URGENT >> BULLETIN >> MOVING: Judge Orders U.S. Marshals To Arrest Zeek Figure Darryle Douglas

breakingnews725URGENT >> BULLETIN >> MOVING: (3rd Update 6:25 p.m. ET U.S..) Senior U.S. District Judge Graham C. Mullen of the Western District of North Carolina has ordered the U.S. Marshals Service to arrest alleged Zeek Rewards’ insider Darryle Douglas for civil contempt of court.

The order was issued yesterday and included a directive for marshals to execute an arrest warrant and jail Douglas, a Californian. It was not immediately clear whether he has been taken into custody.

As the PP Blog reported on July 13, Douglas may be associated with an emerging scheme known as Auction Attics. Zeek receiver Kenneth D. Bell initially declined to comment on the nascent “program,” which almost certainly was aimed at former Zeekers and others.

But Bell did reference Auction Attics in an Aug. 24 court filing, according to BehindMLM.com.

After Mullen ordered Douglas to appear at a Dec. 3 hearing in North Carolina, Douglas failed to show, according to the order.

At the same time, Douglas has not complied with a Sept. 15 order that directed him to turn over the Zeek Rewards’ database, to produce certain financial records and to submit to a deposition by Bell, according to the order.

And, according to the order, Douglas has been obstructing the receiver. From the order (italics added):

Mr. Douglas failed to appear for the show-cause hearing. The Court took evidence at the hearing from the Receiver and from counsel for Mr. Douglas and is satisfied that Mr. Douglas received notice of the hearing well in advance of the hearing date. The Court finds that Mr. Douglas received notice of the September 15 Order and has violated that Order. In addition, the Court finds that the Receivership has suffered and will continue to suffer harm because of Mr. Douglas’ violation of the Order. Mr. Douglas was previously found liable for more than $2 million to the Receivership in the form of fraudulent transfers and prejudgment interest, and under the Agreed Order in this matter, these are Receivership Assets belonging to the Receivership Estate.

Mr. Douglas’s failure to return the database and these Receivership Assets not only harm the Receivership, but they also violate the Agreed Order in obstructing the Receiver’s efforts.

NOTE: Our thanks to the ASD Updates Blog.

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