Category Archives: Serial Promoters

Zeek Rewards: Judge Orders Darryle Douglas to Return Receivership Property

ZeekThe Order below originates from a posting on Facebook. I have no idea why people post things on the internet without realizing that one day, it may come back to haunt you, and never goes away even if you delete it. Sometimes, braggadocio doesn’t work out so well. And, it’s a bit silly to think the Feds are not watching the serial promoters. Here’s what the receiver had to say:

“It has come to the attention of the Receiver that Mr. Douglas has begun promoting a new investment scheme known as “Auction Attics” and intends to use a copy the ZeekRewards affiliate database to solicit investors into this new scheme.”

In addition, the Facebook page contains a long statement from Mr. Douglas which reports he will use his “business database” which contains “over 2 million plus contacts,” of which “[o]ver 90% . . . have already bought bids before!”

 

Judge Mullen agreed with the Receiver and issued the Order:

THIS MATTER is before the Court on the Receiver’s Motion for Order Requiring Return of Receivership Property, Deposition, and Production of Records. The Court has considered the Receiver’s Motion and finds in its equitable discretion that the measures requested are appropriate.
It is, therefore, ORDERED, that Darryle Douglas shall:

1. return the ZeekRewards affiliate database along with all copies of such database to the Receiver  and cease using it;
2. submit to a deposition by the Receiver at a mutually convenient time and location no later than September 24, 2015; and
3. produce to the Receiver all financial records from November 1, 2011 to the present for his personal and business-related accounts prior to such deposition.

TelexFree: Report After Seventh Status Conference

telexfree-logoIn the TelexFree criminal case (14-cr-40028, District of Massachusetts) a seventh status conference was held on September 24th. Pursuant to the Court’s Order, counsel for the parties attended in person.  Magistrate Judge David Hennessy filed the following in his report: (emphasis added)

In an effort to balance the interests of all stakeholders in that right, it is hereby ORDERED:
At a status conference on October 9, 2015, the parties shall propose a schedule for the completion of the production and review of discovery. The proposal shall expressly address the timing of any government expert disclosure relating to the financial information on which the United States bases its allegation, described generally herein, that TelexFree was a Ponzi scheme. The proposal shall also include an estimated deadline from Defendant for loading discovery into whatever electronic database Defendant is using.
The parties shall propose a deadline for discovery requests.

The United States has produced almost all discovery it expects to produce. An ongoing criminal investigation by authorities in Brazil which may generate some further discovery; the United States expects that this would be a modest amount.

Defendant has engaged outside services to load discovery in a searchable format into electronic files. Defendant expects this process to be done within one week. There are no pending discovery requests. Defendant is in the process of reviewing discovery. The parties anticipate the need for protective orders and will seek such orders as the need for them may arise.

Given the posture of discovery and Defendant’s need to review it as it is produced, it is too early to set reliable schedules for motion practice, expert witness disclosures, and a report on whether Defendant Merrill will raise defenses of alibi, public authority or insanity. The court will take up these matters at a future interim status conference.

It is apparent that a continuance that allows Defendant the opportunity to review this discovery serves the interests of justice. No time is chargeable against the statutory speedy trial clock. See Order of Excludable Delay entered on this date.

It is too early in the case to report on meaningful plea discussions.

An eighth Interim Status Conference will take place in this case on Friday, October 9, 2015 at 2:00 p.m., in Courtroom #1, Fifth Floor, Donohue Federal Building, 595 Main Street, Worcester, Massachusetts. Counsel may appear by telephone.

 

Sann Rodrigues Tied to DFRF Ponzi Scheme

This comes from the SEC Complaint regarding DFRF Enterprises, indicating Sann Rodrigues is neck deep in very many schemes: (emphasis added)

81. In addition, Filho has caused DFRF to pay more than $310,000 for the benefit of Sanderley Rodrigues de Vasconcelos (“Rodrigues”). Rodrigues is the subject of a 2007 consent judgment in a Commission enforcement action concerning the “Universo Foneclub” pyramid scheme, and he is a defendant in the Commission’s pending enforcement action concerning the “TelexFree” pyramid scheme. On March 21, 2015, Filho caused DFRF to pay $50,000 to a business belonging to Rodrigues. (The payment was made less than one month after Filho publicly denied any link between DFRF and TelexFree.) On March 30, 2015, Filho caused DFRF to pay $100,000 to the same business. On April 2, 2015, Filho caused DFRF to supply more than $160,000 so that another business belonging to Rodrigues could purchase a 2008 Lamborghini sports car. There is no evidence that Rodrigues provided any services or other benefit to DFRF.

Zeek Rewards: Receiver Issues First Quarter Status Report for 2015

RECEIVER’S STATUS REPORT FOR THE FIRST QUARTER OF 2015

Here are a few of the high points, you can see the full Report here:

The Receiver currently maintains six bank accounts on behalf of the Receivership Estate for holding Receivership Assets: the “Affiliate Account,” the “Seized Asset Account,” the “Pre-Filing Account,” the “Settlement Account,” the “Withholding Account,” and the “Holdback Account.”

Excluding earned interest and transfers between accounts, the Receiver made the following deposits into these accounts during the first quarter of 2015:

  •  $1,577,043.06 into the Settlement Account from settlements with non-affiliate third parties;
  •  $520,250.00 into the Affiliate Account from payments from various financial institutions relating to previously dishonored cashier’s checks, teller’s checks, official checks, and bank money orders.

As of March 31, 2015, the Receivership Estate held approximately $91.3 million in the Affiliate Account, approximately $89.3 million in the Seized Asset Account, approximately $293,000 in the Pre-Filing Account, approximately $6.3 million in the Settlement Account, $0 in the Withholding Account, and approximately $1.1 million in the Holdback Account.


The Receiver Team is awaiting a ruling on its Motion for an Order Directing NxSystems to Turn Over Receivership Assets and/or Find them in Contempt of the Court’s Order Freezing Receivership Assets regarding the approximately $9 million outstanding.


During the first quarter, the Receiver Team continued litigation against Preferred Merchants and Jaymes Meyer to recover the approximately $4.8 million they improperly transferred and failed to return in violation of the Freeze Order.

One property in the Turks & Caicos Islands has been frozen, and the Court has issued an order directing that it be transferred to the Receiver. The estimated value of this property is believed to be over $2 million. In addition, Mr. Meyer agreed to a lis pendens upon California real property that he purchased with Receivership Assets for over $400,000.


With respect to Solid Trust Pay, the Receiver Team has issued a demand to Solid Trust Pay for approximately $1.6 million in outstanding Receivership Assets and is awaiting additional information from Solid Trust Pay to evaluate its response to the Receiver’s Demand.


Litigation in the SEC Enforcement Action 

The Receiver Team litigated the following matters in the SEC Action:

  • The Receiver Team filed a response brief in the Fourth Circuit Court of Appeals regarding the Belsome movants’ appeal of the striking of attorney charging liens.
  • The Receiver Team continued litigation seeking the return of Receivership Assets from NxSystems.
  • The Receiver’s conflicts counsel filed a Motion for Order to Show Cause or Turn Over Receivership Assets Against Compass Bank.
  • The Receiver team continued litigation to recover Receivership Assets from James Meyer and Preferred Merchants Solutions, LLC.

(emphasis added)

To date, almost 121,000 Affiliate claimants have accepted their claim determinations and have been or will be issued a distribution in the near term. The next distribution date for claimants who have not already received a distribution is April 30, 2015. . However, in excess of 50,000 Affiliate claimants have failed to respond to their claim determinations. Each claimant is required to act further if they would like to receive a distribution from the Receivership Estate. Failure to act further may eventually cause a claimant to forfeit the distribution. 

The Receiver contacted each of the Affiliate claimants who failed to respond to their claim determination to request that such claimants respond to the claim determination by April 15, 2015 and notified them that, pursuant to authority granted by court order, they would be deemed to have accepted their claim determination if they failed to respond by that date.

Approximately 1,800 Affiliates have objected to the claim determination issued by the Receiver Team. The Receiver Team is continuing to address these objections in an effort to resolve such objections before intervention by the Special Master or the Court would be needed. The Receiver Team has been successful in resolving the majority of these objections to date.


Along with the Status Report are 2 Exhibits detailing financial information.  Exhibit A and Exhibit B

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??

Achieve Community: Kristine Johnson, Can You Say Criminal Investigation??

achieve-community-logoDefendant Kristine Johnson has filed two interesting Motions yesterday, one a Joint Motion requesting the authority to transfer funds, and the second a Joint Motion to Seal further filings so that Defendants Troy Barnes and Work With Troy Barnes, Inc. do not have access to them. It seems there may be trouble in paradise.

One very interesting revelation in the Transfer of Funds motion is this:

2. Contemporaneously with the civil proceedings in this case, Ms. Johnson is a target of a federal criminal investigation by the United States Attorney’s Office for the Western District of North Carolina.

This Motion goes on to say that these “criminal authorities” had approached Ms. Johnson’s attorneys regarding the voluntary transfer of over $800,000 associated to both the ongoing criminal and civil investigations.  Because these funds “derive directly or indirectly from any investor”, and are located in Hong Kong. Due to the Preliminary Injunction, Ms. Johnson cannot execute a voluntary transfer without violating the Preliminary Injunction.

Hence the Joint Motion from Ms. Johnson and the SEC to relax the injunction on a one time basis

to permit the funds transfer from the “ipayDNA.info” account, to which she has access, to a pre-arranged bank account located in the United States, such that authorities will be able to freeze and potentially seize the funds as part of their on-going criminal investigation.

Ms. Johnson shall not execute the transfer of funds from the ipayDNA account until such account has been established, and she has received the express written permission of undersigned counsel for the Securities and Exchange Commission to transfer the funds.

The second filing is this:

Because of the nature of the proceedings referenced in the parties Joint Motion for Authority, the parties’ interests, as well as that of other entities not party to the motion, at this time substantially outweighs the public’s interest in open proceedings. If not sealed, it is possible that the relief sought by the parties’ Joint Motion could be stymied by adverse interests.

Defendant Kristine Johnson and the SEC respectfully request that the Joint Motion and any subsequent order be restricted only to the filing parties – Defendant Johnson and the SEC – and the Court. Specifically, the parties request that Defendants Troy Barnes and Work With Troy Barnes, Inc., not have access.

These two filings are on the Files Website, Doc 28 and 29.

Zeek Rewards: Receiver Files Motion for Class Certification Notice

In the case entitled “Bell v Disner, et al” the Receiver has filed for Court approval on a Notice to send to all affiliates within the Class recently certified by Senior Judge Mullen.

The filing lists these individuals and entities as Defendants:

TODD DISNER, in his individual capacity and in his capacity as trustee for Kestrel Spendthrift Trust;
TRUDY GILMOND; TRUDY GILMOND, LLC; JERRY NAPIER; DARREN MILLER; RHONDA GATES; DAVID SORRELLS; INNOVATION MARKETING, LLC; AARON ANDREWS; SHARA ANDREWS; GLOBAL INTERNET FORMULA, INC.; T. LEMONT SILVER; KAREN SILVER; MICHAEL VAN LEEUWEN; DURANT BROCKETT; DAVID KETTNER; MARY KETTNER; P.A.W.S. CAPITAL MANAGEMENT LLC; LORI JEAN WEBER; and a Defendant Class of Net Winners in ZEEKREWARDS.COM

Here is a copy of the Proposed Order, ZeekDoc103-1.

1 2 3 9