The U.S. Securities Exchange Commission shut down Rex Venture Group LLC; on Friday because of an ongoing investigation inside a $600 million Ponzi scheme the company is allegedly part of.
Zeek Rewards and Zeekler Down: Zeek Shuts Doors Possibly Due To Scam Allegations VIDEO
The company's Chief Executive Officer, Paul Burks, is being accused of orchestrating the illegal venture through the website ZeekRewards.com beginning in January, 2011. Federal Investigators said it was nothing but a scam.
Paul Burks has agreed to settle the SEC's charges against him without admitting or denying the allegations. The court has pointed a receiver to manage and distribute the remaining assets to investors. Burkes will be paying $4 million as a penalty.
Customers were offered several ways to earn money through the ZeekRewards program, two of which involved purchasing securities in the form of investment contracts.
Special Agent Glen Kessler said the Secret Service, in coordination with the U.S. Securities and Exchange Commission, is working a joint case on Zeek Rewards.
Within the past six months, dozens of users filed complaints and inquiries with the North Carolina Attorney general's office in regards to both Zeekler.com and Zeek Rewards.
The company, which is rooted in its penny auction website, has expanded in the past year to let users buy in through an "affiliates program." Some say the company is a good way to make a little more cash while others condemn it as the makings of a pyramid or Ponzi scheme.
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In order to handle the mass number of complaints and concerns the North Carolina Attorney's General office has opened a hotline for concerned Zeek Rewards affiliates or Zeekler.com retail customers. The number is (919) 717-6046.
Online reports indicate there are more than 700,000 affiliates using Zeek Rewards; however company official gave the paper a lower estimate of more than 200,000.
Whether its 200,000 or 700,000 affiliates who have been using zeek rewards, the loss of their investments could stunt the growth of the economy as some of the investors were regular civilians attempting to bring in extra income. They may not be able to see a return on their investment (ROI), thus putting them deeper in a financial burden.
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