Breaking News: SEC Shuts Down ZeekRewards $600 Million Online Ponzi Scheme

>>>>Up To The Moment Update<<<<

So many people still not get it and are in total Denial. For the last time. ZEEKREWARDS IS CLOSED, DONE, OVER. Paul Burke the owner is out, the USA court has appointed a receiver to collect, marshal, manage and distribute remaining assets for return to harmed investors

FOR IMMEDIATE RELEASE
2012-160

Washington, D.C., Aug. 17, 2012 – The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze to halt a $600 million Ponzi scheme on the verge of collapse. The emergency action assures that victims can recoup more of their money and potentially avoid devastating losses.

The SEC alleges that online marketer Paul Burks of Lexington, N.C. and his company Rex Venture Group have raised money from more than one million Internet customers nationwide and overseas through the website ZeekRewards.com, which they began in January 2011.

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Additional Materials

• SEC Complaint

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According to the SEC’s complaint filed in federal court in Charlotte, N.C., customers were offered several ways to earn money through the ZeekRewards program, two of which involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.

The SEC alleges that investors were collectively promised up to 50 percent of the company’s daily net profits through a profit sharing system in which they accumulate rewards points that they can use for cash payouts. However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company’s net profits. Most of ZeekRewards’ total revenues and the “net profits” paid to investors have been comprised of funds received from new investors in classic Ponzi scheme fashion.

“The obligations to investors drastically exceed the company’s cash on hand, which is why we need to step in quickly, salvage whatever funds remain and ensure an orderly and fair payout to investors,” said Stephen Cohen, an Associate Director in the SEC’s Division of Enforcement. “ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing. In reality, their cash was just going to the earlier investor.”

The SEC’s complaint alleges that the scheme is teetering on collapse with investor funds at risk of dissipation without its emergency enforcement action. Last month, ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million. If customers continue to increasingly elect to receive cash payouts rather than reinvesting their money to reach higher levels of rewards points, ZeekRewards’ cash outflows would eventually exceed its total revenue.

Burks has agreed to settle the SEC’s charges against him without admitting or denying the allegations, and agreed to cooperate with a court-appointed receiver.

According to the SEC’s complaint, ZeekRewards has paid out nearly $375 million to investors to date and holds approximately $225 million in investor funds in 15 foreign and domestic financial institutions. Those funds will be frozen under the emergency asset freeze granted by the court at the SEC’s request. Meanwhile, Burks has personally siphoned several million dollars of investors’ funds while operating Rex Venture and ZeekRewards, and he distributed at least $1 million to family members. Burks has agreed to relinquish his interest in the company and its assets plus pay a $4 million penalty. Additionally, the court has appointed a receiver to collect, marshal, manage and distribute remaining assets for return to harmed investors.

The SEC’s investigation was conducted by Brian M. Privor and Alfred C. Tierney in the SEC’s Enforcement Division in Washington D.C. The SEC acknowledges the assistance of the Quebec Autorite des Marches Financiers and the Ontario Securities Commission.

Source: http://www.sec.gov/news/press/2012/2012-160.htm

BREAKING NEWS: New Development on ZeekRewards--U.S. Secret Service and SEC investigates Zeek

The situation is escalating around ZeekRewards. Not only is Zeek's Management not available for comments but as the local newspaper The Dispatch reports the USA Secret Service and the SEC are involved:

The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company's chief executive officer, Paul Burks. Special Agent Glen Kessler said the Secret Service, in coordination with the U.S. Securities and Exchange Commission, is working a joint case on Zeek Rewards, the company's affiliate program and an entity of Rex Venture Group LLC, which is based in Lexington.

The Secret Service does not comment on ongoing investigations, Kessler said. Secret Service agents were taking statements from Zeek Rewards affiliates Friday afternoon at the company headquarters at 803 W. Center St.

The North Carolina Attorney General's office confirmed Friday morning that it requested records from Rex Venture Group, which also operates the penny auction site Zeekler.com. The Attorney General's Consumer Protection Division issued a Civil Investigative Demand on July 6, requesting that Zeek provide specific documents to the state, said Noelle Talley, the Attorney General's public information officer.

Rex Venture Group, known to most as Zeek, unexpectedly closed its headquarters in Lexington on Thursday afternoon, sending hundreds of thousands of its online users spinning in speculation and confusion. Zeek also announced online it was cancelling an upcoming “Red Carpet” event scheduled for Wednesday, in addition to training, recruitment and leadership calls for its users in the “next few days.” Zeekler.com and zeekrewards.com both remained offline Friday.

Dr. Clifton Jolley, Zeek's media representative, confirmed the company was served a CID, but he would not disclose why Zeek shut its doors voluntarily.

Both Zeekler.com and Zeek Rewards have recently come under the scrutiny of the Attorney General's office, after dozens of users filed complaints and inquiries in the past six months. The company, which is rooted in its penny auction website, has expanded in the past year to let users buy in through an “affiliates program.” Some say the company is a good way to make a little more cash while others condemn it as the makings of a pyramid or Ponzi scheme.

After Zeek shut its doors Thursday, thousands of people went to Internet forums and comment fields, expressing concern about the company's fate. Dozens of users also visited the business Thursday, only to find locked doors and speculation of why, and how long, it will be closed.

Supporters started an online petition backing Zeek at www.change.org/petitions/north-carolina-attorney-general-roy-a-cooper-keep-zeek-rewards-open-for-business#. At 11:20 a.m., 17,233 people had signed the petition.

Hundreds of Zeek users throughout the world have contacted The Dispatch, expressing concern about the situation and looking for more clarity from the company. Some of the users, who claim they are Zeek Rewards affiliates from countries like Australia, Iraq, Ecuador, Malaysia and Brazil, also say they have invested anywhere from $1,000 to $10,000 in the company.

Breaking News: ZeekRewards Shut Down By Regulators; Websites Down.

Rex Venture Group, which operates the online penny auction site Zeekler.com and affiliates program Zeek Rewards, has closed its headquarters for undisclosed reasons. Currently the websites are offline which is a nightmare for affiliates as for reporters.

The company, known to most as Zeek, posted three signs on the windows of its headquarters at 803 West Center St. in Lexington on Thursday that stated the office will be closed, telling visitors to "check the website for more information".

There was no further information available on Zeekler.com or zeekrewards.com. The company also announced it is cancelling its upcoming "Red Carpet" event, scheduled for Wednesday.

The announcement, made on zeekrewardsnews.com, also advised readers to continue to monitor its websites for more information to be forthcoming.

Paul Burks, chief executive officer of Rex Venture Group, could not be reached for comment. Dr. Clifton Jolley, the company's media representative, also could not be reached. Details about the closing were conflicting on Thursday.

Dozens of people arrived at the company's headquarters throughout the afternoon on Thursday, only to find locked doors and confusion.

Unconfirmed sources said the building was being closed so Zeek could answer inquiries from the Attorney General, made in the form of a Civil Investigative Demand (CID).

According to N.C. General Statutes, a CID is an administrative subpoena that can be issued by the Attorney General whenever there is reason to believe a person, or entity, has information that is relevant to an ongoing investigation.

The Attorney General's office could not be reached for comment on Thursday.

Goodbye Wrinkles, Hello Nerium!

Welcome to Nerium!  Leonardo C. Cadaoas here, your Nerium Independent Brand Partner.  I am a distributor of this amazing and wonderful product called NeriumAD Age-Defying Treatment.  Finally, a product that really does work.  With real science and real results behind us, NeriumAD significantly improves the appearances of:  

Botox in a bottle without the pain and needles!

Crows' feet

Fines lines and wrinkles

Hyperpigmentation

Drooping Necks

Deep lines

Emerging lines

Discoloration

Age spots or sun-damaged skin
AND MORE!!

During advanced research on the uses of the Nerium oleander plant, an accidental discovery was made: the unique properties of Nerium oleander provided remarkable age-defying results when applied to the skin. This finding led to the creation of the NeriumAD skincare line.

Nerium International’s Brand Partners represent an exclusive line of products, for which there are no competitors. This exclusively offers a powerfully unique position in the booming multibillion-dollar skincare and anti-aging marketplace. Nerium International’s partnership with Nerium SkinCare, a division of Nerium Biotechnology, enables us to have a particularly strong research and development arm that puts us on the cutting edge of science. Nerium SkinCare is committed to standing behind their products with ongoing research and continuing to explore the full potential of Nerium oleander extract. Currently, Nerium SkinCare is developing additional, revolutionary products for distribution by Nerium International’s Brand Partners. Among these exclusive products are NeriumAD Eye Cream, NeriumAD Age Spot Cream, NeriumDerm Blemish Cream, and NeriumDerm Contouring Lotion.

Nerium Biotechnology’s scientists established the world’s only commercial farming operation for the cultivation of the Nerium oleander plant. With strict biomedical field protocols, the farm provides a dedicated and renewable biomass resource reserved exclusively for research and production.

Use of the Nerium oleander plant has been identified in ancient texts and folklore for more than 1,500 years. But it wasn’t until the last century that the scientific community took interest in researching its unique properties. Most recently, scientists in Turkey, Switzerland, Germany, Latin America, and the United States have worked to understand the beneficial qualities found exclusively in the Nerium oleander plant.

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TESTIMONIALS

Why Does Compliance Matter?

I'd like to share a post by Admin.  As a Brand Partner, it is my duty and responsibility to make sure that my team adhere to the rules and regulations mandated by Nerium International.  Please read on:

Why Does Compliance Matter?

Posted on July 30, 2012 by Admin

When you joined Nerium International – whether as a Brand Partner or as a Preferred Customer – you agreed to abide by our Policies and Procedures. These are in place to ensure that Nerium International is in line with regulations that we, as a company, have to abide by and comply with, due to federal regulations and mandates. As a part of Nerium International, we rely on you to help us maintain the integrity of the brand. So much of that depends upon everyone’s willingness to be in compliance with our rules and regulations. We’ve tried to make our compliance process as transparent as possible. In your Online Business Center, you’ll find our Policies and Procedures, Social Media Policies, Marketing Guidelines, and more. 

We update our blog with these materials, and we cross-post our blog to various social media platforms.  We firmly believe that well-educated Brand Partners are our best ambassadors.  When common questions arise, we strive to address them in a timely and factual manner. Our Compliance department receives many reports every day of various activities that are against our Policies and Procedures. A majority of these are innocent mistakes. Perhaps someone named a Facebook page without identifying himself or herself as an Independent Brand Partner in the title, for example, Nerium Montana. Others relate to more serious matters, including but not limited to: making medical claims, selling NeriumAD online outside the approved method (which is the shopping cart on your replicated marketing site), selling self-produced goods and apparel that are Nerium branded but not approved, and unethical recruiting practices. By bringing violations such as these to our attention so that we may address them, you help in bolstering the Nerium International brand. But why does all this matter? Why, if someone identifies him or herself as an Independent Brand Partner, does Nerium International care what’s being said? 

You not only represent your business, but Nerium International as well. When inaccurate information is disseminated (i.e. medical claims, businesses open in other countries, etc.), it hinders the Company, which in turn, affects your business. The market we are in does not require FDA approval; however, claims like the cure of medical conditions gives both current and future prospects the notion that we are, in fact, a medical grade product. These false claims end up drawing negative attention from various regulatory agencies and harboring our efforts to expand in the manner that we have planned. We – and you – have created a strong, powerful brand. Nerium is recognized by more and more people each day. Every positive action helps to further bolster that. Every negative action chips away at that. Sadly, the negative actions do more harm than positive actions do good. 

When a Brand Partner chooses to act in a manner contrary to our Policies and Procedures, he or she is not only hurting his or her business, but those actions reduce the effectiveness and credibility of the company as a whole. At the Get Real 2012 Conference in San Diego, Mark Smith spoke about the rhythm of Nerium: if we’re all marching to the same beat, we’re doing the right thing and going the right way. Furthermore, when that beat is unified, the beat is strong and unmistakable. The same can be applied to issues of compliance. If we all have the same message, we’re much stronger than various factions each coming up with their own message. Please know that our goal is, ultimately, your success. By following our Policies and Procedures, you’re aligning yourself with a system that is in place to get you to the top! We know that this is an ongoing process with many opportunities for education and development. We’re thankful for your support. 

If you have questions about compliance, please consult the Policies and Procedures document located in your Online Business Center. If you have questions about the Nerium brand, please consult the Brand Guidelines manual located in your Online Business Center. Finally, the Nerium Ripple is all about individually taking responsibility and collectively changing the world. This is a situation that empowers each of us to do just that: individually take responsibility, lead by example, and contribute to a collective change. We hope that you’ll be an important part of the Ripple in action as we work together to build upon all the positive momentum we’ve generated over the past 11 months.  

Start Building Your Legacy Today With Nerium

Imagine an online business that really works to produce staggering results.

Business is EXPLODING!!!

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SO WHAT MAKES THIS OUT-SHINE THE REST?

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We have people jumping into this from every other business out there...because this one is what they have all been searching for...something that really does work.

Those who have come aboard are finally getting the support from the company with a simple marketing system and tools necessary to launch their business.

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The Right Skincare Product for All Ages...NeriumAD Age-Defying Treatment

Tired of wrinkles, age spots, and crows' Feet?   Are you starting to show signs of aging?  Or, even worse, starting to look older than you actually are?  How many signs of aging is your skin showing right now?
     o  Crow's Feet     o  Drooping Neck     o  Sagging Cheeks     o  Fine Lines and Wrinkles
        o  Sensitivity       o  Dryness                 o  Lip Wrinkles and Smile lines
        o  Enlarged Pores     o  Photoaging     o  Spider Veins     o  Age Spots     o  Redness and
            Discoloration

You have heard it a thousand times before, if you want to keep your skin looking young always wear sun block, stay hydrated, relax, excercise regularly, eat a healthy diet, and the list goes on and on.

If you are like most men and women I am sure you have always tried to follow all these rules, but let's be real for a moment:  nobody is perfect and life often gets in the way.  Even though you tried your hardest as the years went by, the damage started to add up.  Maybe you first noticed it while looking at old pictures or something a friend said.

Isn't time you start taking better care of yourself?

The Problem?????...

Most skincare products are one size fits all, but everyone's skin is different.  Not just due to skin type, or race or genetics, but also very much due to age.  Every men and women will admit that their skin now is very different than how it was 10 or 15 years ago.  Because of that, the types of products they have used over the years has also changed to accommodate for those needs.

Because of this, if your are like most men and women, you jump from product to product without any real direction of what your skin needs.  Our age is the largest determination of those needs and it is especially important that we follow them.  The skincare industry, however, doesn't cater to the needs of our skin by age.  Instead, they create one size fits all products that may work for some men and women for some period of time, but inevitably  lead  them switching to yet another product in hope of a better solution.

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How much money have you wasted on products, trying to find something that works?  Are your products made specifically for challenges of your skin at this point in your life?  If not, your skin could be missing out,  leading to wasted money, lost time,  and of course, a dull complexion.
 

Your Solution??...An Accidental Breakthrough Discovery...."NeriumAD"

NeriumAD Age-Defying Treatment is the first skincare brand to take into account the changes that occur as your skin ages.  While the benefits of the Nerium oleander plant have been known throughout history, only during the past few decades has it been studied scientifically.  Through an accidental discovery in biotechnology research, long-term testing, and subsequent clinical trials, the benefits of Nerium oleander are now available to you in the form of high-performance skin

NeriumAD Age-Defying Treatment is a true breakthrough in anti-aging skincare that harnesses the patent-pending NAE-8 EXTRACT from the Nerium oleander plant.

The   NAE-8 EXTRACT, in conjunction with other synergistic, age-defying ingredients, is responsible for the creation of real results.  This powerful formula allows NeriumAD to address multiple concerns at once.

Because Nerium Skincare is devoted to only bringing products to market that produce real results, it enlisted the services of ST&T Research, a prominent third-party firm, to perform clinical trials of NeriumAD Age-Defying Treatment.  Using the most advanced facial scanning equipment available, including fluorescence spectroscopy technology and artificial intelligence, ST&T was able to see and measure the results of NeriumAD, which speak for themselves.

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