Legal News

ZeekRewards.com Closed Down over $600 Million Ponzi Scheme
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Friday, U.S. District Judge Graham Mullen in Charlotte, North Carolina, issued an emergency freeze on the $ 225 million of investor funds held by ZeekRewards.com at 15 U.S. and non-U.S. financial institutions. The Securities and Exchange Commission reports that it has shut down a $ 600 million online Ponzi scheme run by ZeekRewards.com that was on the verge of collapse. Court records show that the funds put on freeze were at “imminent risk.”

The company, ZeekRewards.com, was floated in January 2011 by Paul Burks. It was advertised as a “private, invitation only, affiliate advertising division” of the penny auction website Zeekler.com. The scheme promised up to 50% of “daily net profits” to its investors through a points-based reward system. The SEC said that the scheme created a false impression of “extreme” profitability, but 98 percent of the revenue paid to old investors came from the money put in by new investors.

Burks, 65, who lives in Lexington, North Carolina, is the sole owner of Rex Venture Group LLC.  The company runs both ZeekRewards and Zeekler. The SEC also informed that Burks has agreed to settle without admitting any wrongdoing and has also agreed to cooperate with the appointment of a receiver by the court.

  
What
Where


Stephen Cohen, an associate SEC enforcement director said, “ZeekRewards misused the power of the Internet, and lured investors by making them believe they were getting an opportunity to cash in on the next big thing.” He also said, “the obligations to investors drastically exceed the company’s cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors.”

According to the Securities and Exchange Commission, things were already reaching towards imminent collapse as ZeekRewards took in $ 162 million while making cash payouts amounting to $ 160 million last month.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Deputy General Counsel / Senior Deputy General Counsel

USA-CA-Sacramento

Cal Cities Culture and Mission Cal Cities is dedicated to creating a collaborative and inclusive ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top