Today is August 16, 2012 a depressing day for many when hundreds of thousands affiliates tried logging on to ZeekRewards only to find the following message “ Zeek Rewards is currently unavailable. More information will be available shortly on this website.” While the news site for ZeekRewards “http://www.zeekrewardsnews.com” is up and actively running it is flooded with so much incoming traffic that you will more than likely be getting the “503 Service Temporary Unavailable error” As ZeekRewards has over 2 million affiliates.
Why exactly did ZeekRewards and Zeekler shutdown and should we be worried? At this time affiliates need to remain calm as ZeekRewards is doing everything they are told after being put under investigation by the North Carolina Attorney General. This is not the first time an MLM company has been put under investigation, nor is it the first time ZeekRewards has been investigated. According the the North Carolina Attorney General there has been numerous complaints on Zeekler and ZeekRewards, in fact so many that it led up another investigation to ensure that everything Zeek is doing and has been doing is legal.
Some concerns raised by affiliates is “Will my earnings still accumulate for these days Zeek is down?” More than likely no as no money is going into the system, we will have to patiently wait for Zeek to come back up. Many are worried if they have lost their money or if the company will even come back up; at this point and time we can’t make assumptions even though superficially it may seem like a tragedy in the day of Zeekland.
Troubles for Zeek Rewards began this week when the company abruptly announced the cancellation of all ‘training, recruitment or leadership calls ‘ on Monday. Zeek Rewards attributed the cancellation to ‘planning’ but what they were planning was not disclosed.
I’ve received and read different accounts of what exactly went down at Zeek HQ today, but from what I can gather around 2:30pm local time someone was seen changing the locks of the office with Zeek Rewards, whilst Zeek employees were observed leaving the office via the backdoor and carrying boxes of office supplies.
Supporting these observations, unconfirmed reports that Zeek Rewards employees were fired have also emerged:
Presently there is no access to the official ZeekRewards Facebook page, however there are other fan created Facebook pages with a plethora of comments and links. We need to be cautious about the information that users are putting out there, no accuracy can be 100% guaranteed unless it’s coming from the company itself.
Troy Dooly has been following Zeek for sometime (see video above) here are some of the comments and updates we have from him: I myself personally dialed into a conference call with Troy, they are doing everything they can to make sure the company is protected.
Update 9:22am August 17th, 2012 – Zeek Rewards have just pulled the plug on their company Facebook page. No explanation has been provided.
Update 10:08am August 17th, 2012 – Troy Dooly has surfaced in a new video claiming that the changing of locks at Zeek HQ is only evidence of an “administrative investigation of some kind”.
Dooly also claims that employees carrying boxes out of Zeek offices means ‘there’s not any type of criminal investigation going on’ and that the Zeek Rewards and Zeekler websites being pulled offline is a ‘good indication has told Zeek (Rex Venture Group) that “you’re not taking in any new money, period.”‘
Despite claiming just a few days ago that Zeek’s Red Carpet day was going ahead as planned, Dooly also claimed Zeek cancelling the event “was expected”.
He confirms that as of yet he has heard nothing back from Zeek Rewards management on today’s events.
Update August 17 11:24 AM, Attorney General confirms demand for Zeek records:
The North Carolina Attorney General’s office confirmed Friday that it has made a civil demand for Rex Venture Group’s documents. However, officials say they have not shut the company down.
Continued Update: August 17, In Lexington: The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company’s chief executive officer, Paul Burks
“The obligations to investors drastically exceed the company’s cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors,” said Stephen Cohen, an Associate Director in the SEC’s Division of Enforcement. “ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing. In reality, their cash was just going to the earlier investor.”
The SEC’s complaint alleges that the scheme is teetering on collapse with investor funds at risk of dissipation without its emergency enforcement action. Last month, ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million. If customers continue to increasingly elect to receive cash payouts rather than reinvesting their money to reach higher levels of rewards points, ZeekRewards’ cash outflows would eventually exceed its total revenue.
Burks has agreed to settle the SEC’s charges against him without admitting or denying the allegations, and agreed to cooperate with a court-appointed receiver.
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.
The SEC’s investigation was conducted by Brian M. Privor and Alfred C. Tierney in the SEC’s Enforcement Division in Washington D.C. The SEC acknowledges the assistance of the Quebec Autorite des Marches Financiers and the Ontario Securities Commission.
Once everything checks out Zeek will be brought backup online, once again I can’t give out an exact time frame unfortunately. Please keep posted to the official sites of ZeekRewards for the latest news and updates. Please leave any comments or questions you may have
Zeekler is the penny auction site which we promote on a daily basis. ZeekRewards has done nothing wrong in my opinion, we are actually nothing more than an advertising platform- a rather fast growing one if I may add. Affiliates post one ad per day for Zeekler, which may not seem like a lot of work; however with millions of affiliates working together we drive real traffic to the penny auction site which eventually turns to revenue and profit sharing rewards.
A concern some people have had that I know of include how can a company that grows so large sustain itself? For one we are talking about advertising, it is a check and balance system: More advertisers equate to to more expsoure to the site which converts to more traffic and ultimately more profits. Unfortunately in ZeekRewards this didn’t work.
How is ZeekRewards any different then Amway or USANA? When somebody is sponsored you earn a commission. The only difference is we are talking about a virtual product or bids. Bids can of course be used on Zeekler and as affiliates we do get bids (that’s what are monthy subscription determines). ZeekRewards I can assure you is within compliance, especially since their compensation plan has been analyzed across the board.
Unforutantely to this day ZeekRewards has received a numerous amount of complaints which ultimately led to the investigation. I feel very positive that ZeekRewards and its sister sites will be back up and running, it’s hard to tell when, even if it means Zeek has to move office locations.
It’s nice to see all the support of the affiliates. I have made some really great friends in ZeekRewards and I plan on making many more, i’m sure many of you have the same experience.
It’s amazing how many people are in ZeekRewards across the globe, it’s nice to connect with all of you. Feel free to add me on Facebook if you’d like: email: chrisgroves3[at]gmail.com
Voice your positive and negative experiences please:
Why exactly did ZeekRewards and Zeekler shutdown and should we be worried? At this time affiliates need to remain calm as ZeekRewards is doing everything they are told after being put under investigation by the North Carolina Attorney General. This is not the first time an MLM company has been put under investigation, nor is it the first time ZeekRewards has been investigated. According the the North Carolina Attorney General there has been numerous complaints on Zeekler and ZeekRewards, in fact so many that it led up another investigation to ensure that everything Zeek is doing and has been doing is legal.
Unfortunately ZeekRewards is no more… The end of Zeek has come (continue reading below)……
ZeekRewards Website Down
Troubles for Zeek Rewards began this week when the company abruptly announced the cancellation of all ‘training, recruitment or leadership calls ‘ on Monday. Zeek Rewards attributed the cancellation to ‘planning’ but what they were planning was not disclosed.
I’ve received and read different accounts of what exactly went down at Zeek HQ today, but from what I can gather around 2:30pm local time someone was seen changing the locks of the office with Zeek Rewards, whilst Zeek employees were observed leaving the office via the backdoor and carrying boxes of office supplies.
Supporting these observations, unconfirmed reports that Zeek Rewards employees were fired have also emerged:
Charles Marsh – Anyone know why they closed the doors, fired their employees and changed the locks this afternoon at 2:30?
Zeek posted a note and said they would update affiliates on their website but I haven’t found anything yet. Anyone have any idea what is going on?
Presently there is no access to the official ZeekRewards Facebook page, however there are other fan created Facebook pages with a plethora of comments and links. We need to be cautious about the information that users are putting out there, no accuracy can be 100% guaranteed unless it’s coming from the company itself.
Troy Dooly has been following Zeek for sometime (see video above) here are some of the comments and updates we have from him: I myself personally dialed into a conference call with Troy, they are doing everything they can to make sure the company is protected.
Update 9:22am August 17th, 2012 – Zeek Rewards have just pulled the plug on their company Facebook page. No explanation has been provided.
Update 10:08am August 17th, 2012 – Troy Dooly has surfaced in a new video claiming that the changing of locks at Zeek HQ is only evidence of an “administrative investigation of some kind”.
Dooly also claims that employees carrying boxes out of Zeek offices means ‘there’s not any type of criminal investigation going on’ and that the Zeek Rewards and Zeekler websites being pulled offline is a ‘good indication has told Zeek (Rex Venture Group) that “you’re not taking in any new money, period.”‘
Despite claiming just a few days ago that Zeek’s Red Carpet day was going ahead as planned, Dooly also claimed Zeek cancelling the event “was expected”.
He confirms that as of yet he has heard nothing back from Zeek Rewards management on today’s events.
Update August 17 11:24 AM, Attorney General confirms demand for Zeek records:
The North Carolina Attorney General’s office confirmed Friday that it has made a civil demand for Rex Venture Group’s documents. However, officials say they have not shut the company down.
Continued Update: August 17, In Lexington: The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company’s chief executive officer, Paul Burks
Latest Update: Zeek Rewards is No More/Shutdown by SEC.
The SEC alleges that investors were collectively promised up to 50 percent of the company’s daily net profits through a profit sharing system in which they accumulate rewards points that they can use for cash payouts. However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company’s net profits. Most of ZeekRewards’ total revenues and the “net profits” paid to investors have been comprised of funds received from new investors in classic Ponzi scheme fashion.“The obligations to investors drastically exceed the company’s cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors,” said Stephen Cohen, an Associate Director in the SEC’s Division of Enforcement. “ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing. In reality, their cash was just going to the earlier investor.”
The SEC’s complaint alleges that the scheme is teetering on collapse with investor funds at risk of dissipation without its emergency enforcement action. Last month, ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million. If customers continue to increasingly elect to receive cash payouts rather than reinvesting their money to reach higher levels of rewards points, ZeekRewards’ cash outflows would eventually exceed its total revenue.
Burks has agreed to settle the SEC’s charges against him without admitting or denying the allegations, and agreed to cooperate with a court-appointed receiver.
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.
The SEC’s investigation was conducted by Brian M. Privor and Alfred C. Tierney in the SEC’s Enforcement Division in Washington D.C. The SEC acknowledges the assistance of the Quebec Autorite des Marches Financiers and the Ontario Securities Commission.
What Typically Happens in an Investigation?
Zeek is very strict with compliance and legalities which is why when an investigation is underway the first thing that needs to happen requires the website to be shut down so no further money can be brought into the system. Zeek of course did comply, secondly everything will have to be thoroughly investigated to ensure that Zeeks compensation plan is legal and everything they have been doing is legal as far as the revenue brought in by both Zeekler and ZeekRewards.Once everything checks out Zeek will be brought backup online, once again I can’t give out an exact time frame unfortunately. Please keep posted to the official sites of ZeekRewards for the latest news and updates. Please leave any comments or questions you may have
ZeekRewards on the News: Ponzi Scheme(Fox News)
My Passion and Experience with ZeekRewards:
My name is Chris Groves (from Utah) and I am a ZeekRewards affiliate and have been promoting it since February of 2012. I figured I would share my personal experience as I have worked very hard like many of you have in the business. Zeek is the company the brought one of the most unique business models to the MLM and Network Marketing Industry, a lot of buzz has been created from the company that showed us how pennies can make people money.Zeekler is the penny auction site which we promote on a daily basis. ZeekRewards has done nothing wrong in my opinion, we are actually nothing more than an advertising platform- a rather fast growing one if I may add. Affiliates post one ad per day for Zeekler, which may not seem like a lot of work; however with millions of affiliates working together we drive real traffic to the penny auction site which eventually turns to revenue and profit sharing rewards.
A concern some people have had that I know of include how can a company that grows so large sustain itself? For one we are talking about advertising, it is a check and balance system: More advertisers equate to to more expsoure to the site which converts to more traffic and ultimately more profits. Unfortunately in ZeekRewards this didn’t work.
How is ZeekRewards any different then Amway or USANA? When somebody is sponsored you earn a commission. The only difference is we are talking about a virtual product or bids. Bids can of course be used on Zeekler and as affiliates we do get bids (that’s what are monthy subscription determines). ZeekRewards I can assure you is within compliance, especially since their compensation plan has been analyzed across the board.
Unforutantely to this day ZeekRewards has received a numerous amount of complaints which ultimately led to the investigation. I feel very positive that ZeekRewards and its sister sites will be back up and running, it’s hard to tell when, even if it means Zeek has to move office locations.
It’s nice to see all the support of the affiliates. I have made some really great friends in ZeekRewards and I plan on making many more, i’m sure many of you have the same experience.
It’s amazing how many people are in ZeekRewards across the globe, it’s nice to connect with all of you. Feel free to add me on Facebook if you’d like: email: chrisgroves3[at]gmail.com
Voice your positive and negative experiences please:
