, our law firm first published a form to solicit information from anyone negatively impacted by Zeek Rewards and seeking answers.  In response, over the last 5 days, you and over 15,000 other individuals submitted personal information to us regarding the details of your investment.  The stories are heartbreaking.  While some of you were aware of the risk, it appears that the vast majority of you were simply trusting friends and peers who introduced you to Zeek as an investment opportunity.  Some of you cashed in your 401(k)s, some of you invested college tuition money, and others invested their life savings in search of investment returns.

Many of you are personally devastated.  “Ok, now what?”

Before assembling this list of Zeek participants, we thought our role in this process would be to “get involved” by charging a small fee to each of you for legal representation.  After much consideration and debate, the answer has become crystal clear.  You’ve been through enough and probably don’t want to spend anymore of your hard earned money at this point.

During the last few days, we’ve consulted numerous professionals, including a renowned class action attorney, a ponzi scheme specialist, and a bankruptcy and receivership attorney, regarding development of a strategy to seek recovery of your investment in Zeek Rewards.  At this point, the consensus is that there is no clear legal course of action that will yield a more favorable result for you than cooperating with the receiver.  We will continue to monitor the receiver’s actions closely and will notify you immediately if we think a different course of action is needed.

With this in mind, we’ve created the Zeek Recovery site, which can be a trusted resource to assist you during your journey through the receivership process.  As part of this endeavor, we’ve assembled a roster of professionals, all agreeing to provide information free of charge on the site, as follows:

Our Commitments

  • We’re never going to charge for the information on this site.  Based on what you’ve endured, it’s just not fair.  We’re going to provide the information, free of charge, no strings attached;
  • We’re never going to provide your information to anyone, ever.  The information that you submitted on the form and continue to submit will remain strictly confidential.  Our firm, Thompson Burton, has possession of the list, and we’re not going to provide it to anyone without your permission;
  • We’re going to make it easy for you to stay informed.  All updates will be sent via email, unless you unsubscribe from this list.  We will provide you with consistent updates on Zeek, including information about the claims process, interpreting messages from the receiver, explaining court filings, important deadlines, etc.  While the receiver has published a website, it will likely only include court filings and occasional updates.  We intend to dive deeper and help you make sense of it all with interesting articles and useful information.  The receiver’s website can be found here; and
  • We’re going to provide resources to help you complete the Proof of Claim Forms.  This is the most important document in the process.  If there are any discrepancies between the receiver’s data and what you report, it gives the receiver an opportunity to reject your claim and you may not get paid.  If you would like assistance with this part of the process, you can retain us for a small fee to assist you on an individual basis.

We are humbled by your responses to our online form, and we sincerely appreciate the trust that you have placed in us.  We’re deeply sorry for the struggles many of you are enduring, and we hope to shed some positive light during this time.

Filed Under: Blog, Claim Form, Ponzi Scheme, Receivership Tagged With: , , , , , , , , , ,