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

Originally Posted by littleroundman

Dawn Wright-Olivares' Plea agreement with the Department of Justice

Certainly doesn't bode well for her co-conspirators or leave any wriggle room for her.

I can't wait to see just how far down the authorities reach and charge the referral pimps. As I have posted before, Mr. Bell is at the top of my Christmas Card list. May he reach really deep and far down and squeeze the pimps extremely hard!

never mind what the receiver does,

this is the US Department of Justice, these are CRIMINAL charges and, under the terms of the plea agreement she has to reveal EVERTHING she knows about anything to do with Zeek Rewards, AND, she was there from the beginning.

As has been pointed out here before, the whole HYIP ponzi game has changed.

Once these guys are involved, it's all over red rover.

The includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

US Department of Justice Olivares press release

That is the same PFFETF which was involved in the prosecution of AdSurf Daily and Legisi.

The PFFETF does NOT miss

Task Force Members

The Financial Fraud Enforcement Task Force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.
The task force is composed of senior-level officials from the following federal departments, agencies and offices:

• Department of Justice
  
  • U.S. Attorneys' Offices
  
  
• Department of the Treasury
• Department of Commerce
• Department of Labor
• Department of Housing and Urban Development
• Department of Education
• Department of Homeland Security
• Securities and Exchange Commission
• Commodity Futures Trading Commission
• Federal Trade Commission
• Federal Deposit Insurance Corporation
• Board of Governors of the Federal Reserve System
• Federal Housing Finance Agency
• Office of Thrift Supervision
• Office of the Comptroller of the Currency
• Small Business Administration
• Federal Bureau of Investigation
• Social Security Administration
• Internal Revenue Service, Criminal Investigations
• Financial Crimes Enforcement Network
• United States Marshals Service
• United States Postal Inspection Service
• United States Secret Service
• United States Immigration and Customs Enforcement
• Recovery Accountability and Transparency Board
• National Credit Union Administration
• North American Securities Administrators Association
• National Association of Attorneys General
• National District Attorneys Association
• Offices of Inspectors General and related Federal entities, including:
  
  • Department of Justice
  • Department of the Treasury
  • Department of Housing and Urban Development
  • Department of Homeland Security
  • U.S. Postal Service
  • General Services Administration
  • Small Business Administration
  • National Science Foundation
  • Federal Housing Finance Agency
  • Troubled Asset Relief Program
  
  
• such other executive branch departments, agencies, or offices as the President may, from time to time, designate or that the Attorney General may invite.

Presidents' Financial Fraud Enforcement Task Force members

Extracts from the S.E.C. complaint against Dawn Wright-Olivares and Daniel Olivares, giving vital insights into the realities of how HYIP ponzi fraud schemes actually work:

Moreover, Wright-Olivares and other RVG personnel failed to disclose that more than 90% of all Zeek Rewards revenues (and hence net profits) were derived from new investor deposits (in the form of VIP Bid purchases and subscription fees) rather than actual retail revenues. Based on his experience working with the company databases, Olivares also knew that the majority of Zeek Rewards revenues were derived from investments by new affiliates

Both Defendants also learned and Wright-Olivares and other RVG failed to disclose,that without new investor deposits (in the form of VIP Bid purchases and subscription fees), revenues would dwindle substantially as only approximately 2% of daily revenues came from actual retail sales, and the scheme would likely collapse

Wright-Olivares knew, and Olivares learned in the course of working for RVG, that daily award payments from the Retail Profit Pool –which were credited to investor accounts, supposedly making such sums available for cash withdrawal –were unsustainable absent a constant influx of new investor money.

Based on the average 1.5% daily dividend on 3 billion Profit Points outstanding by the time ZeekRewards was shut down in August 2012, Zeek Rewards would owe nearly $45 million per day in profit share awards to investors (Zeek Rewards Qualified Affiliates) if all investors requested cash rewards instead of points. Both Wright-Olivares and Olivares knew that the company’s actual daily revenues--which averaged approximately $5 million per day(based almost entirely on new affiliate subscriptions and VIP bid purchases)at the time Zeek Rewards was shut down –could not support such daily cash payouts, but neither did anything to warn investors.

In order to discourage investors from withdrawing too much cash from the scheme, Wright-Olivares and other RVG personnel encouraged affiliates
to reinvest at least 80% of their daily awards into a point compounder, and to withdraw no more than 20% in cash. By convincing affiliates that they could compound their earnings by reinvesting daily awards, RVG slowed the outflows of cash and sustained the Zeek Rewards fraud for longer.

Despite encouraging affiliates to purchase and giveaway VIP Bids to promote and drive traffic to the Zeekler penny auction website, Wright-Olivares and other RVG personnel failed to disclose,that few of the VIP Bids given away by Qualified investors were 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 were actually used in auctions on the Zeekler penny auction website.Thus, both Wright-Olivares and Olivares learned that the VIP Bids did little or nothing to actually promote Zeekler.com or RVG’s retail business

Although Zeek Rewards paid out hundreds of millions of dollars to Qualified Affiliates through the Retail Profit Pool and the Matrix, by July 2012 the company had insufficient deposits to satisfy future awards based on outstanding Profit Points and Matrix commissions and bonuses. Thus,the scheme was nearing collapse at the time it was shut down in August

Aware that the Zeek Rewards was under investigation by several law enforcement agencies and that the business was in serious trouble in 2012, Wright-Olivares,
Olivares and others accepted, substantial sums of money from the scheme (or had prior loans forgiven) before it was shut down without advising investors

The Dispatch.com is reporting:

The potentially millions of dollars to be forfeited by two top Zeek Rewards conspirators will eventually benefit those who lost money through the alleged Ponzi scheme, a U.S. Attorney's Office officer confirmed Monday.

Former chief operating officer Dawn Wright-Olivares and master programmer Daniel Olivares, her stepson, will plead guilty or settle to criminal and civil charges for their roles in perpetuating the Lexington-based operation.

As part of proposed settlements to the civil charges, filed Friday in U.S. District Court in Charlotte, the Olivareses agreed to forfeit a total of more than $11.4 million. The payments will be made as part of the criminal cases, which will likely impose more financial penalties as well as possible prison sentences.

Lia Bantavani, a U.S. Attorney's Office public affairs officer, said any funds collected from the Olivareses will ultimately be paid to those who lost money.

A federal judge agreed to appoint receiver Ken Bell as a special master in the criminal cases, whose duties would include recommending which Zeek Rewards users are owed money and how much they are owed.

Bell, an attorney with McGuireWoods in Charlotte, was appointed receiver last August after the U.S. Securities and Exchange Commission shut down Zeek Rewards and parent company Rex Venture Group. Bell's team of attorneys, forensic database experts and law enforcement officials have collected more than $320 million for what will likely be more than 100,000 valid claimants, including some in Davidson County and thousands in North Carolina.

"The pleas and civil charges do not impact my duties, except to make it easier to recover funds from Wright-Olivares, Olivares and the other former insiders and 'net winners,'" Bell said in an email Monday.

In an effort to recover more funds, the receivership is preparing to sue insiders, including the Olivareses, as well as dozens of the largest profiteers who made money through the program. It's estimated that more than $290 million was "fraudulently transferred" to Zeek Rewards' "net winners," Bell said.

Wright-Olivares, 45, of Clarksville, Ark., is expected to plead guilty to investment fraud conspiracy and tax fraud conspiracy while Olivares, 31, also of Clarksville, will plead guilty to investment fraud conspiracy, according to plea agreements signed earlier this year. Each charge carries a maximum prison term of five years and a $250,000 fine.

Former chief executive officer and Davidson County resident Paul Burks will likely be asked to give up money he made from the company. Burks, who has not been charged criminally, settled with the SEC's original charges last year for $4 million.

Burks was referenced in court documents filed with the Olivareses cases last week, which labeled company owner "P.B." as a co-conspirator who diverted $10.1 million to personally enrich himself.

Authorities believe Zeek Rewards raised close to $850 million from nearly 1 million users throughout the world. Through the program, which was marketed as an advertising division of Zeekler.com, company officials allegedly used newer-investor payments to finance older-investor payouts, what SEC officials called a "classic" Ponzi scheme.

While it's estimated that about 840,000 users lost money, the amount of actual people is expected to be much less, as some investors used multiple user accounts. About 170,000 total claims were submitted through an online portal this year, making up a gross total of about $600 million.

You can read the full story on The Dispatch.com website

Zeek Rewards receivership website

SEC Litigation release

No mention of Zeek Rewards and I guess this will change pretty soon



Dawn Wright-Olivares' hippiediva profile on LinkedIn

Government accuses Four Oaks Bank of turning blind eye to illegal activity

Four Oaks, N.C. — The U.S. Justice Department filed suit Wednesday against Four Oaks-based Four Oaks Bank and its parent company, alleging that they allowed a third-party payment processor to debit people's accounts for illegal activities, including payday loans, online gambling and a Ponzi scheme.

The government is seeking the maximum allowed penalties in the civil suit, as well as an injunction prohibiting Four Oaks Bank from working with the Texas-based payment processor.

The suit alleges that the bank has, since 2009, provided the unidentified processor direct access to the Federal Reserve Bank of Atlanta in exchange for sizable fees. The arrangement allowed the processor to debit customer accounts without authorization.

"Four Oaks Bank officials recognized that its business model with (the processor) created a significantly increased fraud risk for the bank and for consumers," the suit states.

Bank executives turned a blind eye to repeated complaints from people who said payday lenders were racking up exorbitant fees and interest on loans that were supposedly paid off, according to the suit, and they also ignored a notice from the Arkansas Attorney General's Office that some people in that state were being charged for payday loans even though they are illegal in that state.

The suit alleges that the Texas processor also became a conduit for other third-party processors, include Redfall, which federal prosecutors linked to online gambling, and Rex Venture Group, which processed $60 million in transactions through Four Oaks bank in a Ponzi scheme known as ZeekRewards.

Reported on WRAL.com

Four Oaks Bank press release

ZeekRewards Receivership Website

We have recently added a link on Zeekrewardsreceivership.com that will allow you to check the status of any timely, fully submitted claim(s) that you filed through the Claims Portal (the “Status Check Link”). The Status Check Link can be accessed at the following address: https://cert.gardencitygroup.com/zrwdet/fs/home. The Status Check Link will allow you to log in to a webpage using the userid and password you selected when you registered on the Claim Portal. After logging into the Status Check Link, you will be brought to a webpage that will inform you whether your claim determination has been issued and will also permit you to confirm or update your contact information, as necessary. Please make sure that any contact information that you submitted is up to date so that when a claim determination for your claim is completed, you will receive notice that your claim determination has been completed. If your claim has been determined, upon logging in, you will be prompted to review your claim determination.
If, after logging in, the Status Check Link shows that your claim has not yet been determined, please be patient. We are working hard to determine all fully submitted claims of Affiliates as quickly as possible. Please do not call or email me to request the status of your claim as this will slow the claim determination process for all parties. Moreover, all entities making such requests will, to the extent they receive a response from the Receivership Team, be directed to the Status Check Link to obtain such status.
If you cannot log in after following the Status Check Link because you cannot remember your userid or password, you will be able to recover these items from the website.
If you receive the following message, it indicates we do not believe you finally submitted a timely claim:
We have located the account associated with the Registration ID and password which you have tried to use to log in to check the status of a claim. However, our records indicate that no claim was finally submitted for this Registration ID.
Before contacting the Receivership Team however, please confirm that you do not have a separate Registration ID under which you have filed a completed claim by clicking on the link below and selecting “Forgot Registration ID” and entering the email address that you have used to register. An email will be sent to the email address which you provide and that email will contain a list of Registration IDs associated with that email address.
Thank you.
If you believe this is an error, please contact us through the address listed in that message and we will evaluate your assertion.

The Zeek Rewards receiver has released his 2013 Third quarter status report

Highlights:

"On July 29, 2013, the Receiver deposited $5,592,529.49 seized by the USSS from a credit card processor, ePaymentAmerica, and $812,433.96 seized by the USSS from Eagle Bank, into the Seized Asset Account. On September 5, 2013, the Receiver deposited $3,650,614.46 seized by the USSS from one of the e-wallet providers, NxSystems, Inc., into the Seized Asset Account. The Receiver also deposited $2,350,799.63 into the Affiliate Account, the vast majority of which was received from various financial institutions for checks on which payment had previously been stopped.
In addition, the Receiver deposited $843,342.84 into the Settlement account during the third quarter.
As of September 30, 2013, the Receivership Estate held approximately $87.3 million in the Affiliate Account, approximately $230.2 million in the Seized Asset Account, approximately $1.1 million in the Pre-Filing Account, and approximately $1.4 million in the Settlement Account"

"On July 22, 2013, the Receiver, through counsel Erwin, Bishop, Capitano & Moss, P.A (“EBCM”), sent demand letters to more than 700 financial institutions to seek reimbursement for more than 7,500 cashier’s checks and bank money orders payable to Rex Venture Group on
which banks or credit unions were believed to have improperly stopped payment under Section 3-411 of the Uniform Commercial Code and in violation of the Freeze Order. One hundred eighty institutions failed to respond to the July 22 letter, and EBCM confirmed addresses and
officer names for the non-responsive institutions and sent a second round of demand letters on a rolling basis throughout September."

The Receiver’s June 30, 2013 report indicated that there were potentially $17 million in stop payment claims. The information on which the $17 million figure was based included many thousands of items that, unknown to the Receiver at that time, had been previously paid, or were
personal checks and personal money orders for which the Receiver has no claim. As of September 30, 2013, the Receivership has deposited a net total of $2,304,799.63 into the Affiliate Account from payments made after July 1, 2013 by financial institutions that were responsible for these stopped payments. The amount recovered consists of the face value of stopped payment instruments, plus reimbursement for returned item fees incurred by the Receivership as a result of the stopped payments. EBCM anticipates the gross recovery from the
cashier’s check and bank money order claims will exceed $3 million, but is not likely to reach $5 million.

It is anticipated that these collection efforts will continue for approximately another 60 to 90 days and, if there is no litigation, should be complete before the end of 2013.

During the third quarter, the Receiver continued to investigate the extent to which there are any recoverable funds from the Receivership Defendant’s former e-wallet vendors. Specifically, the Receiver has been working with the USSS to investigate and secure additional Receivership Assets connected to NxPay and LST transactions from their accounts at Four Oaks Bank. These funds include $5.2 million in improper credit card chargebacks and fees paid out after the August 17, 2012, Freeze Order issued.
In addition, the Receiver Team has persisted in its efforts to recover approximately $10 million from Payza and to confirm whether SolidTrustPay holds any additional Receivership Assets.

In addition to the assets seized from ePaymentAmerica, NxSystems, Inc. and Eagle Bank noted above, Planet Payment recently reported that it discovered another approximately $13,000.00 that it believes belongs to the Receivership Estate, and the Receiver is working to coordinate the transfer of those funds to the Receiver’s Seized Asset Account. The Receiver continues to investigate whether there are additional outstanding recoverable assets subject to seizure for the Receivership Estate.

During the third quarter, the Receiver continued working to recover the funds associated with the previously-reported foreign account. The Receiver Team is investigating this foreign account and finalizing the reconciliation of the holder’s account records. At this time, the Receiver Team estimates that this account holds approximately $10 million in Receivership
Assets.

In addition, the Receiver Team, working with the USSS, identified a foreign account held by Cyber Profit Ltd. containing an undetermined sum of money. The Receiver Team and USSS are working to determine the amount of money held in that account and coordinate the transfer of those funds to the Receiver.

Between July 1, 2013 and September 30, 2013, the Receivership Estate deposited $13,344,047.46 and disbursed $2,647,879.17. The Schedule does not include additional funds that were collected by the USSS on behalf of the Receivership Estate, totaling approximately
$856,000. Therefore, the Receiver marshaled total assets of approximately $329.2 million during the period between August 17, 2012 and September 30, 2013, while disbursing approximately $9.3 million during the same period.

As of September 30, 2013, the Receiver estimates that net winner Affiliate-Investors received over $283 million in fraudulent transfers from the Receivership Defendant.The Receiver Team intends to recoup as much of this money as possible for the Receivership Estate, but it is unable to estimate the portion of this amount that may be reduced to judgment and eventually collected.

The first clawback claims are now imminent, and a lawsuit against multiple named defendants along with a class of net winners will be filed during the fourth quarter of 2013.

In an attempt to resolve as many claims against net winners as possible prior to litigation, the Receiver has encouraged net winner Affiliate-Investors to voluntarily enter into settlement discussions with the Receiver. The Receiver has now reached settlement agreements with more than 155 net winners. These promised settlement payments total approximately $2,235,000 on net winnings of $3,940,000, an approximate 56.7% return. The individual settlements range from approximately 45% to 100% of a given individual’s net winnings, reflecting the different circumstances of the various winners and the Receiver’s judgment as to the appropriate amount, taking into consideration the amount won, the winner’s financial resources, the extent and nature of the winner’s recruitment of others to join the Scheme, when the settlement was sought, and other individual situations. During the third quarter, the Receiver entered into settlement agreements with 21 net winners, who agreed to return approximately $418,000. The Receiver will next seek the Court’s approval of the more recent settlement agreements, which the Receiver entered into subsequent to filing his June 28, 2013 Motion to Approve Settlement Agreements and for Leave to Settle Certain Claims Against Net Winners (Doc. No. 150).

As of the closing of the Claims Portal on September 5, in excess of 174,000 entities had submitted in excess of $596 million in claims against the Receivership Defendant. Approximately 99% of the entities filing claims have asserted that they were Affiliate-Investors or retail auction users of ZeekRewards. The purported Affiliate-Investors or retail auction users filed approximately 94% of the dollar amount of all claims filed against the Receivership Defendant. The remaining 1% of entities has filed claims across all of the remaining categories of creditors, with the vast majority of dollar amounts of such claims having been asserted by purported trade creditors.

Dawn Wright-Olivares and Daniel Olivares pleas, setting of release conditions and bond were today agreed upon by the US District court, Western District of North Carolina




ASDUpdates files

The Zeek Rewards receiver, Kenneth Bell has filed a 40 page Complaint Against Insiders



Highlights:

Mr Bell alleges:

"Paul Burks received payments of more than $10 million from RVG. On information and belief, Burks used investor money to provide cash gifts of more than $250,000 to his son, and more than $30,000 to his daughter"

"Wright-Olivares misappropriated over $7.8 million through the scheme.With these investor funds, she repaid personal loans, renovated her home, purchased an RV, bought multiple vehicles, and engaged in several other suspicious transactions"

"In addition, Wright-Olivares looted RVG of significant funds after it had become apparent that the scheme would soon end. In August 2012, she received over

$1.7 million from RVG, with most of this sum being paid directly to an account held by her shell corporation, Wandering Phoenix LLC. Wright-Olivares then redistributed more than $1.2 million of these funds to her personal account and de Brantes’ personal account, as well as to others involved with R

VG, including OH Brown, Robert Mecham, Peter Mingils, Aaron Baker, and Barbara Ghent. These payments were sometimes accompanied by invented one-year “consulting agreements” for the respective individuals’ purported services."

"Further, Wright-Olivares paid out $150,000 to Jonathan Wright, Suzanne Wright, and Ben Powell Construction on August 17, 2012, the day ZeekRewards was shut down and the freeze order took effect. Moreover, even a week after the freeze order was in place, Wright-Olivares was still redistributing the illicit funds, paying over$90,000 to Aaron Baker, John Wright, and her own accounts on August 24, 2012"

The Zeek Rewards receiver, Mr Kenneth Bell has filed a 40 page Net Winner Class Action



Highlights:

Perhaps we should all go and play a game of "Spot the familiar name"

The receiver has put up a list of over 9000 $1000+ net winners in .pdf format.

You can read or download it HERE

Ken Russo is on the list of the 9,000, but surprisingly Faith Sloan isn't. That was a shock. Also was thrilled to see Aaron and Shara Andrews named in the top 10 winners.

More interesting highlights from the Complaint against the insiders.pdf

Ever had one of those moments you'd give ANYTHING to go back and do over ???

I see only US people, which is normal because filled in US court.

Will there be more docs for international winners?

Originally Posted by littleroundman

Perhaps we should all go and play a game of "Spot the familiar name"

The receiver has put up a list of over 9000 $1000+ net winners in .pdf format.

You can read or download it HERE

Originally Posted by NikSam

I see only US people, which is normal because filled in US court.

Will there be more docs for international winners?

The receiver has previously indicated the bulk of international winners are in countries which are signators to The Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters and he intends where practical to institute similar action/s against non US nett winners

http://asdupdates.com/wordpress/wp-c...ers-3.1.14.pdf

Found at least one "friend" whose name is on that list and she can't say I did not warn her...

Originally Posted by EagleOne

Ken Russo is on the list of the 9,000, but surprisingly Faith Sloan isn't. That was a shock. Also was thrilled to see Aaron and Shara Andrews named in the top 10 winners.

What about mmgcjm(chris) who started the thread at MMG and who has pimped dozens of failed scams??.....I just can't remember his last name....

Originally Posted by okosh

What about mmgcjm(chris) who started the thread at MMG and who has pimped dozens of failed scams??.....I just can't remember his last name....

morrell. Don't see his name on there. There is someone with a different first name.