BehindMLM – uFun Club

These come from BehindMLM.com 


uFun Club ringleader wanted for pyramid scheme fraud

These days it’s getting more and more difficult to relaunch scams once your name is out there.ufunclub-logo

What with the speed with which news travels these days and just the sheer volume of information available to anyone with an internet connection, serial scamsters have to go to increasingly sophisticated lengths to launch their schemes.

Take for example uFun Club, which now increasingly starting to look like a Ponzi scheme heavily influenced by serial Chinese scammers. [Continue reading…]


uFun Club investigation to be handled by Thai police

Much nonsense has come out of the uFun Club camp these past few days, with claims on social media alluding to the dropping of the investigation currently taking place.ufunclub-logo

The claims, largely made on social media, primarily attempt to plant the seed that the Department of Special Investigation (DSI) are going to drop the uFun Club investigation any day now.

The good news for uFun Club investors still in denial?

The DSI did indeed decide to drop their own investigation into uFun Club.

The bad news?

DSI dropped the investigation in favor of letting the police continue to take the lead. [Continue reading…]


TelexFree: April 2015 Interim Status Report and Change in Conference Schedule

telexfree-logo

Interim Status Report

Since the last status date, the government has produced approximately 45 GB of additional information received as a result of a search warrant executed at an internet service provider. This information consists largely of TelexFree-related YouTube videos and back-up and subscriber data. The government has also produced the contents of a personal email account belonging to defendant James Merrill.
The government recently met with Brazilian prosecutors and law enforcement agents, who are conducting a separate investigation of TelexFree and certain individuals. The Brazilian authorities have produced a large amount of data and will be producing additional materials in the coming weeks. This additional data, mostly derived from multiple search warrants executed in Brazil, will likely amount to 100s of gigabytes. Once the government has received all of the materials from the Brazilian authorities it will copy the materials for the defendant.

Overall, at this stage the following discovery remains to be produced:

• Data contained in two Hotmail email accounts and one Apple email account, also received in response to a search warrant. Production of this material has been delayed by errors in the data as produced by the email providers.
• Data (5-10 TB) received from a cloud-based service that stored data for TelexFree.
• Materials received in mid-March 2015 from the Brazilian authorities. Among other things, this includes a forensic report by Ernst & Young, which was commissioned some time ago by the Brazilian government to opine on whether TelexFree’s operations amounted to a pyramid scheme. (The report is in Portuguese – the government will produce the original and a translation that is currently in process). As noted above, the government expects a substantial additional production from Brazil in mid-April 2015.
• Various recordings made by undercover HSI agents at TelexFree conference and in conversations with a TelexFree promoter.
In light of the above, and in keeping with the Court’s designation of this matter as a “complex case” under 18 U.S.C. s 3161(h)(7)(B)(ii), the government suggests an interim status conference in approximately 60 days. Beyond waiting to receive additional productions from Brazil, the substantial additional data sets, e.g., from the cloud-based provider and the Brazilian government, will take time to process and copy.


Motion to Adjourn Scheduled Status Conference and Exclude the Time Under the Speedy Trial Act

The Court has scheduled a status conference for April 13, 2015. Because discovery is proceeding steadily in this unusually large case, and the parties have been communicating as needed about the production, the parties request that the conference be adjourned to June 12, 2015, or some similar date that is convenient for the Court. Both parties also request that the Court exclude the time from April 13, 2015, through June 12, 2015, from the speedy trial clock, pursuant to Local Rule 112.2(b), the Speedy Trial Act, 18 U.S.C. §§ 3161(h)(7)(A) & 3161(h)(7)(B)(iv), and §§ 5(b)(7)(A), 5(b)(7)(B) & 5(b)(7)(C)(iv) of the Plan for Prompt Disposition of Criminal Cases for the United States District Court for the District of Massachusetts (effective December 2008), on the ground that the ends of justice are served by granting the adjournment and excluding this period, and outweigh the best interests of the public and the defendant in a speedy trial.

An Order was subsequently issued allowing the “exclusion of time pursuant to the below-referenced provision of the Speedy Trial Act from Monday, April 13, 2015 (the date on which the fourth Interim Status Conference was scheduled to occur), through and including Friday, June 12, 2015 (the date of
the fifth Interim Status Conference).”

I have uploaded these documents onto the Files website.

Zeek Rewards: Turks and Caicos Island Vacation Home Transfers to Receivership

On March 11, 2015, Mr. Bell filed this motion:

Kenneth D. Bell, the Court-appointed Receiver (“Receiver”) of Rex Venture Group, LLC d/b/a ZeekRewards.com (“RVG”), respectfully submits this Motion to Transfer Property to the Receivership Estate. The Receiver respectfully requests that the Court impose and enforce an equitable lien on a water-view vacation home in the Turks & Caicos Islands and related assets
(collectively, “Turks & Caicos Property”) that were purchased with RVG assets that Preferred
Merchants Solutions LLC (“Preferred Merchants”) and Jaymes Meyer improperly took from an
RVG trust account and order that the title and ownership be transferred to the Receivership
Estate for the benefit of the victims of the ZeekRewards Ponzi / pyramid scheme.

Today, Senior Judge Mullen issued this order:

ORDER
IT IS, THEREFORE, ORDERED, ADJUDGED, AND DECREED that:
1. The Motion to Transfer Property to the Receivership Estate is hereby GRANTED; and
2. Bella Vita Ltd., and any other party with ownership or other rights to the Turks & Caicos property described below, is hereby ORDERED to transfer to the Receivership Estate title and ownership of the Turks & Caicos Islands real property designated as Title #60609/24 / Norway & Five Cays Section / Providenciales Island along with all improvements, attachments and personal property within and related to the property (including but not limited to furniture, fixtures, a boat and scuba equipment).

It seems that those who purvey these Pyramid/Ponzi schemes like to have ill-gotten homes near some body of water, as ASD’s Andy Bowdoin had a lake house complete with the ubiquitous water toys allegedly for the members of the ASD scam to use if they were ever in the area. And just like the Jaymes Meyer, the home and all water toys were absorbed into the restitution accounts.

While this is not the actual property, it gives you an idea of what is involved:

60609 – Norway and Five Cays: Chalk Sound, Providenciales

Single Family Home
MLS # 1400565

 

Zeek Rewards: 14-cv-352 – Bell vs Kaplan Held In Abeyance

Looks like we will have to wait on this case as the outcome hinges on mediation in Bell v. Grimes. Here’s the text of this order.

This matter is before the Court upon its own motion. The pending Motion to Dismiss in this case will be held in abeyance pending the mediation in Bell v. Grimes, 3:14CV351. Moreover, the SEC is directed to inform the Court as to whether it is willing to file an amicus brief in this matter if requested by the court

IT IS SO ORDERED.

Signed: March 23, 2015

SEC Testifies Before Subcommittee

Testimony on “Oversight of the SEC’s Division of Enforcement”

Andrew Ceresney, Director Division of Enforcement

March 19, 2015

Chairman Garrett, Ranking Member Maloney, and Members of the Subcommittee:

Thank you for inviting me to testify on behalf of the U.S. Securities and Exchange Commission (“SEC” or “Commission”) about the Division of Enforcement (“Enforcement” or “Division”).

The SEC’s mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.  The Division furthers this mission by, among other things, investigating and bringing charges against violators of the federal securities laws.  A strong enforcement program is at the heart of the Commission’s efforts to ensure investor trust and confidence in the nation’s securities markets, and the Division is committed to the swift and vigorous pursuit of those who have broken the securities laws.

In FY 2014, the Commission brought the highest number of enforcement actions to date, 755, and obtained monetary remedies at our highest level, totaling over $4.16 billion.  More importantly, these actions addressed significant issues, spanned the entire spectrum of the securities industry, and included numerous first-of-their kind actions.  We punished securities law violators, returned funds to injured investors, and sent important messages of deterrence.  Our investigative efforts have been assisted by industry experts and by new tools developed to harness data, including trading and financial data.  The Division also maintained its strong litigation record and implemented a new approach of requiring admissions in certain cases.

(continued)


 

Here’s the link to the full testimony

Zeek Rewards: Receiver’s Notice Of Class Certification

NOTICE OF CERTIFICATION OF DEFENDANT CLASS ACTION

On February 10, 2015, Judge Graham C. Mullen, United States Judge for the Western District of North Carolina issued an ORDER granting the motion of Kenneth D. Bell, the court-appointed Receiver for Rex Venture Group, LLC (“RVG”), to certify a Defendant Class (the “Net Winner Class”) in this action comprised of all persons and entities who were Net Winners of more than $1000 in ZeekRewards. A copy of this ORDER is attached. This notice is being provided to notify you that according to RVG’s records you are a member of the Net Winner Class and inform you about certain important information related to the Net Winner Class and the legal process going forward.

1. In this lawsuit against the named Defendants and the Net Winner Class, the Receiver alleges that because ZeekRewards’ Net Winners “won” (the victims) money in an unlawful Ponzi and/or pyramid scheme, the Net Winners are not permitted to keep their winnings and must return the fraudulently transferred winnings to the Receiver for distribution to the ZeekRewards’ victims. Specifically, the Receiver has asserted claims for relief for: (1) Fraudulent Transfer of RVG Funds in violation of the North Carolina Fraudulent Transfer Act; (2) Common Law Fraudulent Transfer; and (3) Constructive Trust.

2. Net Winners are defined in the Complaint as those who received more money from ZeekRewards than they paid in. Therefore, the Net Winner Class includes all persons and entities who participated in ZeekRewards and received at least $1000 more in money from ZeekRewards than they put into the program. RVG’s records show that you are a member of the Net Winner Class. Your membership in the Net Winner Class depends solely on the amount of your net winnings. It does not depend on whether or not you believed ZeekRewards was lawful, your level of knowledge concerning the program or whether you still have the money you received.

3. The Court has not yet ruled on the merits of the claims in this lawsuit; however, when it does so, its orders will be legally binding upon you and all other members of the Net Winner Class. The Court has noted that the common questions related to the Net Winner Class are “whether ZeekRewards operated as a Ponzi and/or pyramid scheme and whether net winnings received by the Defendants should be returned to the Receiver.” The Court has further held that the details of each class member’s participation in ZeekRewards do not need to be addressed in answering these common and controlling questions. The ongoing legal proceedings in the case will answer these common questions.

4. You are not required to and there should be no need for you to participate in the legal proceedings related to answering the common questions for the Net Winner Class. The Court has determined that the named Defendants, who the Court noted collectively won more than $11 million in profits from ZeekRewards, “inevitably share the same defenses against liability for repayment of the alleged fraudulent transfers made to the class, which does not depend on the personal circumstances of particular affiliates” and that those Defendants and their counsel “are able to fairly and adequately represent the interests of the defendant class.” Also, all pleadings and other papers filed in this action are available for your inspection in the office of the Clerk of Court for the Federal Court in the Western District of North Carolina in Charlotte, North Carolina, and on the Federal Court PACER electronic public access service that allows users to obtain case and docket information online at https://www.pacer.gov/.

5. You will, however, have an opportunity to participate in the process if the Net Winner Class is found to be required to repay their net winnings. If liability is found, the Receiver intends to seek a court Judgment against each class member in the amount of their individualized net winnings plus interest at least from August 17, 2012, when ZeekRewards was shut down and the Receiver appointed. The final amount of each Net Winner Class member’s net winnings and any Judgment against them will be set later in the proceedings after the liability of the class has been established. While the specifics of the process for determining those amounts has not yet been decided, the Receiver intends

to seek a process that will notify you of the amount of your net winnings according to the RVG records, allow you a reasonable opportunity to provide a response (supported by relevant documentation if you disagree with the calculation) and then either reach an agreement on the amount or have the amount determined by a judicial process. It is likely to be several months or longer before this process begins so you do not need to take any action at this time either with the Receiver or counsel for the named Defendants related to determining the amount of your net winnings. This is true even if you believe that you are not a member of the Net Winner Class because you did not receive more than $1000 more from ZeekRewards than you put in (you will have an opportunity to make that argument at the appropriate time). However, if you have not already done so, you are advised to gather and preserve any documents or information (including electronic files) related to the amount you paid into and received from ZeekRewards so those documents and that information can be used in the later process to determine the amount of your net winnings.

6. CONTACT INFORMATION REQUIRED – This notice has been sent to the last known electronic address for each member of the Net Winner Class and published on the Receivership website, the Court’s docket and other forums. For purposes of future communications to the Net Winner Class it is important that the Court have updated contact information for all class members. Therefore, please provide your Name, Residential Street Address (or Business address for an entity), Email Address and Phone Number to:

Kenneth D. Bell
McGuireWoods LLP
ATTN: ZeekRewards Class Action
201 North Tryon Street, Suite 3000
Charlotte, North Carolina 28202
Or

zeekrewardsclassaction@mcguirewoods.com

Please be advised that the failure to provide current contact information will not allow you to avoid any liability or obligation related to this matter.

7. Since early in the Receivership, the Receiver has expressed a willingness to consider voluntary settlements on the Receiver’s claims with ZeekRewards’ net winners and others against whom the Receiver has claims. To date, there have been numerous settlements approved by the Court in which net winners and the Receiver agreed on an amount to be repaid, often with payment terms that allowed the net winner to repay the agreed amount over a number of months. Net Winners are still permitted to discuss a potential settlement of the Receiver’s claims against them even though they have become members of the Net Winner Class. If you desire to discuss a settlement of the Receiver’s claims against you, please communicate with the Receiver at zeeksettlement@mcguirewoods.com.

8. This notice is intended to inform you about the Net Winner Class and answer basic questions regarding the Receiver’s claims and the legal process.

PLEASE CONSIDER THIS NOTICE CAREFULLY BECAUSE YOU WILL BE LEGALLY BOUND BY FUTURE ORDERS OF THE COURT IN THIS ACTION. IF YOU ARE UNSURE OF WHAT COURSE TO FOLLOW OR IF YOU HAVE ANY QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES, YOU MAY WISH TO CONTACT YOUR OWN ATTORNEY. PLEASE DO NOT CONTACT THE RECEIVER, THE COURT OR COUNSEL FOR THE NAMED DEFENDANTS WITH GENERAL QUESTIONS ABOUT THE NET WINNER CLASS OR YOUR PARTICULAR SITUATION OTHER THAN IF YOU WANT TO DISCUSS A POTENTIAL SETTLEMENT WITH THE RECEIVER AS DESCRIBED ABOVE.

Zeek Rewards: Robert Craddock, Zeek Figure, Indicted For Wire Fraud in BP Oil Spill Scam

Robert Craddock indicted for wire fraud

Before he became one of the prominent faces of the Zeek Rewards Ponzi scheme, before he solicited thousands of dollars from victims and then disappeared with the money, before he attempted to profit zeekrewards
further by writing a book about his Ponzi scamming, before he attempted to sell those who invested under him in Zeek to the highest bidder, before he ran campaigns of untruths and vicious accusations against those who called him out…

Before all of this… who was Robert Craddock?

Turns out he was a fraudster who attempted to fleece over $100,000 from a disaster relief fund.

[Continue reading…]

Zeek Rewards: Judge Approves Class Certification Notice

Below is the text of this Order:

ORDER

THIS MATTER comes before the Court upon the Receiver’s Motion to Approve Notice of Class Certification (Doc. No. 103). For the reasons set forth in the Receiver’s Motion, the Court finds that in the interests of keeping the defendant class members apprised of the certification and definition of the class, the nature of the action and claims against them, and preemptively and efficiently answering common questions that the class members may have about the litigation, the Court will approve the proposed Notice of Class Certification attached as Exhibit A to the Receiver’s Motion.

IT IS, THEREFORE, ORDERED that the Receiver’s Motion to Approve Notice of Class Certification is hereby GRANTED and the proposed Notice of Class Certification attached as Exhibit A to the Receiver’s Motion (Doc. No. 103-1) is approved by the Court. It is further ORDERED that the Receiver shall send the Notice to the class members using their email addresses registered with ZeekRewards or the Receivership and that he shall also post the Notice of Class Certification on the Receivership website at http://www.zeekrewardsreceivership.com.

Signed: March 11, 2015

Zeek Rewards: Receiver Files Suit Against UK “Net Winners”

Hot off the presses, we have this new claw back litigation aimed at UK participants in the Zeek Rewards saga just filed today in the Western District of North Carolina, 3:15-cv-108.  Zeek

Named in this suit are a number of UK residents believed to be “Net Winners”:

12. Shaun Smith is, upon information and belief, a resident of Bridgnorth, United Kingdom. Smith is a former ZeekRewards “affiliate” and was a “net winner” of $262,900.31 under one or more usernames, including “topincometeam.”
13. Peter William Bennett is, upon information and belief, a resident of Wokingham, United Kingdom. Bennett is a former ZeekRewards “affiliate” and was a “net winner” of $257,573.30 under one or more usernames, including “orchard.”
14. Mark Anthony Ferrie is, upon information and belief, a resident of Abergavenny, United Kingdom. Ferrie is a former ZeekRewards “affiliate” and was a “net winner” of $212,072.60 under one or more usernames, including “maferrie.”

15. Gary Bryan Morris is, upon information and belief, a resident of Abergavenny, United Kingdom. Morris is a former ZeekRewards “affiliate” and was a “net winner” of $342,405.01 under one or more usernames, including “everychance.”
16. Kalpesh Patel is, upon information and belief, a resident of Newham, London, United Kingdom. Patel is a former ZeekRewards “affiliate” and was a “net winner” of $140,842.47 under one or more usernames, including “international.”
17. Parvis Parvizi is, upon information and belief, a resident of Macclesfield, United Kingdom. Parvizi is a former ZeekRewards “affiliate” and was a “net winner” of $90,518.83 under one or more usernames, including “globalpartners.”
18. Cathal Lambe is, upon information and belief, a resident of Omagh, United Kingdom. Lambe is a former ZeekRewards “affiliate” and was a “net winner” of $90,311.21 under one or more usernames, including “luckoftheirish.”
19. Adrian John Hibbert is, upon information and belief, a resident of Sully, United Kingdom. Hibbert is a former ZeekRewards “affiliate” and was a “net winner” of $82,103.51 under one or more usernames, including “ade.”
20. John Noakes is, upon information and belief, a resident of Croydon, London, United Kingdon. Noakes is a former ZeekRewards “affiliate” and was a “net winner” of $59,850.62 under one or more usernames, including “syfgroup.”

Zeek Rewards: T. Lemont Silver’s Lawyer Requests Removal for Non-Payment

Say it isn’t so!!  T. Lemont Silver, Ponzi Pimp/Profiteer and Serial Promoter, has just lost legal representation for not paying the $5,000 retainer his attorney required. It would seem that Mr. Silver, his spouse and the entity he operates had agreed to pay $5,000 plus all related expenses and legal fees at normal hourly rates.

The attorney, James Jonas, had started working, garnered some expenses, but Mr. and Mrs. Silver reneged on repeated promises to pay. Not only that, but the Silvers have made themselves “unavailable” and were not even bothering to cooperate with their attorney, and the attorney believes he cannot properly or reasonably represent clients who fail to pay, reply, or provide information to further their case.

Adding insult to financial injury, the Silvers would not even reply to the request to be removed as Counsel of Record.

According to the receiver’s information found in the original Complaint in this case, the Silvers collected the following personally or by entity:

  • more than $773,000
  • more than $943,000
  • more than $600,000

That’s over $2.3 Million, folks…. and they cannot pay their attorneys??

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