Thread: Zeek Rewards !! How to get to $3K a month, starting as a free member !

Originally Posted by EagleOne

It would be the first time if they had. I was reporting that they had taken it down completely. Sorry I did not make it more clear that was what I was talking about.

But them listen to me?

LOL, they gotta listen to you, after all you've gotten such glowing (as in radioactive) reviews from that epitome of objectiveness, mmgcjm...! ( maybe the word is objectionable?)

Originally Posted by laidback

LOL, they gotta listen to you, after all you've gotten such glowing (as in radioactive) reviews from that epitome of objectiveness, mmgcjm...! ( maybe the word is objectionable?)

I was ticked that I didn't get to thank him for telling people to look at my Linkedin profile, and all the wonderful compliments he had given me along with steelkid. I wrote it and the tried to post it just as they closed the thread. I actually was giving them the links to all our other sites for them to visit.

Wanna bet that since he was the one who introduced Zeek on the forum was the reason they deleted the thread! As I said, too late as screenshots were already taken for the future if needed.

Now I think it is time for me to go and make a math mistake in the JBP thread if that is all it takes for the feds to raid JBP. In fact I think I need to go do that now.

Originally Posted by EagleOne

Wanna bet that since he was the one who introduced Zeek on the forum was the reason they deleted the thread! As I said, too late as screenshots were already taken for the future if needed.

If that was the case, they have a lot more threads to delete, that guy has introduced a lot of ahem "programs" that are closed...! It is just that in this particular instance karma bit him in the tender parts!!!

Originally Posted by Mitch McDeere

Tango Down! Tango Down!

How is Troy going to spin this?

SEC Shuts Down $600 Million Online Pyramid and Ponzi Scheme

Thanks for the link Mitch.

The SEC's complaint is linked to on that page. Here are some quotes and do recall Paul struck a deal rather than dispute these things:

4. Unbeknownst to its investors, ZeekRewards is, in reality, a massive Ponzi and pyramid scheme.

5. Approximately 98% of ZeekRewards’ total revenues, and correspondingly the purported share of “net profits” paid to current investors, are comprised of funds received from new investors.

So, the auctions, Free Store Club and Shopping Daisy contributed 2% of ZR's total revenues. Your affiliate dollars made up the rest.

1. THE RETAIL PROFIT POOL

20. Defendants attracted new investors to ZeekRewards with the promise of daily profit-share awards distributed through a Retail Profit Pool, which operates as a Ponzi scheme. According to the ZeekRewards website, through the Retail Profit Pool the company shares “up to 50% of the daily net profits” with affiliates who meet certain qualifications (“Qualified Affiliates”).

The SEC is not "out of compliance" it doesn't matter what words you use if it meets the standards of a security (an investment) it is an investment. I could sell crack cocaine but refuse to sell it to anyone who didn't call it "cookies." But when I get busted they'll take my "cookies" and if they're really crack, what will I be charged with selling?

DEFENDANTS’ OPERATION OF A FRAUDULENT PONZI AND PYRAMID SCHEME

42. Defendants represent that through the Retail Profit Pool they will pay investors, or Qualified Affiliates, “up to 50%” of the company’s daily net profits in the form of daily profit share awards.

43. Burks is solely responsible for determining the amount of “net profits” to share in the Retail Profit Pool.

44. Defendants represent that daily awards are calculated by dividing “up to 50%” of daily net profits by the number of Profit Points outstanding among all Qualified Affiliates. This calculation results in a daily dividend paid to each Qualified Affiliate that consistently has averaged approximately 1.5% per day.

45. In fact, the dividend bears no relation to the company’s net profits. Instead, Burks unilaterally and arbitrarily determines the daily dividend rate so that it averages approximately 1.5% per day, giving investors the false impression that the business is profitable.

So much for the "up to 50%" BS. Just like Ad Surf Daily and every single other "rev share" program since then the daily % is a marketing tool. Nothing else. If the % dropped people start pulling money out, if the % goes up, more money stays in. THAT is how a ponzi scheme works.

46. Despite encouraging affiliates to purchase and give away VIP Bids to promote and drive traffic to the Zeekler penny auction website, Defendants fail to disclose that almost none of the VIP Bids given away by Qualified investors are actually used on the Zeekler penny auction website. Of approximately 10 billion VIP Bids purchased by or awarded to investors, less than one-quarter of one percent have been actually used in auctions on the Zeekler penny auction website. Thus, the VIP Bids do little or nothing to actually promote the retail business.

Less than one quarter of one percent of the approximately Ten Billion VIP bids purchased have been used at the auctions. Folks, I've been doing this for years and even my jaw dropped at the number. The auctions were never anything other than an excuse to move money out of one person's pocket and into anothers.

49. Based on the average 1.5% daily dividend on 3 billion Profit Points outstanding, ZeekRewards would owe nearly $45 million per day in profit share awards to investors – ZeekRewards Qualified Affiliates – if investors requested cash rewards instead of points. The company’s actual daily revenues, which in July 2012 averaged approximately $5 million per day, cannot support the daily awards that have been consistently been “paid” or awarded at an average of approximately 1.5% per day.

To the affiliates not in profit in this program, read that quote again and then think about it. ZR was hemorrhaging money, all ponzies do. The court will appoint a receiver to liquidate Rex Venture's assets and, in a year or so you will receive some portion of the money you lost. If they didn't shut it down now there would have been fewer assets to eventually distribute to folks like you.

To the affiliates who are in profit, Dawn didn't invent the term "claw back." If your profits were substantial expect to receive a letter from the court appointed receiver. I hope you saved your profits, you will be compelled to return them to the people you took them from, the folks who lost money in this game.

RISK OF FURTHER DISSIPATION OF INVESTOR FUNDS

53. ZeekRewards’ current investor payouts are approaching, and may soon exceed, total incoming revenue. In July 2012, total revenue for ZeekRewards was approximately $162 million, while total investor cash pay-outs were approximately $160 million. If more Qualified Affiliates in the Retail Profit Pool elect to receive cash payouts for daily awards rather than reinvestment into more VIP Points, ZeekRewards’ cash outflows would eventually exceed total revenue.

54. Burks has withdrawn approximately $11 million while operating Rex Venture and ZeekRewards, of which approximately $4 million remains in his possession, custody or control.

So, last month alone, ZR took in 162 million and payed out 160 million. See how close to the brink they were and that was before any word was made public of regulatory action. If the SEC didn't shut them down they'd be broke in weeks.

Paul paid himself $11 million, and he didn't even buy himself a new car.

Folks read the complaint yourselves, when you think about it you'll see that if your were not in profit in Zeek, the SEC just did you a huge favor. And if you are in profit, you wont be for long.


Patrick weighs in on this:

URGENT >> BULLETIN >> MOVING: SEC Calls Zeek ‘$600 Million Online Pyramid And Ponzi Scheme’

GD: In regard to your statement: Paul paid himself $11 million, and he didn't even buy himself a new car., I would add not that we know about yet, but he did buy a warehouse.

That means the purchase of another MLM company was also a big lie.

An interesting bit of knowledge for all of you. I have been troubled by Troy's unbelief that Zeek was a Ponzi. I really couldn't put my finger on it until I found a document from the ASD days that listed him as one of the major promoter's of ASD. So I guess he didn't learn from ASD what a Ponzi is. Didn't realize/know Zeek was a Ponzi, not buying it.

UPDATE: In reviewing my files about ASD, I came across a document that was a summary of the information we submitted to our assigned agent working on the ASD case. This summary document showed Troy Dooly's name as one of the early supporters/promters of ASD. Since this was just a summary page, and the original document is no longer in my possession, I will state that unless I find proven information that Troy was indeed an early supporter/promoter of ASD, I am retracting this statement.

However, in my search I also found this interesting video that Troy did about the Ponzi MBPToday. I have attached the link here for you to view. MPBToday was closed due to an investigation by federal authorities that MPBToday was a Classic Ponzi. Here's the video link:

http://mlmhelpdesk.com/mlm-company-r...cam/#idc-cover

If I cannot locate the details of the summary document, I will apologize to Troy in this thread.

Deliberately arrogant, condescending, dismissive, sarcastic and demeaning I may be.

Unfortunately, I was right on all counts.

I say "unfortunately" because in among the willing ponzi players, there are thousands of real live human beings involved in this whose lives have been affected.

One of these days, the authorities are going to refuse to make any refunds from one of these ponzi busts.

The reason ??

HYIP ponzi forums openly advising "how to play HYIP ponzi games with little or no risk"

Originally Posted by littleroundman

One of these days, the authorities are going to refuse to make any refunds from one of these ponzi busts.

The reason ??

HYIP ponzi forums openly advising "how to play HYIP ponzi games with little or no risk"

How long do you think it will take for authorities to start piecing together that some people are claiming to be "victims" in multiple scams and possibly start charging them as well?

Originally Posted by EagleOne

GD: In regard to your statement: Paul paid himself $11 million, and he didn't even buy himself a new car., I would add not that we know about yet, but he did buy a warehouse.

That means the purchase of another MLM company was also a big lie.

It's a "legal" way to dissipate the assets before the end. Apparently they knew all along when AG's office sent in CID back on July 6th. When did this alleged purchase take place? I'll need to compile a timeline.

Someone's passing around this URL for "emergency webinar". I figure it's some recruitment call. Any one got time to burn?

https://www3.gotomeeting.com/register/410596598

Originally Posted by surfer

How long do you think it will take for authorities to start piecing together that some people are claiming to be "victims" in multiple scams and possibly start charging them as well?

Not so much "charging" them but more refusing to reimburse them. One innovation in the Ad Surf Daily compensation effort was starting to maintain a database of victims. It's uncertain how many times you can play these money games and still make a good faith claim of being a "victim" but logic indicates it isn't a large number.

By some metrics Zeek Rewards may have been almost ten times larger than Ad Surf Daily (and we have the MLM Dream Team to thank for that) and the government thought they were playing hard ball with ASD. It's difficult to guess what they'll do with Zeek Rewards. I might guess (and it would be nothing but a guess) that if you filed a "victim" claim with ASD or any other ponzi and tried to make a similar claim for ZR, you may not receive compensation. In the same way, if you file a claim about ZR, don't count on getting compensation in any future money games you come out on the losing end of.

If you don't spend your free time watching these things it's easy to underestimate how much financial damage these games cause. Zeek Rewards took in 600 million in a year and a half and they were only one program among many. Fraud is a multi billion dollar a year industry and some of the people who profit from it don't have our nation's best interests at heart. If anyone asks why the Secret Service was one of the agencies who locked Zeek's door, read that last sentence again.

Troy still out of touch with Reality, and now claiming there will be no criminal charges. Does that spare Darryl Douglas, Dawn, and the other insiders as well? They can just walk away with their millions in profits?

I learned last night late, that a deal had been reached. I was not allowed to mention anything until all the paperwork was signed and the feds released the info publicly. Unlike ASD or other ponzi’s there are no criminal charges. Paul will pay a $ 4 million dollar fine (less than 1% of the amount the feds state was taken in in revenue. They will control $235 million in cash, plus assets.

Paul will be allowed to take care of his ailing wife and those who have not yet pulled down their original bid purchases, will be sent a refund by the receiver of the company.

The only part I don’t fully understand is that if the regulators all feel this is a ponzi and/or pyramid (which I can see far better than a ponzi) then why are there no criminal charges?

In the way this has taken place, there will be no due process under the law for a trail where the regulators will be sharing all the info. I think this is bad for everyone because unlike ASD we will never know all the math or anything.

I still believe there was not criminal intent by anyone, but I would like to have know the real math behind this who deal.

In what is happening here, I do believe this can and may happen to all other penny auctions with a compensation plan.

Originally Posted by surfer

How long do you think it will take for authorities to start piecing together that some people are claiming to be "victims" in multiple scams and possibly start charging them as well?

Personally I think people are going to have to come to grips with the fact that behind the HYIP ponzi arena is a multi billion dollar criminal enterprise, albeit loosely organized.

IM(very)HO, it comes complete with false identities, money laundering on a massive scale, complicit payment processors, deliberate defrauding of credit card companies and a myriad of other sub scams.

Given the multi million dollar amounts involved in just the most recent "next big thing frauds" i.e. Legisi, ASD and Zeek, anyone but the most naive observer couldn't help but be horrified at the damage being done, both in the human cost and economic terms.

It's all too easy to get caught up in the moment.

Think about it.

Just in the past few weeks the usual suspect forums have been filled with people telling others to make sure to use their credit cards to fund any new Zeek activities so they could use chargebacks in anticipation of Zeek being busted

Zeek has openly admitted to use unregistered offshore banks and payment processors.

Good luck to anyone attempting to follow a money trail from a company which

* keeps no records
* accepts multiple accounts from anonymous users
* claims to have had a million+ members
* who deliberately use fake names, untraceable anonymous email
* and who transfer their money between multiple unregistered offshore payment processors
* which also allow anonymous accounts

IOW, the whole HYIP system is designed to be what most people would consider to be nothing more than one huge criminal conspiracy.

Originally Posted by Troy Dooly

The only part I don’t fully understand is that if the regulators all feel this is a ponzi and/or pyramid (which I can see far better than a ponzi) then why are there no criminal charges?

The only part I don’t fully understand

ONLY part ????

is that if the regulators

which "regulators" the SEC is not the Secret Service which is not the FBI which is not...........

is a ponzi and/or pyramid

call it what you like, Troy, it makes no difference.

then why are there no criminal charges?

YET.

Either Mr Dooly is really, really stupid and he has no idea whatsoever of how these things work or he is being deliberately naive.

The SEC CANNOT prefer criminal charges. It can only use administrative penalties or take "civil action"

The SEC CANNOT make deals with people to prevent criminal action by other agencies

The "authorities" however, CAN get together to use their combined abilities.

That's why President Obama established the Financial Fraud Enforcement Task Force (FFETF) in November 2009

The same Financial Fraud Enforcement Task Force which brought down AdSurf Daily and Andy Bowdoin

Here's how it works:

The task force has been investigating Zeek for months.

The task force gathered details (for confirmation, read the SEC complaint. They know EVERYTHING )

Using information gather by the task force, the SEC made a "CIVIL" complaint to the court and asked for "emergency relief"

Emergency relief was granted which means EVERYTHING ZEEK is frozen. No money or assets can be touched, no more money can be accepted, the websites are taken down and placed in control of the SEC, the computers and records are seized EVERYTHING

THE IMPORTANT PART HERE IS: under criminal law, the shutdown couldn't happen and the money and assets can't be frozen. Victims would lose everything

IOW, the ponzi operators would have the time it takes to get them found guilty of criminal charges, (which could be years) to hide the money and destroy the evidence, take a few months or years in the can and then retire to some tropic island.

Now the victims are protected, no more harm can be done and other members of the task force i.e. DoJ, FBI, Secret Service, IRS, Postal Services and state attorneys general can take care of the criminal charges.

Originally Posted by Mitch McDeere

Troy still out of touch with Reality, and now claiming there will be no criminal charges. Does that spare Darryl Douglas, Dawn, and the other insiders as well? They can just walk away with their millions in profits?

What the deal does in fact insure is that Paul R. Burks, as long as he complies with the terms of the plea agreement will not face prosecution for any of the charges explicitly mentioned in the extant SEC complaint.

Please note, there are more than a few charges which he could face which are not enumerated in that complaint and also Paul's deal doesn't cover anyone but him. It also may not cover any additional charges the SEC might file.

Paul has more or less admitted that Zeek Reward's VIP points were an unregistered security contract, or rather, he sold the farm rather than contesting the SEC's allegations that VIP points were an unregistered securities contact (investment). Recall that the NC AG did file a CID but they did it on July the 6th. In the weeks that passed between then and when news of the CID were made public, the people who were aware of it ~might have~ reduced their share repurchase % to 0. If you knew the house of cards was falling six weeks before word hit the affiliates, what would you're repurchase % be?

Problem here. Paul had his chance to argue before the court that the RPP was not an investment and he opted not to. So if it turns out that any insider with knoledge of the July 6th CID changed their repurchase % to 0 then they have no defense to a charge of trading on insider information (inside trading).

I'm waiting for word from some people more qualified than myself to verify a suspicion. But I rather suspect that no charge not included in the SEC complaint which Paul pleaded to will be included in his deal. Again, supposition but Paul very well might find himself in court over other issues.

Originally Posted by Glimdropper

What the deal does in fact insure is that Paul R. Burks, as long as he complies with the terms of the plea agreement will not face prosecution for any of the charges explicitly mentioned in the extant SEC complaint.

Exactly.

What I would point out is "will not face prosecution BY THE SEC for any of the charges explicitly mentioned in the extant SEC complaint. would be a more correct wording.

It's a CIVIL complaint and the requested "remedies" are those available to the SEC under the relevant legislation.

The SEC CANNOT prefer criminal charges, nor is its' agreement binding on any other agency.

In effect, what the SEC has accomplished is to freeze any and all assets and prevent any further fraud.

It's amusing watching the "petition scam" going on. One of them spams Troy's youtube channel and every news article and makes stuff up like "I talked to Dawn, she said Zeek will be back online in 3 days, 90k people have signed, the petition is working, go sign it at ....".

Then you go to the site and it has a hit counter on it and the hit counter has only 7k hits.

They are capturing information just to monetize the mailing list for some other scam.

So it's been closed down by the SEC and a receiver put in place....

I want clawbacks!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!.....

The truly scary part is... some people were still promoting Zeek today on their blogs. Even at 7 in the evening.

Originally Posted by okosh

So it's been closed down by the SEC and a receiver put in place....

I want clawbacks!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!....I want clawbacks!!!.....

From the SEC complaint:

According to the SEC’s complaint, ZeekRewards has paid out nearly $375 million to investors to date and holds approximately $225 million in investor funds in 15 foreign and domestic financial institutions. Those funds will be frozen under the emergency asset freeze granted by the court at the SEC’s request. Meanwhile, Burks has personally siphoned several million dollars of investors’ funds while operating Rex Venture and ZeekRewards, and he distributed at least $1 million to family members. Burks has agreed to relinquish his interest in the company and its assets plus pay a $4 million penalty. Additionally, the court has appointed a receiver to collect, marshal, manage and distribute remaining assets for return to harmed investors.

(Highlighting mine)

I've been reading over at MMG. The worst shills and ref wh0re5 are nowhere to be found.

Originally Posted by ProfHenryHiggins

The truly scary part is... some people were still promoting Zeek today on their blogs. Even at 7 in the evening.

One person with a downline of over 22,000 is still promoting it in her signature files. Adlandpro's Mary Evelyn Simpson is a leading figure in Adlandpro and one who has been set up to be a role model for newbies who join Adlandpro community.

This woman's fellow Americans should have something to say about her gaul.

Mary Evelyn Simpson

Originally Posted by path2prosperity

One person with a downline of over 22,000 is still promoting it in her signature files.

Oh, this wasn't a signature or pre-existing banner I was referring to. It was a brand new blog entry.

Originally Posted by path2prosperity

One person with a downline of over 22,000 is still promoting it in her signature files. Adlandpro's Mary Evelyn Simpson is a leading figure in Adlandpro and one who has been set up to be a role model for newbies who join Adlandpro community.

This woman's fellow Americans should have something to say about her gaul.

Mary Evelyn Simpson

Downline of 22,000?????????.....That would make Ken Russo and Stros look like boy scouts....