Affiliates Sue ZeekRewardsWritten by Pace Lattin
September 17, 2012 # 4:00 am # Industry News, Specials # 11 Comments
Since ZeekRewards has been shut down by the the SEC for a $600M Ponzi Sceme, some of the affiliates are looking to recover money as soon as possible from them in a federal lawsuit. Filed in the US District Court in Louisiana, the lawsuit has been filed against both the founder Paul Burks and Rex Venture Group. The suit claims that ZeekRewards mislead affiliates into giving money to ZeekRewards, promising them 50% of the company’s profits, when in fact it was nothing more than a Ponzi Scheme.
The Suit says “Burks personally made explicit, deceptive and untrue statements of material fact” and that the “purpose and effect of the statements, as well as the underlying scheme, was to induce (affiliates) to invest in Zeek Rewards.” For those interested in getting involved, a website at ZRLAWSUIT.com has been set up by Patrick Miller Law for anyone who is interested in joining in on the lawsuit.
However, while some affiliates are looking to recover money, the court-appointed receiver, Kenneth Bell is actually looking for those affiliates who weren’t defrauded to return their money immediately. In a public letter, posted on his website Kenneth Bell wrote:
Among those from whom we intend to recover assets are those affiliates who took more out of Rex Ventures than they put in. Many of you received little or nothing from this enterprise. In order to make everyone as whole as possible, those who profited from participating should surrender their gains.
Obviously those who have may been defrauded should get as much as possible, but affiliates who made money are asking why they should be penalized for making money. In fact, over 33,000 people have actually signed a petition to the WhiteHouse saying that not only was ZeekRewards not a Ponzi scheme, but was a profitable venture that made many affilaites money and only lost money because it was shut down by the SEC.
In no way that this company defrauded anyone. We believe that Zeekler/Zeek Rewards has given us the leadership and the freedom to support our families. For it to be taken away from us is devastating. So we are behind Paul Burks, Rex Venture Group, Zeekler/Zeek Rewards and it’s affiliates 100%!! We don’t want to be silent to these allegations that the SEC & AG office is making.
The Whitehouse refused comment on the petition, saying that they do not get involved in enforcement matters.