PatrickPretty: Robert Craddock Focus of 2 Copyright Infringement Suits

Some of you may remember the name of Robert Craddock, of Fun Club USA infamy, who sought to insert himself into Zeek Rewards as much a could, insisting that he would prevail against the SEC case (somehow).  He started the website “ZTeamBiz” and used it to disparage the Receivership, until one day, he fell silent. (If only that had lasted…)  Craddock also asserted that he could “help” people with Zeek claims, again falling far short of the mark. And the list goes on and on.

Anyhow, here’s a link to the story on the PPBlog; I would advise that you take the time to read it.

BehindMLM: Craddock Writes a Zeek Rewards Book????

From BehindMLM.com:

A sick joke? Robert Craddock publishes Zeek Rewards book.

the-zeek-phenomenon-book-robert-craddockOut of all the people on the planet who might pen a book about Zeek Rewards, arguable none would be less qualified to do so than Robert Craddock.

Craddock, an investor in the Zeek Rewards, was hired by Gregory Caldwell to assist him with silencing Zeek Rewards’ critics compliance.

After the SEC shut down Zeek Rewards and revealed it to be an $850 million Ponzi scheme, Craddock was one of the most outspoken critics of the regulatory agency.

Craddock pushed all sorts of conspiracy theories in the immediate aftermath of Zeek through ZTeamBiz, a network of investors he set up.

Wishing to pursue legal action against the SEC, Craddock convinced investors of Zeek to send him thousands of dollars. Through ZTeamBiz, Craddock promised to put the money towards defending investors against future regulatory action.

The money ZTeamBiz fleeced from affiliates who donated was originally gathered to be used to defend all Zeek Rewards affiliates who donated against impending SEC litigation.

Shortly after the bulk of the money that would be donated was donated however, this changed to the offering of a cookie-cutter attorney letter, provided at an additional cost.

Where did the rest of the money go?

It is widely believed that the bulk of it went towards financing the legal defences of the Zeek Rewards net winners that formed ZTeamBiz.

In the months following the SEC shutdown, a number of legal initiatives were launched by ZTeamBiz affiliates to try to thwart attempts to recover funds they stole from their fellow affiliates.

To date, every single one of these actions has failed.

After that farce, Craddock’s name continued to pop up in connection with a number of shady schemes. It wasn’t until late 2013 that regulators and/or the Zeek Receivership shut him down.

After a series of Ponzi points business pushed by Craddock flopped, his newest role appears to be that of publisher.

[Continue reading…]

Zeek Rewards: Zeek Affiliates respond to Complaint and File Counterclaims Against Receiver

In today’s Zeek Rewards filings, we have several Defendants/affiliates who have responded to the original Complaint and filed a Counterclaim against Kenneth Bell, the court-appointed Receiver.

The first of three (3) Counterclaims was filed by one Durant Brockett, in which he asserts the following five (5) Claims For Relief:

  • Breach of Contract
    • RVG and Brockett had an enforceable contract pursuant to which Brockett performed services for the benefit of RVG. In return, RVG was obligated to compensate Brockett as RVG had promised for the services Brockett performed.
    • The Receiver, acting as RVG, and by confiscating the funds in Brockett’s RVG NXpay account, has failed and refused to pay Brockett for the services that Brockett performed.
    • The conduct of the Receiver, acting as RVG, constitutes a breach of contract.  Brockett has been damaged in an amount to be determined at trial for the Receiver’s/RVG’s breach of contract.
  • Tortious Interference
    • A valid contract existed between Brockett and NXpay relating to Brockett’s RVG NXpay account. That contract gave Brockett the exclusive right to withdraw funds from his RVG NXpay account.
    • On information and belief, the Receiver had knowledge of Brockett’s contractual relationship with NXpay.
    • The Receiver intentionally induced NXpay not to perform its contract with Brockett and, in violation of the contractual agreement between NXpay and Brockett, either (i) to deliver the funds in Brockett’s RVG NXpay account to the Receiver or (ii) not to pay the funds to Brockett as NXpay’s contract with Brockett obligated it to do.
    • The Receiver’s conduct described above was willful and undertaken on behalf of RVG. Brockett is entitled to punitive damages against the Receiver and RVG in accordance with N.C. GEN. STAT. § 1D-1, et seq.
  • Money Had and Received
    • The Receiver is in receipt of funds which do not in equity and good conscience belong to him.
    • Brockett is the rightful owner of the funds the Receiver received from Brockett’s RVG NXpay account.
    • Brockett is entitled to an order compelling the Receiver to turn over to Brockett all funds the Receiver received from Brockett’s RVG NXpay account.
  • Civil Action Pursuant to 42 USC Section 1983 for Deprivation of Constitutional Rights, or, Alternatively Common-Law Claim for Violation of Fourth Amendment Rights
    • The Receiver was acting under the color of law when he caused NXPay to refuse to honor the terms of its contract with Brockett and when he caused NXPay to turn over to the Receiver Brockett’s funds in his RVG NXpay account.
    • As a result of the Receiver’s conduct, Brockett has been wholly deprived of the value, use and benefit of the funds in his RVG NXpay account.
    • Pursuant to 42 U.S.C. § 1983 and the Fourth Amendment of the United States Constitution, the Receiver is liable to Brockett for redress for Brockett’s damages resulting from the loss of use of his funds.
  • Unfair Trade Practices
    • RVG’s and the Receiver’s conduct described above and in the Complaint constitutes unfair methods of competition, unfair trade practices, and deceptive trade practices in violation of the North Carolina Unfair and Deceptive Trade Practices Act, N.C. GEN. STAT. § 75-1.1, et seq.
    • The conduct was illegal, offends public policy and is immoral, unethical, oppressive, unscrupulous, and deceptive.
    • As a result of the conduct, Brockett has suffered damages.
    • The use by RVG and the Receiver of unfair methods of competition and unfair and deceptive trade practices entitles Brockett to recover (a) three times his actual damages and (b) attorneys’ fees and costs pursuant to N.C. GEN. STAT. § 75-16.1.

The almost identical Counterclaims have been brought by Innovation Marketing LLC, Shara Andrews, Aaron Andrews and Rhonda Gates. Mr. Brockett is using noted legal mouthpiece Rodney Alexander.

As some of you will recall, Rodney Alexander was previously retained by Robert Craddock, of “Fun Club USA” and “Zteambiz” infamy, in a half-hearted and highly questionable attempt to intervene in the RVG case (it didn’t work out as he planned, of course). Craddock accepted donations of which no one is sure how or where they were used, similar to the “ASD Justice” group of Todd Disner and Dwight Schweitzer who gathered money for a legal bid to intervene in the ASD/AdSurfDaily federal civil case, which also amounted to absolutely nothing.

Mr. Alexander also filed a “Motion to Dismiss for Failure to State a Claim / MOTION to Dismiss for Lack of Jurisdiction” for Defendants Aaron Andrews, Shara Andrews, Durant Brockett, Rhonda Gates, Trudy Gilmond, Innovation Marketing LLC, Darren Miller, Jerry Napier, and Trudy Gilmond, LLC. 

The other two “Answers to Complaint/Counterclaims” were filed by attorney James Edmundson on behalf of Defendants Innovation Marketing LLC, Shara Andrews, Aaron Andrews and Rhonda Gates.

I will keep an eye on these filings; it will be interesting to see how the Judge deals with them. Mr. Bell filed in every Federal District in the land so that he DID have jurisdiction to pursue clawbacks; how the Defendants now believe Bell does not have jurisdiction to sue them is likely just a matter of legal posturing and trying to get out of a bad situation.

Good luck with that, folks.

TelexFree: SEC Files Opposition to Faith Sloan’s Request For Release of Funds

The SEC has file an Opposition to releasing any money to Faith R. Sloan.  The have attached 7 Exhibits to this Opposition, all uploaded onto the Files website.

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And to further make their point, we have this:

 

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A cursory look into Changes Worldwide, LLC produced this:

Directors and Executives (Current and Past)

Name Role Address
Robert Lee Craddock Executive
2128 E. Edgewood Dr Suite 109
Lakeland, FL, 33803

 

 

Yes, THAT Robert Craddock……  it’s a small world when you are a serial promoter, eh???

Zeek Rewards – Judge Mullen Approves 1st Quarter Expenses

ORDER

Upon consideration of the Application for Fees and Expenses by the Receiver and His Advisors for the First Quarter of 2014, filed May 15, 2014 (the “Application”), and for good cause shown, IT IS ORDERED, ADJUDGED AND DECREED that:

  1. The Receiver’s Application is GRANTED.
  2. The Receiver and McGuireWoods LLP SHALL BE AWARDED an allowance of $756,188.52 (of which $151,237.70 will be held back pending further petition to and approval by the Court) for legal services rendered during the Compensation Period set forth in the Application, and $39,456.02 for the reimbursement of expenses incurred during the same period.
  3. FTI Consulting, Inc. SHALL BE AWARDED an allowance of $476,334.00 (of which $95,266.80) will be held back pending further petition to and approval by the Court) for services rendered during the Compensation Period.
  4. The Receivership Estate IS HEREBY AUTHORIZED to immediately pay such amounts and reimburse McGuireWoods LLP and FTI Consulting, Inc. for approved expenses.

ASDUpdates Blog Reaches Its 1,111th Post!

I suppose it is a sort of milestone, 1, 111 posts since I started the Blog to detail the events in the ASD/AdSurfDaily  Ponzi scam. Since that time, there seems to be a proliferation of crooks and scams resulting in literal piles of money leaving the victims and ending up in the bank accounts of serial scam artists and promoters.

Until the worldwide public realizes that no legitimate program can pay them an RIO 100’s of time greater than any other method is nothing but a scam, these “opportunities” will continue to pillage the public and separate them from their money.

 

Zeek Rewards: Receiver Files Motion For 1st Interim Distribution

On today’s docket, we have this new Motion, which opens with this:

The Receiver,1 by and through his undersigned counsel, files this motion (the “Motion”)
seeking an order of this Court authorizing the Receiver to pay an interim distribution to certain
victims of the Zeek Rewards Scheme (defined below) who hold Class 3 2 Allowed Claims and
establishing related record and distribution dates to fairly implement this distribution.
Specifically, as described below, the Receiver seeks an order (i) authorizing an interim
distribution on account of Class 3 Allowed Claims (the “First Interim Distribution”), (ii)
establishing a record date for eligibility to receive the First Interim Distribution on the First Interim Distribution Date, (iii) setting the First Interim Distribution Date, and (iv) establishing
Subsequent Record Dates and Subsequent Distribution Dates for making the First Interim
Distribution to Class 3 Claimants whose Claims are allowed prior to a Subsequent Record Date.
For the reasons discussed below and in the best interests of the Receivership Estate, the Receiver
respectfully submits that the Motion should be granted.

1 Capitalized terms used, but not defined herein, shall have the meanings ascribed them in the Receiver’s Motion for an Order Approving Distribution Procedures and Certain Other Related Relief (the “Distribution Plan Motion”) [ECF No. 170].

2 Claims classified in Class 3 are the Claims of Affiliate Investors and subrogees of Affiliate Investors on account of losses based on the investments they made in the ZeekRewards Scheme. All descriptions of the Classes of Claims in this Motion are for descriptive purposes only and are qualified in their entireties by the Distribution Plan Motion and the Distribution Plan.

You can see the full document here:  ZeekDoc210

Zeek Receiver Files 1st Quarter Report for 2014

Kenneth Bell filed his 1st Quarter report and had the following topics within it:

  • Investigating the Receivership Defendant’s Financial Information and Identifying Outstanding Funds
  • Marshaling and Preserving Receivership Assets
  • Analyzing the Operations of the Receivership Entity
  • Communicating with Affiliates and Creditors
  • Issues Concerning Federal Taxes
  • Litigation in the SEC Enforcement Action 4
    • 4 This section discusses litigation in the SEC Enforcement Action. The Receiver’s efforts related to the recovery of fraudulently transferred funds are discussed later in this Report.
  • Identifying and Pursuing Fraudulently Transferred Funds Held by Net-Winner Affiliate-Investors
  • Investigating Claims against Receivership Defendant Insiders
  • Investigating Claims against the Receivership Defendant’s Third-Party Advisors and Others
  • Investigating and Identifying Potential Prejudgment Remedies

I have uploaded this documents and exhibits onto the Files website.  ZeekDoc 208-main, 208-1 and 208-2

New Summons Issued Today in Zeek “Net Winner” Civil Case

I checked the Docket file today and found a new batch of Summons issued to names with whom we are all familiar. And the “net winner” is:

  • Durant Brockett
  • Todd Disner
  • Trudy Gilmond
  • Trudy Gilmond, LLC
  • Jerry Napier
  • Global Internet Formula, Inc.
  • P.A.W.S. Capital Management LLC
  • Lori Jean Weber

The receiver has also supplied a list of around 9,000 US “net winners” who received over $1000 from Zeek Rewards.  Some of the names are familiar, most are not.

Here is a link to that list    Net_Winners 3.1.14

Daniel and Dawn Olivares Receive Final Judgement In Civil Case

I checked the Olivares’ Civil case this morning and found that the case had been closed on February 28th.

Final Judgements have also been entered, including both individuals being ” permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by using any means or instrumentality of interstate commerce, or of the mails, or any facility of national securities exchange, in connection with the purchase or sale of any security.”

For Daniel Olivares:

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For Dawn Wright Olivares:

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I have uploaded the full documents onto the Files website.