Receiver takes over at Zeek, affiliates seek rewards
Published: Tuesday, August 21, 2012 at 3:23 p.m.
Last Modified: Tuesday, August 21, 2012 at 3:23 p.m.
LEXINGTON, N.C. – The attorney responsible for collecting, managing and distributing Zeek Rewards funds says it's too early to predict what money will be returned to affiliates.
Last week, the federal government froze the assets of Rex Venture Group, LLC, the parent company of Zeek Rewards that was headquartered in Lexington, calling it a pyramid and Ponzi scheme on the verge of collapse. Since January 2011, the company and its Chief Executive Officer Paul Burks allegedly raised more than $600 million from nearly one million affiliates throughout the world by making unregistered offers and sales of securities, according to a complaint filed by the U.S. Securities and Exchange Commission (SEC) filed in federal court in Charlotte on Friday.
Attorney Kenneth Bell, who was named the court-appointed receiver on Friday, visited Zeek's headquarters for the first time on Monday afternoon. Bell, a partner at McGuireWoods in Charlotte, is ordered to marshal the remaining assets to harmed investors.
“It's a process,” Bell said. “We're going to try to gather as much money as we can and figure out who deserves what.”
The company currently has about $225 million in affiliate, or investor, funds in banks throughout the world, according to the SEC. About $40 million of those investor funds are being held in online payment service provider accounts, of which about $30 million are held outside the United States.
Monday was essentially Bell's first day on the job, he said, adding that the receiver process “takes a long time......More Here.
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