BULLETIN: Zeek Had $20.7 Million In AlertPay/Payza And $20 Million In SolidTrustPay

Screen shot: Accused Ponzi schemer Paul R. Burks of Rex Venture Group LLC advised Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina today about Zeek's relationships with various financial vendors. The alleged Zeek Rewards Ponzi scheme operated through Rex Venture..

BULLETIN: (UPDATED 9:18 P.M. EDT U.S.A.) New court filings by accused Ponzi schemer Paul R. Burks of Rex Venture Group LLC show that Zeek Rewards had more than $40 million in offshore payment processors.

Included in that sum is $20.765 million in Canada’s AlertPay/Payza, and $20 million in Canada’s SolidTrustPay.

Today’s filing also shows $10 million on deposit at Bank of America. Court filings in the AdSurfDaily Ponzi scheme case brought by the U.S. Secret Service in 2008 show that ASD also banked at Bank of America.

On Aug. 17, the SEC alleged that North Carolina-based Zeek was a massive online Ponzi- and pyramid scheme that had gathered $600 million since January 2011. Filings by Burks today suggest Zeek did it all with fewer than 40 employees, including part-time contractors such as attorneys and consultants in areas such as payroll, accounting, compliance and marketing.

Included among the consultants listed by Burks was Keith Laggos, a purported MLM expert. Laggos once opined that AdSurfDaily was not a Ponzi scheme. ASD President Andy Bowdoin later admitted that it was. Bowdoin was sentenced last month to 78 months in federal prison.

Visit the ASD Update Blog’s files site to read Zeek-related court filings.

Visit the website of Kenneth D. Bell, the court-appointed receiver in the Zeek case. Read the FAQs on the receiver’s website.

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11 Responses to “BULLETIN: Zeek Had $20.7 Million In AlertPay/Payza And $20 Million In SolidTrustPay”

  1. After the liquidation, then come the clawbacks…

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  2. Yep. Those SARs bit them hard.

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  3. I notice in the file “ZeekDoc28.pdf” this is an application for a lawyer to practice “pro hac vice”. This lawyer appears to be representing a company “Internet Dynamo”. This company appears to have been the web host for Zeek Rewards.

    I have hope that the web host will be held accountable to their part in assisting this obvious ponzi scheme. There are some web hosts that are very ponzi friendly, either actively courting their business or by neglect.

    Perhaps if some action is taken against this web host this may be a wake up call for the web hosts of other obvious ponzi schemes.

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  4. Tony H,

    In a later document, Judge Mullen refers to InternetDynamo, Inc. as a defendant. So, they are on the hook for something.

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  5. Someone pointed out that the asset list only added up to about 200 mil, maybe 210.

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  6. I just noticed… in the full doc 30-1 (the one PP has a shot of above), under “Known Creditors”, the amount for Internet Dynamo is left blank. Hmmmm…

    Also, ASD Updates just added two new docs a few minutes ago. They’re each one-page files: #32: Motion for pro hac vice has been granted. #33: Paul Burs affirming that attached information is true.

    I’m waiting for #33-1 (? not sure if I’ve assumed the naming convention correctly) to find out what #33 is referring to.

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  7. Marley: I just noticed… in the full doc 30-1 (the one PP has a shot of above), under “Known Creditors”, the amount for Internet Dynamo is left blank. Hmmmm…

    Good observation, Marley. Here is a screen shot of the section of 30-1 to which you refer:

    http://patrickpretty.com/wp-content/uploads/2012/09/zeekdynamo.jpg

    Thank you.

    Patrick

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  8. K. Chang: Someone pointed out that the asset list only added up to about 200 mil, maybe 210

    Hello K. Chang,

    See this story and link to the document near the bottom. The doc may in large part explain where between another $25 to $30 million is:

    http://patrickpretty.com/2012/09/01/urgent-bulletin-moving-u-s-secret-service-has-seized-zeek-money/

    There were a lot of cashier’s checks in the ASD Ponzi case, too.

    Those checks hatched more conspiracy theories than I care to recall right now and more or less sent two or three “sovereigns” off the deep end.

    Patrick

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  9. New doc on ASD Updates… “Docket file, showing Docs 34-38 are SEALED.”

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  10. Some sort of individual records, explained previously in “Motion to Seal”

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