The Zeek Receiver is going after Preferred Merchants and Jaymes Meyer for transferring $4.8 Million dollars of what he believes were Zeek Rewards proceeds only minutes after the Asset Freeze. (emphasis added)
Kenneth D. Bell, the Receiver for Rex Venture Group, LLC d/b/a ZeekRewards.com (“RVG” or “Rex Venture Group”), respectfully submits this Memorandum of Law in Support of his Motion for Temporary Restraining Order Enforcing the Court’s Asset Freeze pursuant to Federal Rule of Civil Procedure 65. Specifically, the Receiver seeks an order directing Preferred Merchants Solutions, LLC (“Preferred Merchants”) and Jaymes Meyer (“Meyer”) to immediately deposit with the Receivership $4,854,010.40 that they transferred from RVG’s trust account to Preferred Merchants’ account after Preferred Merchants and Meyer had knowledge of the asset freeze and had been asked by the SEC to freeze all RVG assets. Pending further order of the Court, these funds will be kept by the Receiver in a segregated account.
The Receiver is filing this separate Motion for Temporary Restraining Order because he has received new evidence that definitively establishes that Preferred Merchants and Meyer (1) knew of the asset freeze on August 16, 2012 before they directed the transfer of $4.8 million from RVG’s trust account to Preferred Merchants’ account; (2) made material misrepresentations and omissions to the SEC regarding their custody and control over and transfer of RVG funds; and (3) made material misrepresentations in their submission to this Court regarding the circumstances under which they received notice of the freeze and directed the transfers at issue. Given Preferred Merchants’ and Meyer’s deliberate refusal to follow the directives of federal law enforcement agencies and the Court regarding RVG assets, and the very large amount of funds at stake, the Receiver seeks a temporary restraining order (“TRO”) to immediately secure these funds and ensure that they remain available for the eventual benefit of RVG’s victims.
Along with this filing is a “Supplemental Declaration of James Lee Buck, II” who is an Assistant Director in the SEC’s Enforcement Division in which he states: