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Tag: Victoria Bank

  • PAYZA TO ZEEK RECEIVER: Don’t Blame Us

    ponzinews1Payza, an HYIP-friendly payment processor that recently bragged on Twitter about its attendance at an event for the teetering TrafficMonsoon scheme, has advised a federal judge that it is not responsible for millions of dollars that allegedly went missing in the Zeek Rewards’ scheme taken down by the SEC in 2012.

    Zeek receiver Kenneth D. Bell alleged in February that Payza and an outfit known as Payment World “facilitated” the epic cross-border Zeek Ponzi- and pyramid scheme. The PP Blog reported on Feb. 21 that the money at issue — about $13.1 million — may have ended up in one or more collapsed Russian banks after being transferred out of VictoriaBank in Moldova.

    Payza acknowledged it was a business partner with Payment World, but maintained the account in Moldova was Payment World’s alone and that it has sued Payment World for more than $20 million because it, too, had been ripped off.

    In response to Bell, who is seeking a contempt sanction and to hold Payza jointly liable with Payment World and VictoriaBank for return of the cash, Payza says it never had “dominion and control” over the money and thus should not be held liable.

    Payza, which operates out of Canada as part of a company known as MH Pillars of the United Kingdom, further contends with worked cooperatively and proactively with Bell and U.S. authorities tracking the money. The defense filing by Payza was docketed yesterday in the Western District of North Carolina and also claims Payza performed due diligence on Rex Venture Group, the operator of Zeek. The filing contained a declaration by MH Pillars Executive Vice President Firoz Patel.

    In a May 15 Twitter post, Payza said Patel was a speaker at a May 15 event in New York for the Traffic Monsoon program.

    The Tweet made no due-dilignce claims about Traffic Monsoon, which reportedly is under investigation by PayPal and has been blocked from a sum totaling on the order of $60 million.

    NOTE: Our thanks to the ASD Updates Blog.

    Also see TaraTalks site.




  • Certain International Zeek Members Due Distribution From Receiver Eligible To Receive Wire Transfer — But There Are Restrictions

    In a May 6 announcement, Zeek Rewards’ receiver Kenneth D. Bell shares important news with international Zeek members who have been unable to cash checks from the U.S.-based receivership estate.

    “Many foreign Affiliates have reported that they are unable to deposit or cash their distribution checks due to local banking fees and regulations. We filed a motion with the Court seeking a remedy for this problem so that all Affiliates, could receive their distributions,” Bell wrote.

    “On April 27, 2016, the Court entered an Order that permits the Receiver to pay certain foreign Affiliates by wire transfer in US Dollars. I sought this relief because various foreign Affiliates that were eligible to receive distributions contacted me to alert me to the fact that they were unable to cash the physical checks denominated in US Dollars that they had received. This relief will allow me to pay those foreign Affiliates who complied with the Court mandated process, but were otherwise unable to recover on account of their Allowed Claim because of their location.

    “If you are eligible to receive your distribution by wire transfer, my team will be sending you an email explaining how you may exercise the option to receive your distribution by wire transfer,” Bell continued. “However, if you are eligible to receive your distribution by wire transfer and you choose to do so, all of the fees and costs associated with the payment of the wire will be deducted from your Distribution (including without limitation the fees and costs associated with the sending of the wire by the estate, the receiving of the wire transfer by your bank, any currency conversion fee associated with converting the wire transfer from US Dollars to your local currency, any bank charges, and any canceled check fees incurred on account of any uncashed check which was previously issued to you. In addition, you agree to pay any costs associated with canceling uncashed checks previously issued to you). If you request a wire transfer and it is determined that the cost of the transfer will be greater than your Distribution, your Distribution will be sent by check.

    “In order to receive the wire transfer, you must submit all of the requested banking information via the Claim Portal. You must also give the estate a release in regard to any misdirected wire transfer caused by the entry of any incorrect banking information.

    “Wire payments will follow the same schedule as check Distributions and will not be made until the Release and OFAC have been submitted,” Bell wrote.

    Bell also announced that he will ask Senior U.S. District Judge Graham C. Mullen “this summer” for an order against more than 9,000 alleged Zeek winners sued in a class-action case for the return of their winnings.

    “We remain confident of success in that litigation, and that it will result in the collection of tens of millions of dollars for distribution to qualified claimants,” Bell wrote.

    The receiver also expressed hope that litigation against Payza, Payment World and Victoria Bank will conclude this summer and result in a recovery for the estate. (See Feb. 21, 2016, PP Blog Special Report that questions whether some of the Zeek money ended up in one or more collapsed Russian Banks after being transferred from Moldova.)

    “The bottom line is that we expect additional recovery of tens of millions of dollars for distribution in this year or next,” Bell wrote. “I’m sorry I can’t be more precise; litigation is slow and uncertain. You now know as much as I do.”

    Read Bell’s full statement, dated May 6, 2016, on the receivership website.




  • RECEIVER: Payza And Payment World ‘Facilitated’ Zeek Ponzi Scheme; Whereabouts Of $13.1 Million An ‘Open Question’

    Zeek was a purported penny auction.
    Zeek was a purported penny auction.

    Zeek Rewards’ receiver Kenneth D. Bell has gone to federal court in the Western District of North Carolina, alleging that the Payza and Payment World payment processors “facilitated” the epic cross-border Zeek Ponzi- and pyramid scheme.

    More than $13.1 million in funds from North Carolina-based Zeek that could be used to compensate victims ended up in VictoriaBank in Moldova, owing to a processing relationship among Payza, Payment World and the bank, Bell alleged.

    Now, Bell contends, “based on recent developments in the Receiver’s investigation, there is an open question as to whether the Receivership Assets held on Reserve at VictoriaBank remain or were transferred from the account.”

    The disturbing allegations are part of a motion in which Bell seeks to hold Payza, Payment World and VictoriaBank in contempt. They come as federal prosecutors in the District of Colombia and the U.S. Department of Homeland Security are conducting a criminal investigation involving Payza and OboPay, another payment processor.

    Prosecutors haven’t revealed the target of the criminal probe. It is unclear whether there is any nexus with the Zeek case, alleged overall to involve $897 million. Zeek, a Ponzi forum “program,” allegedly created tens and tens of thousands of victims worldwide.

    Payza is a Ponzi-forum darling. Its predecessor, AlertPay, is referenced in court filings in the 2008 AdSurfDaily Ponzi case. Scores of Ponzi-board “programs” claim to accept Payza, including an emerging scheme known as Traffic Monsoon.

    Bell accused Payza, Payment World and VictoriaBank of violating an asset-freeze order issued in 2012 by Senior U.S. District Judge Graham C. Mullen.

    In a novel legal maneuver, Bell has persuaded Mullen to freeze a correspondent account VictoriaBank holds on U.S. soil at Bank of New York Mellon. Mullen authorized the freezing of more than $13.1 million in the account.

    If the account proves not to hold that sum, VictoriaBank must deposit with the receivership the difference between the frozen sum and the $13.1 million Bell claims as receivership assets, according to the order.

    Bell signaled on Feb. 1 that the receivership would pursue Payza, Payment World and VictoriaBank.

    Moldova is situated in Eastern Europe. It shares a border with Ukraine, a world hot spot.

    NOTE: Thanks to the ASD Updates Blog.




  • BULLETIN: Zeek Receiver May Push For Contempt Against Payza

    breakingnews725BULLETIN: New court filings in the Zeek Rewards’ Ponzi- and pyramid-scheme case brought by the SEC in 2012 say Zeek receiver Kenneth D. Bell may ask a federal judge for a finding of contempt against Payza, a payment processor.

    The news comes as federal prosecutors continue a criminal investigation involving Payza and Obopay, another payment processor. Prosecutors are expected to make an announcement on the Payza/Obopay matter soon.

    Payza is  Ponzi-forum darling.

    Some of the Zeek money ended up in Moldova, according to previous filings by Bell. Precisely how that happened remains unclear, but Bell says he is working with authorities in both Moldova and the United States “to locate and recover the funds.”

    From a filing by Bell dated today (italics added):

    The Receiver Team continues its efforts to investigate and pursue outstanding funds from the processing relationship and flow of funds between Payza, Payment World, and Victoria Bank . The Team is working with government officials in both the United States and Moldova and with members of McGuireWoods Consulting to locate and recover the funds. The Receiver Team has also begun efforts to file a motion against these entities seeking the return of receivership assets and for a finding of contempt. The Receiver Team continues to investigate and pursue outstanding funds from Solid Trust Pay and Cyberprofit and is working with various government agencies in pursuit of these assets.