It’s Official: The SEC Closes Zeek Rewards!!!

It’s official. The SEC filed fraud charges and an immediate asset freeze against Rex Venture Group, parent company of Zeek Rewards. According to the SEC, Zeek Rewards was on the verge of collapse and had been identified as a $600 million Ponzi scheme!!! The report stated that revenues were on the verge of dipping well below the cash payout to subscribers. As with every other Ponzi scheme, Paul Burks stole millions of dollars from investors and freely distributed to family members was fined $4 million. Zeek Rewards had more than 1 million subscribers world-wide. As of Thursday, August 16, 2012, according to The-Dispatch.com, Zeek Rewards voluntarily closed their doors. It’s seems very ironic that Zeek Rewards would “voluntarily” close the doors and shut down the website now that the SEC is investigating the company!!!  I wonder why the 1 million plus subscribers/investors were not notified of these abrupt changes. Indeed, the typical Ponzi scheme. Zeek Rewards was a time bomb waiting to explode!!!!

Zeek Rewards Investigated by SEC and North Carolina Attorney General

As if having the SEC investigating was not enough, the North Carolina Attorney General’s office had received many complaints about Zeek Rewards, Zeekler.com and Rex Venture Group. Upon receiving dozens of complaints, the North Carolina Attorney General demanded the Civil Investigation Demand requiring Zeek Rewards to supply precise documents to the state of North Carolina. Unfortunately, Zeek Rewards has not supplied the requested documents. The SEC complaint filed in Charlotte, North Carolina stated customers received money in multiple ways including the purchase of securities in the form of investment contracts that were not registered with the SEC which is a requirement under federal law!!! Now this is indeed strange. Zeek Rewards subscribers were told to purchase bids which were combined into the company pool with other subscribers and 50% of the profits were being split amongst the subscribers!! Where did investment contracts come from? Talking about deception at its best! Again the typical Ponzi scheme!!! What in the world did Paul Burks expect to happen if investments contracts were being used that were not registered with the SEC?

What did Zeek Rewards do with the Money?

According to the SEC, Zeek Rewards website was fraudulently communicated as a bogus notion that the company was significantly profitable when the current cash payouts had no relation to the company’s current profits!! In July 2012, Zeek Rewards revenue was approximately $162 million while cash payouts to subscribers were $160 million. The only reason there was a $2 million difference was because new subscribers were reinvesting their profits!! Can you image what would have happened if all 1 million subscribers requested cash payouts? That’s right, the company would have collapsed financially. The monies that were being paid out to subscribers were comprised of monies from new subscribers. There you have it, the typical Ponzi scheme with a little twist!!! Instead of telling subscribers that they were buying investment contracts, Zeek Rewards stated subscribers were purchasing VIP bids which determined the amount of cash that was accumulating to eventually be paid out.

There’s Light at the End of the Tunnel with Zeek Rewards Ponzi Scheme

According to the SEC, Paul Burks has agreed to settle charges against him yet without taking responsibility for his actions by cooperating with a court appointed receiver. Since January 2011, Zeek Rewards has paid out $375 million to subscribers while the SEC has frozen $225 million of subscriber’s funds. But unlike other Ponzi schemes, subscribers will receive their initial investment which equates to a total of $4 million unfortunately, accumulated cash payout will not be received. Subscribers will receive their initial investment via a court appointed receiver selected by the SEC.

To Your Prosperity and Success

Gina Jones

PS, Although Zeek Rewards did not work for you, there are still legal vehicles available to help you obtain financial freedom and increase your income minus a Ponzi scheme. This may or may not be for you but two men expose a commission loophole that’s putting money into bank accounts right now!!! Click Here to watch leaked video revealing how this once homeless “van man” and ex-construction worker discovered a lucrative solution to making money online.