ZeekRewards investors will have to continue to sit tight and be patient as the fate of their money is now in the hands of a court-appointed receiver.
Kenneth Bell, a Charlotte, North Caroline lawyer was appointed by a U.S. district judge as temporary receiver for Rex Venture Group and ZeekRewards.com
As the receiver Bell assumes control of the operation and will work to recover and preserve any assets tied to the company. Bell admits that the process will be a lengthy one; however once it is complete he will then determine who will get funds back and who will not.
There is currently no claims or distribution process. Bell says he is first working to gather information about ZeekRewards investment history and other information from the company and its founder Paul Burks.
Last week, ZeekRewards.com was shut down by the SEC on charges of fraud and because it was proclaimed to be a Ponzi scheme nearing its death.
The SEC says online marketer Paul Burks and his company raised more than $600 million from more than one million online customers through the website ZeekRewards.com since January 2011. Investors were promised up to 50% of the company's daily net profits through a profit sharing system in which they accumulate rewards points that they can use for cash payouts, according to the agency.
"However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company's net profits. Most of ZeekRewards' total revenues and the "net profits" paid to investors have been comprised of funds received from new investors in classic Ponzi scheme fashion," the SEC claims.
Last month ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million.
Despite being shut down last week, ZeekRewards does have a substantial amount of support coming from its affiliates. Nearly 13,000 people have signed a petition to keep ZeekRewards alive. These supporters say that they are "devastated" by the shutdown and they are "supporting Paul Burks, Rex Venture Group, Zeekler/ZeekRewards and its affiliates 100 percent."
The North Carolina Department of Justice is warning ZeekRewards members about so-called reload scams.The Attorney General's office says reload scams are popping up more frequently seeking to recruit consumers who were hit by the ZeekRewards shutdown. Says the North Carolina AG Office
Anyone seeking information about the case, can send their concerns to info@ZeekRewardsReceivership.com.
For More Information about ZeekRewards.com and Ponzi Schemes please visit these links.
ZeekRewards: Ponzi Scheme VIDEO