TelexFree: Merrill’s Brother Subpoenaed in TelexFree Case

The Boston Globe is reporting that John Merrill was subpoenaed as part of an ongoing investigation of the firm’s alleged billion-dollar pyramid scheme. He is a Worcester banker, and the brother of TelexFree Inc. co-owner James M. Merrill,

Secretary of State William F. Galvin said Wednesday his office is seeking to interview John F. Merrill, president of Fidelity Bank , a community institution based in Leominster that allegedly handled millions of dollars for TelexFree.

James Merrill is being detained pending trial as he faces a criminal fraud charge.

For the full story, click here.

 

Letter from Zeek Receiver to Affiliates and Creditors

December 16, 2013

To Affiliates and Other Creditors of Rex Venture Group, LLC:

Many of you seem to be confused about an email notice that was sent to you late last week or over the weekend. We sent you notice that we filed with the Court a Motion For Order Approving Distribution Procedures and Certain Other Related Relief because we are required to do so. We want you to know what we are planning to do in this case. There is nothing you need to do regarding that motion unless you want to file an objection with the Court to our plan for eventually making distributions to recognized claimants or the other relief requested in the motion.

The filing of this motion does not mean that we are about to begin making distributions on claims. Please read my letter posted on December 13, 2013 for more detail on where we are in that process.

Please do not call my office or send emails to me asking for a “status” on your claim. I simply cannot respond individually to as many as 170,000 claimants. Also, do not call or email me with change of email address or other contact information. FAQ 32 on this website tells you how to update your contact information.

I will post an update on this page when Claim Determinations begin going out later this month.


Zeek Real Estate Garners $655,000 At Auction

Update: The Auction website shows the Storage facility final price is $415,000, not the $400,000 as reported earlier.

801 & 803 West Center Street, Lexington, NC

Lot # 1

801 & 803 West Center Street, Lexington, NC – Office Building With Attached Income Producing Coin Laundry; Deed Book 2041, Page 2402

Sold for: $ 240,000.00   to onsite

4095 Old Salisbury Road, Lexington, NC

Lot # 2

4095 Old Salisbury Road, Lexington, NC – 27,222 +/- Sq. Ft. Warehouse With 3204+/- Sq. Ft. In Office; Loading Docks On 6.33+/- Acres; Zoned Light Industrial

Sold for: $ 415,000.00      to onsite

From The Dispatch: Zeek Rewards Auction Catalog Now Online

 

Zeek Rewards auction catalogue is now online

Published: Friday, November 15, 2013 at 3:08 p.m.
Last Modified: Friday, November 15, 2013 at 3:08 p.m.

Those interested in the upcoming Zeek Rewards auction can now view auction items online.

Iron Horse Auction Co., which will hold the auction from Dec. 16-17 at Zeek’s former Lexington warehouse, can view the items at the following websites: www.ironhorseauction.com/ZeekReceiverDay1 and www.ironhorseauction.com/ZeekReceiverDay2.

The auction will start at 9 a.m. both days at the warehouse, which is at 4095 Old Salisbury Road. The warehouse and Zeek’s former headquarters will be sold at noon Dec. 16. More than 1,000 items, ranging from office furniture to country-music memorabilia, will also be sold throughout the two-day period.

The federal government shut down Zeek Rewards and its parent company, Rex Venture Group, in August 2012. The U.S. Securities and Exchange Commission alleged the company raised more than $600 million through the sale and offer of unregistered securities. The SEC also accused the company of operating a large pyramid and Ponzi scheme.

For more information, go to www.zeekrewardsreceivership.com.

Judge Mullen Approves Sale of Zeek Rewards Real Property

I have added the below filings to the Files website.

U.S. District Court
Western District of North Carolina (Charlotte)
CIVIL DOCKET FOR CASE #: 3:12-cv-00519-GCM

Securities and Exchange Commission v. Rex Venture Group, LLC et al
Assigned to: Senior Judge Graham Mullen
Cause: 15:77 Securities Fraud
Date Filed: 08/17/2012
Jury Demand: None
Nature of Suit: 850 Securities/Commodities
Jurisdiction: U.S. Government Plaintiff

 

Date Filed # Docket Text
10/17/2013 160 ORDER granting 158 Motion to Approve Sale of Certain Real Property and Approving Procedures for Public Auction of Real Property. Signed by Senior Judge Graham Mullen on 10/17/2013. (Attachments: # 1 Exhibit A) (Pro se litigant served by US Mail.)(cbb) (Entered: 10/17/2013)

New Letter From Zeek Rewards Receiver

August 2, 2013

To Affiliates and Other Creditors of Rex Venture Group, LLC:

On May 15, 2013, the claims process for Rex Venture Group, LLC d/b/a ZeekRewards(“ZeekRewards”) commenced pursuant to the Order Approving (I) Claims Process, (II) Setting of Bar Date, and (III) Approving Notice Procedures. Approximately 30 days from now, on September 5, 2013, the claims process will close and you will no longer be able to submit a claim.

To date, while more than 100,000 claims have been submitted or are in the process of being submitted through the Claims Process, hundreds of thousands of affiliates of ZeekRewards and other entities that hold potential claims against ZeekRewards have not filed claims.

Perhaps you are one of these affiliates who has not submitted a claim because you believe that fully completing and submitting a claim will take too much time, the Claims Process is too complex, the amount of your claim is too small, or that your potential recovery will not be in a large enough amount to make the effort of pursuing your claim worthwhile.

Regardless of these concerns, I would encourage you to submit your claim prior to the close of the Claims Process if you believe ZeekRewards owes you money for amounts that you invested in ZeekRewards. I anticipate that a substantial percentage of valid claims will be refunded. Moreover, I have made every effort to make the Claims Process as simple and user friendly as possible for all claimants and have only sought the information necessary to enable us to establish the amount each claimant is owed by ZeekRewards. Please also remember that even if you do not have all of the information requested, you may still complete and fully submit your claim. Any deficiencies with a particular claim will be addressed in the claim determination process.

If you have not completed and fully submitted a claim through the Receiver’s online Claim Portal or through alternative means expressly authorized by me in writing prior to 11:59pm prevailing Eastern Time on September 5, 2013, your claim will not be counted and you will not receive a distribution on account of any amounts that Zeekrewards may owe you.

You may still request permission to submit your claim using a method other than the Receiver’s online Claim Portal by sending an email to claims@zeekrewardsreceivership.com. However, permission to submit a claim outside the Receiver’s Online Claim Portal will be granted only in rare instances, will be in my sole discretion, and will be evidenced by a written acknowledgment from me.

As always, thank you for your continued patience in this process. I continue to be dedicated to returning to you the greatest percentage of the amount of your claims as is possible.

Sincerely,

Kenneth D. Bell

Receiver for Rex Venture Group, LLC d/b/a ZeekRewards

Gilmond and King’s “Motion to Dissolve Receivership” Hearing New Schedule

Docket Information and Related Docket Entries
Case 3:12-cv-00519-GCM

Filed: 06/04/2013
Entered: 06/04/2013
Entered By: Suzanne Barber,
Event Name(s): Order on Motion to Continue Other

Full Docket Text:
TEXT-ONLY ORDER granting 147 Motion to Continue Hearing. Hearing on Motion re: 84 Motion to Intervene and for an Order Dissolving the Appointment of a Temporary Receiver and Memorandum in Support Thereof: Motion Hearing RE-SET for July 17, 2013 10:30 AM in Courtroom 3, 401 W Trade St, Charlotte, NC 28202 before Senior Judge Graham Mullen. Entered by Senior Judge Graham Mullen on 6/4/2013. (Pro se litigant served by US Mail.)(stb)

Senior Judge Mullen Denies Motion to Appoint Examiner

ORDER

This matter is before the Court upon motion of Fun Club USA, Inc., David Sorrells, David Kettner and Mary Kettner to appoint a representative for affiliates. Movants are all “net winners” in the ZeekRewards scheme and are requesting that the Court appoint attorney Michael Quilling as an “Examiner” to represent the collective interests of all the affiliates and creditors of the receivership estate. First of all, it is readily apparent to the Court that such an examiner would be unable represent the interests of both the net winner and net loser affiliates, two groups with inherently adverse interests. Secondly, the Court is of the opinion that appointing an examiner would cause unnecessary and significant depletion of the assets of the receivership. The receiver is working diligently to maximize and protect the assets and the Court has utmost confidence in the receiver’s efforts. Accordingly, the Court will exercise its broad discretion to deny the movants’ request for appointment of an examiner.

IT IS THEREFORE ORDERED that Movants’ Motion to Appoint Representative of Affiliates (D.E. # 77) is hereby DENIED.

Signed: February 7, 2013