Lawyer Linked To Zeek Rewards Scheme Disbarred

A California attorney alleged to have stolen at least $800,000 that originated in Zeek Rewards while serving as counsel for a Zeek financial vendor has been formally disbarred.

The California Supreme Court issued the order against Scott Stone Mehler on Feb. 23, according to the docket of the case.

Mehler was an attorney for Plastic Cash International (PCI), a vendor sued by Kenneth D. Bell, the court-appointed receiver in the SEC’s pyramid- and Ponzi case filed against Zeek in August 2012. Zeek operated through Rex Venture Group LLC of North Carolina.

Although the Zeek case is referenced in documents prepared by the State Bar of California, the disbarment order against Mehler is tied to a swindle he carried out against the operators of a sheet-metal business. He has been ordered to pay restitution of $647,795.37 in that case.

Whether a separate Bar prosecution is pending against him specifically for Zeek-related actions is unclear. Also unclear is whether a criminal investigation is under way. Mehler asserted his Fifth Amendment right against self-incrimination, according to a July 2014 Bar report.

Bell is pursuing PCI for the return of millions of dollars alleged to be Zeek assets. PCI contends it is a victim of both Zeek and Mehler and was rendered insolvent owing to its business relationship with Zeek.

NOTE: Our thanks to the ASD Updates Blog.