Monday, December 3, 2012

Should Everybody Return Scam Money? Absolutely!

English: Division of Insurance Fraud Patch
English: Division of Insurance Fraud Patch (Photo credit: Wikipedia)
In every moral sense, if you received tainted money (i.e. money obtained through fraud, even if it's not your fraud)  you have to return it. If someone stole money and used it to pay you, it's tainted money, and it needs to be returned, for example.

In November 2012, the receiver for Zeek Rewards Ponzi sent out 1200 subpoenas to the highest earners on record, asking them to supply info to validate their own earnings (in preparation to clawback), and/or to reach a settlement with the receiver. It appears though that some people continue to float the myth that somehow the people who benefited from the Zeek Rewards ponzi can keep their earnings (which they did NOT earn)

Clearly, they did not hear about Alan Stanford's Ponzi, and how his money ended up going to some VERY big national organizations that had to give it back.

For those who somehow lost touch, Alan Stanford ran a Ponzi scheme from island of Antigua. Everybody believed he was making astute investments and making oodles of money. Turns out, like Madoff, he didn't really make any. People just GAVE him money... 7 BILLION dollars worth. Much smaller than Madoff, but still, devastating nonetheless. And for that, he got 110 years in Federal prison.

Turns out, while the Ponzi was in full swing, he gave a LOT of money to both political parties. More than 1.5 million, in fact.

When the pyramid collapsed, and a receiver was appointed, receiver's job is to get back as much of the money as possible, so he can give it back to all the victims who were defrauded. So, he asked both Democrats and Republicans to give back all the money Alan Stanford gave them.

They said no. They said no so hard, the receiver was forced to sue them to recover that 1.5 million. It went all the way to Federal Court, who eventually ruled for the receiver. The reasoning is very simple: it's considered a fraudulent transfer. The money was NOT Stanford's to give, because he obtained it through fraud.

So why would Zeek dreamers expect any different regarding their Ponzi scheme?

SIDENOTE: Why is it that most Ponzi schemers donate to political parties? Andy "Ad Surf Daily Ponzi" Bowdoin donated so much to NRCC, he got a medal of distinction for it, and he used that in his swindle, claiming President Bush gave him the medal for his business acumen when it's a donation award.

For more on link between the Republicans and Democrats and Alan Stanford's Ponzi, see

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