Sunday, August 26, 2012

EDITORIAL: People in denial do some crazy things...

It is interesting that people in denial will do some absolutely crazy things, such as claiming black is white, truth is fiction, and so on.

This is exactly what's happening with many Zeek affiliates, one week after their scheme, ZeekRewards, was shut down by the SEC as a $600 million Ponzi scheme. And they are being lead by someone who thus far has yet to publicize his own relationship with Zeek, not as an affiliate, but also as a consultant for Zeek.

This is a letter I was forwarded recently, and it illustrates the amount of delusion people in denial has, in that they refuse to see the truth, but would rather spin some sort of conspiracy to fit their own narrative.

Their words will be in blue, and my reply will be in red.

Anyone that has been associated with Zeek Rewards for any duration of time knows that not only was the SEC indictment inaccurate, but it was so inaccurate that they were able to turn a viable company into a Ponzi scheme. Since we believe this statement to be true, we sought out legal advice in defense of what we believe to be a major injustice to all of us affiliates.
This entire first paragraph is one big assumption: we are right and they are wrong. Where's the evidence?
The SEC has tried to make us all believe that Zeek Rewards was an "investment" and a Ponzi scheme. All the pages that were submitted by the protective order by the SEC that froze the assets of Rex Venture Group, LLC. has all been one sided and what we believe to be a misrepresentation of the truth and facts of what Zeek Rewards was as a viable and legal business.
The problem here is SEC's complaint is the only thing that had been made public. There's a lot more evidence that were NOT made public. The docket says "SEALED". Thus, claiming "all the pages submitted... has all been one sided" is like saying prosecutor is one-sided. Duh! And again, where's YOUR proof that SEC's wrong? 
The SEC mislead the judge in its claim against Zeek Rewards convincing him that emergency action needed to be made against Zeek to shut them down before they collapsed in their words saving the affiliates from losing everything and they did this without even having to provide the judge proof. Therefore, we needed to get the facts and real numbers to defend against these accusations.
And how are you going to "get the facts and real numbers"? What sort of access do you have? 

You have NO STANDING! The only one who have standing, Paul Burks, already capitulated! You are affiliates, with NO OWNERSHIP INTEREST in the business! You have no right to sue anybody except Zeek for civil fraud!  
Over this past week, we have sought out to get the proof that was needed to prove that Zeek Rewards was not a Ponzi scheme and not an investment but rather a legal viable business that was thriving and paying out its affiliates daily profit sharing from the proceeds from the Zeekler auctions and Free Store Club and not that of the proceeds from purchasing of sample VIP bids by its affiliates. We now have the proof that we need to defend Zeek Rewards against the protective order by the SEC that froze the assets of Rex Venture Group, LLC. and to bring this proof before the courts to defend Zeek Rewards and all of our independent businesses as per our legal rights of due process.
Really, you can prove that there's another 375 million dollars lying around that Feds didn't track? Come on.

SEC said affiliates are primarily paid by money from affiliates buying those giveaway bids (which are almost NEVER redeemed). Unless Craddock pulled another $375 million worth of business out of a hat, something even Paul Burks don't know about, it's pretty clear Craddock is talking out of his arse. 

If Paul Burks have this proof, he would not have given up the entire RVG and his 4 million!  What are the chances that Craddock, an outside consultant brought in only two months ago, would have this proof, and Paul Burks, the business OWNER, do not? 

We have set up a website to unify our collaborative actions together as one united legal front to fight for our due process rights as independent Zeek Rewards affiliates. We also have set up a PayPal button to accept donations from as many Zeek Rewards affiliates as possible to protect each of you legally moving forward allowing us to be a protected group with legal council secured by Fun Club USA. These funds will be used to obtain the retainer needed to petition the courts to remove the emergency injunction by the SEC against Rex Venture Group and Zeek Rewards and demand that the SEC provide us (the united Zeek Rewards represented affiliates) with proof for the indictment filed on August 16, 2012.
Furthermore, we will petition the court to allow us to provide the legal proof that we have attained from the corporate office of Zeek Rewards, legal statements of Zeek Rewards corporate officials, and accounting records which will disprove ALL accusations by the SEC to be false and severely misrepresented.
And what makes you think your records are "real" and SEC's allegations are "false and severely misrepresented"? 
We have also been advised by legal counsel that if these SEC accusations are not challenged, that all Zeek Rewards affiliates will be impacted most likely in a negative way for both affiliates who made profits and by those affiliates who are expecting to be refunded. Therefore we all lose if we sit back and do nothing and be led like sheep to the slaughter. We cannot allow our legal rights to justice be taken away by our government, and so I ask you all to STAND UP AND FIGHT with us!
All Zeek Rewards affiliates are ALREADY impacted in a negative way... they were SCAMMED and DEFRAUDED, whether they made money or not! 

Zeek Rewards affiliates were lead like sheep to slaughter. Now they will be lead again... to cough up money for a lost cause and lost even MORE $$$. 
If you would like more information and have further questions, an email has been set up by Robert Craddock at (REDACTED). He will be addressing all questions and comments into further announcements on the site at (REDACTED)
There is finally hope for our business and justice to be done! I am now cautiously optimistic that this fight will lead one day to Zeek Rewards being proven that it is a legal viable business and be back in operation if due process is followed and we are allowed to prove our case to the courts.
Thank you all and God Bless!
Dave Kettner
If they really believe this sh__, they must really enjoy flavor-aid. (Jim Jones didn't use Kool-aid... cost too much)

As I mentioned before, Robert Craddock identified himself as a Rex Venture Group consultant with ability to act for the principals (an authority he never confirmed). He's NOT just an affiliate.  He's apparently buddy with the new Acting COO Caldwell.

And Mr. Dave Kettner? Keep moving from one scheme to another. TVI Express, Diamond Holidays, Club Seabreeze, vitamin chews, and now Zeek Rewards. Not exactly a track record of picking winners.

As I predicted that ZeekRewards is a Ponzi 4 months ago, I predict a painful reckoning to people who were in denial and actually donated money to this "fund". And I hope whoever is providing false hope to further mislead affiliates get what they deserve.

Remember, Zeek hired Grimes and Nehra. They got shut down. So no matter who this "defense fund" hires, they have to get through the fact that they have NO STANDING.

THEN they have to prove their figures are right, there's lot more money in Zeek than any one had ever suspected

Even if they win, there's NO CHANCE ZeekRewards will be restarted. Its name is toast. Zeek and Burks is STILL guilty of securities fraud, selling unregistered securities, and falsely representing themselves as NOT an investment, and possibly more charges.

Thus, the chance of this lawsuit succeeding is NIL.

History confirms my analysis. SEC don't miss. Look at the ASD Ponzi... at least four efforts to raise money to fight for Andy Bowdoin (who, unlike Burks, did NOT capitulate) failed to find any new evidence and restart ASD Ponzi. In fact, in one case, one team managed to get away with 160K in raised funds.

Make sure you back the right horse this time.

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  1. Sounds to me like there is a huge potential for fraud here. Say I raise some amount of money from Zeek affiliates, spend fraction of that amount of money on "legal representation," what will I do with the rest of the money? Pocket it perhaps?

  2. "theMLMattorney" Kevin Thompson weighed in on this issue: Wait and See, donation should not affect you at all.


  3. I sent the following letter to SNR Denton asking them to clear this up.

    Gene R. Besen
    SNR Denton
    2000 McKinney Avenue
    Suite 1900
    Dallas, TX 75201-1858
    Dear Mr. Besen:

    I am an online journalist researching matters related to Rex Venture Group and Zeek Rewards and their current troubles with among others, the Securities and Exchange Commission.
    As you are aware, a group of Zeek Rewards affiliates have apparently retained you as their attorney in regards to this case. My question is, I would like some clarification on exactly who you represent. A Mr. Robert Craddock has been saying that you have been retained on behalf of all affiliates who contribute to this effort through a website he has set up to accept contributions. In a letter to potential donors dated today, Mr. Craddock states
    “Also, to clarify any rumors that are going around the Internet, yes, if you make a donation to Fun Club USA, you are a plaintiff in the lawsuit and in the group protected by SNR Denton. “

    I find this statement hard to believe, as in this case the court appointed receiver has indicated he intends to pursue clawbacks of ill gotten gains and while Mr. Craddock and the members of his group are net winners in this scheme and the people from whom he is soliciting donations are very likely net losers. If your representation goals are to protect your clients from clawback actions, those interests would be in direct conflict of those who would benefit from the receiver maximizing the amounts he recovers from ill gotten profits.
    All the communications I have found in regards to this eventually point to Fun Club USA, a site and company controlled by Mr. Craddock. They have the site set up to collect donations for their legal fund, with a disclaimer I am guessing your firm has insisted upon.
    More in line with what I expect is the statement that Fun Club USA has on their website, to wit:
    “SNR Denton US LLP represents Fun Club USA and all inquiries about this representation should be directed to Fun Club USA at SNR Denton’s legal representation is limited to Fun Club USA; SNR Denton does not represent and does not have an attorney-client relationship with affiliates of Zeek, Zeek Rewards, Rex Venture Group LLC or with any individual or party that chooses to provide funds to Fun Club USA.”

    As a writer covering a story I’d like some clarification on just exactly who you and your firm represent. As a concerned citizen, I’d like to ask you to clarify to your client the same question and urge them to not confuse the issue.
    I realize I’m not exactly The New York Times but I still think it would be in everyone’s interest that you and your clients clarified these issues. I intend to cover it and I’m sure other, more mainstream publications will, too.

    Greggory Brian Evans, PhD