URGENT >> BULLETIN >> MOVING: Zeek Rewards Claims Process Approved By Federal Judge

breakingnews72URGENT >> BULLETIN >> MOVING: A federal judge has approved the claims process in the Zeek Rewards Ponzi scheme case.

The order approving the process was signed today by Senior U.S. District Judge Graham C. Mullen, meaning that claims must be submitted within 120 calendar days from today. Zeek Rewards receiver Kenneth D. Bell submitted his plan to the court on March 29.

Mullen, consistent with Bell’s recommendation, ordered the receivership to publish notice of the claims process on certain MLM sites and also in the Wall Street Journal, USA Today, the Charlotte Observer, the Lexington Dispatch and through certain financial-industry trade groups.

The information also will be made available on the receivership website. Based on the order, it is expected that the receiver’s web portal for the submission of claims will become available within 14 days and that claims submitted prior to the opening of the portal will be disallowed.

The process calls for affiliates to provide documentation of their claims. There will be a reconciliation process by which the cash outlay to Zeek will be balanced against the money affiliates may have received from Zeek.

Claimants will not be compensated for Zeek’s so-called “Retail Profit Points” (RPP). Bell advised Mullen in March that the points “aspect of the multilevel marketing program did nothing more than redistribute funds among Affiliates in Ponzi-scheme fashion.”

Read Mullen’s order. (Thanks to the ASD Updates Blog.)

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