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.