Wednesday, August 1, 2012

NEWSFLASH: Keith Laggos left ZeekRewards, predicts "FTC will hit Zeek in 6 months"

End of July 2012 was interesting... Not only did Zeek (or its parent company, Rex Venture Group) launched an offensive campaign against one of its critics, namely, me, and forced my critical article offline, Zeek had a MAJOR defection in the ranks: one of their paid consultants, Keith Laggos, left the company, apparently in not-so-amicable terms.

Based on the report on Troy Dooly's MLMhelpDesk, and Oz's BehindMLM, the facts are as follows:

  • Keith B. Laggos is no longer employed at Rex Venture Group, where he consulted for compliance since February or March 2012
  • Laggos had previously highlighted ZeekRewards as "Company of the Month" for April 2012 in his "Network Marketing Business Journal"
  • Laggos is pushing a different biz called Lyoness and apparently tried to cross-recruit / poach some followers
  • Laggos claimed to have 45K downlines in Zeek Rewards and is making $40K monthly off of Zeek
  • Laggos claimed FTC had been watching the industry like a hawk and forced Zeek to credit card processors (and banks?) outside of the US due to anti-internet-gambling legislation
  • Laggos claimed FTC will hit Zeek within 12 months, probably 6, as soon as 3. 
  • Laggos claimed he's the one that moved Zeek's banking and credit card processing to foreign processors
  • Dooly verified this with the new COO of RVG, who replied "don't ask me about this ever again", suggesting that the parting is not on amicable terms
This indicates that Laggos had been benefiting from his Zeek membership for several months, and he could recruit using his "fame" as he publishes that magazine. 

What you did not know is Laggos, had been slapped by no less with Securities Exchange Commission for not disclosing he's benefiting from publishing bullsh__. In 2002, he was republishing a piece of "news" on his magazine (not NMBJ) about this company called "Converge". The news was fake designed only to pump up their stock price for a pump and dump. 

...The Complaint (SEC) further alleged that Brown and Fink were responsible for drafting and issuing the false press release. Also named as a defendant in the action was Keith B. Laggos, of Homer Glen, Illinois, the owner and publisher of Illinois-based newspaper Money Maker's Monthly, who was charged with violations of Section 17(b) of the Securities Act of 1933. The Complaint alleged that Laggos was compensated by Converge and/or TeleWrx for publishing laudatory press releases concerning TeleWrx on June 10 and June 25, 2002 and a laudatory article concerning TeleWrx in Money Maker's Monthly's July 2002 issue, and failed to disclose said compensation.
Furthermore, he had been forced to sign a consent decree to NEVER DO IT AGAIN in 2006. 

Technically RVG / ZeekRewards is not a security... unless SEC hits it as "unregistered securities". In which case, Mr. Laggos is going to be in big trouble... AGAIN.

Mr. Laggos had also previously rendered an opinion... he had *also* claimed Ad Surf Daily, Andy Bowdoin's Ponzi scheme, is NOT a Ponzi.  (See PDF file)   Those of you who study history, will realize that this guy's wrong, as confirmed by a Federal court. So wrong, Andy Bowdoin pled guilty in May 2012 instead of continue to fight.  

Why anybody would trust judgement of this person after that is beyond me. 

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