Zeek Rewards and Internet Censorship

[notorial dissent]

What will happen now is that whoever the receiver is, and his not so mall army of accountants, tech and clerical people will go through the books and accounts of the two seized entities, and any other entity that they find was connected to them by way of a business arrangement, or payout, i.e. NXPay, or the like will also get a freeze and seizure order, this will include any and all banks etc that funds were routinely transferred to as well, and the lucky holders of those accounts can pretty well consider whatever was in there GONE, unless they can prove they had funds in there from other sources, and will have to prove what they have taken out of the scam, and even then it isn’t going to happen anytime soon for them.

The duration of this freeze will depend largely on how good a set of records the scam kept, or didn’t depending, and how easily accessed they are. A good bet is that they aren’t going to see dime one anytime in the near future.

At some point, unless the receiver is really anti-diluvian, they will probably set up a website where the victims/suckers can go to register and expedite their claims, but the paper mail out will still most likely happen for most if not all of the ones they can identify. All of the claim parties will need to be officially notified to meet the court requirements, and between that, the assorted filings that will be required, and just general paperwork, there will be a great deal of time and expense involved in winding this shindig down. There will undoubtedly also be full page ads in major papers as public notices about this in case they don’t have correct, or any, contact for some of the class members, again a great deal more expense and time.

The real kicker, is that depending on what the legal determinations are on this, the “lucky” recipients of any payouts they can track, may well be required to return those funds on top of what they have already lost, since the money they received came from later “investors”. This was the double whammy some of Madoff’s clients ended up with, losing their money twice to the same criminal enterprise.

Basically, this was an investment scam, and so not covered by anything other than what the scammer’s had on hand, so the scamees could well be out everything, and because it was a scam, the money they got wasn’t legitimate either, and they could get hit for that as well. Not a really nice place to be I don’t think!!!!

A lot will depend on what the receiver ultimately turns up, and what the AUSA decides to do when the investigation is concluded, but I really don’t see an optimistic side to this one. Plus, to my way of thinking, some of the “investors” could ultimately face some interesting criminal charges themselves depending on what turns up.

The fact that Paul Burks threw in the towel to the SEC isn’t going to get him out of what will eventually come down, once they get through with the investigation, and I would expect that he, and several of his nearest and dearest business associates will become long term members of club Fed in the not too near future.

[wserra]

Your pdf is a classic piggyback scam, GD. Since you only link to the scam site, I've given it a more permanent home here. Depending on how things break, it may turn out to be a grand jury exhibit. Wouldn't want it to disappear one morning.

The thing contains so much bullshit it's hard to know where to begin. It's truly funny that "Craddock" begins by wanting to protect Zeeksters from "the predators out there that are trying to take advantage of this unfortunate situation". If he really wanted to do that, he'd commit suicide. Instead, he claims to want to show what "we can legally do as independent Zeek Reward affiliates to fight for our rights of due process". Y'know, I can answer that in a sentence: get your records in order, present your claim to the receiver as soon as possible, make sure to stay current on its status, and pray. There. No need to pay some scammer anything.

'Course, that's not what "Craddock" has in mind. No, he claims to want to show that "the SEC indictment [is] inaccurate". First of all, of course, the SEC doesn't indict anyone, and what happened to Zeek isn't an "indictment". It's a bad start when legal eagle's first sentence shows him to be a legal pigeon. But, he claims, they have the proof to show that Zeek isn't a ponzi. Great, what proof is that? I'm sure the reader will be shocked to learn that "Craddock" doesn't tell you. Why the fuck not? Well, it may be hard to display something that doesn't exist.

And, of course, all of this leads up to the inevitable request for money. Forget about how, if these folks really are the "leaders", they should have more at risk than anyone else. Oh, wait a second, didn't they cash out just before the shit hit the fan? And didn't they leave the little guys - the same ones they are now hitting up for money - holding the bag? Quibbles, quibbles. Because now they - the leaders - need your money to obtain "legal council". (That's "counsel", you morons. Or is this more "tortuous interference"? Illiteracy certainly jacks up the confidence in your abilities.) And "they" have set up a website for your convenience in pissing away even more dough. Who be this "they"?

Registrant:
Mail-Block.com
1893 Spruce Creek Blvd
Port Orange, FL 32128
US

Registrar: Domain.com
Domain Name: ZTEAMBIZ.COM
Created on: 25-JUN-12
Expires on: 25-JUN-13
Last Updated on: 25-JUN-12

Administrative, Technical Contact:
Craddock, Robert btmcraddock@gmail.com
Mail-Block.com
1893 Spruce Creek Blvd
Port Orange, FL 32128
US
386-405-0855

Why, it's Mr. Craddock. I think I'd like to know more about this guy. First, however, the home page actually has a link entitled "Legal Team". Awright, somebody who might actually be responsible (I know, "might") behind this crock. [Click]

Legal Team

To be anounced soon!

Well, of course it is. And that's "announced", you nitwits.

[notorial dissent]

Youch!!! The things that show up between the time you start a post and it hits the board.

I really don't think, that if I were one of the upper echelon in this little farce, that I would want to be calling too much attention to myself this way. The lower end of the pool, gene or otherwise, in this can probably get away with just filing a claim and pretending to stupidity, maybe not so much of a stretch at that, but the upper levels, well, not so much. I would think that they would be considered part of the scam itself, and looked at REAL closely, and if it comes to it, moved to the bottom of the recovery list when it comes right down to it, particularly the ones who cashed out before it crashed. Looks suspicious to me, and I will bet it will look that way to the receiver and the AUSA in charge, and those involved may have a whole lot more to worry about than getting their money back before this is all over and done with.

The whole "send us money to fight this" farce doesn't surprise me in the least, just one more opportunity to pluck the pigeons, and they will be dumb enough to go along with it. To say that the attorney in question is misrepresenting what is going on, and what he can do is an exercise in understatement, doesn't even come close to it, since as WES points out none of it is true.

My personal opinion is that the lawyers involved in this are as guilty, if not more so, than the actual masterminds who were running it, and should get to share in the jail time.

[littleroundman]

FYI, both NXPay and Solid Trust Pay have, indeed, received and acted on freeze orders on Zeek accounts.

The temporary receiver has launched a website which can be found here: Zeek Rewards Receivership.com

[GlimDropper]

Thanks again to all who replied but I'll correct Wes on one small issue, the PDF I posted was composed by a man named Dave Kettner who has a rather sordid history in promoting various ponzi/pyramid scams. He is acting in concert with Robert Craddock in promoting this scam sham of a lawsuit which is being orchestrated by Todd Disner and if history is repeating it's self Todd is working with his friend Dwight Schweitzer, comments on their previous efforts to sue the government over the prosecution of Ad Surf Daily can be found here.

A quick note of explanation, a Zeek Rewards "VIP Points" were the ponzi aspect of the scheme. A VIP point earned you an average of 1.5% ROI per day for 90 days when that point was retired. You did not earn a VIP Point by simply purchasing a $1 VIP bid, you earned the points by giving bids away to your customers. But you could only give each customer 1,000 bids so for every 1,000 VIP points you wished to earn you needed a new customer. But ZR was actively disinterested in verifying that these customers were actual human beings, they could be nothing more than a disposable e-mail account that was used to sign up for a Zeekler customer account. Dave Kettner and Todd Disner ran one of the websites which would sell you Zeekler customers to give your bids away to.

The first time I saw a spam post on one of the ponzi forums touting this "Sue the Evil Government" sham of a lawsuit I signed up for more information forthwith. This is the e-mail auto responder message I received:

Zeekers - Don't lose your income without a fight Re: subscribe

From:
suzyn posch <zeekersunite@gmail.com>
To:
xxxxxxx@yyyy.zzz
Date:
Tue, 21 Aug 2012 5:31 AM (3 days 7 hours ago)


-------------------------------------------------------
Zeek Diamond Updates zeekdiamondupdates@gmail.com
8:12 AM (2 hours ago)


PLEASE PASS THIS ON TO YOUR ZEEK TEAM and ANY ZEEK REWARDS AFFILIATE
YOU MAY KNOW...

I am joining Todd Disner who is putting together a Legal Team to go
after the Government for what they did to Zeek Rewards and How They
Did It!

Dear Zeek Rewards Team Affiliate

In a few days we are putting together a war chest to go after the SEC
and The Legal System that BROKE EVERY RULE IN THE BOOK!

They interfered with our business and our privacy. Paul Burkes was
literally Physically Sick, and did not have the strength or the will
power to fight.

We know they came in with their scare tactics the same way they did
with ASD. Do not let the press or rumors drown you out with here say.

Just because they say it that does not make it TRUE or RIGHT. They
took on ONE MAN - PAUL BURKES and WON a BATTLE...

But now they need to take on TWO MILLION ZEEK REWARD AFFILIATES who
will have a Multi-Million Dollar Legal War Chest.

Stay Tune for MORE DETAILS!!! Regarding ZEEK REWARD AFFILIATES "VS"
The Government of The United States

And if you think The Government of the USA is to big to take on... Let
me reword it for you...

ZEEK REWARD AFFILIATES & GOD "VS" The Government of The United States


PLEASE PASS THIS ON TO YOUR TEAM and ANY ZEEK REWARDS AFFILIATE YOU MAY KNOW...

TO STAY UP TO DATE E-MAIL US AT "Zeek Diamond Updates"
<zeekdiamondupdates@gmail.com>

================
Thank you for reading,
Suzyn Posch
Diamond
sjzeekler@gmail.com
Skype: sjmarkets

(Bolding mine)

Now we have our old friend Robert Craddock lending his (Fortune High Tech) Marketing skills to this effort. I haven't done any digging on Miss Posch but she has one of my e-mail addresses and I'm sure she'll share some wonderful income opportunities with me in the weeks and months ahead.

Oh, and the sham lawsuit scam has it's own FaceBook page, nice of them to help us warn people about them.

[notorial dissent]

[sarcasm mode engaged]Well, now at least we know they are sincere, they have the deity on their side.[sarcasm mode off]

I was going to ask if these people were really that dumb, but any way I try and phrase it, it comes out as a rhetorical question. Of course they're that dumb, or they wouldn't be involved in this to begin with, and the truly sad thing is that they will keep right on swallowing this hook line and sinker, since they really really want to believe they were getting something for nothing.

[wserra]

Thanks again to all who replied but I'll correct Wes on one small issue, the PDF I posted was composed by a man named Dave Kettner who has a rather sordid history in promoting various ponzi/pyramid scams. He is acting in concert with Robert Craddock in promoting this scam sham of a lawsuit

Yeah, I know. I didn't know who Kettner was, but recognized Craddock's name in the email from the kschang episode (and he registered the Son of Scam site). I have a special dislike for turds who threaten SLAPPs.

[GlimDropper]

OK, while not too strange for words it is strange enough that it might take me a moment to chose which ones I might use. Todd Disner's shamsuit has announced who their legal representation will be:

Zeek Rewards Affiliates United Against The SEC shared a link.
20 minutes ago
We have had a lot of emails, Facebook interaction, and phone calls over the more then 24 hours now since we have announced the news that we are rallying support to fight for our Zeek Rewards home businesses. Most of the responses have been
positive, some negative, and many people with questions. With all that we have been through over the past week, from the CID, to the SEC, to tons of junk posted on the Internet, I totally understand.

Many people have been asking what proof do we have and where did we get it from. As we move forward over the next few days, we will be able to release more of the proof to you and you will see very quickly why we all stepped up to fight the cause to get our Zeek Rewards business back. Realise that the SEC brought before the judge the pages that we have seen on the SEC website asking the judge for an emergency shut down of Zeek Rewards without any proof of their allegations. They were granted this emergency action due to the fact that they portrayed Zeek as a company that was imploding and not able to sustain itself. They did this to protect what they called the "investor" funds before these funds were gone and could still get the "victims" their money back.

We now know that the SEC did not present the entire picture of the Zeek Rewards business as they only used the numbers and facts that would support this emergency action to shut the company down. When the proof is presented to the court, it will show that the money that was paid to the Zeek Affilates from the revenue sharing for the RPP came directly from the profits from the Zeekler auctions especially the PAID auctions (not from the free bid auction), the Free Store Club, and other products that were sold. Affiliates were not paid from the Sample VIP Bid Purchases from the affiliates. Notice that the SEC never even mentioned anything about Zeekler and the paid auctions nor anything about the Free Store Club. These facts will prove that Zeek Rewards WAS NOT A PONZI SCHEME.

In addition, proving that Zeek Rewards was not an investment will be easy. Everything that was presented as approved material from the company clearly states that, "This is not an investment nor are you purchasing any shares in the company. Affiliates ARE NOT guaranteed any type of profits or returns." This is not exact as the sites are currently down, but it is very close. Also, we always shared either the Dog Gone Truth" video and/or the Income Disclosure Statement where it was clearly stated what the 2011 affiliates profits were and on the low end the profits for people that did nothing was zero

It is our goal to petition the courts to enjoin the emergency injunction against Zeek Rewards until the SEC can provide proof for their accusations. In addition, we will provide our proof for what the Zeek Rewards business model truly was about with ALL of the real numbers which will disprove everything the SEC has stated. From this, it is our hope to be able to reopen Zeek Rewards and move forward with our businesses.

For us to accomplish this, we need you and as many affiliates to step up and join the fight! We need as many affiliates as possible to donate what they can to help raise the funds to retain our law firm. We have heard from people wanting to know if this effort is for real and wanting to make sure that the money will be going to the correct place. Not only do you have my word being someone that is one of the core group of affiliates bringing forth these actions, but you are also fully backed by PayPal which is the #1 source for paying for products and services online. You have the confidence knowing that if the funds are not going to the correct place, then you will be able to get your money back from PayPal.

With that said, we need the masses to step up and spread the word to your teams. If only 10% of the Zeek affiliates donated just $20, we would have quite the war chest to achieve our goals. Also, any funds that are not used, will be paid back to all who donated from the protected group. We will have a CPA firm taking care of all of the donations and everything will be fully documented. The way I see it, even if you donated only $100 to this cause, it is fully worth whatever risk you think this might be to fight for your individual Zeek Rewards businesses. Plus you will be part of the protected group who will be fully represented by our law firm that will be retained. Therefore you will be protected against outside attacks as well.

I have been told that we can now share the name of the law firm that we are looking to retain on Monday. The firm is called SNR Denton and you can read about the firm here: http://www.snrdenton.com/. We cannot share the two attorneys at this time as we do not want them to receive tons of calls. Also, please do not call the law firm as they cannot take your calls. Please continue to send your questions directly to: zeeklegal@gmail.com.

We have been getting a lot of likes on our Facebook page with a lot of interaction. If you have not liked the page and/or participated, you can do here: http://budurl.com/7444. Please be sure to also post our efforts on your Facebook, send tweets, etc. All your social interaction online will help to go viral our message and get more Zeek Rewards affiliates to support our cause and join the protected group by donating money. The site to donate the funds that will be used to pay for the Law Firm is located at: http://zteambiz.com/. Fun Team USA is the company by Robert Craddock who is collecting the funds, keeping track of all the transactions, and added all of the names to the protected group.

Remember, this is our actions for justice as individual Zeek Rewards home business owners and has nothing to do with anything with corporate nor anything with the agreement that Paul Burks signed with the SEC. This is our businesses and our fight and we now have the proof that we need to stand up for our Zeek Rewards businesses and for do process of the law to happen. We have rights and we are going to fight for them. Edmund Burke stated, "Evil prevails when good men do nothing." Do not sit back and let the government wrongly take away our businesses and everything that we have worked for. I am not going to stand for it...are you?

God Bless and have faith to pray for what seems to be the impossible...but I believe that nothing is impossible if it is God's will.
SNR Denton
www.snrdenton.com
You need a law firm thats always looking out for you from every angle.Thats why SNR Denton is here. We take pragmatic action to get done what our clients need with quality and efficiency.

All I can say is if SNR Denton has actually been retained, I hope Todd is out of pocket on the deal.

[notorial dissent]

And the fantasy, and/or BS, just keeps on rolling.

If the SEC went to the trouble to go after a C&D order and put the business in receivership, there isn't anything these chuckleheads are going to be able to come up with to change that.

SEC had to have presented good and sufficient proof of their claim to get the order, which means good enough to stand up at trial, and there isn't anything that these bozos will be able to come up with to change that.

Realistically, the only thing that is going to happen now is that any money they pony up is going to go in to someone's pocket, either the promoter's or the lawyer's, and eventually the "legal team" will announce that they have been thwarted by de ebil gubbmint and that there is nothing more they can do, since in reality, there is nothing they can do at this point, except put in their claims and get in line to wait for what little they are going to get.

The chuckleheads will, I am pretty sure, keep right on believing they can get something for nothing, that this was a real business and not a scam, and that they can get their money back if only they just toss a little more money at the lawsuit, etc., etc., etc.....

This is beginning to sound like a rehash of some of the prosperity scams aftermaths.

[GlimDropper]

This is beginning to sound like a rehash of some of the prosperity scams aftermaths.

I respectfully disagree, this is starting to sound like a rehash of almost all prosperity scam's aftermaths, at least the significant ones. I've been doing my best Dian Fossey and hanging out in the mist, all I can say is that too many gorillas seem to have more dollars than sense.

But so far I haven't been banned from the mist and gorillas are curious by nature.,...


And this just in, MLM Attorney Kevin Thompson is not trying to exceed himself in schmuckatude, at least at the present moment:

You are receiving this message because you opted in to receive blog updates via email on zeekrecovery.info Aug 23, 2012

Zeek Recovery, update 1



Share on Facebook Tweet this

We've created the Zeek Recovery website. It's free. On Sunday, our law firm first published a form to solicit information from anyone negatively impacted by Zeek Rewards and seeking answers. In response, over the last 5 days, you and over 15,000 other individuals submitted personal information to us regarding the details of your investment. The stories are heartbreaking. While some of you were aware of the risk, it appears that the vast majority of you were simply trusting friends and peers who introduced you to Zeek as an investment opportunity. Some of you cashed in your 401(k)s, some of you invested college tuition money, and others invested their life savings in search of investment returns.

Many of you are personally devastated. “Ok, now what?”

Before assembling this list of Zeek participants, we thought our role in this process would be to “get involved” by charging a small fee to each of you for legal representation. After much consideration and debate, the answer has become crystal clear. You’ve been through enough and probably don’t want to spend anymore of your hard earned money at this point.

During the last few days, we’ve consulted numerous professionals, including a renowned class action attorney, a ponzi scheme specialist, and a bankruptcy and receivership attorney, regarding development of a strategy to seek recovery of your investment in Zeek Rewards. At this point, the consensus is that there is no clear legal course of action that will yield a more favorable result for you than cooperating with the receiver. We will continue to monitor the receiver’s actions closely and will notify you immediately if we think a different course of action is needed.

With this in mind, we’ve created the Zeek Recovery site, which can be a trusted resource to assist you during your journey through the receivership process. As part of this endeavor, we’ve assembled a roster of professionals, all agreeing to provide information free of charge on the site, as follows:

Kevin Thompson, the MLM attorney;
Walt Burton, transactional attorney;
Jordan Maglich, Forbes contributor and attorney specializing in Ponzi Scheme cases. Jordan is currently serving as counsel to the receiver for Arthur Nadel’s $400 million Ponzi scheme;
Phillip Young, bankruptcy attorney and receivership specialist; and
Len Clements, MLM consultant and expert witness in numerous MLM related litigation cases.

Our Commitments

We’re never going to charge for the information on this site. Based on what you’ve endured, it’s just not fair. We’re going to provide the information, free of charge, no strings attached;

We’re never going to provide your information to anyone, ever. The information that you submitted on the form and continue to submit will remain strictly confidential. Our firm, Thompson Burton, has possession of the list, and we’re not going to provide it to anyone without your permission;

We’re going to make it easy for you to stay informed. All updates will be sent via email, unless you unsubscribe from this list. We will provide you with consistent updates on Zeek, including information about the claims process, interpreting messages from the receiver, explaining court filings, important deadlines, etc. While the receiver has published a website, it will likely only include court filings and occasional updates. We intend to dive deeper and help you make sense of it all with interesting articles and useful information. The receiver’s website can be found here; and

We’re going to provide resources to help you complete the Proof of Claim Forms. This is the most important document in the process. If there are any discrepancies between the receiver’s data and what you report, it gives the receiver an opportunity to reject your claim and you may not get paid. If you would like assistance with this part of the process, you can retain us for a small fee to assist you on an individual basis.

We are humbled by your responses to our online form, and we sincerely appreciate the trust that you have placed in us. We’re deeply sorry for the struggles many of you are enduring, and we hope to shed some positive light during this time. If you do not wish to receive future updates, please hit the "Unsubscribe" button below.

All well and good, thank you Mr. Thompson for not offering some form of service you could charge Zeek Rewards affiliates for in exchange for the pert near nothing you could do for them. You're a prince.

[wserra]

All I can say is if SNR Denton has actually been retained, I hope Todd is out of pocket on the deal.

A couple of points about this "we retained a top lawfirm" stuff:

(1) BFD. Anyone with the money can retain a law firm. If the firm is honest, it may tell you that it may well be unable to do anything for you. It may tell you that your cause is all but hopeless. It may tell you that you should better donate your money to The Guru's Foundation for the Contemplation of His Navel. If this in fact happens, you're the only one that will know of this advice, due to attorney-client privilege. If you want to impress me, Zeeks, prove to me that Denton has taken the case on a contingency. I would give long odds that Denton would laugh at such an idea.

(2) If the above is correct - that Denton received a sizeable retainer against which it will bill - and if the ZeekShills aren't lying about having collected money from the little guys, then the leaders of the place are playing with house money. They personally can piss it away on lost-cause legal fees, because it isn't theirs in the first place. Which leads to probably the most important point:

(3) The interests of all former Zeeksters are decidedly not the same here. The job of a receiver in this situation is twofold: clawback money from those unjustly enriched and fairly distribute it to those unjustly impoverished. The interest of each group diametrically opposes the interest of the other. The little guys will want the receiver to succeed in clawing back as much as possible, so that there is more to distribute; the big guys will want to keep their ill-gotten gains, meaning that there is less to distribute. Since those interests are in direct conflict, Denton cannot represent both groups. Whom do you believe Denton will represent?

(4) Final point: if in fact Denton winds up representing the interests of the big guys - the people who, after all, retained them - that means that Zeek solicited and took money from allegedly thousands of their own affiliates against whose interests it is now using their own money.

I'm shocked. Shocked, I tell you.

[kschang]

Here's my little profile on Kettner...

Ex-TVI Express pyramid scheme (kicked out by Georgia many years ago)
Ex Diamond Holidays (TVI Express clone)
Ex Club Seabreeze (TVI Express clone)
has some sort of "Holistic Health" thing selling vitamin chews
and now Ex Zeek

http://kschang.blogspot.com/2012/06/che ... ttner.html

[kschang]

All well and good, thank you Mr. Thompson for not offering some form of service you could charge Zeek Rewards affiliates for in exchange for the pert near nothing you could do for them. You're a prince.

Actually, he did.

If you would like assistance with this part of the process (filing forms with the receiver), you can retain us for a small fee to assist you on an individual basis.

[GlimDropper]

Troy Dooly is a noted MLM expert and a man I find myself wishing I could respect more than I do. In many ways he really does try to look out for the "reps in the field" and in many ways he does help a lot of people. I want to make that clear. But he has not exactly covered himself with glory over this Zeek Rewards fiasco, his initial coverage of the company was fairly rational, even pointing out some of the direct parallels between ZR and Ad Surf Daily.

But early this year the tone of his ZR coverage changed. While he did continue to point out a few little red flags the balance of his coverage was positive bordering on enthusiastic. It seems he's following Len Clements lead in refusing to call anything a scam until it's ruled one in a court of law. The sad thing is he doesn't realize how much money otherwise cautious people lost in ZR due to what very cognizably be called his endorsement of the program.

He has a post up on his MLM Help Desk Blog regarding The Disner, Kettner, Craddock lawsuit sham. He's getting feedback form both sides but I think the PR snow machine is just starting to crank up. I recieved two e-mails from Mr. Kettner last night, only a few minutes apart with the second admitting an error in the first. The e-mails were basking in the sunshine of Troy's post and the only difference between the two is that the first claimed that Troy endorsed their effort and was encouraging people to donate. That thankfully is (so far) not the truth.

I have one comment posted in that discussion and anther pending Troy's approval. If anyone has a moment to fact check me I'd appreciate it. The second comment is a recommendation that donations should be sent to SNR Denton directly instead of to Mr. Craddock personally. Based on my recollection of Bob Guenther's sham trust on the behalf of ASD victims the only ones who received refunds were the ones who sent their money to the law firm. I assume there is some ethical or professional consideration involved in that? If so any comment on this issue would be appreciated.

If they're going to use Troy's blog as an advertisement then one thing I'll give Troy credit for is that he'll post nearly any respectful comment. I'd like to see that as much of the "otherside of the story" gets posted there as well.


One follow up question, I can so how this lawsuit might delay the final settlement and refunds from the receiver, but is there any way it could delay clawbacks? Todd is one of the biggest winners in ZR, if there is any way to delay losing his winnings I can see where he'd give that a try.

Thank you.

Actually, he did.

If you would like assistance with this part of the process (filing forms with the receiver), you can retain us for a small fee to assist you on an individual basis.

This part I can see, if you lost some of the records needed to file the claim with the receiver there could be some small benefit to be had for the ZR victim. Calling banks or eWallets to get duplicates, that sort of thing. Small help to be sure but it may well be worth a small fee to someone overwhelmed by the process. But as always, your mileage may vary.

[wserra]

The second comment is a recommendation that donations should be sent to SNR Denton directly instead of to Mr. Craddock personally. Based on my recollection of Bob Guenther's sham trust on the behalf of ASD victims the only ones who received refunds were the ones who sent their money to the law firm. I assume there is some ethical or professional consideration involved in that? If so any comment on this issue would be appreciated.

Recommendation one: Don't give this fool's errand a dime. Recommendation two: if you have to give, by all means give it to the law firm and not to Craddock. It says all you need to know that Craddock wanted to deposit donations in a personal account. Caveat: it may not be part of the Craddock-Denton deal that they get funds directly from individual donors. If it isn't, Denton may not be able to accept. Then we go back to #1: Don't give this fool's errand a dime.

One follow up question, I can so how this lawsuit might delay the final settlement and refunds from the receiver, but is there any way it could delay clawbacks? Todd is one of the biggest winners in ZR, if there is any way to delay losing his winnings I can see where he'd give that a try.

Or cut his losses by making himself a sufficient PITA that the receiver might cut a clawback deal with him which, in turn, would make less available for the little guys who financed him. Nice guy.

But there are other problems as well. Take a look at ¶¶ 32-33 of the order. Not only are all pending suits against Zeek stayed indefinitely, but there is an injunction against filing any new ones. The only device open to them would be a motion to reargue the entire order, including the receivership. Such a motion would have to be brought before Judge Mullen. Good luck with that one, guys.

Last but hardly least, these guys have the arguable status of creditor as against Zeek. That is not enough to grant them standing. It may well be that Burks is the only person with standing to make such a motion, and he cut a deal.

Other than this stuff, and the points I made in my previous post, it's a great idea.

[GlimDropper]

Thank you Wes, I feel like every time I show up here I'm asking for more than I have a right to expect and while you aren't the only one who has stepped up for me, someone always has. I honestly thank you and so many other people for that.

There's never been a doubt in my mind that giving money to Robert Craddock to fund this sham of a lawsuit is a bad idea. It's difficult to overstate how much I resent people who, when presented with a pre-selected pool of victims actively seek to revictimize them.

That, as much as I wish it were, isn't the issue here. I am but a humble forum admin witnessing an event I can not put a stop to. All I can do is find the right soapbox and hope I have a good enough argument when I do. Believe me Friends, I do need help with the latter.

Caveat: it may not be part of the Craddock-Denton deal that they get funds directly from individual donors. If it isn't, Denton may not be able to accept. Then we go back to #1: Don't give this fool's errand a dime.

I anticipate that should Craddock et al ever be confronted with the question of why donors should send money to them rather than to the law firm they would come up with the most convenient excuse possible to dismiss the question. What legitimate issues might factor into the "Craddock-Denton" deal which would preclude Denton for directly accepting the donations? I mean if it ain't in the contract then it ain't in the contract, but what legitimate reasons may there be for that not being in the contract? Or put another (and perhaps better) way, why would Denton, independent of Craddock, refuse to accept individual donors money? Because that's probably what Craddock et al will be pretending.

I mean sure, I can see why Craddock et al wouldn't want the funds donated to be in the control of anyone but them but that stops short of explaining why that's a good idea for their donors or why it has to be that way. I have no doubt that the people here see this point but here's the issue, Craddock et al are going to do all they can to hand wave this argument away. I am not, as the late lamented Lionel Hutz once put it "One of those Law Talking Guys" but a lot of (stupid) honest money is flowing into a bunch of stupid dishonest hands. I may very well be delusional in thinking that there's a damn thing we can do to change that but of all of my (many) delusions, I'm willing to get ornery about this one (well, that and perhaps the one about being a fifth generation descendant of Emperor Norton, twice removed, but that's an argument for another thread).

[wserra]

I feel like every time I show up here I'm asking for more than I have a right to expect

No one expects the Quatlish Explanation.

What legitimate issues might factor into the "Craddock-Denton" deal which would preclude Denton for directly accepting the donations?

If it's part of the deal Denton made with whoever allegedly retained them, nothing. If not - well, look at it this way. Unless and until a case is certified as a class action, a lawyer represents an individual (or named individuals). If you made a deal with Dewey, Cheatham and Howe (Johnny Carson's law firm), how would you feel if you suddenly found out that they were taking money on your issue from someone else? Unless such a thing is in the original agreement, it has a high potential for causing divided loyalties. As I wrote above, this entire thing is about divided loyalties - but on the part of those top-of-the-pyramid Zeeks who seek to retain counsel with others' money, not on the part of the firm.

Or put another (and perhaps better) way, why would Denton, independent of Craddock, refuse to accept individual donors money?

Because they already represent someone in the matter about which they would be receiving funds. That original agreement can always be modified, but I doubt Craddock et al are leaping to do that.

a lot of (stupid) honest money is flowing into a bunch of stupid dishonest hands.

That's what MLMs are all about, isn't it?

[Gregg]

If I recall correctly, in the ASDMBA situation, Bob Guenther paid himself, family members and other people in his inner circle salaries for taking care of the money. Not one contributor to the fund got more in the way of refunds from the government, but there was a lot of talk that a few people did get refunds, Bob claimed he made private deals to get them (which I can't help but think was illegal on a few levels) and a few more insightful people speculated that the "refunds" came in the way of money taken out of the ASDMBA contributions. When word got out, Bob rather loudly refused to give an adequate accounting of the funds, but even his own sanitized version showed him taking trips to DC and paying a family member a salary (with full benefits maybe?)

Anyhow, anyone giving money to any of these self help efforts is not going to get any preferential treatment, when they start paying back victims, everyone will get the same percentage. Now the ones in net profit, vis a vis Zeek, might, as Wes said, benefit by giving back less of their ill gotten gains. In the CEP case several very familiar sounding names from the usual HYIP Pimps were originally sued by the receiver for big 6 figure amounts and eventually settled for pennies on the dollar, in fact some of them paid back less of a percentage than the victims recovered. I can't quote them but I think one who made $410,000 settled for less than $10,000. That was a travesty. Some of the big winners in CEP also showed up in the ASD list.

What I'm waiting to see, and it will come out, is how much Troy Dooley was paid and under what guise. If the receiver takes RVG into bankruptcy not only will that come out listed as a preferential payment, but there's a very good chance Troy would have to pay it back. A guy can only hope.

[Gregg]

I was a little (okay, a lot) off on the $410k settled for $10K*, but here is a list of the actual settlements for one batch of big winners who paid a little back..
http://www.wfperkinsforcep.com/pdf/1st- ... -13-08.pdf

* I was thinking about this one
Daniel May 07-06449 $140,612.59 $10,000.00

so he got to keep $130,612.59 and this is not unusual in the rest of the cases....

[GlimDropper]

Thank you Wes and Gregg, I think the picture is starting to get a little clearer. This was Dave Kettner's e-mail update for the day:

Zeek Affiliates Legal Team Update

From:
Dave Kettner <zeeksamurai@gmail.com>
To:
xxxxxxxx@yyyy.zzz
Date:
Mon, 27 Aug 2012 9:34 AM (6 hours 24 minutes ago)

IMPORTANT - DO NOT CONTACT THE LAW FIRM or our attorneys! If you have any questions, they need to go directly through Robert and the lines of communications we have set up. There are only 12 people that are allowed to speak directly to the law firm and they have asked for no one else to call regarding our case. This is delaying the work they need to do, so please stop!

As everyone knows, Zeek Rewards is under the control of Kenneth D. Bell of McGuire Woods LLP as temporary receiver of ZeekRewards for the purposes of marshaling and preserving all assets of ZeekRewards and those assets (a) held or possessed by ZeekRewards; (b) held in constructive trust for ZeekRewards; and (c) fraudulently transferred by ZeekRewards.

For this reason the leaders of Zeek Rewards (your up line leaders) are working to correct this issue. The leaders have come together and are in the process of obtaining a law firm to represent all of us that join the protected group. You simple action of going http://www.ZteamBiz.com and donating anything from $20 dollars to $100 dollars will allow us to hire one of the best if not the best firm in the country to protect us.

Our goals are simple, first protect everyone one of us by first proving that Zeek was not a ponzi scheme, second by assisting Paul Burke to re-open Zeek Rewards allowing all of us to continue making money. And last to prevent the government from keeping all the money that we used to purchase bids with and the money we have received or is pending in one of the e-wallets.

We feel our chances are good and expect to restore Zeek to a position better than it was before.

There will be an additional link coming up on http://www.Zteambiz.com for latest news and updates we will be keeping everyone informed at this location.

If you can spread the word as we are putting together a dream team of attorneys, accountants and PR firms to assist in correcting the damage the government has caused and restoring our income.

In the next few days, a website will be set up for everyone who donated money to be able to enter their name, address, email, phone number and Zeek Rewards username if they were not able to enter when submitting the PayPal purchase.

Please continue to Like our Facebook page in support of our cause and spread the word here: http://budurl.com/rr8n.

A recording was set up online of the call that we announced on from Saturday giving more details about our fight against the SEC here: http://www.youtube.com/watch?v=ncoYErdhw4Q.

Please send any questions that you may have directly to: zeeklegal@gmail.com.

Sincerely,

Zeek Affiliates Legal Team

Only 12 people "allowed" to speak with the attorney? Might that be the 12 clients?

There is so much BS on that call, the main speaker is our good buddy Robbert Craddock and at about 26:20 Robbert admits that he was acting under the direction of ZR COO Greg Caldwell when he took down KSChang's Hubpage and he wasn't "formally engaged" with the company at the time.

But it's well worth scrolling forward to about the 24:45 mark where Todd Disner reveals that the clawbacks have already started (and he called Dwight a "lawyer" )