Zeek Rewards: Paul Burks Sentencing Set For Mid-February

Judge Cogburn has issued the following Order:

THIS MATTER is before the court on the parties’ Joint Motion to Continue Sentencing (#119). Having considered the motion and reviewed the pleadings, the court enters the following Order. The court notes that the parties have requested that the court continue the sentencing hearing to or after January 30, 2017 and have reported that February 9th, 2017 is a known conflict for the counsels’ schedules.

ORDER
IT IS, THEREFORE, ORDERED that the parties’ Joint Motion to Continue Sentencing (#119) is GRANTED, and the Clerk of Court is instructed to place this matter on the next appropriate sentencing calendar.

The case docket sets a tentative date:

Sentencing set for 2/13/2017 09:30 AM in Courtroom, 401 W Trade St, Charlotte, NC 28202 before District Judge Max O. Cogburn Jr.

Zeek Rewards: Announcement From Receiver

 

 

ANNOUNCEMENT FROM THE RECEIVER – January 12, 2017

I am pleased to announce that we will be making a third partial interim distribution to all Affiliates who hold Allowed Claims on March 15, 2017. When made, combined with the first and second partial interim distributions and the amounts paid by ZeekRewards to such Affiliates before it was shut down, the third partial interim distribution will have returned to victims with Allowed Claims a total of at least 75% of their losses using the rising tide method.

If you previously have received payment from the Receivership, or receive a payment for the first time during the January 31 distribution, you will be issued another payment on March 15, 2017. If you had recovered more than 60% from ZeekRewards prior to its shutdown, but less than 75%, you will receive a distribution as part of the third partial interim distribution.

The funds used to make the third partial interim distribution will be taken from the reserves that I previously held for those Affiliates whose claims were disallowed and forfeited pursuant to the Court’s November 16, 2017 Order that required these claimants to provide their Release and OFAC certification by December 31, 2016. Their failure to do so has permitted me to release these reserves and to pay the third partial interim distribution to Affiliates that hold Allowed Claims.

Finally, we do not have authority to accept new claims and are not considering further requests to amend previously allowed claims. The time to file claims or to amend claims has passed.

I am confident that we will make a further distribution in the future. I ask you for your patience, and thank you for your continuing support.

USFIA: Consent to Enter Final Judgment

You can find the entire document here 194.

(emphasis added)

orders the Entity Defendants to pay disgorgement in the amount of $135,598,118.47, plus prejudgment interest thereon in the amount of $9,811,646.50, the payments of which will be deemed satisfied by the amounts recovered and distributed by the court-appointed receiver as set to be set forth in the receiver’s final report and accounting to the Court.

TelexFree – Brazilian National Hid $20 Million in Box Spring

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Thursday, January 5, 2017

Agents Seize Approximately $20 Million and Arrest Brazilian National in Scheme to Launder TelexFree Funds

BOSTON –Approximately $20 million in cash hidden inside a box spring in a Westborough, Mass. apartment, was seized late yesterday, and a Brazilian man was arrested in connection with conspiring to launder proceeds of the massive TelexFree pyramid scheme.

Cleber Rene Rizerio Rocha, 28, was charged in a criminal complaint with one count of conspiring to commit money laundering. Rocha was detained following an appearance today before U.S. District Court Magistrate Judge Judith G. Dein.

According to the complaint, in April 2014, federal agents searched the headquarters of TelexFree, Inc., in Marlborough, Mass. Later that day, Carlos Wanzeler, one of the founders of the company, allegedly fled to Brazil, his native country, where he has remained. Wanzeler and TelexFree co-founder James Merrill were indicted in July 2014 on charges that they operated TelexFree as a massive pyramid scheme. Merrill pleaded guilty to those charges in October 2016 and is awaiting sentencing.

The complaint alleges that an intermediary working on Wanzeler’s behalf contacted an associate for help transferring millions of dollars of TelexFree money – still hidden in the greater Boston area – from the United States to Brazil. The associate, who subsequently became a cooperating witness for the government, allegedly arranged with Wanzeler’s nephew in Brazil to launder the cash through Hong Kong, convert it to Brazilian reals, and transfer it to Brazilian accounts.

According to court documents, Rocha, acting as a courier for Wanzeler’s nephew, flew from Brazil to JFK Airport in New York City a few days ago. Yesterday, Rocha met the cooperating witness at a restaurant in Hudson, Mass., and allegedly gave him $2.2 million in a suitcase. After the meeting, agents followed Rocha to an apartment complex in Westborough, Mass., and later arrested him. That night, federal agents searched an apartment at the Westborough complex and seized a massive stockpile of cash hidden in a box spring. The cash appears to total approximately $20 million.

The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr., of Ortiz’s Economic Crimes Unit are prosecuting the case.

The details in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

USFIA – Judge Orders Summary Judgment Against Steve Chen

Although this document was entered on December 8th, I was asked to post a link for those interested in its contents. The SEC made a Motion for Summary Judgment and Injunctive Relief was Granted, including the following:

Chen is permanently restrained and enjoined from violating Section 5(a) and (c) of the Securities Act [15 U.S.C. § 77e] directly or indirectly

this Order by personal service or otherwise: (a) Chen’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Chen or with anyone described in (a).

Chen is

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

 

 

Defendant shall pay disgorgement of ill-gotten gains, prejudgment interest thereon, and a civil penalty pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. The Court shall determine the amounts of the disgorgement and civil penalty upon motion of the Commission.

Here’s a link to the full document.


On December 19th, there was a PreTrial Conference held with Judge Klausner presiding. Here’s the Minutes from that Conference:

Case called. Court and counsel confer. Also present are Thomas A. Seamon, Receiver and David R. Zaro, counsel for the Receiver.

The Court will not vacate Order on Motion for Summary Judgment. The Court orders counsel to meet and confer to discuss further settlement and to return at 10:15 a.m.

Case recalled. The Court and counsel confer. Settlement was not reached. Jury Trial shall remain on calendar for January 10, 2017 at 9:00 a.m. Counsel shall file aw witness list pertaining to the issue of damages only.

 

 

Zeek Rewards: Judge Orders “Final Judgments”

Based on Kenneth Bell’s Motion for Final Judgments for a group of “Net Winners”, Judge Mullen has issued an Order as follows:

THIS MATTER comes before the Court on the Receiver’s Motion to Enter Judgment and to Confirm Judgments as Final.

 
For good cause shown, the Motion is hereby GRANTED and the Final Judgments requested shall be entered as filed.

So far, three (3) Final Judgments have been entered today:

  • Final Judgment is hereby entered against Defendants David Kettner, Mary Kettner, Kettner & Associates, LLC and Desert Oasis International Marketing, LLC (The Kettner Defendants) jointly and severally, in the amount of $1,259,114.65 which is comprised of $937,529.27 in net winnings from the ZeekRewards scheme and $321,585.38 in prejudgment interest
  • Final Judgment is hereby entered against Defendants T. Lemont Silver, Sr., Karen Silver, and Global Internet Formula, Inc., (The Silver Defendants) jointly and severally, in the amount of $3,141,668.09, which is comprised of $2,339,267.35 in net winnings from the ZeekRewards scheme and $802,400.74 in prejudgment interest
  • Final Judgment is hereby entered against Defendant Durant Brockett in the amount of $2,312,129.25, which is comprised of $1,721,597.67 in net winnings from the ZeekRewards scheme and $590,531.58 in prejudgment interest

Zeek Rewards: Judge Enters Final Judgments Against 3 “Net Winners”

Judge Mullen has ordered Final Judgments against 3 of the “net winners”, with more likely to follow.

Kenneth Bell has also filed for Final Judgments against:

  • Defendant Rhonda Gates in the amount of $1,916,479.07
  • Defendants T. Lemont Silver, Sr., Karen Silver, and Global Internet Formula, Inc., jointly and severally, in the amount of $3,141,668.09
  • Defendant Durant Brockett in the amount of $2,312,129.25, and
  • Defendants David Kettner, Mary Kettner, Kettner & Associates, LLC and Desert Oasis International Marketing, LLC jointly and severally, in the amount of $1,259,114.65

As of today, only these Defendants have had Final Judgments ordered, as follows:

Final Judgment is hereby entered against Defendant Jerry Napier in the amount of $2,349,670.59, which is comprised of $1,749,550.73 in net winnings from the ZeekRewards scheme and $600,119.86 in prejudgment interest, calculated at the North Carolina statutory rate of 8% per annum from August 17, 2012, which is on or after the date of the last fraudulent transfer payment to each Defendant, to November 29, 2016, the date of the Summary Judgment Order in this action.

Final Judgment is hereby entered against Defendant Darren Miller in the amount of $2,198,738.44, which is comprised of $1,637,167.55 in net winnings from the ZeekRewards scheme and $561,570.89 in prejudgment interest, calculated at the North Carolina statutory rate of 8% per annum from August 17, 2012, which is on or after the date of the last fraudulent transfer payment to each Defendant, to November 29, 2016, the date of the Summary Judgment Order in this action.

Final Judgment is hereby entered against Defendants Aaron Andrews, Shara Andrews, and Innovation Marketing, LLC, (The Andrews Defendants) jointly and severally, in the amount of $1,359,897.50 which is comprised of $1,012,571.58 in net winnings from the ZeekRewards scheme and $347,325.92 in prejudgment interest, calculated at the North Carolina statutory rate of 8% per annum from August 17, 2012, which is on or after the date of the last fraudulent transfer payment to each Defendant, to November 29, 2016, the date of the Summary Judgment Order in this action.

Zeek Receiver Announcement for December 9th

ANNOUNCEMENT FROM THE RECEIVER – December 9, 2016

On November 10, 2016 the Court granted the Receiver’s motion to disallow and forfeit recognized claims if the claimant does not electronically sign the required Release and OFAC certification by December 31, 2016. All claimants who fall into this category received emails on October 1, November 1 and December 1 asking them to complete the process. They received another email from the Receiver today making a personal appeal for them to sign the forms online. These claimants must follow these steps:

  1. Log into the online claim portal at https://cert.gardencitygroup.com/zrwdet/fs/home. If you have forgotten your Registration ID and/or password, you can retrieve them by clicking on the link directly below the login box labeled “Click here if you have forgotten your Registration ID or Password.”
  2. Once logged in, click the button “Proceed with claim completion process” on the Claimant Summary page under the Claim Status section of that page (it is in the center of the page you reach upon logging in).
  3. Review the Declaration and Release. To complete and submit the Declaration and Release, check the box that states “I certify under penalty of perjury that the foregoing is true and correct” type your first and last name in the electronic signature of claimant box, and then click the “I Agree and Electronically Sign the Declaration and Release” button.
  4. Review the OFAC Certification. To complete and submit the OFAC Certification, check the box that states “I certify under penalty of perjury that the foregoing is true and correct,” type your first and last name in the electronic signature of claimant box, and then click the “Confirm Certification” button.
  5. Confirm or update your contact information for payment.
  6. Click the “Complete Claim Determination Process” button.
  7. You have now completed the submission of your Release and OFAC Certification. You may logout of the online claim portal or return to the Claimant Summary page.

For further assistance completing the OFAC Certification screen, please view the instructional video found here: http://www.zeekrewardsreceivership.com/OFACandRelease.

Failure to complete this process by December 31, 2016 will result in forfeiture of claim, meaning a distribution check will never be issued.

AFFILIATES WHO HAVE ALREADY RECEIVED A DISTRIBUTION DO NOT NEED TO DO ANYTHING FURTHER IN ORDER TO BE ELIGIBLE TO RECEIVE ANY SUBSEQUENT DISTRIBUTION THAT THE RECEIVER MAY MAKE. Those affiliates have already completed the required process.

This is not a new opportunity to file a claim. The time to make a claim ended on September 5, 2013 by order of the Court. Please do not attempt to file a claim now.

Zeek Rewards: Judge Mullen Grants Default Judgement in ‘Bell v Disner et al’

zeekrewardsIn case filed by the Zeek Receiver, Kenneth Bell, the receivership filed  civil suit against what were called “Net Winners” in the Zeek scam which garnered $1000 or more from the scheme. The list of Defendants included a large number of serial promoters of this type of pyramid/Ponzi scheme such as:

Todd Disner, Trudy Gilmond, Jerry Napier, Daren Miller, Rhonda Gates, David Sorrells, Aaron and Shara Andrews, T. Lemont Silver, Karen Silver, Michael Van Leeuwen, Duran Brockett, David and Mary Kettner and a “Defendant Class of Net Winners”.

Several of the individuals above were involved in ASD and other scams prior to promoting Zeek and bilking thousands of people on the false hopes of becoming rich with little or no effort. The majority of these defendants have already received judgments which resulted in them having to return monies to the receivership to be distributed to the victims.

The problem with scams like Zeek is the money was actually made from recruiting others, not from sales of products of services. Sadly, a new one pops up almost every day.

You can read the 27 page order, wherein the Judge details the reasons for his decision and a background on the scam by clicking the link. There is also a list of the “Net Winners” on the site.

1 2 3 4 159