ZEEK: Settlements Possible With MLM Attorneys, Nehra And Waak Law Firm

Zeek’s penny auction traded on themes of liberty and wealth, but was actually a cross-border fraud scheme that fleeced investors of hundreds of millions of dollars, prosecutors say.

A North Carolina lawyer for a Michigan MLM law firm and MLM attorneys Gerald Nehra and Richard Waak advised a federal judge yesterday that a settlement was possible among her clients and the court-appointed receiver in the Zeek Rewards’ Ponzi- and pyramid-scheme case.

Receiver Kenneth D. Bell sued the lawyers and the firm in September, alleging legal malpractice, negligence, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment and constructive trust.

In an uncontested motion to extend the time to answer Bell’s complaint, attorney Amanda A. Mingo advised Senior U.S. District Judge Graham C. Mullen that the “parties are discussing details of a settlement and expect to reach an agreement shortly.

“If no agreement is reached by the end of November, Defendants will file responsive pleadings,” Mingo wrote.

A settlement with Nehra, Waak and the firm would mark the second such accord Bell has struck with well-known MLM lawyers and firms that performed work for Zeek, a “program” believed to have gathered $897 million in about two years while creating hundreds of thousands of victims across the world and triggering lawsuits against scores of pitchmen for return of gains alleged to be ill-gotten.

Bell previously sued MLM attorney Kevin Grimes and the Grimes and Reese law firm, alleging they provided “window dressing” for the massive Zeek fraud in part through the sale of a “bogus” compliance course. Mullen later approved a settlement in which the defendants acknowledged no wrongdoing but agreed to pay about $1.175 million.

Nehra, a figure in the 2008 AdSurfDaily Ponzi-scheme story who opined ASD was not a Ponzi scheme, later became a figure in both the Zeek and TelexFree stories.

NOTE: Thanks to the ASD Updates Blog.