SPECIAL REPORT: Attorney Linked To Zeek’s Wright-Olivares Has Record Of Disbarment And Suspensions; Possible Co-Agent Spent Time In Federal Prison For Credit-Card Swindle And Was Charged In Arkansas With Theft And Making False Statements To Securities Commissioner; Corporate Registrations Of 2 Firms Linked To Zeek COO And Purported Marketing Maven Revoked

Zeek's Dawn Wright-Olivares

Zeek’s Dawn Wright-Olivares

SPECIAL REPORT: (Updated 5:48 a.m. Jan. 7, U.S.A.) N. Donald Jenkins Jr., an Arkansas attorney listed as a registered agent for Wandering Phoenix LLC, a firm federal prosecutors have linked to Zeek Rewards’ figure Dawn Wright-Olivares, was ordered disbarred on May 30, 2013, records show.

He thrice previously was ordered suspended from the practice of law and has a thick disciplinary history with the Arkansas Supreme Court Committee on Professional Conduct dating back to 2003. His full name is Newton Donald Jenkins Jr.

Jenkins Jr. once worked as the city attorney and prosecutor for Van Buren, Ark. He was paid an annual salary by the small town of more than $56,000 while maintaining a private law practice that repeatedly landed him in trouble.

A long string of corporate revocations accompanies the name of Jenkins Jr. as a registered agent in Arkansas, a state in which the most common reason for revocation is a corporation’s failure to pay franchise tax. The string includes at least 125 names of revoked business entities. One of the revocation casualties was Jenkins Law Firm PLLC, the lawyer’s own firm.

Another revocation casualty, according to Arkansas records, was Wandering Phoenix, the business entity linked to Wright-Olivares through which prosecutors say she received Zeek payments. Either Wright-Olivares or Wandering Phoenix received $7.2 million, according to a federal charging document. Franchise tax nevertheless remained unpaid.

One law-license suspension order against Jenkins Jr. was stamped and docketed on Aug. 17, 2012, the same date the SEC moved against Zeek and the U.S. Secret Service announced it, too, was investigating the North Carolina-based MLM entity. Neither Zeek nor Wright-Olivares is referenced in the disbarment and suspension orders.

Did Wright-Olivares Have Business Relationship With Felon?

Records suggest — but do not demonstrate conclusively — that Wright-Olivares also had a business relationship with the late father of Jenkins Jr.: tax accountant N. Donald Jenkins, apparently also known as Donald Jenkins Sr. and Newton Don Jenkins Sr. “N. Donald Jenkins” — with no designation as either Jr. or Sr. — is listed alongside Jenkins Jr. as a registered agent for Wandering Phoenix. Meanwhile, “N. Donald Jenkins” also is listed as an officer and “Incorporator/Organizer” of Wandering Phoenix.

Wright Olivares was a 95-percent owner of Wandering Phoenix, according to criminal charges filed against her in North Carolina on Dec. 20. She has agreed to plead guilty to tax-fraud conspiracy and investment-fraud conspiracy, federal prosecutors said last month.

In the mid-1990s, Jenkins Sr. hatched a scheme by which he duped a man who’d approached him for advice about opening a computer business, according to federal records. Jenkins Sr., who was convicted on federal charges in 1999, encouraged the man to open a bank account and give him limited Power of Attorney.

The man complied, according to court records. After that, Jenkins Sr. entered into a merchant agreement with an Arkansas bank and defrauded the bank by depositing “over $78,000 in credit card slips reflecting sales purportedly made” by the computer business.

The slips “were drawn on credit cards recently issued to Jenkins [Sr.], his relatives” and the man who’d approached Jenkins Sr. for advice, according to court records.

But the man who’d approached Jenkins Sr. testified that the firm “never sold a computer, and that he never applied for or knew of the credit cards issued in his name,” according to court records.

“After the sales amounts were credited to the account, Jenkins [Sr.] would withdraw money through checks and ATM transactions,” according to court records.

In 1988, Jenkins Sr. was implicated by the state of Arkansas in a securities swindle and was arrested on criminal charges of theft by deception and lying to the Arkansas Securities Commissioner. The final outcome of the case could not immediately be determined. On March 23, 2009, ArkansasBusiness had this (and plenty more) to say about Jenkins Sr. (italics added):

Jenkins came to our attention way back when investors across Arkansas began accusing him of defrauding them of hundreds of thousands of dollars in elaborate investment schemes. Those civil lawsuits by angry investors drew the attention of criminal investigators, which culminated in Jenkins receiving a 27-month prison sentence following his August 1999 conviction.

The identities of the person or persons who owned the remaining 5 percent of Wandering Phoenix are unclear. What is clear is that Arkansas has revoked its corporate registration.

Enter/Exit ‘Wandering Rex’

Arkansas records also link Wright-Olivares to an entity known as Wandering Rex LLC. The registration of Wandering Rex also has been revoked.

Zeek operated through a North Carolina-based entity known as Rex Venture Group LLC, controlled by Zeek operator Paul R. Burks of Lexington. Why Wright-Olivares also had a “Rex” entity in Arkansas is unclear.

Wright-Olivares, 45, also appears to have controlled another Zeek-related entity known as Zeeklers.com. The Ozark, Ark., street address for the Zeeklers.com web domain is the same address listed in corporate records for Wandering Phoenix, one of the two revoked entities linked to Wright-Olivares, Zeek’s former COO.

Both Jenkins Jr. and his father were active in Republican politics in Arkansas. Jenkins Jr., for example, has a listing on the website of the Republication National Lawyers Association (RNLA) that identifies him as “Asst. Legal Counsel Republican Party of Arkansas.” The listing includes a link to the website of his law firm, but the domain is generating a “timed out” error message.

Meanwhile, the obituary for Jenkins Sr. as published in October 2012 at swtimes.com notes that he “served in various positions with federal, state and local candidates and Republican groups, including as chairman over the first and fourth Congressional districts, and chairman for Ronald Reagan for President. He was a true American patriot who held very strong opinions about people who tailgated him on the road.”

Disciplinary History Of Jenkins Jr.

How Wright-Olivares came to use the registered-agent services of Jenkins Jr. is unclear. It’s also unclear if Jenkins Sr. ever did any accounting work for her or if she knew him personally.

What is clear is that Jenkins Jr. has a long history of disciplinary action in Arkansas and that at least one of his other clients (a married couple) contracted with Jenkins Jr. after meeting with Jenkins Sr. in Jonesboro, Ark.  The couple later filed a complaint against Jenkins Jr. for alleged inaction after he’d been hired to address a wage-garnishment issue with the IRS. In 2007, the state issued a formal reprimand known as a “CAUTION” against Jenkins Jr., finding that he “failed to return the messages” of his garnishment clients. The state also ordered Jenkins Jr. to apologize to the clients and to return their $900 retainer.

The 2007 “CAUTION” was the second against Jenkins Jr. The first was issued in 2003, after a client accused him of never informing the client that a lawsuit he’d filed on behalf of the client had been dismissed. Records say the lawsuit had been filed in the wrong county. The state ordered Jenkins Jr. to pay a $500 fine and pay the client $250 in restitution.

In February 2010, the state ordered the law license of Jenkins suspended for three months, after allegations surfaced that he’d improperly served yet-another client, had maintained “a frivolous proceeding” on behalf of the client in a disability case and had falsified court records. Later in 2010, the state reprimanded Jenkins, amid allegations he’d butchered yet-another client’s bankruptcy case.

On Aug. 17, 2012 — the same date as the Zeek action — the Arkansas Supreme Court Committee on Professional Conduct docketed a two-year suspension of the law license of Jenkins Jr. He was accused in that proceeding of filing a bankruptcy case in the wrong state, using the wrong state when filing 2008 tax returns for two clients and not filing 2009 tax returns for the clients, another married couple who had hired him.

One of the suspensions of the law license of N. Donald Jenkins Jr. was docketed on Aug. 17, 2012, the same day the SEC moved against Zeek Rewards. (Red highlight by PP Blog.)

One of the suspensions of the law license of N. Donald Jenkins Jr. was docketed on Aug. 17, 2012, the same day the SEC moved against Zeek Rewards. (Red highlight by PP Blog.)

Jenkins’ overall disciplinary history shows at least six actions: three suspensions, two “CAUTIONS” and one “REPRIMAND.”

In May 2013, Jenkins Jr. was disbarred. A special judge “found that, in the disbarment proceedings alone, Respondent had committed at least eight violations for conduct involving dishonesty, deceit, fraud, or misrepresentation.” And the special judge also observed that Jenkins Jr. had a prior disciplinary history of numerous other violations for serious conduct involving dishonesty, deceit, fraud, or misrepresentation.”

View the disciplinary record here.

View the disbarment order at Leagle.com

 

 

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4 Responses to “SPECIAL REPORT: Attorney Linked To Zeek’s Wright-Olivares Has Record Of Disbarment And Suspensions; Possible Co-Agent Spent Time In Federal Prison For Credit-Card Swindle And Was Charged In Arkansas With Theft And Making False Statements To Securities Commissioner; Corporate Registrations Of 2 Firms Linked To Zeek COO And Purported Marketing Maven Revoked”

  1. Patrick,

    Once again, many thanks for the super investigative reporting. I marvel at how you locate this informative information. Hopefully, we will learn just how sleazy some people are. All I can say is, the lady down in Arkansas is a doozy. Hopefully, she gets her just reward. Now the pulpits around America have become corrupt with money seekers. It is now a billion dollar business. This is so sad but true.

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  2. Kudos to you Patrick. A thorough job of reporting and yet another reason I check your site every day!

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  3. Quick note: The Times Record (swtimes.com), citing court documents from a lawsuit filed by Dawn Wright-Olivares/Alex De Brantes against a building contractor, reports this:

    “Between March and June 2012, Wright-Olivares and De Brantes wrote three checks to the construction company: $30,000 in April, $50,000 in May, $100,000 in June, and $100,000 in July to do work at their Clarksville property. The work included the addition of a $60,000 sun room. In mid-August, they wrote another $100,000 check for the purchase and remodeling of the “coffee house” the lawsuit states.

    Full story:

    http://swtimes.com/business/sec-says-clarksville-family-behind-ponzi-scheme

    The “coffee house” appears to be a reference to “The Healthy Hog,” which we wrote about here:

    http://patrickpretty.com/2014/01/03/from-zeek-to-the-healthy-hog/

    The March-June 2012 period cited in the Times Record account probably represents months in which Zeek was descending into greater and greater peril, Ponzi math being what it is.

    Longtime readers will recall that Andy Bowdoin and other AdSurfDaily Ponzi scheme insiders were spending good chunks of coin during the run-up to the ASD collapse in 2008.

    ASD money was used to buy the now-infamous lakefront property that Bowdoin claimed was a sort of retreat for members, complete with a Cabana boat, jet skis and other marine equipment.

    And ASD money allegedly was used to retire the mortgage on the home of Bowdoin’s stepson and the stepson’s wife — about $157,000. The couple also got a new car.

    Another ASD insider also got a new car, and Bowdoin picked up a $50,000 Lincoln along the way. ASD also plowed $800,000 cash into ASD’s new purported headquarters building and enchanted the local Chamber of Commerce, which believed Bowdoin was creating legitimate, new jobs in Quincy, Fla., a town that needed new jobs.

    One of the things I’ll always admire about Judge Collyer is that she took the time in the key November 2008 ruling against ASD to address the people of Quincy, Fla., who’d been affected by ASD.

    The Times Record story linked to above includes a comment from the local Chamber in Clarksville, Ark. Wright-Olivares was a member, according to the story.

    It is not unusual for Ponzi schemers to seek to curry favor with economic-development officials and/or politicians or both. Scott Rothstein, the infamous attorney/Ponzi schemer/racketeer in Florida, in part became infamous for leeching off the credibility of people of influence.

    The WCM777 “program” (now known as Kingdom777) has used/is using a Rothstein/Bowdoin-like approach. So is TelexFree.

    Patrick

    P.S. Oz at BehindMLM.com has a report on the sudden name change of WCM777:

    http://behindmlm.com/companies/wcm777/wcm777-ponzi-rebrands-as-kingdom777/

    “Dr. Phil Ming Xu” of WCM777/Kingdom777 had this to say on Twitter yesterday:

    “If Kingdom777 belongs to God, bless us and get blessed; curse us and get cursed.”

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