Grand Jury Was Meeting When Some Zeekers Waged Misinformation Campaign; Prosecutors Question Veracity Of Burks’ ‘Handwritten Notebooks’

Grand Jury Was Meeting When Some Zeekers Waged Misinformation Campaign; Prosecutors Question Veracity Of Burks' 'Handwritten Notebooks'

New filings by federal prosecutors in the criminal case against Zeek’s Paul Burks reveal that a grand-jury investigation was under way within days of the SEC’s Aug. 17, 2012, shutdown of the “program” and confirmation by the U.S. Secret Service that it also was investigating Zeek. Burks was subpoenaed by the grand jury on Aug. […]

FEDS: Having Pocketed $11 Million In 2011, Burks Plowed Forward With Zeek, Despite Knowledge Of AdSurfDaily Ponzi Case

FEDS: Having Pocketed $11 Million In 2011, Burks Plowed Forward With Zeek, Despite Knowledge Of AdSurfDaily Ponzi Case

“Rather, [Andy] Bowdoin manufactured the revenue numbers to deceive members into believing that they could reasonably expect to receive an average daily return on their investment with [AdSurfDaily] of at least 1%. This percentage in no way corresponded to the daily revenue that ASD was generating, but had been determined by ASD’s operators to be […]

Embezzled Banners Broker Pyramid Funds Allegedly Ended Up In 'KulClub,' Another Ponzi-Board MLM Program

Embezzled Banners Broker Pyramid Funds Allegedly Ended Up In ‘KulClub,’ Another Ponzi-Board MLM Program

2ND UPDATE 2:25 P.M. EDT U.S.A. More horrible PR for the MLM trade: Banners Broker international pitchman and pyramid-scheme figure Kuldip Josun embezzled at least $3.6 million from affiliates, according to a receiver’s report. The money was deposited into a Swiss bank account held by an entity known as World Web Media Inc. and appears […]

After Vemma College Flap, Herbalife Products Marketed Through One Of Largest Catholic High Schools In United States

After Vemma College Flap, Herbalife Products Marketed Through One Of Largest Catholic High Schools In United States

UPDATED 3:59 P.M. EDT U.S.A. It surfaced on Twitter today in the $HLF search thread that Herbalife products are being marketed through Mater Dei High School in Santa Ana, Calif. The Catholic school bills itself  “the largest non-public school west of Chicago.” Herbalife is under investigation by the Federal Trade Commission. Hedge-fund manager and Herbalife […]

TELEXFREE: Trustee Requests Stay In Lawsuit Against MLM Attorney Gerald Nehra, Others

TELEXFREE: Trustee Requests Stay In Lawsuit Against MLM Attorney Gerald Nehra, Others

UPDATED 11:14 A.M. EDT U.S.A. TelexFree Trustee Stephen B. Darr has requested a stay in the lawsuit against MLM attorney Gerald Nehra, the Nehra and Waak law firm and certain other individuals or entities accused civilly of helping the judicially declared Ponzi- and pyramid scheme gain a head of steam. “The Trustee seeks this stay […]

BULLETIN: FEDS: Burks Ran Scam Prior To ZeekRewards

BULLETIN: FEDS: Burks Ran Scam Prior To ZeekRewards

BULLETIN: (4th Update 9:13 p.m. EDT U.S.A.) Accused Ponzi schemer Paul Burks ran a “pyramid scheme” known as FollowMe1X2 that was a precursor to ZeekRewards, federal prosecutors say. A quote about FollowMe1X2 that appears in a prosecution filing today also appears verbatim in a post on the MoneyMakerGroup Ponzi forum dated Sept. 4, 2010, by “charlieone.” […]

Alleged TelexFree Winner Tries To Sue Trustee For 'Emotional Distress'; Separately, U.S. Judge Asks Dominican Court For Assistance

Alleged TelexFree Winner Tries To Sue Trustee For ‘Emotional Distress’; Separately, U.S. Judge Asks Dominican Court For Assistance

It may be a first in MLM clawback cases. Dwayne Jones, an alleged winner of more than $561,000 in the judicially declared TelexFree Ponzi- and pyramid scheme, is trying to sue Trustee Stephen B. Darr for “Emotional Distress and Anticipated Attorney & Court Costs.” In a proposed defendant class-action, Darr sued Jones and dozens of other […]

Stephen L. Cohen, SEC Official Who Introduced World To Zeek Case, Leaving Agency After Nearly 12 Years

“The obligations to investors drastically exceed the company’s cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors. ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in […]

PAYZA TO ZEEK RECEIVER: Don't Blame Us

PAYZA TO ZEEK RECEIVER: Don’t Blame Us

Payza, an HYIP-friendly payment processor that recently bragged on Twitter about its attendance at an event for the teetering TrafficMonsoon scheme, has advised a federal judge that it is not responsible for millions of dollars that allegedly went missing in the Zeek Rewards’ scheme taken down by the SEC in 2012. Zeek receiver Kenneth D. Bell […]

Sept. 26 Deadline Set For Filing TelexFree Claims; Claims Portal Opens As James Merrill Fights Evidence In Criminal Case

Sept. 26 Deadline Set For Filing TelexFree Claims; Claims Portal Opens As James Merrill Fights Evidence In Criminal Case

TelexFree participants and others who may have a claim against the estate should read this important notice from bankruptcy Trustee Stephen B. Darr. It is styled “Notice of Deadline for Filing Electronic Proofs of Claim and Claims Procedures” and appeared on the docket yesterday. The electronic claims portal has been established at TelexFreeClaims.com and is […]

Alleged Zeek 'Winner' Repeatedly Invokes Fifth Amendment In Clawback Case

Alleged Zeek ‘Winner’ Repeatedly Invokes Fifth Amendment In Clawback Case

UPDATED 3:07 P.M. EDT U.S.A. Darren Miller, an alleged winner of more than $1.635 million in Zeek Rewards and one of the lead defendants in a civil class-action clawback lawsuit filed by Zeek receiver Kenneth D. Bell, repeatedly has invoked his Fifth Amendment right not to incriminate himself, according to new court filings by Miller. In […]