URGENT >> BULLETIN >> MOVING: Federal Judge Denies Motion To Appoint ‘Examiner’ In Zeek Ponzi Case; Court Rejects Contention By Alleged Zeek ‘Winners’

breakingnews72URGENT >> BULLETIN >> MOVING: Senior U.S. District Judge Graham C. Mullen has denied a motion by Zeek Rewards affiliates aligned with Robert Craddock to appoint an “examiner.”

Craddock’s Fun Club USA and Zeek members and alleged “winners” David Sorrells, David Kettner and Mary Kettner asked for their attorney — Michael Quilling of Dallas — to be appointed examiner late last year. Mullen said no today.

“First of all, it is readily apparent to the Court that such an examiner would be unable represent the interests of both the net winner and net loser affiliates, two groups with inherently adverse interests,” Mullen said in an order dated today. “Secondly, the Court is of the opinion that appointing an examiner would cause unnecessary and significant depletion of the assets of the receivership.”

Although Craddock has sought to demonize Zeek receiver Kenneth D. Bell, Mullen today said the court had “utmost confidence” in Bell.

“The receiver is working diligently to maximize and protect the assets and the Court has utmost confidence in the receiver’s efforts,” Mullen wrote.

The Kettners and Sorrells potentially have about $1.94 million in combined clawback exposure, according to court filings.

Both the SEC and Bell opposed the appointment of Quilling.

In a blistering memo in December, the SEC accused Craddock of encouraging Zeek affiliates “not to cooperate” with Bell. Craddock has not been charged with wrongdoing.

 

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6 Responses to “URGENT >> BULLETIN >> MOVING: Federal Judge Denies Motion To Appoint ‘Examiner’ In Zeek Ponzi Case; Court Rejects Contention By Alleged Zeek ‘Winners’”

  1. One of many denies I suspect we’ll see in the forthcoming months.

    Pay up fellas!

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  2. Not only did the SEC and Ken Bell oppose the motion but Ira Sorkin did as well. I almost wonder why it was filed in the first place, Mr. Quilling isn’t an idiot, he must have known it was a million to one shot. And it isn’t like he wasn’t going to be able to rack up billable hours with the Fun Club 12. Is it possible that Robert Craddock realized the bull crap he was telling about the E-Wallets was close to it’s “sell by date” and he needed something new to blather about on his calls?

    Oh well, it might be in the interests of judicial economy if the Judge decided Mr. Sorkin’s motion to intervene and dissolve the receivership before they address the E-Wallet issues. After all if the SEC didn’t have jurisdiction then the rest of the case is moot.

    I’m wondering who Mr. Sorkin will have run his fund raising calls when he appeals his denial? It wont be Robert.

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  3. It looks like Craddock may have some difficulties in raising more donations; so far all of his legal wranglings have done “jack squat”.

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  4. Oz: One of many denies I suspect we’ll see in the forthcoming months.

    Pay up fellas!

    I’m wondering how many Zeekers who dissipated assets by buying homes or cars ALSO invested in similar “programs,” putting themselves in the position of having to wait for say, ProfitClicking or Banners Broker or Profitable Sunrise to pay out before they address the receiver’s demand.

    I’m thinking it was the CEP receiver who said long ago that it wasn’t as if the targets of the clawback actions had their money parked in liquid fashion.

    Beyond that, it’s a safe bet that lots of the Zeekers have set up shell companies, purported religious entities and sham trusts to hide the cash.

    One of the old promos in an ASD downline advertised “shelter” from the FTC and SEC. These claims were made after the CEP, 12DailyPro and PhoenixSurf actions by the SEC. The players knew exactly what securities laws could be applied to their ongoing scams and basically just taunted law enforcement.

    It is a worldwide criminal network that, in my view, is undermining U.S. national security.

    Patrick

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