UPDATE FROM RECEIVER – December 31, 2013
To Affiliates and Other Claimants of Rex Venture Group, LLC
On December 27, 2013 we began sending out more than 80,000 emails notifying claimants that their Letter of Determination is available for review. The Letter of Determination tells claimants the amount(s) of their claim(s) recognized by the Receiver. While I tried to make this process as understandable as possible, judging by the number of emails and phone calls, there is a lot of confusion and misunderstanding about how this process works. I write this message to answer the most frequently asked questions.
While we have sent more than 80,000 Letters of Determination, we have received more than 170,000 claims, so roughly 90,000 claimants have not yet been sent a Letter of Determination. Every affiliate claimant will receive a Letter of Determination as soon as we are able to review and evaluate the claim. We are working hard to get this done as quickly as possible for every affiliate claimant. If you have not yet received a letter of determination, you will. Please be patient, and do not send emails or leave voicemails asking when you will get your Letter.
Many claimants who have not yet received a Letter of Determination are trying to login using a link forwarded to them by a claimant who has received a Letter of Determination. This will not work. The link will only allow a claimant who received an email notifying them that their Letter of Determination is available for review to login to the system.
Many claimants who received a Letter of Determination report that they cannot login because their Claim ID and/or password are not being recognized. This is because the claimant has forgotten one or both, or created more than one User ID or password, and is trying to login with the wrong one. If a claimant is having trouble logging in, please use the User Name Recovery tool that is linked to the login page on the portal.
Many who have received a Letter of Determination are confused about the amounts recognized. For every claim we “recognize” two amounts: the amount of money the claimant paid to Rex Venture Group/ZeekRewards (referred to as “Receivership Defendant”) before August 17, 2012, and the amount of money Rex Venture Group/ZeekRewards (again referred to as “Receivership Defendant”) paid to the claimant before August 17, 2012. Both numbers are important in determining how much money will be paid to each claimant once the Court approves a Distribution Plan. Some claimants look at the line showing “Payments from Receivership Defendant” and mistakenly think this is the amount of their claim recognized by the Receiver. “Payments from the Receivership Defendant” is simply the amount (if any) paid to the claimant by Rex Venture Group/ZeekRewards before August 17, 2012, that is, before the Court appointed the Receiver. It is NOT the amount of the recognized claim. Claimants can Accept both of the amounts (“paid to” and “received from”), or object to one or both of the amounts.
Many claimants ask if they still have to complete the online forms even if they Accept the Determination. The answer is yes, and the reasons are explained in Claims FAQ 33. Some claimants report difficulty completing the forms online. We have thoroughly tested, and continually test, the ability to submit these forms to be sure the online process is working properly.
Many claimants ask if completing the W-9 or W-8 (and perhaps later receiving an IRS Form 1099) means they will have to pay tax on a future distribution from the Receivership. Receiving a Form 1099 does not necessarily mean that a claimant will owe taxes on the future distribution. Each claimant’s tax situation is different, so I encourage each claimant to consult with his/her tax preparer or professional advisor. We are simply required, by applicable law, to report to the IRS if the Receivership distributes more than $600 to any claimant.
Because Forms W-9 and W-8 require a Social Security Number or Tax Identification Number, many claimants ask if that information will be safe and protected. Please be assured that it is and will be.
Do not send any documents directly to the Receiver. The only Court approved Claims Process required claim information to be provided through the Claim Portal. Documents sent to the Receiver will not be accepted or reviewed. Also, do not send emails to or leave voicemails for the Receiver directly. They are not read or listened to. All correspondence should be sent to firstname.lastname@example.org. Every email sent to that address is reviewed and forwarded to the Receiver as appropriate. It is impossible to respond to every individual question, email or call. Common questions are answered by postings at Zeekrewardsreceivership.com. All available information and updates are posted there.
Thank you for your patience in this process.
Kenneth D. Bell
Please click here to view prior updates from the Receiver