Zeek Rewards and Internet Censorship

[notorial dissent]

That was kind of my question/thought on the subject.

To my IANAL view what Grimes was doing was participating in the actual Zeke fraud by going along with them when he really has no excuse for not knowing what they were doing was criminal, but also was acting as their attorney, where the whole fiduciary thing comes in I think, and giving advice to both Zeke and to the Zeekler suckers, that was more in the realm of malpractice on his part as they(the suckers) were relying on his being a lawyer and to be telling them the truth, when he so obviously wasn't. I can see both sides of this and Grimes and Co do not come out well on either of them. I can see the insurance company being in a bad position, as they don't want to indemnify him for intentional fraud, but on the other hand he did commit it during the course of his practice and not only with Zeek, but the Zeeklers as well. I just really don't know what their exposure in this would be. I do hope that the receiver is able to get them for this one way or another as this sort of thing isn't going to stop otherwise.

A second thought that comes to me now, would Grimes et al be liable for RICO charges for their part in this, since if anything fits the definition, at least that I understand, this would be it?

[JamesVincent]

A second thought that comes to me now, would Grimes et al be liable for RICO charges for their part in this, since if anything fits the definition, at least that I understand, this would be it?

That is an interesting thought. If an attorney, through his efforts to support a Ponzi, could also be charged under RICO then maybe we could start seeing less actual legal BS going along with some of these obvious Ponzi's. I mean some attorneys may be willing to risk screwing up their name for a buck, but go to jail for it?

[EagleOne]

The court appointed receiver in the Zeek Rewards matter has requested the Clerk of Courts to issue judgment against Todd Disner in the amount of $2,079,757.88, against David Sorrells in the amount of $1,197,241.12, and against Michael Van Leuwen in the amount of $1,617,444.99. No word on Darryle Douglas yet.

[notorial dissent]

Ouch but that's gotta hurt, even with what they probably got off of Zeek. Maybe they'll want to go for double or nothing?

[EagleOne]

I am expecting criminal charges to be filed against Paul Burks, Darryle Douglas, Keith Laggos, and possibly Gerald Nehra with several others. Just don't know when.

[EagleOne]

Latest from the Zeek Receiver:

The Clerk entered default against Defendant Darryle Douglas on July 3, 2014 for the total sum of $2,271,239.20.

[notorial dissent]

WOW, $7.1M, nice round piece of change against a bunch who thought they were going to get away with something, and the hits they just keep on a coming.

At this rate, running a ponzi scheme may not be so attractive for the next generation.

[EagleOne]

What is even crazier is that Darryle Douglas only invested $766 of his own money, but according to the faithful Zeek was not a Ponzi.

[EagleOne]

The Receiver for Zeek, Kenneth Bell, is kicking butt! Paul Burks, Dawn Wright-Olivares, and Daniel Olivares just consented to $600 Million forfeiture of all assets.

You can bet Paul is doing all he can to try to avoid having criminal charges filed against him, and is hoping this will prevent it. Whether or not it will remains to be seen.

I wonder if iWowWe is still proud and thrilled to have Dawn as their CMO?

[notorial dissent]

That is a big chunk of change, which makes me wonder just how much they actually did get away with before they got caught.

[Gregg]

What they got away with, what they have left and what they have hidden don't have much to do with the $600 million amount. They'll take everything they have and they'll still owe the other $500 million or more....the default amount is kind of insurance against them winning big in another ponzi a year or two down the road, or winning the Powerball.

[notorial dissent]

I guess what I'm asking then is do they have an actual total for what Zeek took in as opposed to what it appears it paid out?

Having worked on the cleanup on several failed penny brokers, I have some familiarity with what is going on and it was always interesting to see if they could piece together enough from what was left of the books to tell how much had gone through.

I personally have no problem with these people being beggared for the rest of their hopefully miserable lives as they are certainly enough deserving.

[JamesVincent]

The Receiver for Zeek, Kenneth Bell, is kicking butt! Paul Burks, Dawn Wright-Olivares, and Daniel Olivares just consented to $600 Million forfeiture of all assets.

Did the Olivares do this to help with the Federal charges or is this part of the actual receivership?

[EagleOne]

The Receiver for Zeek, Kenneth Bell, is kicking butt! Paul Burks, Dawn Wright-Olivares, and Daniel Olivares just consented to $600 Million forfeiture of all assets.

Did the Olivares do this to help with the Federal charges or is this part of the actual receivership?

While this is only for the Receiver, you can bet they are hoping it will have a bearing on their criminal plea of guilty to stay out of prison. Not sure if it will work, but if I were in their shoes, I'd do it hoping it would. Can't hurt.

[EagleOne]

Judge Mullen approved the first round of payouts to be paid on September 30. The amount will be 40% of their loss with this payout. Depending on how quickly the receiver can get the 9,000+ to return their ill-gotten gains, the major promoters who stole millions to cough up their ill-gotten gains instead of filing motions to dismiss not wanting to give it back, and assets still to be sold, their will be a second, and possibly a third or fourth payout.

[notorial dissent]

My impression, is that as big as this one is it could take a while to completely wind down, and if there is a real possibility of getting more disgorgement from the principals, it could take a while. This is the first one of these where I've really been aware of the receiver actually seriously going after the principals and meaning it, and getting big chunks of cash back. Something of which I'm heartily in favor of. It used to be, you got caught, you signed a consent, gave back a token amount of money, you lay low for a while, and start back up with what you had hidden under the mattress and claimed you didn't have. I really like this new approach.

[EagleOne]

Judge Mullen just gave the green light to the Receiver to file against the winners from outside the U.S.. So expect these actions to commence in the very near future and just like in the U.S., the major winners will be whining and crying it is not fair and challenging the return of their ill-gotten gains.

One has to wonder if this action could prompt the local authorities to take action against their citizens who participated in Zeek? Hopefully the Receiver will post a list of all the foreigners who were the winners who don't cooperate like he did for the U.S. winners.

[EagleOne]

Only in the world of Ponzi's can some victims of a Ponzi complain about only getting 40% of their money in the first round of payments from the Receiver. Never mind that is what he said the amount would be.

The truly sad part is that many of these victims will turn around and put their money back into the next Ponzi de Jour and not have learned anything. I know all the "other" Ponzi's will be targeting these victims knowing they now have some money for their Ponzi. Happens every time.

[notorial dissent]

You know, EagleOne, I hadn't quite thought of it from that perspective, but I would bet the victims list for Zeek would make a perfect sucker list to sell to some other ponzi looking to start up, as you are right, they are primed and ready to part with their money, and they won't have learned a thing from this, except that the next time will be different, next time...next time...

[wserra]

"After years of disappointment with get-rich-quick schemes, I know I'm gonna get rich with this scheme...and quick!"

- Homer Simpson