BULLETIN: Zeek’s Burks, Wright-Olivares, Olivares Settle With Receiver; Agree To $600 Million Consent Judgment ‘To Be Satisfied With Substantially All Of Their Assets’


Paul R. Burks

BULLETIN: (2nd Update 8:29 p.m. EDT U.S.A.) Three individuals alleged to be key insiders of the Zeek Rewards Ponzi- and pyramid scheme have agreed to a $600 million consent judgment with the court-appointed receiver.

Receiver Kenneth D. Bell sued several alleged insiders, including Zeek operator Paul R. Burks, former COO Dawn Wright-Olivares and programmer Daniel Olivares, in late February.

Now, Burks, Wright-Olivares and Olivares have agreed to a consent judgment of $600 million “to be satisfied with substantially all of their assets,” Bell said in court filings today.

The settlement must be approved by the court. Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina is presiding over the cases of the alleged insiders.

Other alleged insiders continue to challenge Bell’s complaint. If judgments are entered against Burks, Wright-Olivares and Olivares, continued litigation by other alleged insiders increasingly could become an uphill climb.

Bell’s filing today also reveals that the receivership has recovered $107,697 from an FXDirectDealer (FXDD) account linked to Wright-Olivares through an entity known as “Wandering Rex.”

FXDD was sued by the U.S. Commodity Trading Futures Commission (CFTC) last year, amid allegations it failed in its supervisory obligations by “employing a trading system that gave FXDD pricing advantages over [customers] and harmed thousands of its retail customers.”

Whether Wandering Rex was a harmed customer was not immediately clear.

“Wandering Rex was an entity established by Dawn Wright-Olivares and/or her affiliates through which Rex Venture Group funds were fraudulently transferred,” Bell advised Mullen today in a quarterly report to the court.

Burks’ Rex Venture Group controlled Zeek.

The PP Plog first reported on the Wandering Rex entity in January 2014.

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