Zeek Net-Winner Notifications Expected To Begin Soon; Receiver To Establish ‘Net Winnings Determination Response Portal’

If you’re a net winner in the massive Zeek Rewards’ Ponzi- and pyramid scheme, your notice that you must return your ill-gotten haul with interest may arrive as early as next week.

Under the terms of a court order by Senior U.S. District Judge Graham C. Mullen, the notice will apply to more than 9,000 alleged winners of at least $1,000 and will arrive via email. At least with respect to Zeek, the days of MLMers profiting from scams while the operators go to jail are over.

In a Feb. 2 announcement, Zeek receiver Kenneth D. Bell said the receivership will establish a “Net Winnings Determination Response Portal” through which winners are “required to provide a response stating whether he or she accepts or disagrees with that amount within 60 days of the notification.”

Bell successfully sued the winners in a defendant class-action case. The trustee in the TelexFree case is following a similar path, further demonstrating that winnings from MLM scams simply are not safe.

FTI Consulting Inc., the Zeek receiver’s expert, found that Zeek’s net losers lost more than $822 million and the net winners hauled away more than $282 million. Ninety percent of Zeek entrants lost money, according to the findings. which defense experts were unable to refute.

Here is Bell’s Feb. 2 announcement (italics added):

ANNOUNCEMENT FROM THE RECEIVER – February 2, 2017

As I previously announced, I continue to pursue Final Judgments requiring each member of the Net Winner Class of those who won at least $1000 in ZeekRewards to repay their net winnings to the Receivership for distribution to victims of the scheme. On January 27, 2017, United States District Judge Graham Mullen entered an Order on Process for Determining the Amount of Final Judgments Against Net Winner Class Members, which sets forth the process for determining the amount of the net winnings received by each member of the Net Winner Class. That amount plus prejudgment interest will then become the amount of the Final Judgment to be entered against the net winner. I intend to pursue collection of these judgments vigorously, and expect the ultimate amount collected, while uncertain, will be a substantial sum.

The Court’s Order, which describes the process in detail, may be viewed by following this link. The first step in the process – notifying each Net Winner of the amount of their net winnings – is expected to begin next week. After notification, each Net Winner is required to provide a response stating whether he or she accepts or disagrees with that amount within 60 days of the notification using a website Net Winnings Determination Response Portal. More information and links to the Response Portal will be sent to the Net Winner Class members in the notification email. If a Net Winner does not receive their notification by February 13, 2017 then he or she should email netwinningsresponse@zeeknetwinnerclass.com to receive instructions on how to obtain the notification.

Throughout the Receivership, the Receiver has expressed a willingness to consider voluntary final settlements with ZeekRewards’ Net Winners to efficiently resolve the claims against them. Hundreds of settlements have been negotiated with Net Winners and approved by the Court. If a Net Winner wants to discuss a settlement of the Receiver’s claims prior to Final Judgment being entered, please communicate with the Receiver at zeeksettlement@mcguirewoods.com.

 

Visit the receivership website.




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