Zeekrewards compensation plan pdf

If anyone wishes to make a higher offer to purchase the Judgments, they may contact Shawn Fox at sfox mcguirewoods. The relevant filings are available in the Case Documents section of this website, and also at the following links:. Motion to Approve the Sale of Judgments.

Notice of Motion to Approve Sale of Judgments. Bell as a United States District Judge. I would like to congratulate Judge Bell on his confirmation and thank him for his tireless dedication to maximizing the recovery for the victims of the ZeekRewards scheme. Now that the confirmation has occurred, I have begun my term as the Successor Receiver.

I have worked as a close advisor to Judge Bell since the beginning of the ZeekRewards Receivership, and I intend to see this Receivership through to its end. There are two main areas of litigation we need to complete before making a final distribution to claimants.

First, we must resolve the disputes with net winners who have challenged the dollar value of the judgments against them. This will involve filing a motion for summary judgment, and potentially litigating some claims in hearings before the Special Master appointed in this matter.

Like the previous Receiver, I have considered the possibility of making another partial, interim distribution to claimants prior to the resolution of the litigation, and I have reached the same conclusion that the substantial costs of making such a distribution would reduce the amount ultimately paid out to claimants. While we hope to be able to file the Final Distribution Plan and make a final distribution before this date, it will depend on the timing of the litigation that I have discussed.

We thank you for your continued patience. The decision of the Court of Appeals means that all judgments of liability against the defendant class members are now final.

Based on this decision, I will now move forward to pursue collection of the Judgments or their sale to a third party. This leaves only approximately net winners against whom the Receivership has not yet sought but intends to seek a final Judgment. That effort will proceed this summer, and all net winners who initially challenged the amount of their net winnings in the process for determining the amount of net winnings are encouraged to communicate with the Receivership at NetWinningsResponse zeeknetwinnerclass.

This favorable ruling moves us one step closer to a final distribution to claimants. Those claims must be completed before a final distribution occurs. While I have considered making another partial, interim distribution to claimants prior to the resolution of those claims, the costs of making such a distribution are substantial, and it has been my judgment so far that the costs of making additional distributions prior to the final distribution, which will reduce the amount ultimately paid out to claimants, outweigh the benefits of another small partial distribution.

We appreciate the continued patience of the claimants and will of course continue to work to complete the Receivership as soon as possible.

I want to give you a status update concerning the Receivership, including our plans for future distributions to affiliate claimants holding allowed claims and pursuing additional assets. We hold funds sufficient to make another small interim, partial distribution.

However, the expense associated with making such a distribution counsels against making it. Instead, I expect to make only one final distribution at the end of the Receivership.

This final distribution will be greater if we do not make small interim distributions. Also, we continue to pursue significant receivership assets through litigation against several parties, most notably the net winner defendant class members, Victoriabank of Moldova and others who supported the scheme. Absent further settlements with the net winners with whom we have not yet settled, we will soon seek to sell the judgments against them to debt collection firms or engage such firms on a contingency basis.

I very much hope that we are able to resolve this remaining litigation during As previously announced, on March 15, , the Receivership Estate made the third partial interim distribution to Affiliates who are holders of Allowed Claims against the Receivership Defendant. If you previously have received a distribution payment from the Receivership, you will receive another payment in this distribution.

Distribution checks are being sent by United States mail and may take a week or more to be delivered to Affiliates in the United States. Delivery of distribution checks to Affiliates that are located outside the United States will take additional time. I ask your patience in the delivery process. You may request a reissuance of your distribution check if you do not receive it timely. I ask that you wait until at least April 17, to make such a request because addressing reissuance requests will reduce the amount of funds we have to make future distributions.

I thank you for your patience and your continuing support. I am confident that we will make a further distribution in the future. Cogburn, Jr. Judge Cogburn cited the need to balance the harm caused by Mr. There is no parole available under the federal court system. The Court also ordered Mr. Burks essentially all of his assets. For similar reasons the Court found that Mr. Burks has no ability to pay a fine and declined to enter a fine. The Court allowed Mr.

Burks to remain free on bond until instructed to report to a federal prison by the Bureau of Prisons. The process of designation to a federal prison usually takes 30 days. That amount plus prejudgment interest will then become the amount of the Final Judgment to be entered against the net winner. I intend to pursue collection of these judgments vigorously, and expect the ultimate amount collected, while uncertain, will be a substantial sum.

The first step in the process — notifying each Net Winner of the amount of their net winnings — is expected to begin next week. After notification, each Net Winner is required to provide a response stating whether he or she accepts or disagrees with that amount within 60 days of the notification using a website Net Winnings Determination Response Portal.

More information and links to the Response Portal will be sent to the Net Winner Class members in the notification email. If a Net Winner does not receive their notification by February 13, then he or she should email netwinningsresponse zeeknetwinnerclass. Hundreds of settlements have been negotiated with Net Winners and approved by the Court.

The sentencing hearing is open to the public and will be held at the Federal Courthouse at W. Trade Street, Charlotte, NC. Victims of these offenses are entitled to be heard at sentencing. If a victim would like to have a letter describing the impact that ZeekRewards had on them submitted to the Court please send an email to HearingLetter zeekrewardsreceivership. In particular, the Court would like to hear about any of the below circumstances:. I will be attending the hearings on behalf of all ZeekRewards victims and will present your letters to the Court.

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, 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, 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 ask you for your patience, and thank you for your continuing support. Named as defendants in the actions are attorneys Kevin Grimes and Howard Kaplan and their respective law firms.

As in-house counsel to the direct sales company Melaleuca, Inc. We also determined that there was strong demand for a law firm that combined comprehensive, hands-on industry experience with a dedication to exceptional client service.

Our experience as in-house counsel for Melaleuca, one of the most successful companies in direct sales. This gives you not just unmatched expertise in direct sales law, but an understanding of the nuances of its application that can affect your day-to-day operations.

Kevin D. This works every time with just one minute per day! This fake consistency should have, at a minimum, caused reasonably diligent legal counsel to inquire further about the validity of the alleged profits. Indeed, the program publicly advertised historical average returns of 1. But, Grimes deliberately turned a blind eye to these incredible claims and chose not to seek further information.

Grimes knew that participants in the ZeekRewards scheme invested money in the scheme expecting that they would receive profits from the Zeekler penny auction or other Zeek efforts. Thus, Grimes knew or should have known that RVG, with his assistance, was promoting an unlawful unregistered security. Finally, Grimes knew or should have known that the ZeekRewards compensation plan was paying Affiliates to recruit other Affiliates in an unlawful pyramid-style payment system.

Simply put, Grimes knew or should have known that affiliates were rewarded merely for recruiting new investors without regard to any efforts by the Affiliates to sell bids or products or otherwise materially support the Zeekler retail business.

So, RVG enlisted the aid of Grimes and other legal counsel to assist in promoting and legitimizing the scheme. Grimes helped in several ways. Grimes profited personally from the compliance courses while allowing ZeekRewards yet another source of investor money. Upon information and belief, Grimes received payments from ZeekRewards not only for his legal counsel, but also for sales of his compliance course to Affiliates. The Receiver also nails Grimes for gross-negligence.

In a display of sickening collusion, the Receivership provides proof that Grimes had suspicions Zeek Rewards was fraudulent as early as February of Very early in his representation of RVG, Grimes knew or should have known that ZeekRewards was an unlawful program that might change its terminology and surface appearance but would not change in substance.

Yet despite these initial concerns, Grimes, in his capacity as an MLM attorney and compliance advisor to Zeek Rewards, did nothing. In June of , mere months before the SEC shut down Zeek, Grimes received at least one email from a concerned affiliate. I am a great advocate of Zeek and have signed up 31 people whom I feel responsible for. One of my downline is asking questions. Can you direct me as to what is the best way to confirm this is not a ponzi scheme[?

Nonetheless, Grimes took advantage of the situation, creating and marketing a compliance training course as window dressing for this illegitimate scheme, allowing the course to be sold to the Affiliates for his own profit.

And, Grimes knew these Affiliates were relying on his implicit endorsement of the program. In an email to Dawn and Paul, Grimes wrote:. Grimes also edited and allowed his name to be used in a ZeekRewards promotional article in the Network Marketing Business Journal, which upon information and belief was distributed to tens of thousands of Affiliates and prospective Affiliates. Grimes continued representing RVG and billing it for his services until at least August 16, , the day before ZeekRewards was shut down.

Of note is that Kevin Grimes has thus far failed to pay back any of the money he made through Zeek, with the Receiver claiming. The Receiver asks the court to. Award the Receiver just and reasonable attorney fees, subject to Court approval, which are justified in light of the costs to the Receivership Estate in bringing this action. Award prejudgment and post-judgment interest, costs and such other and further relief as the Receiver is entitled to recover.

Kaplan see article on his separate lawsuit here , who was hired by Zeek Rewards to provide financial advice to the company and its affiliate investors. Gerry Nehra in particular must be shitting bricks. Just having him on retainer and having him on our team, it goes a long way from keeping anybody from launching an attack. You can bet this got the attention of Gerald Nehra and the attorneys representing him in the TelexFree Class Action suit.

This is going to get very interesting in the coming months. I bet Keith Laggos is also sweating bullets about now as well. After all the BS he printed about Zeek in his rag of a mag, as well as on the Zeek forum.

Is Troy going to post a video on this one? That may have worked for the average Zeek rubes but Grimes should have known better. I bet Robert Craddock is also sweating bullets. Me thinks the list of people being sued is going to be a long one and looking forward to them all being named. There are going to be a few real surprises of just who was behind the scenes in Zeek.

I bet the people who gave Robert Craddock money for the bogus legal defense fund are livid about now. If not, they should be.

They have millions in ready cash…. Nobody is going to outspend him. Six months of porridge would certainly change his attitude to the people he suckered. Bidify Vs. Zeek Rewards Now, let me just say that I know you may be affiliated with Zeek and that is good.

The point is, you know it works! I know you may be doing other things and that's okay! I hope you are well and I hope you take the time to read this email. It MAY change your life. We already have Zeek members chomping for this to start because they know their income would be triple… in some cases… quadruple here for the same or less work!!!!

Now, first, we want to say… we have had many chances over the past… over a year ago we had the opportunity to join Zeek and for whatever reason we never did. Zeek is a great opportunity. We know quite a few people that have done well with Zeek and will continue to do well. We are signed 2nd level to the Master Distributor and we like what we see and hear.

The numbers are mind-blowing and we get to be right in the 'thick' of all of it How would any of us have liked to join Zeek right before it launched?

Well, you have that opportunity now!