Gilmond and King file “Response in Support of Motion to Intervene”
Posted by Don on January 19th, 2013
| Date Filed | # | Docket Text |
|---|---|---|
| 01/18/2013 | 118 | RESPONSE in Support re 84 MOTION to Intervene and for an Order Dissolving the Appointment of a Temporary Receiver and Memorandum in Support Thereof by Trudy Gilmond, Kellie King. (Attachments: # 1 Declaration of Kellie King, # 2 Declaration of Trudy Gilmond)(Sorkin, Ira) (Entered: 01/18/2013) |
The new filing starts out with this:
The Receiver’s Subpoenas & Threatening Letter
On November 3, 2012 and November 5, 2012, Kellie King and Trudy Gilmond, respectively, received a subpoena dated October 30, 2012 from Receiver Kenneth Bell. In a cover letter to the subpoena, Mr. Bell, citing the caption for this case, advised King and Gilmond that on August 17, 2012, “the United States District Court for the Western District of North Carolina appointed [him] as the Receiver for and over the assets, rights, and all other interests of the estate of Rex Ventures Group, LLC . . . d/b/a ZeekRewards.com and any related companies or businesses.” Id. Mr. Bell further advised King and Gilmond that he is “specifically authorized by the court to issue subpoenas for documents and testimony” in connection with his investigation, and that each of them is required to produce documents “concerning ZeekRewards/Zeekler.com and certain personal financial information” by November 16, 2012. Id. 1
1 Although Gilmond and King did not respond to the October 30, 2012 subpoena on counsel’s advice that it was
defective and improperly served, undersigned counsel has since accepted a narrower subpoena on behalf of Gilmond and King.
Mr. Bell’s cover letter further informed King and Gilmond that, “ZeekRewards was an unlawful Ponzi and pyramid scheme that used money from later participants to pay ‘profits’ . . . to earlier participants and/or those higher up on the pyramid.” Id. Mr. Bell’s goal, as he explained, was “to recover these unlawful ‘winnings’ from the alleged scheme for the benefit of the hundreds of thousands of victims who lost money.” Id. Mr. Bell threatened Gilmond that based on the “preliminary” records reviewed, Gilmond “received $1,367,850.10 from ZeekRewards but paid in only $3,105.00″ and therefore was required to return “$1,364,745.10 of the money lost by victims . . . to the Receivership estate.”
This is the problem that I have, statements that Bell “threatened” people. Nope, he told them what he would or could do if they chose to keep profits from the scam. I am fairly certain that as Receiver’s themselves, Sorkin, Quilling and Alexander have done exactly the same thing in recovering receivership assets, and yet they feign displeasure. But, they dance with the one that brought them, their clients. It is all an exercise in loquacious litigation.
The document continues with just how much effort that Gilmond and King put into the program, the back-breaking work of placing ads and recruiting people. (The self-admitted ASD Ponzi did exactly that and their owner is in prison). The Arguments continue with these subjects:
- THE SEC’S ARGUMENTS AS TO WHY THE PROPOSED INTERVENORS FAIL TO MEET THE REQUIREMENTS OF FED. R. CIV. P. 24 ARE PREMISED ON A MISUNDERSTANDING OF THE PURPOSE FOR WHICH PROPOSED INTERVENORS SEEK TO INTERVENE
- The Motion to Intervene was Timely Filed Because the Receiver is Presently Using the Order Appointing Receiver to Issue Subpoenas and Threaten Clawback Suits
- Proposed Intervenors Have an Interest in this Litigation because it is this Court’s Order Appointing Receiver which Proposed Intervenors Seek to Dissolve
- Proposed Intervenors’ Interests would be Impaired if Not Permitted to Intervene
- The SEC Does Not Credibly Challenge that No Party Currently Represents the Proposed Intervenors’ Interests
- The SEC’s Argument as to Why Permissive Intervention is Not Permitted Ignores that Intervention Would Promote the Goals of Judicial Economy
- THE SEC EFFECTIVELY CONCEDES THAT SECTION 21(G) DOES NOT REQUIRE THIS COURT TO DENY THE MOTION TO INTERVENE AND ITS ARGUMENT THAT INTERVENTION IS DISFAVORED IN SEC
ENFORCEMENT ACTIONS IS NOT DISPOSITIVE - THIS COURT SHOULD GRANT THE MOTION TO INTERVENE AND PERMIT DISCOVERY TO GATHER ALL ESSENTIAL FACTS BEFORE ADDRESSING WHETHER THE RETAIL PROFIT POOL OR MATRIX INVOLVE INVESTMENT CONTRACTS
- THE SEC’S ARGUMENT THAT THE RETAIL PROFIT POOL AND MATRIX AMOUNT TO SECURITIES IS PREMISED ON A SELECTIVE INTERPRETATION OF THE RELEVANT FACTS
As far as I can tell, the only “impairment” these women would have is the loss of money they made in an alleged Ponzi. Not hard to imagine or understand, but rather self-centered in that they claim to be looking out for everyone, but the names on the filings are only their names; this can also be said of Fun Club, the Kettners, Sorrels and Craddock. I have always had a problem with groups of people who ask for donations to litigate for you and protect only their stuff. It is not the first time this ever happened nor will it be the last. The least they could do is admit they are only out for their own protection and stop asking for donations.
If Gilmond and King’s motivation is to keep their hard-earned Zeek money, then let them spend it in legal fees. Why should others foot their bill??
I do not view it as significant that only Gilmond and Kelly’s names are on the filing. Whatever the judge rules will become the law of the case. Res Judicata = “a matter [already] judged” and applies to everyone identically situated. This is not a situation where Gilmond and King are the only one’s who can benefit from a favorable ruling on the Motion to Intervene.
Because… if they can intervene (so goes the argument) then why can’t Zeek affliates A-Z intervene? The answer is that they can because they are identically situated. These two ladies are carrying more hopes than just their own and its quite understandable under the circumstances that Gilmond asked for donations from all the other net winners who would likely benefit from her success. She is fighting their battle as well as her own.
I understand what you are saying, however, this is not the first time I have followed a case that had this same thing happen. For example, take the “ASD Justice”group that consists of Todd Disner and Dwight Scweitzer, both of whom were Zeek Diamond Affiliates. Using a similar logic of “win one, win all”, Schweitzer believed that if he could get the Affidavit that secured the Search Warrant thrown out, then the case would fall into a black hole and disappear. Seemingly oblivious to the fact that the ASD Federal Civil Forfeiture case had been Decided, Appealed and the Decision Upheld, these two filed their case anyway, with the donations of others. This case was transferred from Florida to the DC District and as dismissed; they Moved for it to be reopened, judgement set aside and for the Judge to be recused, which was also dismissed; they are now appealing.
They also said that if they win, everyone would win; perhaps they failed to consider that the majority of the money seized from ASD has been returned to former ASD members that had sense enough to file a claim. I doubt seriously that they will win the case appeal or that those who got their ASD money back will give it back if the unthinkable happens.
While I believe that Gilmond and King have every right to to prove their innocent involvement in an alleged criminal activity, the true motivation is retaining their own money, another reason to ask for donations. Sorkin may be a very brilliant attorney, but I get the feeling that he is not convinced this will fly; maybe I am misreading him. I honestly do not think that Judge Mullen will grant this Motion to Intervene and the arguments of “work” somehow negating the illegality or securities aspect of Zeek hold little water with me, anyway. Take example of the many other schemes in which people “worked” to place ads and recruit new money into the scam; they were still Ponzi’s and still illegal.
I have no ill feelings for the attorneys or their clients (well, most of them anyway), but my Acme Bullshit Detector has been going off since the day I heard about Zeek, as have similar detectors activated for many others who observe scams. It is also going off due to all of the other scams that former Zeek affiliates are recruiting for, schemes like Profitable Sunrise, GoFunRewards, OfferHubb, and others, the list keeps growing. If you don’t believe me, I do have proof; the names are always the same. But then, all one has to do is surf the net for that.
The promoters are to blame and they need the equivalent of being “nuked” by the Justice system. Only then will our money be safe from those who seek to separate it from us all. They are the lowest of the low and definitely have far more sinister motivations than any of us now know.
I smell scammer do-do. It sure does smell.
Its impossible to know what Sorkin really thinks but he has put what appears to be a legally defensible motion in front of the Court. If its denied then he can appeal, and if the appeal panel agrees to review the case maybe he can get a stay that will prohibit the Receiver from pursuing clawbacks against his clients until the appeal is heard.
Meanwhile Gilmond has the money…or is spending the money. On the other hand maybe the judge will allow Gilmond to intervene. I doubt it, but at least Sorkin is giving his client a shot.
By the way did Gilmond and King participate in ASD?
Hoss,
According to information on KSChang’s site, Gilmond was in ASD. I would guess King was, as well.
For the record, as one who knows, Trudy Gilmond and Kellie King were NOT involved in ASD at any time. Also, if you were to re-read the letter sent to other Zeek Affiliates, Trudy was not asking for donations, Don. Trudy was letting others know now was the time to act if there were others who wanted to also protect themselves from clawback litigation. Maybe you don’t know this but when ONE attorney fights the same fight for several different individuals, he can split the costs amongst the individuals due to the fact that he is doing the same work for all.
It seems as though Hoss understands this case better than you do Don.
Since you did not identify yourself, I cannot confirm what you know or claim to know. I also tend to believe others who say Gilmond WAS on ASD, as were so many of the upper level Zeek affiliates. These people flock from one scam to the next, as you well know. As far as Hoss understanding the case batter than I do, there is no argument there. Hoss is very knowledgeable, as are many of my readership, and that’s why I entertain his comments.
I present the Court filings, give my opinion on them and allow others to express their opinions. This is directly opposite to what all of the “Secret” affiliate sites are doing. All they want to hear is more of the same and have no tolerance for opposing views. And that is precisely the problem I have with them. They fail to even consider that they may be completely wrong and I hope that the Feds file RICO charges on those who promote these schemes and Ponzi scams.
@One who knows the truth, who says, “For the record, as one who knows, Trudy Gilmond and Kellie King were NOT involved in ASD at any time.”
Let’s say this is true, that they weren’t involved in ASD.
The fact remains that Zeek launched after the ASD 1-percent-a-day program. The fact also remains that the Zeek payout plan was very similar to the ASD plan and that Trudy and Kellie had to know about ASD and the Secret Service action in the ASD case. The ASD action caused an uproar throughout the MLM community
One would think that the ASD case and all the publicity it received would throw up a big red stop sign, especially given that more than $80 million was seized in the ASD case and some bank accounts of individual promoters were targeted for forfeiture.
Todd Disner and Dwight Owen Schweitzer were in both Zeek and ASD. That information was available long before the SEC’s Zeek action. Zeek also was promoted on known Ponzi scheme forums. That information was available long before the SEC’s Zeek action.
If the receiver’s data is correct, Trudy and Kellie may have more than $1.5 million in Zeek clawback exposure.
They could have zero exposure had they observed the ASD stop signs.
Don’s site is carrying out an important service to the public. The next time one of these scams goes down in flames, a library on both the Zeek and ASD schemes will be available, including information on what was common between the schemes. That library is going to show the stop signs. The people who choose not to blow through those stop signs will have zero exposure to clawback litigation and no need to hire an expensive attorney.
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