Tag Archives: Grimes

Zeek Rewards: Civil Case Against Kevin Grimes is Closed

The case is listed as Closed as of June 25th:

DISMISSAL OF ACTION PURSUANT TO APPROVED SETTLEMENT AGREEMENT

Pursuant to Rule 41 of the Federal Rules of Civil Procedure and the Settlement Agreement previously approved by this Court on June 3, 2015, Plaintiff hereby dismisses this action with prejudice. Each party shall bear their own costs.

Respectfully submitted this 24TH day of June, 2015.

Zeek Rewards: Judge Mullen Approves Kevin Grimes’ Settlement Agreement

zeekrewardsI just saw this today; I don’t always check every Zeek case daily, there are just so many. We already saw the discussions of a Settlement from Mediation and on June 2nd, the Receiver filed a Motion to Approve the Settlement Agreement with Grimes & Reese PPLC, Kevin D. Grimes and MLM Compliance VT, LLC.

As most of you remember, Kevin Grimes and his law firm were the ones who trained and certified Zeek affiliates on “Compliance”, thereby preventing anything untoward, or should we say illegal, from happening. Gee, how did that work out for you, Zeek Rewards?

This mediation settlement conference happened on April 21, 2015, and in further discussions, the Parties did agree to settle the civil suit to avoid the costs related to further litigation. From the filing, it appears that Mr. Grimes will have to relinquish $ 1,175,000.00 to the receivership estate.

The motion goes on to state that while RVG’s legal claims to recover damages or payments is strong and straightforward, Zeek was a very large and complex scheme and will create complex litigation. The receiver believes that an early settlement of claims to avoid litigation expenses is worthwhile.  The Motion also mentions the difficulty of collections, something about which we have all wondered.

Judge Mullen issued an Order Approving Settlement the same day.

ZeekRewards: Settlement Reached in Bell v Grimes, No Details Yet

When checking the docket today in the case of Bell v Kevin Grimes (former “compliance” officer for the Zeek scam), I saw a notation that said “REPORT of Mediation. Outcome of Mediation: Completely Settled”, part of which was this:

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There are no further details about the settlement itself, and hopefully, we will see something soon.

Zeek Rewards: 14-cv-352 – Bell vs Kaplan Held In Abeyance

Looks like we will have to wait on this case as the outcome hinges on mediation in Bell v. Grimes. Here’s the text of this order.

This matter is before the Court upon its own motion. The pending Motion to Dismiss in this case will be held in abeyance pending the mediation in Bell v. Grimes, 3:14CV351. Moreover, the SEC is directed to inform the Court as to whether it is willing to file an amicus brief in this matter if requested by the court

IT IS SO ORDERED.

Signed: March 23, 2015

Say it isn’t so: Thompson-Burton Law Firm Announces Hiring Kevin Grimes, Former Zeek Compliance Guy

This is something that can truly be described as “What the F**K were you thinking?” Thompson-Burton, an MLM law firm, has hired Kevin Grimes, the former “Compliance Officer” of Zeek Rewards. As with other “compliance officers”, such as Robert Garner of ASD infamy, he promised one thing while something else was going on. Grimes and Zeek also sold these “Compliance” courses to Zeek affiliates; I am not sure with what they were complying but it doesn’t seem to have been being compliant as a legitimate business that wasn’t selling a HYIP ROI scam.

I have personally spoken several times with Kevin Thompson on the phone and he seems to me to be a straight-forward, level-headed kind of guy;  I like him. But I cannot say I would want to be an MLM attorney, as Thompson is, and even if I was (or played one on TV) I probably wouldn’t ask someone with a Federal Civil Suit alleging “Legal Malpractice” filed against him to join my imaginary law firm.

Apparently, Grimes’ former partnership (Grimes and Reese) decided to distance themselves after the Lipstickpigcivil suit was filed and the firm became R&R Law Group. Most information is sketchy about this, the name changed rather abruptly without much in the way of fanfare. Honestly, I don’t know any more about Mr. Grimes or his legal skills, knowledge of “compliance’ issues or his ability to spot a pig wearing lipstick (right) beyond the information contained within federal court documents and what I have read on the interwebs.

 

A part of the Thompson Burton announcement today says this:

Speaking of the compliance training….yes, it landed him in hot water. And he’s dealing with it. For the uninitiated, Kevin Grimes was sued by the Receiver in Zeek Rewards for, among other reasons, improperly providing Zeek Rewards with compliance training. The gist of the complaint: KG allegedly improperly sold compliance training to a company that he should’ve known was unfixable (Zeek Rewards paid for his compliance training). It’s one of the reasons why he’s no longer with Grimes & Reese, now R&R Law Group. With that being said, he’s gone close to 29 years without a bar complaint filed by a disgruntled client (it happens to the best of us, eventually). But Kevin…he’s got a great record and I know with 100% certainty that Kevin’s skill is unmatched by anybody else in the country. So regarding those challenges he’s facing, he’s going to make his positions clear soon. It’s a shame that the public doesn’t know him better, but that’ll change over time.

Maybe Mr. Thompson is right; maybe Grimes was caught up in a lost cause and started the compliance program way too late. Or maybe, it’s exactly as it appears to most of us, that he might have been partly in on things at RVG and profited from it. Time and the court case will tell us which it is.

Yes, Zeek was “unfixable”; even Stevie Wonder could have seen that.

BehindMLM: Kevin Grimes Fired from Law Firm??

From BehindMLM.com:

Kevin Grimes fired from R&R Law (formerly Grimes & Reese)?

Eagle-eyed BehindMLM reader James Charles has noticed that all references to Kevin Grimes have been removed from the Grimes & Reese website.

Now calling themselves R&R Law Group, the change appears to have taken place over the last few days. A Google cache snapshot reveals that Kevin Grimes still appeared on the site, and that the name Grimes & Reese was still in use as of August 8th.

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Since then, what was once Grimes & Reese have removed any mention of Kevin Grimes (right) from their mlmlaw.com website. The firm has also changed it’s name to R&R Law Group.

[Continue reading…]

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: Receiver Files Legal Malpractice Suits Against Kevin Grimes and Howard Kaplan!!!

BREAKING NEWS:  Today’s docket comes as a big surprise! Two new lawsuits are added as related cases to the Zeek Rewards lawsuit, 12-cv-519.  They are 14-cv-351 and 14-cv-352, Malpractice suits against 2 Zeek Rewards legal counsels.  Here is what Kenneth Bell filed, and got an order the same day to proceed.


 

RECEIVER’S REQUEST FOR LEAVE TO INSTITUTE ACTIONS

On August 17, 2012, this Court entered an Agreed Order appointing Kenneth D. Bell as a Receiver to investigate, pursue and recover all potential claims and other assets of the Rex Venture Group, LLC (“RVG”) receivership estate. Pursuant to paragraph 43 of that Agreed Order, the Receiver requests leave of this Court to institute actions for the benefit and on behalf of the Receivership Estate against certain individuals and entities that failed to provide competent legal counsel to RVG and otherwise assisted in promoting and perpetrating the ZeekRewards Ponzi and pyramid scheme.

Since his appointment, the Receiver has thoroughly investigated RVG and the ZeekRewards scheme. After careful analysis of RVG’s written and electronic records, extensive document review and numerous interviews with relevant witnesses, the Receiver has concluded that two attorneys hired by RVG (and their related entities) caused significant damages to RVG by their negligent and other wrongful conduct. The Receiver proposes to file separate actions against the two attorneys.

In accordance with the Agreed Order, the Receiver has provided prior notice to Counsel for the Securities and Exchange Commission.

Thus, the Receiver respectfully requests leave to institute the actions described above in this Court. 1

1 If requested, a copy of the two Complaints that the Receiver intends to file to begin the actions will be made available to the Court for its in camera review.


Judge Mullen responded with this:

THIS MATTER is before the Court on the Receiver’s Request for Leave to Institute Actions against two attorneys hired by RVG. The Receiver alleges that these proposed defendants caused significant damages to RVG because of negligent and other wrongful conduct. 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 two referenced actions.


I have added both of these new cases onto the Files website, as new Zeek civil cases.