BULLETIN: Receiver Seeks Default Judgments Against Key Zeek Rewards’ Clawback Defendants

BULLETIN: (6th Update 8:34 p.m. EDT U.S.A.) Zeek Rewards’ receiver Kenneth D. Bell has gone to federal court in the Western District of North Carolina, seeking default judgments against key clawback defendants and alleged “winners” Trudy Gilmond and Jerry Napier, a figure in the AdSurfDaily Ponzi-scheme story.

Bell is seeking more than $2.129 million from Gilmond. He is seeking more than $2.041 million from Napier.

Both Gilmond and Napier failed to defend the actions against them — with Gilmond missing an April 3 deposition in Vermont and Napier missing an April 2 deposition in Detroit, Bell wrote in a court filing.

In the alternative, Bell is asking Senior U.S. District Judge Graham C. Mullen to force Gilmond and Napier to appear in Mullen’s North Carolina courtroom no later than May 15 to “show cause as to why default judgment should not be entered against” them.

This is from Bell’s assertions against Gilmond (italics added/light editing performed):

In granting the Receiver’s Motion for Class Certification, the Court held that all Named Defendants, including Ms. Gilmond and her company, would need to “provide the Receiver with any and all evidence of their financial status and the location of all net winnings received from ZeekRewards, including deposition testimony as to the same.” . . .

Pursuant to this Order, the Receiver noticed Defendants’ deposition for April 3, 2015 in Vermont, Ms. Gilmond’s state of residence, in compliance with the Federal Rules of Civil Procedure. See Ex. 1, Notice of Deposition of Trudy Gilmond and Trudy Gilmond, LLC. The Notice was served on Defendants’ counsel via U.S. mail, hand delivery and email on February 27, 2015. Id. And, after Defendants’ counsel withdrew from the case, the Notice was also sent directly to Ms. Gilmond via email at an email address provided by her now former counsel.

In spite of the Court’s Order and repeated notice, Ms. Gilmond has refused to appear for her noticed deposition.

Largely the same assertion was made against Napier.

Zeek Rewards is believed to be one of the largest MLM/network-marketing Ponzi- and pyramid schemes in U.S. history. The “program” allegedly gathered $897 million.

The SEC shut down Zeek Rewards in August 2012.

Even being “flexible on the logistics” of the Gilmond and Napier depositions was not enough to get them to appear, Bell contended.

From the receiver’s assertions against Napier (italics added):

In sum, it seems clear that Mr. Napier does not intend to appear for a deposition or produce the related requested documents. He has offered no explanation for his refusal to appear or otherwise defend the action. Accordingly, it is appropriate for the Receiver to move the Court for judgment against Mr. Napier and the alternative relief requested.

Largely the same assertion was made against Gilmond.

In the earliest days of the SEC’s action, Gilmond litigated aggressively. She continued to do so as Bell pursued clawbacks from more than 9,000 alleged Zeek winners.

Why she apparently isn’t doing so now is unclear.

Bell has expressed concerns that some MLMers/network marketers are moving from one fraud scheme to another.

NOTE: Our thanks to the ASD Updates Blog.