Category Archives: Zeek Rewards Suits

Zeek Rewards: Preferred Merchants Solutions and NXSystems Orders

Today, Senior District Judge Graham Mullen issued the following orders; one orders the production of documents from Preferred merchants Solutions, the other denies NXSystems Motions for added time:


 

ORDER

This matter is before the Court upon the Receiver’s Supplemental Brief in Support of his Contempt Motion (Doc. No. 294), in which he requests a production of certain documents in advance of the deposition of Mr. Meyer. Pursuant to the Court’s broad discretionary power in supervising this equity receivership, the Court hereby orders Preferred Merchants and Mr. Meyer to produce to the Receiver by 10:00 a.m. Wednesday morning, December 17, the following: A full accounting of the use and location of the RVG funds transferred to Preferred Merchants /Meyer in August 2012 from the date of the transfer to the present and all documents related to the creation, governing documents, transfer of assets into and current holdings of the “Cook Islands Trust” described by Preferred Merchants’ and Mr. Meyer’s counsel to the Court on November 24, 2014.
IT IS SO ORDERED

Signed: December 16, 2014


 

ORDER

This matter is before the Court upon NxSystems, Inc.’s Motion for Extension of Time to Respond to the Receiver’s Motion for an Order Directing NxSystems, Inc. to Turn Over Receivership Assets and/or Find it in Contempt of the Court’s Agreed Order (Doc. No. 303). A brief hearing was held on this matter on December 16, 2014. For the reasons stated in open court,
IT IS HEREBY ORDERED that NxSystems, Inc.’s Motion for Extension of Time to Respond is hereby DENIED; and NxSystems, Inc. is directed to provide to the Receiver an accounting of the funds at issue within thirty days.

Signed: December 16, 2014

Ponzitracker: More on the Opposition to Zeek Rewards Attorney Liens

Ponzitracker.com has an article up about the recent Opposition to Attorney Charging Liens, a motion made by an attorney representing some Zeek affiliates and who filed claims for them, after getting them to sign a contract with him. This is the same attorney that represented the “Belsome Appeal” group.

It is well worth reading, here’s the link.

 

Zeek Rewards: Judge Signs Order Allowing International Net Winner Actions

BREAKING NEWS:

The receiver filed a “REQUEST FOR LEAVE TO INSTITUTE ACTIONS AGAINST INTERNATIONAL NET WINNERS” today and Judge Mullen granted it. Here is part of what Kenneth Bell filed:

The Receiver has previously filed actions against the insiders who created and operated ZeekRewards, the net winners who won more than $1000 (asserting claims against the largest net winners as individual defendants / class representatives and a defendant class of the remaining net winners) and certain attorneys involved in advising RVG and promoting the scheme. By this request, the Receiver seeks leave to file one or more actions in this Court and in foreign courts to pursue claims for the return of fraudulently transferred money and disgorgement of net funds received against significant “net winners” who reside outside the United States. The foreign “net winners” to be pursued all won at least $1000, the threshold previously approved by this Court. With due regard for the interests of efficiency, cost and judicial economy, the Receiver intends to consolidate cases against net winners from each foreign country and from more than one country when possible and appropriate.

Judge Mullen approved this action thus:

ORDER

THIS MATTER is before the Court upon the Receiver’s Request for Leave to Institute Actions Against International Net Winners. The Receiver alleges that these persons and entities won money in the ZeekRewards program and should be required to pay their net winnings back to the RVG for the benefit of ZeekRewards’ victims. For good cause, the Court will grant the Receiver’s request.

IT IS, THEREFORE, ORDERED that the Receiver is hereby granted leave to file the actions for which leave has been requested.

m4s0n501

Zeek Rewards: Kenneth Bell Files Amended Complaint Against Kevin Grimes

Kenneth Bell, receiver for Rex Ventures Group, has filed an Amended Complaint in his Malpractive lawsuit against Zeek “compliance” attorney, Kevin Grimes.

This lawsuit is one of several steps the Receiver is taking pursuant to his court-ordered duties to the Receivership Estate to recover damages for the harms incurred by RVG.

By virtue of his knowledge of RVG and ZeekRewards and his legal expertise, Grimes knew or should have known that RVG was perpetrating an unlawful scheme which involved a pyramid scheme, an unregistered investment contract and/or a Ponzi scheme. Despite this knowledge, Grimes actively encouraged investors to participate in the scheme by creating a so-called “compliance” program through his captive entity, MLM Compliance VT, LLC (“MLM Compliance”), which provided a false façade of legality and legitimacy and knowingly allowed his name to be used to promote the scheme. Grimes’ improper and negligent actions, which breached his fiduciary duties to RVG and assisted RVG’s Insiders to breach their fiduciary duties, caused significant damage to RVG. As described in detail below, Grimes and his firms are liable to RVG both for those damages and the profits they made from RVG. In addition, Grimes and MLM Compliance are liable to repay to the Receiver the more than $840,000 they received from RVG for the bogus compliance course.

Farther down the Amended Complaint, mr. Bell alleges this:

Beginning at least as far back as 1997, Paul Burks, RVG’s owner and lead executive, operated a number of generally unsuccessful multi-level marketing businesses through Rex Venture Group, LLC (and related entities).

Dawn Wright-Olivares was RVG’s Chief Operating Officer and the Chief Marketing Officer of ZeekRewards. Together with Burks, Wright-Olivares developed the ZeekRewards scheme.

Other key employees of RVG included Daniel (“Danny”) Olivares, Wright-Olivares’ stepson who was responsible for designing and running RVG’s websites and databases with Burks; Alexandre (“Alex”) de Brantes, Wright-Olivares’ then-fiancée who had the title of Executive Director of Training and Support Services; Roger Plyler, who handled “affiliate relations”; and Darryle Douglas, who was a member of RVG’s senior-level management. Collectively, these individuals may be referred to as RVG’s “Insiders.”

And then there is this:

Grimes helped in several ways. First, despite his knowledge that ZeekRewards was a fundamentally flawed and unlawful pyramid and/or Ponzi scheme and was selling unregistered securities, Grimes, through his entity MLM Compliance, offered to create and did create a so-called “compliance course” specifically designed to encourage investors and potential investors to believe that if they satisfied the course then it would be a lawful enterprise. Thus, Grimes and MLM Compliance knowingly allowed Zeek to portray a false appearance of legality through their bogus “compliance” course.

I have uploaded the full document (9) onto the Files website.

Zeek Rewards: Kenneth Bell Files Opposition to Disner’s Motion to Set Aside Default

Below is the opening statements from Kenneth Bell’s filing today, in which he opposes Todd Disner’s

RESPONSE IN OPPOSITION TO MOTION TO SET ASIDE DEFAULT

The Receiver, through the undersigned counsel, provides the following Response in Opposition to Defendant Todd Disner’s Motion to Set Aside Default. For the reasons set forth below, the Court should deny the Motion.

INTRODUCTION

The Court should not find “good cause” exists to set aside Mr. Disner’s existing default. After failing to file an answer despite having personally received the Complaint three months ago and filing a notice of appearance in the action nearly a month before the default, Mr. Disner now seeks to avoid the default. But, he fails to suggest legitimate circumstances that might constitute good cause for his failure to plead or defend. This Court should not grant Mr. Disner’s belated request when he was served with the Complaint roughly three months ago and has significant litigation experience involving another Ponzi scheme. Also, allowing Mr. Disner additional time to file an answer despite there being no good cause to set aside the default would delay this case as to all parties involved and create additional and unnecessary costs to the Receivership.

The filing goes on to say:

As previously set forth in the Receiver’s Application for Entry of Default, Defendant Todd Disner was personally served with the Summons and Complaint by means of a process server on April 16, 2014. (Doc. No. 41-1). Disner does not dispute the date and manner of this service (although he has lied about it as discussed below). The Receiver heard nothing from Disner for nearly two months. Then, Disner filed with the Court a “Notice of Appearance” providing notice to the Court and parties that he was appearing pro se on behalf of himself and the Kestrel Spendthrift Trust. (Doc. No. 18). This notice is dated May 21, 2014 but was not mailed until two weeks later, on June 5, 2014, as indicated in the postmark on the envelope enclosing the notice. (Doc. No. 18-1). The notice was filed by the Clerk of Court on June 10, 2014.

Disner filed nothing further with this Court, nor did he contact the Receiver. As a result, after the extended June 30, 2014 deadline for filing an answer had passed, the Receiver filed a Motion for Entry of Default against Disner on July 2, 2014, citing his failure to plead or otherwise defend the lawsuit. (Doc. No. 41). The Clerk of Court entered default against Disner on July 3, 2014. (Doc. No. 44).

……

The Receiver filed a Motion for Default Judgment against Disner on July 8, 2014, which requests that the Clerk of Court enter judgment against Disner pursuant to Rule 55(b)(1) for the sum certain amount of $2,079,757.88, which includes $1,800,037.06 in principal, and prejudgment interest at the North Carolina statutory rate from the date of the last transfer (July 30, 2012) to the date the motion was filed in the amount of $279,720.82.

The complete document (66) is on the Files website, under Zeek case 14-cv-00091.

Zeek Rewards: Receiver Lists Settlements in 2nd Quarter Report

The receiver has filed his 2nd Quarter report and in it is this:

Lawsuit Against Insider Defendants  (emphasis added)

The lawsuit against the ZeekRewards Insiders was placed on the same track as the lawsuit against U.S. net winners, and the Receiver’s counsel attended the scheduling conference on April 15, 2014 regarding this matter as well. On the June 30, 2014 deadline for answers and motions to dismiss, defendants Beth C. Plyler and James L. Quick, as Co-Trustees of the Roger A. Plyler Revocable Trust and Co-Administrators of the Estate of Roger Anthony Plyler, filed a motion to dismiss the Receiver’s lawsuit. In addition, Plyler and Quick, as well as defendant Alex de Brantes, filed Answers to the Receiver’s claims. No counterclaims were filed against the Receiver in this case.

The Receiver engaged in multiple settlement discussions with certain Insider defendants during the second quarter. By the filing date of this report, the Receiver had reached settlement agreements with Paul Burks, Dawn Wright-Olivares, and Daniel Olivares, pending Court approval.

Each of these defendants agreed to a consent judgment of $600 million to be satisfied with substantially all of their assets.

I have added the new filings to the Files website, Case # 12-cv-519

Zeek Rewards: Todd Disner Files Motion to Strike Plaintiff’s Affidavit and Entry of Default Judgement

True to form, Todd Disner is filing more Pro Se motions to get some form of “do-over” based on the self-professed “lack of knowledge” that he was supposed to reply by a certain date. But then, this is not his first rodeo; he was a prominent figue in the ASD case and he is no stranger to the legal system. He and his suspended lawyer friend, Dwight Schweitzer, inserted themselves into the ASD case numerous times.

Now, as what many call a “serial promoter”, Disner now find himself neck deep in Zeek.  His motion today espouses the following:

  • The Affidavit of Michael Busen is both false and misleading… that the total sums received by the Defendant were not in fact received by him either personally or as a trustee of Kestrel Spendthrift Trust.
  • The Defendant has no knowledge of how the sums alleged in the Plaintiff’s Affidavit were arrived at.
  • Under the business agreement with Zeek rewards, the Defendant was entitled to be paid as a result of performing certain activities he was required to engage in on that day..

What utter nonsense.  Let us not forget that Disner made it a point to showcase his large, new Condo on YouTube, a Condo he bought with proceeds from Zeek Rewards.

Secondarily, Disner filed a “Counter-Affidavit in Opposition to the Plaintiff’s Motion that a Default judgement be Entered Against the Defendant and in Support of the Defendant’s Motion to Strike the Plaintiff’s Supporting Affidavit”.  Holy crap, the title is as long as the rest of the filing!

Disner goes on to say he does not believe the sums mentioned by the Plaintiff are accurate and that because there is “no listing by date, amount, check number and payee” that they are not his??

I have uploaded this filing to the Files website.

Zeek Rewards: Receiver Files Another Motion for Default Judgement

This “MOTION FOR DEFAULT JUDGMENT BY CLERK OF COURT” is for Darryle Douglas: (emphasis added)

The Clerk entered default against Defendant Douglas on July 3, 2014. See Doc. No. 33.
As the attorney affidavit from the Receiver’s Application for Entry of Default states, Defendant
Douglas is neither a minor nor an incompetent person, nor is he a member of the Armed Forces
of the United States of America or any of its Allies. See Doc. No. 32-1 at ¶ 2.

Therefore, pursuant to Rule 55(b)(1)’s directive, the Receiver respectfully requests that
the Clerk of Court enter judgment against Defendant Douglas for $1,971,374.27 plus interest at
the North Carolina statutory rate from the date of the last transfer (August 15, 2012) to the
present in the amount of $299,864.93. Accordingly, default judgment should be entered against Defendant Douglas for the total sum of $2,271,239.20.

Zeek Rewards: Receiver Files Motions For Default Judgements by Clerk

After 3 days of inactivity, we have these three filings from Kenneth Bell, Zeek Rewards’ Receiver, Motions for Default Judgements by the Clerk for the following defendants: (emphasis added)

  • Todd Disner
    • The Clerk entered default against Defendant Disner on July 3, 2014. See Doc. No. 42.
      As the attorney affidavit from the Receiver’s Application for Entry of Default states, Defendant Disner is neither a minor nor an incompetent person, nor is he a member of the Armed Forces of the United States of America or any of its Allies. See Doc. No. 39-1 at ¶ 3.
    • Therefore, pursuant to Rule 55(b)(1)’s directive, the Receiver respectfully requests that the Clerk of Court enter judgment against Defendant Disner for $1,800,037.06 plus interest at the North Carolina statutory rate from the date of the last transfer (July 30, 2012) to the present in the amount of $279,720.82. Accordingly, default judgment should be entered against Defendant Disner for the total sum of $2,079,757.88.
  • David Sorrells
    • The Clerk entered default against Defendant Sorrells on July 3, 2014. See Doc. No. 42.
      As the attorney affidavit from the Receiver’s Application for Entry of Default states, Defendant Sorrells is neither a minor nor an incompetent person, nor is he a member of the Armed Forces of the United States of America or any of its Allies. See Doc. No. 39-1 at ¶ 3.
    • Therefore, pursuant to Rule 55(b)(1)’s directive, the Receiver respectfully requests that
      the Clerk of Court enter judgment against Defendant Sorrells for $1,039,568.49 plus interest at the North Carolina statutory rate from the date of the last transfer (August 16, 2012) to the present in the amount of $157,672.63. Accordingly, default judgment should be entered against Defendant Sorrells for the total sum of $1,197,241.12.
  • Michael Van Leeuwen
    • The Clerk entered default against Defendant Van Leeuwen on July 3, 2014. See Doc.
      No. 42. As the attorney affidavit from the Receiver’s Application for Entry of Default states, Defendant Van Leeuwen is neither a minor nor an incompetent person, nor is he a member of the Armed Forces of the United States of America or any of its Allies. See Doc. No. 39-1 at ¶ 3.
    • Therefore, pursuant to Rule 55(b)(1)’s directive, the Receiver respectfully requests that
      the Clerk of Court enter judgment against Defendant Van Leeuwen for $1,404,432.92 plus interest at the North Carolina statutory rate from the date of the last transfer (August 16, 2012) to the present in the amount of $213,012.07. Accordingly, default judgment should be entered against Defendant Van Leeuwen for the total sum of $1,617,444.99.

 

Zeek Rewards: More on Bell’s Class Action Suits and Recent Defaults

The case I am writing about today is the Class Action suit brought by Zeek Receiver, Kenneth D. Bell,  against what have been termed the “Net Winners”. While there have been some “Entry of Default” filings in the case, from what I can find, there still needs to be a Jury Trial to determine what monetary values these defaults actually end up being.  I suppose there must be some method in their madness in failing to file a response to the Complaint before the deadline of June 30, 2014.

Many of us who follow these scams and schemes thought the ASD/AdSurfDaily would set some form of “precedence” and be the poster child for how to prosecute and/or curtail the exponential increase of individuals and “opportunities” to separate you from your money, all the while telling you how they can double or triple it with some amazing, heretofore unknown business model that even they do not understand. There are unmistakeable similarities between ASD, Zeek Rewards, and other still operating scams.

No one makes lots of money reading or placing ads on a website, people!!

 


 

In the Bell v. Disner et al Civil Class Action original Complaint, and to refresh our memories of the allegations, we have the following defendants whose names and alleged amounts are taken from this Complaint:

  • Todd Disner, a former ZeekRewards “affiliate” and “net winner” of more than $1,875,000
  • Trudy Gilmond, former “field liaison” and “net winner” of more than $1,750,000
  • Jerry Napier, a former ZeekRewards “affiliate” and “net winner” of more than $1,745,000
  • Durant Brockett, a former ZeekRewards “affiliate” and “net winner” of more than $1,720,000
  • Rhonda Gates, a former ZeekRewards “affiliate” and “net winner” of more than $1,425,000
  • Michael Van Leeuwen,  a former ZeekRewards “affiliate” and  a “net winner” of more than $1,400,000
  • David Sorrells, a former ZeekRewards “affiliate” and “net winner” of more than $1,000,000
  • T. Le Mont Silver Sr., a former ZeekRewards “affiliate” and “net winner” of more than $773,000
  • Aaron and Shara Andrews,  ZeekRewards “net winners” of more than $1,000,000
  • David and Mary Kettner, former ZeekRewards “affiliates” and “net winners” of more
    than $930,000
  • Lori Jean Weber, a ZeekRewards “net winner” of more than $1,940,000

 

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