Receiver Recovers 300 Million in ZeekRewards Assets
9/22/2012
The court-appointed receiver for Rex Venture Group and ZeekRewards has recovered nearly $300 million in assets so far and says that there may be tens of millions of dollars more to secure.
Kenneth Bell of the Charlotte law firm McGuireWoods LLP was appointed to recover assets after the SEC shut down ZeekRewards, calling it a Ponzi scheme that was close to collapse. Once all assets have been recovered, which Bell said will take months, Zeek affiliates will be able to make claims to get money back.
Some Zeek affiliates are defending the Ponzi scheme allegations and have signed a petition to keep ZeekRewards alive, saying that the shutdown has "devastated" them and that the company has given them "the leadership and the freedom to support our families."
Paul Burks, the founder and CEO of ZeekRewards, agreed to pay a $4 million penalty and relinquish his interest in the company, without admitting or denying guilt.