Zeek Receiver Proposes Date For First Interim Distribution

Zeek receiver Kenneth D. Bell.

Zeek receiver Kenneth D. Bell.

Kenneth D. Bell, the receiver in the Zeek Rewards Ponzi- and pyramid case, has asked a federal judge to set Sept. 30 as the date of the first interim distribution to victims. Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina must approve the proposal and other scheduling logistics proposed by Bell. Victims with allowed claims would be paid by check.

Bell, according to the proposal, believes that approximately $320 million held by the receivership estate is enough to provide victims “a total recovery in regard to their investment into the ZeekRewards Scheme of at least 40%” when the initial distribution occurs.

Some money must remain in reserve, however, to continue to fund the receivership as it pursues recoveries from alleged insiders, “winners” and “others who benefited from or improperly facilitated the ZeekRewards Scheme.” Other distributions would occur over time, as more money flows to the receivership.

If Mullen approves the proposal, some money could be in the hands of tens of thousands of Zeek victims by early fall.

About 175,000 claims have been filed, and “approximately 150,000 Claim Determinations have been issued by the Receivership Team,” Bell advised the judge, noting that about 25,000 claims remain under review.

NOTE: Thanks to the ASD Updates Blog. Read Bell’s proposal for the first interim distribution here.

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4 Responses to “Zeek Receiver Proposes Date For First Interim Distribution”

  1. From a statement by the receiver dated today:

    _____________________________________________

    In order for your claim to be allowed, you must have received your claim determination, agreed to that claim determination (or resolved any objection you made to such claim determination and agreed to a claim determination), and provided the required release and OFAC certification requested on the claim portal. If you have received your claim determination, but have not agreed to the determination or have not provided the required release and OFAC certification, your claim is not yet allowed. Please submit this information as soon as possible. Without it, we are not permitted by the Court’s orders to include you in the September 30, 2014 interim, partial distribution.

    If your claim is not allowed or has not been determined before August 15, 2014, you will be eligible to receive your first interim, partial distribution on a later distribution date after your claim has been allowed. These later distribution dates will occur quarterly. You will receive distributions in the same total amount you would have received if your claim was allowed on August 15, 2014.

    If you have not received your claim determination, please be patient; it is coming. If you have already received a claim determination, or when you do, I encourage you to respond as soon as you are able so that we can provide you with your first interim, partial distribution.

    _____________________________________________

    Source: UPDATE FROM THE RECEIVER – May 29, 2014

    http://www.zeekrewardsreceivership.com/

    Patrick

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  2. http://www.bizjournals.com/triad/news/2014/05/29/zeek-receiver-files-motion-for-first-payments-to.html

    “This money rightfully belongs to affiliates with allowed claims. We will also sue foreign net winners in the near future,” Bell said. “Also, I believe we will recover several millions of dollars more from financial institutions still holding receivership assets.”

    I think it’s worth noting the “sue foreign net winners” comment.

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  3. Tony H: I think it’s worth noting the “sue foreign net winners” comment.

    It is indeed, Tony.

    Patrick

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  4. What Gary said http://patrickpretty.com/2014/05/08/zeek-receiver-multilayered-investigation-into-rex-venture-group-and-its-insiders-advisors-and-financial-institutions-continues/comment-page-1/#comment-89934 is also worth noting.

    I am curious to see the latest progress of 9,000 US litigation, before the receiver goes internationally.

    Santos

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