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| online fraud (Photo credit: ivers) |
It is now known if other "insiders" will also get similar deals. Other Zeek insiders includes Paul Burks, Darryl Douglas, Alex deBrantes (Dawn's new husband) and possibly many other individuals.
According to PatrickPretty.com, the charges were tax fraud, conspiracy to commit tax fraud, investment fraud, and conspiracy to commit investment tax fraud. Wire fraud was also alleged but have been dropped as per the plea deal.
Furthermore, the document suggests that Dan Olivares had been negotiating with Federal prosecutors since JULY 2012, almost a MONTH before SEC closed Zeek for good.
Charge document also stated that both mother and stepson took active steps to continue the fraud when they knew they were involved in a massive Ponzi scheme (largest ever in the US history, according to US Attorney prosecuting the case), by actively "inventing" the daily profit rate just as Paul Burks did on several occasions when Paul Burks was not available, as well as removing any and all references to "investment" and "ROI" from the Zeek Rewards website to actively conceal the nature of the Ponzi scheme.
The Zeek Rewards ponzi was also actively implemented by Wright-Olivares through various "training calls" hosted by her where she touted the 80/20 plan (only ever take 20% out, reinvest 80%) which caused the liabilitites to vastly exceed assets available to cover such, as well as issue fraudulent tax returns to individuals causing them to vastly overstate their income by 1000% or so, and used that to further "prove" that its scheme was profitable. Charging document also stated that Zeek never filed any corporate taxes.
UPDATE: To clarify, both Dawn Wright-Olivares and Dan Olivares (her stepson), are being charged with two counts of criminal conspiracy each: conspiracy to commit investment fraud (falsely presenting Zeek as not investment, such as removing all references to investment from the website), and conspiracy to commit tax fraud (report false income to IRS for all members). [ Thanks to Jordan "Ponzitracker" Maglich for the clarification ]
In other news, the formerly Zeek real estate auction yielded only about 750K toward victim restitution.
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