Zeek Rewards SEC Admits It Messed Up and Seeks Resolution
Hey Guys – Kevin here.
In an effort to keep everyone up to date on what is going on regarding the Zeek Rewards Claw Back attempt by the SEC and the current efforts to get Zeek Rewards back up and running as “Zeek 2.0,” I wanted to put this latest email update from David Kettner up as a FYI.
Based on what David says in this email, the SEC is bascially admitting that they
1. Can’t find any actual “victims” of Zeek Rewards, and
2. Cannot find any actual “securities” that were traded through Zeek
As you know, these were the two biggest arguments the SEC used in its complaint filing that allowed the emergency siezure of Rex Ventures Group assets.
In other news… the Zeek Rewards Claw Back may not happen either.
Thing is, the fact that up to 2/3 of all Zeek Rewards affiliates are located in foreign countries, the US based claw back effort to reach into the pockets of those who earned money from Zeek Rewards and force them to pay those earnings back probably won’t happen.
No such claw back effort with Zeek could happen as the US affiliates would be required to shoulder the burden alone. Non-US affiliates would remain untouchable by the claw back effort with Zeek.
Here’s Troy Dooly’s Take on the Latest Goings On with Zeek Rewards
As you guys know, Troy has covered Zeek far more intensively than any other journalist in the MLM space out there. Like him or not, he remains an ardent defender of our right to know what is going on with Zeek and other Network Marketing efforts. Be sure to connect with his stuff over at MLM Help Desk.
Zeek Rewards Latest Update on Claw Back and SEC Reversal Status
Here’s the email I received from David Kettner’s group. This first one from Robert Craddock.
Update as of September 8, 2012
Update of events over the past week:
This last week has been a busy one. As some of you are aware of, we have made changes in law firms that are assisting us in providing protection against possible crawl back action by the SEC.
Second, in questing the application made by the SEC for Emergency seizure of Rex Venture Assets including monies we all held in e-wallets and last, getting access to the financial records of Zeek Rewards to prove this was a legitimate business we were all involved in.
We took a moment to share with Troy Dooly this information and trusted he would not betray our trust. As it turns out we have been fooled twice, the first time was the publishing of the SNR Denton partners bio’s and next with the latest video.
Let me say that we are going to do our best to prevail and it is looking real good from where we sit. There are some conversations going on with the SEC, the North Carolina Department of Justice and with our attorneys that lead us to believe the outcome will be better than we could have ever hoped for.
There will be a formal filing next week with the courts announcing our attorney representation of Fun Club USA and the members of Fun Club USA which are prior Zeek Rewards affiliates.
At this time, the name of the firm and the attorneys representing us will be public. We trust the attorney will take steps to protect their personal information as SNR Denton did not.
Due to lack of foresight SNR Denton was hounded with thousands of calls, emails and yes, harassment and threats when people could not get answers quick enough.
People please understand we have made great progress; we have brought up a portal to allow you to place information relevant to your business relationship with Zeek Rewards.
In the last fifteen days we have interviewed as of now eight law firms, three before we retained SNR Denton and last week five before we retained the current one.
I would like to say that as luck would have it, we feel lucky to have the current firm and feel we will be represented correctly and our outcome looks great.
PayPal also decided to pull the plug and we have put in place a check draft system so we are no longer at the mercy of third party payment solutions.
We expect to have more news this week and will post it just as soon as we have it.
Thanks again for your support and understanding.
Message From David Kettner follows next…
From Dave at ZTeamBiz:
We just got off the phone with Robert Craddock in response to news going on around the Internet of rumors and other misrepresentations of the truth. So here is what we found out directly from Robert…
On Monday, August 27, the retainer was sent directly to SNR Denton to represent ALL Zeek Rewards affiliates who donated and joined the protected group through Fun Club USA, LLC.
It was announced many times to not contact SNR Denton directly as they were going to work directly through Robert Craddock and the group can have all questions answered directly by Robert. What happened was people did not listen. SNR Denton begin getting tons of calls from across the globe with people asking them questions that they could not answer and disrupted not only the progress of our legal filing that they were trying to do, but also interfered with their entire law firm operations.
Due to this, SNR Denton told Robert on Friday, August 31 that they would no longer be able to represent us and sent back the retainer funds to Robert. They did however share a few law firms that they believed would be successful in representing us and Robert this past week has been able to retain another powerful law firm moving forward and has already made significant progress this week. Due to what happened with SNR Denton since people do not listen, the name of this law firm and our representing attorneys will not be announced until the filings are done early next week. At this time, the court filings will be made public.
Again, we ask that when the law firm is announced, DO NOT CONTACT them! If you want things to proceed, then take a step back and let them proceed. People that want more information delay the work that is happening including sending Robert, myself and other emails, calls and Skype messags asking us how are things going with the Zeek fight. Please people, trust in the fact that as we know things, we will announce them. Please be patient and know that if you do these things that we are asking you not to do, all you are doing is hindering the operation. If you want to help, then spread the word of the fight, spread the word of how you can help, and pray for the best and for justice to prevail.
Here is the great news…The law firm has already talked to the SEC and the NC DOJ. On Thursday, Robert got a call from one of our attorneys regarding the conversation that he had with the SEC. Here is what he said:
The SEC acknowledged that there are a couple of problems with the case against Zeek Rewards and Rex Venture group. Here are the problems:
We (the SEC) are not able to find a victim in this case. We are not able to find anybody at this time that has been harmed by Zeek Rewards.
We (the SEC) are having a hard time finding a security. In the complaint, it said that Zeek was selling securities and was an investment scheme.
Based on their (the SEC) new knowledge of the Zeek Rewards business model, they are having a hard time moving forward in making their case. And they are now looking for a path or way to back out of this.
What are attorneys will be doing next week is filing a motion of appearance that they are now representing Fun Club USA, LLC. and the people that are now associated with them (the protected group).
The receiver, Kenneth Bell, has now also realized that 2/3 of the Zeek Rewards affiliates are international which makes for the use of federal clawback laws being used to recover more funds impossible as they cannot collect them from the international affiliates and would not hold the 1/3 of US affiliates liable for the entire company.
You may have noticed that on the site, http://zteambiz.com/ and http://zteambiz.net/ had to pull down the PayPal donation button. This had to be done because PayPal found out that we were working to defend Zeek Rewards and since PayPal had to stop working with Zeek in the past due to the fact that Zeek is an MLM and PayPal does not work with MLM’s, they decided that they could no longer work with Fun Club USA, LLC. either. So, if there is anyone that has made a donation to Fun Club USA, LLC for their donation to the legal fight against the SEC and needs a refund for any reason, you can request that through Robert directly by sending an email to email@example.com.
If more donations are needed for the law firm, these directions will be forthcoming. Please realize that all funds that have been received have been sent directly to the law firm and more news will be announced next week as the filings are made with the courts.
In the conversation with the SEC, our attorney’s have already put forth the direction with moving forward with what they are calling “Zeek Rewards 2.0″. They already have decided on another law firm where our attorneys would write an opinion letter which is something we have been told should have been done a long time ago with Zeek and had not been done. What this opinion letter will do is go to all regulatory agencies which will put them all on notice as to how this business, “Zeek Rewards 2.0″ operates. Furthermore, if there should ever happen in the future like what happened with the SEC emergency injunction against Zeek, there will be a process that will have to be done first where they would have to go through a series of steps going through the law firm first that fully understands the business model. In other words, what happened to Zeek Rewards on August 16 which was a major mistake by the SEC, will never happen again.
It has also been our goal to fight the SEC allegations to prove that what they accused Zeek and Rex Venture to be false, and then to get Zeek Rewards back into operation. The SEC, since we have basically called them out to prove their allegations and put their feet to the fire, they now have to own up to this HUGE mistake on their part. They can no longer sweep this mistake under the carpet and are now going to be forced to assist us in getting our business back up and running more then likely stronger then ever. The SEC were the ones that actually have recommended how to set up the opinion letter with the law firm that they recommended to be sure that the new Zeek is protected from this ever happening mistakenly again.
Ok, well that is a wealth of information…Please be sure to share this news with everyone. Do know that these steps still need to play out in the court system and it will take time.
But the most important thing to know from all of this is that we have already succeeded in showing that the proof that we have fully proves that EVERYTHING the SEC accused Zeek and Rex in their August 16 complaint was gravely mistaken as they did not fully understand the Zeek business model and that it now looks very positive that there WILL be a Zeek Rewards business moving forward. Again, please be patient and allow for the court system and our attorneys to do their job. Please also do not listen to the “talking heads” that claim they know everything online as the only thing that they are trying to do is drive up controversy which builds their own followers and gets more views to their websites.
I hope you all have a Blessed weekend…Keep the faith and look for further announcements from us a we get them.
Zeek Rewards News Updates Moving Forward…
Ray and I will keep posting here about what’s going on with Zeek Rewards. Stay tuned. If you haven’t already, be sure to connect with us on Facebook.