Zeek Rewards claim time nears
Victims of the Zeek Rewards pyramid scheme may know in the coming weeks when they can begin filing with a court for restitution of some of their money, more than seven months after federal authorities shut down the swindle with a global scope.
The court-appointed receiver, who has sorted through a labyrinth of computer files and other information left in the wake of the supposed online marketing business, will submit a formal claims procedure plan to a federal court by the end of this month. Once the U.S. District Court for the Western District of North Carolina signs off on the plan, the receiver will begin taking claims submissions from people who lost money with Zeek Rewards, which operated from a small office in Lexington.
“I understand this is imperative to providing the victims and creditors of the receivership defendant with the greatest possible recovery on their claims. With more than 2 million usernames registered on ZeekRewards.com, this has been a significant undertaking,” receiver Kenneth Bell, an attorney based in Charlotte, indicated last week.
Bell provided his update on the official website for the case — http://www.zeekrewardsreceivership.com/ — which has been the online location for information since the U.S. Securities and Exchange Commission seized Zeek Rewards’ assets Aug. 17. At that time, federal authorities called Zeek Rewards and its parent company, Rex Ventures, “a $600 million Ponzi scheme on the verge of collapse.”
Bell indicates in his latest website post that he’ll notify potential Zeek Rewards claimants with details for submitting requests for restitution within two weeks of the court’s approval of his plan. The claims plan notice will be sent electronically to people who have registered on the official receivership website. The notice also will be posted on the website itself, Bell says.
“Affiliates and other creditors will be provided with a website address where they will be able to fill out and submit a claim form. The receiver team will review each submitted claim and compare it to our records for the purpose of determining whether the team agrees with the claim and then will notify the claimant of its initial determination,” Bell indicates.
The receiver reiterated, however, that it’s highly unlikely people who were ripped off through Zeek Rewards will receive the full amount back that they lost.
“Even with more than $300 million recovered already, and hopefully with more to come, we likely will be able to pay only a percentage (but we hope a significant percentage) of approved claim amounts,” Bell indicates.
Bell also indicates, as he has before in previous updates, that he plans to pursue legal action against people who profited in the pyramid scheme to recover their winnings so that money can go toward restitution to victims.
The receiver plans to take claims from Zeek Rewards victims for four months after the court approves the claims plan, Bell says.
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