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Update from Zeek Receiver Provides Insights into Recovery, Clawbacks

The court-appointed receiver overseeing tbe recovery of funds for the $600 million ZeekRewards Ponzi scheme has filed his quarterly update (the "Update") with the court, providing interesting insight into asset recovery, litigation against so-called "net winners," and the recently...

Zeek Victims Face Sept 5th Deadline To File Claims

Victims of the $600 million ZeekRewards Ponzi scheme have approximately 24 hours to timely submit a claim to ensure they are afforded a chance to participate in the funds recovered by the court-appointed receiver. According to receiver Kenneth D. Bell, victims of the largest Ponzi scheme in North Carolina's...

Ponzi Victim Lawyers Fight Over Right To Deduct 25% Contingency Fees From Claim Distributions

Efforts by the court-appointed receiver for the $600 million ZeekRewards Ponzi scheme for court approval of a process to distribute assets to victims are currently on hold as a group of lawyers representing a small subset of victims has objected on the basis that the proposed process, which seeks to...

Zeek Rewards Receiver Files Clawbacks Against Principals, Net Winners

The court appointed receiver tasked with recovering assets for the $600 million ZeekRewards Ponzi scheme has fired off the first salvo of clawback lawsuits seeking the return of nearly $300 million from company officers and investors fortunate enough to profit from the scheme. The Receiver, Kenneth D...

Judge Approves ZeekRewards Claims Procedures, Denies Objection

A North Carolina federal judge issued an order approving the claims procedures proposed by the court-appointed receiver to, among other things, begin making distributions to victims of the $600 million Zeek Rewards Ponzi scheme. In an Order entered March 26, 2014, United States District Judge Graham...

Zeek Receiver Slams Lawyers' Efforts to Redirect Claim Distributions

The court-appointed receiver overseeing efforts to recover funds for victims of the $600 million ZeekRewards Ponzi scheme has again reserved strong words for efforts by certain victims' lawyers to have distributions sent to their law offices, rather than directly to victims, saying that it "ought...

Zeek Receiver Blasts Victim Lawyers' Attempt To File Lien on Distributions

With thousands of allowed claims in this matter, it is impractical to allow third parties to interfere with the distribution process. The Receiver is simply not equipped to assess the validity of every interest asserted by a third party in the distribution proceeds of every victim. To allow otherwise...

ZeekRewards Founder Indicted For $850 Million Ponzi Scheme

Over two years after the Securities and Exchange Commission accused ZeekRewards of being a massive Ponzi and pyramid scheme, a grand jury indicted the company's founder on a multiple fraud charges. Paul Burks, 67, was charged with mail fraud, wire fraud, mail and wire fraud conspiracy, and tax fraud...

Judge Denies Charging Lien on Ponzi Victim Distributions

A federal judge has issued an order denying an attempt by lawyers for certain victims of the $600 million ZeekRewards Ponzi scheme to place a "charging lien" against hundreds of thousands of dollars in interim distributions due to those victims. U.S. District Judge Graham C. Mullen issued the...

Zeek Founder Set For Trial in January 2015

A North Carolina man will face trial in January 2015 over charges that he masterminded the ZeekRewards Ponzi scheme that allegedly swindled hundreds of millions of dollars from hundreds of thousands of victims. Paul Burks, 67, will have until January 20, 2015 to prepare his defense to multiple wire fraud...

Zeek Founder Seeks To Delay Upcoming Trial

A North Carolina man accused of masterminding a massive Ponzi scheme that caused hundreds of millions of dollars in losses has sought to postpone his trial that was scheduled to start later this month. Paul Burks, who allegedly duped hundreds of thousands of victims who invested in Zeek Rewards, filed...

Zeek Receiver Wins Approval to Pursue Class Action Clawbacks

A North Carolina federal judge has given the go-ahead for a court-appointed receiver to treat nearly 10,000 "net winners" of the $700 million ZeekRewards Ponzi scheme as defendants in a class-action lawsuit - a mechanism that the overseeing judge deemed as "the only means to reasonably...

International Clawbacks Start in ZeekRewards Receivership

Over two years after the Securities and Exchange Commission alleged that ZeekRewards was operating a massive $600 million Ponzi and pyramid scheme, the court-appointed receiver is now seeking to "claw back" millions of dollars in false profits from citizens of foreign countries that include...

Alleged ZeekRewards Ponzi Mastermind Wins Trial Delay Over "Unprecedented" Discovery

Citing the "unprecedented" document discovery that has included millions of documents and multiple terabytes of electronic data, attorneys for a North Carolina man accused of masterminding the massive ZeekRewards Ponzi scheme recently successfully obtained yet another delay in the ongoing criminal...

Zeek Receiver Seeks $6 Million From Foreign Net Winners

The court-appointed receiver tasked with recovering funds for victims of the $600 million ZeekRewards Ponzi scheme has filed a fresh wave of clawback lawsuits seeking to recover more than $6 million in false profits" realized by the scheme's European and South American investors. Receiver Kenneth...