BULLETIN: In Bizarre Blog Post, Zeek Claims ‘All’ Of Its Critics Are Behaving ‘Unprofessionally By Acting On False Information’; MLM Firm Blasts ‘ North Carolina Credit Unions’ For Circulating Memo ‘Unfavorable To Zeek Rewards And False’

BULLETIN: The Zeek Rewards MLM “program” that is married to a penny-auction site known as Zeekler and plants the seed that an annualized return in the hundreds of percent is possible has declared that “all” Zeek criticism has been “unprofessional” and based on “false information.”

Some Zeek affiliates have said that Zeek provides a payout that averages about 1.4 percent a day, a figure higher than the AdSurfDaily Ponzi scheme.

Zeek has preemptively denied it is an investment program or “pyramid scheme.” Regardless, Zeek has a presence on HYIP forums referenced in federal court filings as places from which Ponzi schemes are promoted. The company has used offshore payment processors linked to numerous fraud schemes and employs business model similar to the $110 million AdSurfDaily Ponzi scheme.

Zeek, which has members in common with ASD, gathers sums of up to $10,000 from members. Like ASD, it claims it is not offering an investment program. But Zeek now is blasting unspecified “North Carolina Credit Unions” for circulating a purported “internal memo” that allegedly was “at once unfavorable to Zeek Rewards and false.”

The Zeek Blog post was attributed to acting COO Gregory J. Caldwell, who replaced acting COO Dawn Wright-Olivares. While acting COO, Wright-Olivares once suggested that, if Zeek instructed members to change their preference in dispensing toilet paper in their private bathrooms (top-rolling vs. bottom rolling), they should do it.

Wright-Olivares now is Zeek’s “Chief Marketing Officer,” with Caldwell holding her former job, according to the company.

Caldwell, according to the Zeek Blog post, now is warning Zeek members to stick with the company line or face the consequences. The post did not spell out those consequences.

“It’s counter-productive for Affiliates to fan the flames of issues that are the proper responsibility of Zeek Corporate…and it’s a violation of the Zeek Policies and Procedures for which violators will be held responsible,” the post attributed to Caldwell and dated today read in part.

A North Carolina credit union had slandered Zeek, according to the post attributed to Caldwell on the Zeek Blog (italics/bolding added).

Zeek Rewards policy is to act quickly to support the Zeek reputation and the future of your business. Upon learning of the memo slandering Zeek,  I called the head of Risk Management to track down the origin of the memo. Upon being discovered, the person responsible admitted he really didn’t know anything about the laws regarding direct selling or how to identify a legitimate network marketing company or opportunity.  Like all our critics, he was behaving unprofessionally by acting on false information.

We intervened, shut down the misinformation at its source, and that would have been that…were it not for the inappropriate action of one of our own Affiliates who posted the memo online where it has been picked up and is now being used by our critics.

Prior to being arrested on Dec. 1, 2010, by the U.S. Secret Service amid allegations he was at the helm of an Internet Ponzi scheme that planted the seed affiliates received a return of 1 percent a day but were not making an investment, ASD President Andy Bowdoin also complained about slanderous critics. Bowdoin pleaded guilty in May 2012 to a Ponzi-related charge of wire fraud.

Although Bowdoin posted bond and remained free after the Secret Service brought its case, he is now jailed in the District of Columbia, amid allegations he continued to promote fraud schemes after the Secret Service seized more than $80 million in the ASD Ponzi case in August 2008 and after Bowdoin was arrested on Ponzi charges in December 2010. Federal prosecutors identified those schemes as AdViewGlobal and OneX.

Bowdoin, 77, is scheduled to be formally sentenced in the ASD case on Aug. 29.

Some Zeek members also have promoted OneX, which reportedly used at least one of the same offshore processors as Zeek (SolidTrustPay).

Zeek members also have been linked to a “program” known as JSS Tripler/JustBeenPaid and purportedly operated by Frederick Mann, a former ASD pitchman who may have ties to the so-called “sovereign citizens” movement. ASD also had ties to “sovereign citizens,” including the now-jailed Kenneth Wayne Leaming (false liens/harboring fugitives/possessing firearms illegally after prior felony conviction/false uttering) and Curtis Richmond, who once accused the federal judge overseeing the ASD case of “TREASON” and as many as 60 felonies.

JSS/JBP purports to provide a return of 730 percent a year. JSS/JBP uses at least two of the same offshore processors used by Zeek (SolidTrustPay and AlertPay, now Payza).

Meanwhile, Zeek promoters also have been linked to a “program” known as Regenesis 2×2, which came under Secret Service scrutiny in 2009 and also had a presence on the Ponzi boards.

Before the ASD Ponzi raid by the Secret Service in 2008, ASD had moved “several million” dollars into SolidTrustPay, according to court records. AlertPay also is referenced in filings in the ASD Ponzi case. Both firms are referenced in filings in the Pathway to Prosperity HYIP Ponzi case brought in 2010 by the U.S. Postal Inspection Service.

Filings in the Pathway to Prosperity case also reference the TalkGold and MoneyMakerGroup forums — forums on which Zeek, JSS/JBP, ASD and the Legisi HYIP Ponzi scheme had a common presence. SolidTrustPay, meanwhile, was mentioned in filings in the Eagle Trades LTD fraud case. Terrance Osberger of Eagle Trades was indicted last month by a federal grand jury in Ohio on one count of wire fraud and 48 counts of money-laundering.

Eagle Trades also had a presence on the Ponzi boards.

The Blog post attributed to Caldwell came on the heels of a report yesterday by BehindMLM.com that the North Carolina State Employee’s Credit Union (NCSECU) had concerns about Zeek. (Link to BehindMLM story below.)

In June, the office of North Carolina Attorney General Roy Cooper said it had concerns about Zeek. Cooper’s office expressed those concerns after a North Carolina television station suggested Cooper’s office had determined Zeek to be operating legally. Zeek’s Blog linked to the TV station’s report, but the TV station later removed the report. Cooper’s office said that no determination that Zeek was operating lawfully had been made.

Read story on BehindMLM.com.

Read Zeek’s Blog post.

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15 Responses to “BULLETIN: In Bizarre Blog Post, Zeek Claims ‘All’ Of Its Critics Are Behaving ‘Unprofessionally By Acting On False Information’; MLM Firm Blasts ‘ North Carolina Credit Unions’ For Circulating Memo ‘Unfavorable To Zeek Rewards And False’”

  1. Quick note: We expect to publish an editorial on Zeek later today or tomorrow after final editing is completed.


  2. I’d be curious to know if zeek really did contact the said credit union and have the information ‘shut down at its source.’ I suspect this was merely a plot to keep affiliates mouth’s shut. zeek could cause much more serious problems for itself than it solves by attempting to take on the banks, and by extension, the various banking regulation agencies.

  3. Isn’t that what the breaking point for bringing down ASD? That AndyB was so delusional that he thought he was right, that a ponzi was legal that he contacted authorities re: slander, etc.?

    Or, as Roger Clemens said am I “Misremembeing”. haha

    I do think, though, that Andy brought some of the heat on himself.


  4. Well, since he got it wrong as usual and slander is verbal while libel is written – hence a ‘memo’ – he did nothing about this. The only proper avenue would be a court of law. Where is the retraction ‘memo’ from the source?

    He is just the next liar in line. The only thing ‘professional’ here are these con artists.

  5. What is incredulous to me is that the new COO is blaiming the members for this happening istead of thanking them for bringing it to their attention. Sorry, but this tells me something more is going on here than Zeek is wanting told.

    While Zeek is claiming that the issues has been resolved, meaning the credit union is not going to tell its members they are a fraudulent company, it does not seem to have stopped the credit union from warning its members about Zeek. A Sr. Vice President said this, and I quote:

    “It has come to our attention that our responses about Zeek Rewards are being used to present arguments concerning the company. We have “officially” (emphasis mine) taken the position that the NCSECU is not confirming our denying fraud, but that we’ve received several reports of fraud. One of our internal departments had conducted research on the company and received several negative findings.

    It is the credit union’s stance that we should always try to keep our members’ best interests at heart. The information is not to bash or incriminate Zeek Rewards, but to merely inform our membership of the potential dangers of “investing” (emphasis mine) in their company.”

    Now I emphasized “investing” as Zeek claims their members are not investing. Clearing the credit union disagrees.

    Another Sr. Vice President had this to say, and I quote:

    “SECU has not indicated the Rex Venture Group is fraudulent. SECU recommends to members that they always conduct due diligence in investor education, and we are advising members to conduct due diligence on Rex Ventures Group.

    Additonally, SECU recommends that members contact the NC Attorney General’s office with consumer complaints or the NC Secretary of State’s office with any investor concerns.”

    I emphasized “Officially” as this is the stand the credit union has taken in regards to Zeek Rewards/Rex Venture Group.

    But this spotlight will not bode well for members of Zeek to be able to recruit. Before the BBB had no rating, and now it is an “F.” Kind of interesting that a “debt-free” company, which Zeek proudly proclaims to be, would have an “F” rating from the BBB.

    The wheels are coming off the bus, and their problems are compounding not diminishing.

    At least this story takes the termination of Keith Laggos off the front burner and them having to explain this action to their members. Well at least for now.

  6. ARWR: Isn’t that what the breaking point forbringing down ASD?That AndyB was so delusional that he thought he was right, that a ponzi was legal that he contacted authorities re: slander, etc.?Or, as Roger Clemens said am I “Misremembeing”. hahaI do think, though, that Andy brought some of the heat on himself.ARWR

    It did bring attention to the state about ASD, but the feds were already investigating. Still it shows some don’t know when to keep their mouth shut.

  7. Just out of curiosity, i wonder if anyone has ever visited the Microsoft forums? If you want to see people complaining and “damaging reputations” you should visit them.

    The difference is that, as Microsoft know that their business is totally legal, they allow people to complain and don’t consider that users’ complaints are likely to shut them down.

    Zeek Rewards’ reaction to news of complaints is has started yet another big bright red flags flying. Legitimate businesses don’t behave like this.

  8. I forgot, is the toilet tissue supposed to roll from the top or the bottom?? No one seems to have told me which is correct. I am so confused….

  9. Wizzard7: I forgot, is the toilet tissue supposed to roll from the top or the bottom?? No one seems to have told me which is correct. I am so confused….

    It all just depends.

  10. Wizzard7: I forgot, is the toilet tissue supposed to roll from the top or the bottom?? No one seems to have told me which is correct. I am so confused….

    Which way was completely unimportant, the order was, just switch it to the opposite way.

    Those who did not comply with this ridiculous order were obviously NOT stupid enough to unthinkingly follow orders and were not welcome to be included.


  11. Which brings us to the “Why Nigerian spam fraud is so stupid” explanation… (for those of you who don’t know, Microsoft researcher penned a paper that explained Nigerian spam fraud are so stupidly written so only the most stupid people i.e. people who would fall for that sort of **** would reply.)

  12. I think what we need is a comment from NECU’s VP on what Zeek said about them.

  13. […] occurred against the backdrop of a Saturday (Aug. 4) Blog post by Zeek that blasted unspecified “North Carolina Credit Unions” for expressing concerns about the company to Zeek customers. Zeek is a a purported arm of Rex […]

  14. […] action by the SEC alleging that Zeek was a $600 million Ponzi- and pyramid scheme — Zeek used its Blog to blast unspecified “North Carolina Credit Unions” for raising questions about the […]

  15. […] Stepfordian chant. It also planted the seed that it would use the courts to gag doubting voices and sue credit unions that dared to speak ill about its “program” that averaged a payout of 1.5 percent a day. […]