Zeek Rewards and Internet Censorship

[webhick]

now all my food tastes like chicken, except the KFC someone brought over.

That's because KFC has more to do with soylent green than chicken.

I'm going to live, and I'll be back to my plan of World Domination on Tuesday.

I'll tell everyone they're going to have to put all your stuff back in your office. Oh, by the way, your office is now the janitorial closet in the sub-basement. You should tell yourself that it's an improvement, that the lighting is better or something.

[Gregg]

I have to give credit where it's due, so I'd like to say that I'm carrying on a dialogue of sorts with Troy Dooly and while I do not agree with his positions at all, the man has been more than fair with me after I had some pretty harsh comments about him on his site. Comments he could have just ignored and not published but that he chose to not only allow but to address them with good faith arguments of his own. We have vastly different points of view but I have come in the last 24 hours to have a lot of respect for his character.

GBE

[wserra]

good faith arguments of his own.

If Dooly's arguments were made in good faith, I guess you'd have a point. They're not, however. The guy's a pimp, like Cook and Clements and others. If they told the truth - even in an MLM that's not an outright ponzi, the odds of you making a dime are slim - they'd be out of a job. They'd be here with us on Q, or with our friends on RealScam, and nobody pays us to do this.

I take it that you are speaking of your exchange with Dooly in the comments of this blog entry. Especially since we were lambasting Zeek before it was shut down and he was defending it, Dooly can't back off completely. So he half-assed defends them:

(1) Just the title of the blog entry - "Breaking Zeek Rewards News: SRN Denton To Represent Zeek Affiliates United Against What is Believed to be Unlawful Action by the SEC" - is inaccurate in numerous ways, and he has done nothing to change it. Denton does not represent the affiliates, let alone "affiliates united". Who believes the SEC action was unlawful - the ponzi promoters? There's an unbiased source. Certainly not the Court, which ordered the receivership.

(2) "So far this group of affiliates is around 5000 strong and growing from reviewing their website.... Robert Craddock, explained that early this next week the lawfirm of SNR Denton will release a press release notifying the Rex Venture Group, LLC receiver they are representing this group of Zeek Affiliates". Outright bullshit, as we have seen.

(3) From Dooly's comment to you, as of this writing "1 day ago": "Just because a person made money doesn't mean they were purposely doing anything illegal." As you recognized, that's not the standard. Part of the job of the receiver is to assure, to the extent possible, that the pain is shared equally, even given no culpability in the fraud. Dooly may not have realized this - but then why does he post as though he knows the law? Why, because he's an "MLM expert". Self-proclaimed, of course.

(4) From the same comment: "Especially since this is just a complaint and the SEC has not had to defend their position in a court of law." Where does this nitwit think the receivership order came from? Hint, Troy: a court of law.

(5) From the same comment: "Do you not feel there needs to be a day in court in order for those effected to not know for sure if the SEC complaint can be defended or not?" As you write, this is about as ignorant as a comment can get.

(6) After you correct him, Dooly still insists on ignorance, likely because he can't afford to admit that he is wrong about, well, everything: "But, allegations are not judicial rulings, and all complaints from any regulatory body can be questioned in open court by any citizen of the USA. Heck from anyone for that matter." Wrong, wrong, wrong.

(7) In his final paragraph, Dooly proves that he has not understood a word you wrote: "Now I agree 100% that all folks who donate to this lawsuit need to be added officially if at all possible". Your whole (quite correct) point was that it's not possible, because the losers and the winners have irreconcilably opposed interests. Once you explained it, that shouldn't be a hard concept to grasp. Dooly just doesn't want to, because it reinforces just how badly the little guys - the folks he was supposedly looking out for - were fleeced.

The guy's a shill - maybe a more open shill than others, but still a shill. He waxes indignant over how Zeek only paid him about $20K in reimbursed expenses for speaking at their conferences. But the point is that he spoke at their conferences. That's how these guys get their exposure, so people will subscribe to their "newsletters" and buy their crap. What's he gonna say now: "Yeah, I helped to promote a ponzi, but you should trust me anyway"?

[Gregg]

He gets $75 a month to be a member of his newsletter. WOW.

I meant what I said about I think he needs to find a new line of work. Whether he means it or realizes or not, he's dangerous. Partly because the choir he's preaching to accepts his self appointed status as an expert, when he's really not an expert at all on the things he's going on about.
You're an expert in some aspect of the law, but even in that field, there's a big difference between a criminal attorney and a tax attorney. I dunno, maybe Troy is an expert on how the mechanics of a double down non-forced 2x6 matrix work, but if so he ought to confine himself to talking about MLM compensation plans (a field I think might be a sub-specialty of Disaster Area Tax Returns and improbability fields). He shows every time he opens his mouth that he doesn't know basic concepts of business.

As to the denial, if nothing else I really hope to get to acknowledge that the people who are hiring these lawyers to defend themselves are looking to prevent themselves from having to give anything back. The people they are soliciting donations from are soon going to be the ones suing them, through the receiver albeit.

[Gregg]

You know, now that I think about it, how many times did he go their events that racked up $20k in expenses? I just went over my expenses from my recent 5 day trip to Salt Lake City. I spent $1100 for first class airline tickets, $600 for a room at the Hyatt, $400 rental car, $400 in meals where I bought dinner for others one night. I spent $50 at WalMart buying snacks etc.. for the room. Even if I include the roughly $5000 I spent at the racetrack I'm not approaching $20K.

In my last comment I offered to go on his radio show and he's invited me to do so, I'll post the details if this happens, I have some questions about his format and stuff, is it live, does he have call ins, stuff like that. Anyone with any questions they'd like to see me ask, let me know and if I do it, I'll try to work them in.

[GlimDropper]

More than likely he's talking about the Blogtalk radio show he does on Friday nights with Jim Gillhouse. (Link)

It would be live and I'm not sure if there would be callers or not. And it's generally about an hour long. To get a feel for the format listen to the June 8th broadcast, I think that's one episode that Troy now regrets.

[GlimDropper]

After a period of radio silence this hit my inbox:

LATEST NEWS



Update as of September 5, 2012

As Zeek Rewards always used to say, “Greetings Fine People”. This has been a busy past few days, so let me address the concerns and anxieties. As we have moved forward to question the SEC actions and filings to obtain an emergency order in freezing Rex Venture Group assets and ours by freezing each person associated with Rex Venture Groups e-wallet, we have to all understand the magnitude of having each person resented in this first phase, would be overwhelming and would take months to get everything filed. What was agreed upon is if we can take a small group limits the scope of our goals to just challenging the SEC application, and if we prevail we win for everyone, because having that ruling reversed, will impact everyone one of us. Simply your e-wallet will be un-frozen and you will have access to any funds you had in it at the time of closure.

What else would that do, and again we can use that win as a basis to open discussions with the NC DOJ on the concerns over how Paul was forced into turning over Rex Venture Group on the 16th of August 2012.

We have a team of legal professionals that will be leading the charge to file the needed motion and please understand the contacting of SNR Denton has caused huge issues and slowed up the process. I can tell you there is a different legal team leading the charge in the next 10 days to get this in front of the court, and we are greatly encouraged as to the potential outcome.

To let everyone know where we are at we have had right at 6,000 people donate money to help with the legal costs, about 175 people have filed what is called a charge back that has taken away from the money we have to pay the attorneys and about 4,000 people have sent in their information to be part of the group going forward but at this time they are unable to assist with any legal expenses. It is important that if someone wants to be up to date on the latest happenings and be part of this group as we move forward they need to just simply go to the login page at http://www.zteambiz.net and click on the link to sign up, they will not be asked to pay anything, but if they wish to later there is a donate button in the backend area of the site that will be created for them.



We are expecting more positive news in the coming days and we will use this area to keep you informed and up to speed on the latest.



Thanks again for your help and support.

Robert

Bolding mine. Different legal team? I hope it's Dwight and Todd.

[wserra]

After a period of radio silence this hit my inbox:

please understand the contacting of SNR Denton has caused huge issues and slowed up the process.

I'll bet it did. "Who are all these people, and why the fuck do they think we represent them?" would tend to do that. Did you ever hear back from them, Gregg? I'd say they told Craddock et al to take a hike.

I can tell you there is a different legal team leading the charge in the next 10 days to get this in front of the court

Lionel Hutz & Associates.

[Kestrel]

After a period of radio silence this hit my inbox:

... we have to all understand the magnitude of having each person resented in this first phase ...

Typo? Or Freudian slip?

To let everyone know where we are at we have had right at 6,000 people donate money to help with the legal costs, about 175 people have filed what is called a charge back that has taken away from the money we have to pay the attorneys and about 4,000 people have sent in their information to be part of the group going forward but at this time they are unable to assist with any legal expenses.

Yeah, that could cause some resentment...

[GlimDropper]

From the Zeek Affiliates United Against the SEC FaceBook page:

Zeek Rewards Affiliates United Against The SEC
3 minutes ago
My fellow home business owners:
The initial purpose of this page was to let all Zeek Rewards affiliates know that a fight for their business had begun. We are no longer posting anything that might compromise this movement in court on this open forum. All information will come from the new pass word protected site that was set up. To gain access to this site, if you don't already have it, please write to zeeklegal@gmail.com include your name, email address, and Zeek user name. From there that team will send you back the site and a password. Go to the site and update all information, from there you will have the updates. We are as anxious as you for Zeek to return, we have no power to speed up this process. If you wish to post negative thoughts on this site please think before you do. Are you trying to hurt others by what you say?....Mary

Bolding mine.

So, letting the public at large know what they're doing might somehow "compromise" their movement? That hardly speaks well of their agenda. And thus far there isn't any information available on the password protected site which hasn't already been conveyed through e-mails.

I think SNR Denton was wise to sever any relationship they had with Fun Club. That is assuming there ever was one in the first place.

[notorial dissent]

Gee, wouldn't be the first time someone claimed a relationship with a law firm and representation that DIDN'T exist, now would it??

Sounds more like someone at the SNR got wind of what was really going down and said He@@ NO!! in no uncertain terms. Either there was NO relationship, or more likely not the one they were claiming, and someone decided they were skating too close to an ethics violation to wink at what was happening.

Who knows, maybe the flock has gotten wise to the on going plucking and is wising up, stranger things have happened.

[Gregg]

After a period of radio silence this hit my inbox:

please understand the contacting of SNR Denton has caused huge issues and slowed up the process.

I'll bet it did. "Who are all these people, and why the fuck do they think we represent them?" would tend to do that. Did you ever hear back from them, Gregg? I'd say they told Craddock et al to take a hike.

I can tell you there is a different legal team leading the charge in the next 10 days to get this in front of the court

Lionel Hutz & Associates.

Haven't heard yet, but to be clear, has SNR Denton dropped them?

[GlimDropper]

Haven't heard yet, but to be clear, has SNR Denton dropped them?

All we really have is this quote from Robert's update:

We have a team of legal professionals that will be leading the charge to file the needed motion and please understand the contacting of SNR Denton has caused huge issues and slowed up the process. I can tell you there is a different legal team leading the charge in the next 10 days to get this in front of the court, and we are greatly encouraged as to the potential outcome.

Questions were asked on their facebook page with no direct response given. They are moving their news updates behind password protected walls but seem willing to let near anyone sign up for access so one way or another we'll be getting their updates. I don't think they'd be stupid enough to let Todd and Dwight litigate this one but if they do I'll be here to hand out popcorn.


[A very late edit to avoid the dreaded double post]

Troy Dooly is confirming that SNR Denton is not representing Fun Club USA. (Link)

In addition that post by Troy attempts to address some questions raised by Oz over at Behind MLM last week addressing some who knew what and when issues. (Link)

And, going for the blog pub hat trick Patrick Pretty reveals that Robert Craddock's Fun Club USA had it's PayPal privileges revoked. (Link)

I loved zTeamBiz's spin on the issue.

[GlimDropper]

Double posts be damned, this was just posted on Fun Club's FaceBook page. Strap on the hip waders, it get's deep fast:

Zeek Rewards Affiliates United Against The SEC

22 minutes ago

Aug 30th SNR Denton...hired on to represent us aka Fun Club USA:

We need to give you an update, last Friday SNR Denton, quit and gave back the retainer.....why?

#1. The sheer number of affiliates and other people demanding to talk with, know about and meet with the lawyers on cell and email were too much for the film to handle. They were not prepared for all of those who did not listen to the request that we made. #2. because they and their staff were threaten with physical harm when most of those who called and email couldn't talk to the lawyer and were not given any information. With those two factors and the huge disruption to the firm by the very people that they were going to help they quit us. I am not often mean....but way to go all of you who just had to throw a monkey wrench into the engine.

From there we had to work fast....and we did.

Two different law firm were referred by SNR and three others interviewed. A day and a half we went with a firm from Dallas TX. ... And NO I WILL NOT DISCLOSE , they have talked to the SEC and DOJ...comments from the SEC so far.

Thursday Sept. 6th 2012 What the lawyer found was this:

1. SEC does not see a victim in the Zeek model. DID YOU HEAR THAT? They are finding trouble finding anyone that was harmed by Zeek Rewards. NO VICTIM.

2. The SEC are finding and seeing that Zeek Rewards is not a security. DID YOU HEAR THAT...SEC is now saying that paying for bids is not a security not an investment scheme , they are having a hard time proving what their claim said because they now have true knowledge of how our business works and are trying to find a graceful way to back out. BACK OUT.

3. Also because of 1/3 of the people are out of the country it would be next to impossible to do claw backs. The courts will not punish only the people in America alone. Legally they can't just claw back only those living here in the US and punish us and not all the affiliates worldwide and other countries will not allow a claw back.

NOW ....we are now moving forward to start a negation with the SEC on the exit stagey for us to take back our businesses. DID YOU HEAR THAT? If we wouldn't have come forward and challenged the SEC this would never have happened. They would have gone forward with accounting our money and charging whatever an hour and then returning pennies on the dollar to the non victims.

Where are we now, if there is going to be a Zeek 2.0 ..AND YES THIS IS GOING TO HAPPEN....A formal letter will be sent out to all regulatory agency to put them on notice of our great and unique business model so that this doesn't happen again. Because we are cutting new ground no one understands just how powerful this business is.

Again we will need to hire a law firm, and yes we do have one in mind and NO I WILL NOT DISCLOSE IT TO YOU YET, they will do a recommendation they will give a formal opinion letter on what this unique business model is to all those agencies also they will stay retained to further guide us in all decisions and therefore before any negative allegation happen we will have high ground... this law firm and those that stepped forward will say how this business is going to be restructured and reworked. The old management will not be a part of this Zeek 2.0 at all. But the business model will be copied, with some changes and we will get paid to advertise again.

Also we are in contact with a media community that will be in place shortly with online forums and positive input moving forward so that all people can be in touch with what is happening. This way the masses can get answers. Now I have a question and a statement to all of you.....Do you realize that there have been a handful of people working day after day to get this done? and how many about 16, and how many affiliates are on this fb page. Do you think we are able to do it all?...Statement: We have done a great thing here....with little to no help. With allot of complaints. In the end if this helps those who still want a profitable home business and those that are counting on us to help them help their selves....then I will sleep.

Bolding mine.

Where to start.,..

"Blame the affiliates" has been the game of choice for Zeek Rewards for months. "You can't get any reply to support tickets"? Blame the people who send in 50 tickets for the same issue (and still don't get a reply). Wait on hold for hours when calling affiliate support? Blame the people who are calling up asking the same questions again and again (and still not having their issue resolved). So blaming the members is the perfect excuse, they've been conditioned to accept it.

The first bolded passage, I will burst out laughing if the Dallas law firm turns out to be Friedman and Feiger and anyone who followed the Ad Surf Daily fallout knows why. And if you followed ASD you'll know why I bolded the rest of the things I did. It's deja vu all over again:

No victims? Yes, just like ASD Zeek Rewards was closed before they stopped paying. The "no victim" argument didn't prevent Andy Bowdoin's criminal conviction.

Rumors circulated through ASD that the AG "admitted" it wasn't a ponzi and was trying to save face.

And ASD submitted a plan to the court to restructure themselves and go back into buisness, it was shot down.

Same lies, different day.

Update:

The following is fairly redundant to the above, but this e-mail update does include a few lies the previous post didn't:

Hey Zeek Samurai Kazoku,

We just got off the phone with Robert Craddock in response to news going on around the Internet of rumors and other misrepresentations of the truth. So here is what we found out directly from Robert...

On Monday, August 27, the retainer was sent directly to SNR Denton to represent ALL Zeek Rewards affiliates who donated and joined the protected group through Fun Club USA, LLC. It was announced many times to not contact SNR Denton directly as they were going to work directly through Robert Craddock and the group can have all questions answered directly by Robert. What happened was people did not listen. SNR Denton begin getting tons of calls from across the globe with people asking them questions that they could not answer and disrupted not only the progress of our legal filing that they were trying to do, but also interfered with their entire law firm operations.

Due to this, SNR Denton told Robert on Friday, August 31 that they would no longer be able to represent us and sent back the retainer funds to Robert. They did however share a few law firms that they believed would be successful in representing us and Robert this past week has been able to retain another powerful law firm moving forward and has already made significant progress this week. Due to what happened with SNR Denton since people do not listen, the name of this law firm and our representing attorneys will not be announced until the filings are done early next week. At this time, the court filings will be made public.

Again, we ask that when the law firm is announced, DO NOT CONTACT them! If you want things to proceed, then take a step back and let them proceed. People that want more information delay the work that is happening including sending Robert, myself and other emails, calls and Skype messags asking us how are things going with the Zeek fight. Please people, trust in the fact that as we know things, we will announce them. Please be patient and know that if you do these things that we are asking you not to do, all you are doing is hindering the operation. If you want to help, then spread the word of the fight, spread the word of how you can help, and pray for the best and for justice to prevail.

Here is the great news...The law firm has already talked to the SEC and the NC DOJ. On Thursday, Robert got a call from one of our attorneys regarding the conversation that he had with the SEC. Here is what he said:

The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:

1. We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.
2. We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.

Based on their (the SEC) new knowledge of the Zeek Rewards business model, they are having a hard time moving forward in making their case. And they are now looking for a path or way to back out of this.

What are attorneys will be doing next week is filing a motion of appearance that they are now representing Fun Club USA, LLC. and the people that are now associated with them (the protected group). The receiver, Kenneth Bell, has now also realized that 2/3 of the Zeek Rewards affiliates are international which makes for the use of federal clawback laws being used to recover more funds impossible as they cannot collect them from the international affiliates and would not hold the 1/3 of US affiliates liable for the entire company.

You may have noticed that on the site, http://zteambiz.com and http://zteambiz.net had to pull down the PayPal donation button. This had to be done because PayPal found out that we were working to defend Zeek Rewards and since PayPal had to stop working with Zeek in the past due to the fact that Zeek is an MLM and PayPal does not work with MLM's, they decided that they could no longer work with Fun Club USA, LLC. either. So, if there is anyone that has made a donation to Fun Club USA, LLC for their donation to the legal fight against the SEC and needs a refund for any reason, you can request that through Robert directly by sending an email to zeeklegal@gmail.com. If more donations are needed for the law firm, these directions will be forthcoming. Please realize that all funds that have been received have been sent directly to the law firm and more news will be announced next week as the filings are made with the courts.

In the conversation with the SEC, our attorney's have already put forth the direction with moving forward with what they are calling "Zeek Rewards 2.0". They already have decided on another law firm where our attorneys would write an opinion letter which is something we have been told should have been done a long time ago with Zeek and had not been done. What this opinion letter will do is go to all regulatory agencies which will put them all on notice as to how this business, "Zeek Rewards 2.0" operates. Furthermore, if there should ever happen in the future like what happened with the SEC emergency injunction against Zeek, there will be a process that will have to be done first where they would have to go through a series of steps going through the law firm first that fully understands the business model. In other words, what happened to Zeek Rewards on August 16 which was a major mistake by the SEC, will never happen again.

It has also been our goal to fight the SEC allegations to prove that what they accused Zeek and Rex Venture to be false, and then to get Zeek Rewards back into operation. The SEC, since we have basically called them out to prove their allegations and put their feet to the fire, they now have to own up to this HUGE mistake on their part. They can no longer sweep this mistake under the carpet and are now going to be forced to assist us in getting our business back up and running more then likely stronger then ever. The SEC were the ones that actually have recommended how to set up the opinion letter with the law firm that they recommended to be sure that the new Zeek is protected from this ever happening mistakenly again.

Ok, well that is a wealth of information...Please be sure to share this news with everyone. Do know that these steps still need to play out in the court system and it will take time. But the most important thing to know from all of this is that we have already succeeded in showing that the proof that we have fully proves that EVERYTHING the SEC accused Zeek and Rex in their August 16 complaint was gravely mistaken as they did not fully understand the Zeek business model and that it now looks very positive that there WILL be a Zeek Rewards business moving forward. Again, please be patient and allow for the court system and our attorneys to do their job. Please also do not listen to the "talking heads" that claim they know everything online as the only thing that they are trying to do is drive up controversy which builds their own followers and gets more views to their websites.

I hope you all have a Blessed weekend...Keep the faith and look for further announcements from us a we get them.

God Bless,

Dave Kettner

I bolded Dave's favorite lie.

[wserra]

The following is fairly redundant to the above, but this e-mail update does include a few lies the previous post didn't:

Then let's start here.

We just got off the phone . . . we found out directly from Robert...

Is there a mouse in Dave's pocket, or has he taken to using the royal "we"?

On Monday, August 27, the retainer was sent directly to SNR Denton to represent ALL Zeek Rewards affiliates who donated and joined the protected group through Fun Club USA, LLC.

Bullshit. Denton would have immediately seen the conflict between those from whom the receiver would attempt to claw funds and those to whose benefit the clawback would inure, would never have taken on the representation of both groups. Denton - if it's not all lies and they ever represented anyone - represented those who signed the retainer. BTW, where is the retainer? Why don't these guys show it? Yes, rhetorical.

It was announced many times to not contact SNR Denton directly as they were going to work directly through Robert Craddock

And that's the truth. The last thing these guys wanted was the marks to find out that the foxes guarded the chicken coop.

SNR Denton begin getting tons of calls from across the globe with people asking them questions that they could not answer

Likely true. Denton could not answer because their dealings with Craddock et al were privileged.

and disrupted not only the progress of our legal filing that they were trying to do, but also interfered with their entire law firm operations.

And we return to the bullshit. Denton likely found out that they were being led down the primrose path by scammers who were telling them one thing and telling the source of their funds another. Only ethical response: Bye-bye, scammers.

The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:

That conversation never happened. First of all, the very last thing any lawyer is going to to is admit in a conversation with an adversary that s/he has misled a federal judge in an application that led to drastic action. Second, the alleged "problems" are stupid. There is no need for the SEC to "mov[e] forward in making their case". Their case is already made. Zeek (as we've posted over and over) is DEAD. 'Course, scammers can't say this, as reopening Zeek and unfreezing funds is the carrot that pries loose still more money from the marks.

What are attorneys will be doing next week is filing a motion of appearance

There is no such thing. Perhaps scammer means "notice of appearance". Perhaps not. Nothing in the docket as of Friday. 'Course, Denton never filed a notice of appearance either.

What this opinion letter will do is go to all regulatory agencies which will put them all on notice as to how this business, "Zeek Rewards 2.0" operates.

Which they will throw in a drawer (if not the garbage), because agencies don't issue advisory opinions.

Furthermore, if there should ever happen in the future like what happened with the SEC emergency injunction against Zeek, there will be a process that will have to be done first where they would have to go through a series of steps going through the law firm first that fully understands the business model.

Bullshit. Have a cite for that? In fact, the SEC could again proceed exactly as it did before Judge Mullen.

In other words, what happened to Zeek Rewards on August 16 which was a major mistake by the SEC, will never happen again.

That I believe. The scammers won't make the mistake of leaving $230M lying around where it can be found again.

Please be sure to share this news with everyone.

That's what we're doing. Just with some truth-checking.

[Gregg]

You beat me to it, Wes.

I'd say that as soon as this team of attorneys is known I'd start writing letters again, but truth be told, I'd be beyond astonished if they actually have any lawyers at this time. They're just marshaling cash for when the Receiver comes after their money. I'll bet cash confederate dollars on it. (actually, confederate Gold Bearer Bonds, which according to another scammer are gonna make me richer than Davey Crocket before November 7th)

[Gregg]

Here is the great news...The law firm has already talked to the SEC and the NC DOJ. On Thursday, Robert got a call from one of our attorneys regarding the conversation that he had with the SEC. Here is what he said:

The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:

We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.
We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.


Based on their (the SEC) new knowledge of the Zeek Rewards business model, they are having a hard time moving forward in making their case. And they are now looking for a path or way to back out of this.

Reading that reminds me a whole lot of ASD and "The Secret Service has admitted they have no case against Andy, but they have to file something to save face"

[notorial dissent]

The three main lies at the moment concern the SEC, the NC DOJ, and the resurrection of ZEEK, the first two, which as WES so rightly points out would NEVER have made such statements to another pack of attorneys, and particularly since there are NO "problems" with the "case", since the case is WON, over and done with, resolved, finished, a closed matter, and the third big one, ZEEK lost, in court, is dead and gone, or more precisely is an ex-parrot, and will never be coming back.

I think the next set of lies concerned the lawyers, past, present, and future. I'm not sure at this point that they ever had SNR under retainer, but if they did, it certainly wasn't to represent the rank and file, and certainly not in resurrecting ZEEK.

I am wondering if this weren't just a last grab at their sucker pool's money before they slunk off into the night. Now they may have been gathering other people's money to pay for lawyers to try and preserve the money they had already gotten away with, but I would think there is little likelihood of them getting much traction there, so I'm going with the greed angle.

I do think it was nice of them to send out notices that they intended to recreate the con again down the road, let the SEC, etc get started on a new file and investigation right up front, and doing away with their lack of intent excuses right off the bat. I always think it is polite of the burglar to give the police a heads up of his next intended victim, cuts down on the paperwork.

[GlimDropper]

The three main lies at the moment concern the SEC, the NC DOJ, and the resurrection of ZEEK, the first two, which as WES so rightly points out would NEVER have made such statements to another pack of attorneys, and particularly since there are NO "problems" with the "case", since the case is WON, over and done with, resolved, finished, a closed matter, and the third big one, ZEEK lost, in court, is dead and gone, or more precisely is an ex-parrot, and will never be coming back.

Well, ah, maybe Zeek is just, ah, pining for the fjords.

I think there are two objectives here. First of all they don't need to succeed in challenging the inevitable clawbacks in court to save themselves some money. All they need to do is attract more donations than they spend on the effort. Boom, part of their clawbacks will be paid by their victims.

Second, as Bruce Willis said in Pulp Fiction "Zeek is Dead baby," but there's always the next "once in a lifetime" deal to promote. The more they can keep their marks, er, sorry "downlines" distracted with all this "we're going to save Zeek" prattle the less time they'll have to remember all the lies Todd and Dave were telling them all along. So when the next "can't miss" opportunity comes along (I think it's time for Peruvian Guano Bonds to make a come back) the marks will remember how hard Robert, Todd and Dave fought for Zeek so their spam must be sincere.

But these guys really need a lesson in message control. First there was yesterday's facebook post which was quickly revised into Dave's e-mail (both posted above) and then that got transferred to the "breaking news" section of their password protected site. Then that was edited to read:

Update Sat Sept 8th

Robert Craddock, founder of Fun Club USA could not admit or deny the following information.

Hey Zeek Samurai Kazoku,

We just got off the phone with Robert Craddock in response to news going on around the Internet of rumors and other misrepresentations of the truth. So here is what we found out directly from Robert…

And that seemed a little less than professional so the September 8th update was replaced in whole cloth with:

Update as of September 8, 2012



Update of events over the past week:



Greetings everyone,

This last week has been a busy one. As some of you are aware of, we have made changes in law firms that are assisting us in providing protection against possible crawl back action by the SEC. Second, in questing the application made by the SEC for Emergency seizure of Rex Venture Assets including monies we all held in e-wallets and last, getting access to the financial records of Zeek Rewards to prove this was a legitimate business we were all involved in.

We took a moment to share with Troy Dooly this information and trusted he would not betray our trust. As it turns out we have been fooled twice, the first time was the publishing of the SNR Denton partners bio’s and next with the latest video.

Let me say that we are going to do our best to prevail and it is looking real good from where we sit. There are some conversations going on with the SEC, the North Carolina Department of Justice and with our attorneys that lead us to believe the outcome will be better than we could have ever hoped for.

There will be a formal filing next week with the courts announcing our attorney representation of Fun Club USA and the members of Fun Club USA which are prior Zeek Rewards affiliates. At this time, the name of the firm and the attorneys representing us will be public. We trust the attorney will take steps to protect their personal information as SNR Denton did not. Due to lack of foresight SNR Denton was hounded with thousands of calls, emails and yes, harassment and threats when people could not get answers quick enough.

People please understand we have made great progress; we have brought up a portal to allow you to place information relevant to your business relationship with Zeek Rewards. In the last fifteen days we have interviewed as of now eight law firms, three before we retained SNR Denton and last week five before we retained the current one.

I would like to say that as luck would have it, we feel lucky to have the current firm and feel we will be represented correctly and our outcome looks great.

PayPal also decided to pull the plug and we have put in place a check draft system so we are no longer at the mercy of third party payment solutions.

We expect to have more news this week and will post it just as soon as we have it.

Thanks again for your support and understanding.



Robert Craddock

Hey, way to throw Troy Dooly under the bus. All he said was that there were some things he didn't like and I think he expressed a doubt of some form. Now that was in one of Troy's blog posts I linked to above (and here). In what seems to be an effort to prove he isn't anti-Samurai Couscous Troy followed up with this post.

Gregg, get your ass on Troy's radio show..,.. Sir.

PayPal also decided to pull the plug and we have put in place a check draft system so we are no longer at the mercy of third party payment solutions.

Yea, their donation page requests bank account and routing numbers to make a donation but lacks any form of security. No HTTPS, No SSL and no encryption of any sort. They're willing to give a password to anyone who asks (hell, they gave one to me) and they don't even care how easy it would be for any competent hacker to clean out their donor's bank accounts. You'd think they wouldn't want the competition.

[notorial dissent]

I quite agree, and I think whole cloth is being magnanimously generous in the extreme. Flat out lying is much closer to it, and much more apt.

I do think they are trying to rake in as much as they can before they move on, and the downstream is just too dumb to see it, of course that applies since they are involved in this to begin with.

And, I will be willing to bet that any number of them will be equally dumb enough to hand out their banking information as well, since they don't seem to learn.