Paul Burks Blames Zeek Participants For Losing Any Money
Yes, you heard me. Burks says he is not to blame!!! The report below is from an AP source.
By MITCH WEISS
In his first public comments, Burks told The Associated Press he couldn’t discuss details because of lawsuits by victims trying to recoup money.
“Everything will come out in time,” said Burks, 66, standing in the doorway of his home.
Asked if he had anything to say to victims, he shook his head.
“I never told anyone to invest more money than they could afford,” Burks snapped. “I didn’t tell them to do that. Never.”
He said if they lost money, “it’s their fault. Not mine. Don’t blame me.” (emphasis added by me)
But Cal Cunningham, a former prosecutor representing investors in a lawsuit, slammed Burks – and regulators for taking so long to act.
“It’s why we need a full hearing on what happened in a court of law – whether that be our civil case or a criminal proceeding. A lot of people were hurt,” he said.
Letter From Zeek Rewards Receivership
March 29, 2013
To Affiliates and Other Creditors of Rex Venture Group, LLC:
Today the Receivership Team filed our motion seeking Court approval of our Claims Process for ZeekRewards. This motion is the next step in the process of returning the Receivership Defendant’s assets to the victims of the ZeekRewards investment scheme. The complete, detailed claims motion can be found in the filing “Receiver’s Motion For Order Seeking Approval of (1) Claims Process, (2) Setting of Bar Date, and (3) Certain Notice Procedures,” which is available for review on this website under the heading “Case Documents.”
The Claims Process for ZeekRewards has not yet started. You cannot submit a claim until the Court issues an Order. You cannot submit a claim until the Receiver’s online Claim Portal opens. The Claim Portal will open 14 days after entry of a Court Order approving the Claims Process. Any prior correspondence to me or firstname.lastname@example.org is not a valid claim and will not be considered a claim. ALL INDIVIDUALS WHO WISH TO RECOVER ON ACCOUNT OF THEIR CLAIMS MUST SUBMIT A CLAIM THROUGH THE COURT-APPROVED CLAIMS PROCESS, AND ONLY AFTER THE COURT ISSUES ITS ORDER.
Our proposed Claims Process was designed to provide the greatest possible return to the investors and other potential creditors of the Receivership Defendant. As I have previously explained, with more than two million usernames registered with ZeekRewards, the establishment of this process has been a significant undertaking. It has taken longer than I had hoped, but we had to be sure that the claim process we proposed to the Court was in the best interests of the hundreds of thousands of potential claimants while remaining as cost effective as possible.
In order to submit your claim, you must wait until the Claim Process commences, and you must file your claim on the Receiver’s online Claim Portal, which will be found at www.zeekrewardsreceivership.com. Once the Claims Process commences, you may request permission to submit claims using a method other than the Receiver’s online Claim Portal by sending an email to the address email@example.com or mail to ZeekRewards Receivership, c/o GCG, PO Box 9964, Dublin, OH 43017-5964. However, permission to submit a claim outside the online Claim Portal will be granted only in rare instances, will be in the Receiver’s sole discretion, and will be evidenced by a written acknowledgment to that effect from the Receiver.
As always, I greatly appreciate your continuing support and patience. I know how trying this experience has been for many of you, and I am doing everything within my court-appointed powers to create a claims process that is fair and in the best interests of justice. I will post another update once the Court approves the Claims Process and the Claim Portal opens.
Kenneth D. Bell
Zeek Rewards Receiver Files Claims Process Motion
Today we have the long-awaited Claims Process Motion filed by Kenneth Bell, the Court appointed Receiver. Here are a few highlights:
- The Claims Process is designed to provide the greatest possible return to the Claimants of the Receivership Defendant. Therefore, the Receiver hereby seeks specific relief (as further described below) that will: (1) authorize the electronic notice of the Claims Process; (2) authorize the electronic submission of claims by Claimants through the Receiver’s Claim Portal—unless such Claimant can demonstrate a reason to submit a claim in a different manner; (3) authorize the Receiver’s claim determination process; (4) authorize the Receiver to provide the Claimant with a claim determination notice stating: (i) whether the Receiver agrees that the Claimant has a valid claim, (ii) whether the Receiver agrees with the amount of the asserted claim, or, if not, the amount of the claim that the Receiver asserts is valid, and (iii) instructions for accepting or disputing the Receiver’s proposed allowance or disallowance of the claim; (5) establish the Bar Date; and (6) permit the Receiver to disregard any data or purported claim that is submitted by a Claimant outside of the Claims Process (including untimely claims submitted prior to the opening of the Claims Process or after the Bar Date). The Receiver is not, however, seeking to establish the manner in which he will determine the distributions to be made on account of valid claims against the Receivership Defendant at this time.
- The Receiver requests that this Court enter an order that:
1. Establishes the Bar Date as the date that is the first business day that is 120 calendar days from the date on which an order approving the Claims Process has been deemed a Final Order of the Court;2
2. Permits the Receiver to provide notice of the Claims Process, including the Bar Date, via e-mail, U.S. mail to certain creditors, and via publication notice in certain newspapers and on the websites of certain multilevel marketing associations;
3. Authorizes the collection of data from each Claimant as part of the Claims Process so that the Receiver may make a determination of the claims;
4. Approves the “form” to be filled out on the Receiver’s Claim Portal, which will be found at www.zeekrewardsreceivership.com, by all Claimants as part of the Claims Process (the mock-up of the online “Claims Submission Form” is attached hereto as Exhibit C);
5. Provides for the electronic submission of all claims (including supporting documentation) against the Receivership Defendant, except in the rare instance where the Claimant can establish cause, in the Receiver’s sole
discretion, to permit that individual or entity to submit their claim using an alternative method;
6. Finds that any claim that is not submitted between the opening of the Claims Process and the Bar Date, or not otherwise in accordance with the Claims Process (whether submitted before or after the Bar Date), be disallowed in its entirety;
7. Provides for the electronic distribution of all claims determinations made by the Receiver, except those determinations being sent to those Claimants that the Receiver permitted to submit their claims using an alternative method and to whom the Receiver has agreed to provide alternative notice;
8. Provides for the method to accept or dispute the claim determination made by the Receiver; and
9. Provides for the release of the Receiver and his professionals.
There is a lot more in the filing (ZeekDoc138) including several Exhibits, all of which has been uploaded onto the Files website.
So Where Is The Profitable Sunrise Website?? It’s Been Offline For Two Weeks
It is getting readily apparent that no one actually has a clue what is going on with the Profitable Sunrise websites, allegedly in “server migration” for 2 weeks or so. Anyone familiar with server migration knows it takes maybe a few days, not a few weeks. There is a lot of misinformation being spread, not by the “naysayers”, but by ProSun members themselves.
The recent “Update” calls make it seem that there are growing numbers of ProSun members who have arrived at the conclusion they have been scammed and lost their money. Some are spreading rumors that wire transfers are still coming into some members, adding to the illusion that ProSun has not imploded. However, the continued unavailability of the ProSun website brings more questions. The longer it is offline, the worse things look; there’s even a fake site up, in an attempt to lure ProSun people into sending them money. People who take advantage of individuals who have already been victimized are the lowest forms of life on this planet.
There is an “Update” call tonight featuring Tony Infante, a call I plan on attending to gather a bit more information on what these “Sponsors” are telling their downlines. They will eventually run out of placating phrases and suffer the immanent wrath of those same downlines.
Profitable Sunrise Site Is Still Down !!
After all the “Updates” from allegedly reliable sources, people who got 3rd party information, there is still no site and the natives are getting restless on the many Facebook pages.
It’s not looking good……..
Federal Civil Suits Filed In Texas And California Between eAdGear And JuviMax
In the Northern District of California, Plaintiffs eAdGear and Go Fun Places have filed suit against Defendants Randal Williams, Prosperity Formula, LLC., Jubimax LLC, Jubimax, Inc. and Affiliate Pro, Inc. (and 100 unnamed Defendants) alleging:
Misappropriation of Trade SecretsViolation of Computer Fraud and Abuse Act, 18 USC § 1030
- Violation of California Penal Code § 502
- Breach of Fiduciary Duty and Duty of Loyalty
- Tortious Interference with Contractual Relations
- Tortious Interference with Prospective Economic Advantage
- Inducing Breach of Contract
- Breach of Contract
- Breach of Implied Covenant of Good Faith and Fair Dealing
- Unfair Competition
Gee, I wonder if they left out anything? There is a “Demand for Jury Trial” on the Complaint, something that would prove interesting down the road.
In addition to the California lawsuit, we have another in the Western District of Texas wherein the roles are reversed from those above. In the Texas lawsuit, it is Plaintiff Randall Ray Williams filing suit against Defendants eAdGear Holdings USA, Inc., eAdgear, Inc., GoFun Places, Inc., Seafreed Travel, Francis Yuen, Charles Wang, Mike Driggers, Jr., Paul Nash, Glenn M. Jensen, and Kent McLaughlin. Williams is alleging the following in his lawsuit:
- Unlawful Business Practices under § 15.05 of the Texas Business and Commercial Code
- Injuries to Business Reputation under § 16.29 of the Texas Business and Commercial Code
- Breach of Contract
- Breach of Fiduciary Duty
- Slander and Defamation
- Tortious Interference with a Business Relationship
- Damages to Business reputation
- Unfair Competition
- Unjust Enrichment
This case also has a “Jury Demand” listed and I can hardly wait until Discovery begins. I love it when one alleged Ponzi/Pyramid scheme files suit against another alleged Ponzi/Pyramid scheme. It could prove enlightening for us all.
I have uploaded both lawsuits onto the Files website, on a separate page entitled “eAdGear Filings”.
Pat Robertson Warns Of “Scamsters in religious garb quoting the Bible”
Summary Of March 21 Profitable Sunrise Conference Call, Easter Gift Is On Schedule??
On the March 21st call was someone identified as Tony Infante and gave the following information
- Tony contacted a lot of people, those in contact with leaders, including people who talked to people who talked to “Roman Novak” – third/fourth party information
- Internet sites and emails all have different negative comments and opinions; his summary is ALL GOOD!!
- ProSun site is about to go back online, said he pinged the 6 company servers; he says no agency shut down the servers; during this weekend, there will be a new website similar to previous; accounts still in place; might have a new company name and different way of looking at the company; They will call it a Private International Business Community, which gives them no need to register with anyone (want to place bets on that?)
- The company servers are in safe place for internet security, possibly in Hong Kong? one of the safest places to be to protect their information
- The website will change, Tony mentions the various Plans; he says the Long Haul plan Easter gift is on schedule; Says servers will be up before Monday, he hopes, before first interest is calculated late Sunday night
- Tony said he is not sure if all the site will be functional; again, mentions new definition of the program and what we call ourselves
- States, agencies and countries have jumped “on the bandwagon”; ProSun has done nothing wrong or illegal, they are a victim of circumstances and they were trying to change to prevent problems; mentions strong company leadership, especially Roman, who made the changes to make the company better
- Mentions State AG’s, websites and magazines making a living by pointing fingers and creating rumors.
- Tony says that ProSun has excellent track record and is helping lots of people, more in the future. Detractors have no facts or evidence
- Company is smart enough to stay ahead of the “rat race; says company may be more restrictive on how they present the company; said some of their members got greedy and caused problems
- Says ProSun is not going to be pushed by anyone, especially the media ; company is making corrections in mid stream
- He says changes have been in the works for months, which further strengthens an already strong company
- Says ProSun is not falling apart, just moving ahead.
- Says ProSun has a promising Future and he abruptly hangs up without any notice
Some other guy, named “Mike”, answers Questions:
- How do we transfer funds? – Bank wire is the only way to move funds; once server is back up, will see if payment processors are still there
- Are funds in ProSun account or in “NJF” account? – Funds are not in any accounts, funds out in loans and earning you interest
- When Easter gift is made, can we withdraw funds and how? – Money moves from Long Haul account to Available balances, including interest made on the Long Haul
- Question about the C&D orders from states? – ProSun is not selling securities; we are free citizens, we have free will and our rights are protected by the Constitution; says the government is restrained by Constitution, we can do what we want. Just because the government says you cannot do something ….. if their rule is unconstitutional, it does not apply to us; Rules apply to AG’s, not to “us” – we are free citizens (sovereigns??)
- Questions about transfers of money, again
- When will pending withdrawals be processed? – By April 1st; if not, contact ProSun support staff
- Has Pro Sun stopped taking any new participants? – correct, from when the site went down
- Question about Multiple accounts – Balances of $0 will have that account removed
- Mike mentions Trust Accounts he has one – gives his email as “IRSfight@xxxxxxx.com” if people want information on how to open a Trust and get away from IRS rules
All in all, this was like most any other MLM call.Their opinions are much more valid that any blogger or government officials. We will see how well that works out for them. I suppose we will see if the Easter Gift actually materializes or becomes another excuse.
Interesting New Article from “MLM Attorney” Website
Below is an article as posted on the MLM Attorney website, and written by Kevin Thompson. Kevin is a friend to the ASD Updates blog and is an actual attorney who can make sense out of the documents relative to the many ongoing Ponzi/Pyramid schemes which abound on the “interweb”.
I have pasted the article below for those who don’t want to click a link to Kevin’s website.
When Zeek Rewards got shut down, the consumers really lacked an understanding of the problems. As I wrote about in the past, this ignorance in the market was largely our fault. Our “self-regulated” industry failed them. The first one is on us. But with this new breed of Leveraged Profit Sharing Programs (“LPSP”), it’s now on you.
Remember Zeek? It’s been close to eight months since they were shut down. If you will recall, Zeek Rewards was nailed by the SEC mainly for operating as a pyramid scheme and for selling unregistered securities i.e. encouraging passive investments, hinting at lucrative returns on the money, etc. Zeek Rewards taught its participants and the entire network marketing industry a very painful lesson: promises of passive return on investment + a network marketing compensation plan = hurricane of pain.
But it’s not an investment…
Sure, I know the counter-argument. People argue that Zeek never “asked for investments.” Instead, they were selling “sample bids” (wink, wink), which led to activity on the website, which led to profit, which led to profit distributions to the investors / distributors. Curiously though, the vast, overwhelming, ridiculous majority of those sample bids (99%+) were never used, which means the program was just cycling money from older investors to newer ones. While I know the counter-argument, it’s flat out silly. And those of us in the industry, we knew it and we said nothing. We let Zeek take advantage of the credibility we all work hard to create.
I’m getting to the point…
Zeek Rewards was like cocaine for a number of the net winners. They’re now hooked on the high. They want more. As the air in Zeek is deflated, reality is starting to sink in for people: Zeek Rewards is never coming back. With that in mind, it has led to the next generation of high yield investment MLM. I’m referring to these sorts of programs in the industry as “Leveraged Profit Sharing” programs. High Yield Investment Programs, or HYIPs, is a phrase commonly used; however, it’s easy for LPSPs to distinguish themselves from HYIPs because there’s “no investment.” I think LPSP is a better fit because it embraces the very terms they promote in their plans: profit sharing. And it’s precisely how they work in practice. The companies leverage the investments made by participants to grow the company. With growth, comes profit. And with profit, comes distributions to the investors i.e. leveraged profit sharing.
At some point, consumers have to accept responsibility for their financial decisions. Zeek brought painful clarity on the subject. And it was widely publicized. Perhaps I live in a fantasy world, but I think consumers should now know better. When participants are asked to fund the growth of a company by way of buying “samples” for anonymous, no-name customers, and when they’re promised a return based on company profits, they should simply know better! In this Information Age, where information is readily available on computers and cell phones, the excuses are starting to shrink. LPSPs would cease to exist if they lacked support from participants.
Where there was 1, now there are many. This is just an example. Recently, I’ve heard of “investor co-ops” where people pool money together and invest in multiple LPSPs. It functions sort of like of a mutual fund, but for…other kinds of programs. The companies they were allocating investor dollars: Banners Brokers, Profit Sunrise and GoFun Places. Why would people pool resources and passively invest in these programs? Because…well, you can decide for yourself. And these are just a few. If you get burned in a LPSP, do not blame the consultants or any vendors. Blame yourself. The information is out there. And by the way, the idea of “invest now, get out fast” might come back to bite you. There are a number of net-winners in Zeek that are currently negotiating deals with the receivership to pay back their gains. The other net-winners, the ones that are hoping for the clouds to clear, they’re about to be jack hammered in a whirlwind of litigation.
Think about it.
Manitoba Issues Warning On Profitable Sunrise, The List Continues to Grow
MSC issues warning on Profitable Sunrise
The Manitoba Securities Commission (MSC) is warning Manitobans about a suspected “high yield investment” offered through a promotional web site for an off shore company called Profitable Sunrise. Profitable Sunrise is not authorized to carry out business in Manitoba.
According to its website Profitable Sunrise offers five different investment plans, with a minimum investment of $10.00 and a “risk free” return of between 1.6 and 2.7 percent per business day on a 180-240 day term.
The Alberta, BC and Quebec Securities Commission have issued alerts against Profitable Sunrise. If you have been contacted by someone claiming to represent Profitable Sunrise, please contact the MSC.
Reminder to investors
As part of Fraud Prevention Month, the MSC reminds consumers that it is important to protect themselves against becoming a victim of investment fraud. Check out the MSC website at http://www.msc.gov.mb.ca/education/index.html for resources on investment scams and what action you can take to protect your hard earned money.
If you have received unsolicited phone calls about investment opportunities please contact the Manitoba Securities Commission at (204) 945-2548 or toll free at 1-800-655-5244 and ask to speak to an investigator.
The Manitoba Securities Commission is an independent agency of the Government of Manitoba that protects investors and promotes fair and efficient capital markets throughout the province.