Philip Reitcheck | greentrees

ZeekRewards Claw-Back Lawsuits

Sep 25th 2013 at 4:08 PM

As the deadline to filing ZeekRewards claims has closed on September 5th, 2013, the time for ZeekRewards affiliates, that were large net winners, to be able to negotiate returning a portion their Zeek winnings back to the court appointed ZeekRewards receiver has also passed.  Now these same Zeek affiliates are being targeted to be SUED by the SEC court appointed receiver.

Many of these Zeek affiliates have not negotiated or returned their winnings possibly because of advice from some Zeek supporters or their sponsors, who still maintained that Zeek was a real business and SEC stopped a good thing stating "there was no victims until SEC stepped in" or "we have evidence that will exonerate ZeekRewards" or "we heard that SEC doesn't really have a case" making many net winning affiliates believing calwthat they are are untouchable by the SEC court receiver.

There's no doubt that many Zeek affiliates have adopted a wait and see mind set, as they believe they can always use the bankruptcy courts to get out of returning their ZeekRewards winnings.  It seems at least one couple in New Mexico have tried to take the "bankruptcy bale-out" option to side step their claw-back lawsuit from another program that the SEC had shut-down, but it was not that simple.

Jordan Maglich of "PonziTracker" brought this report of a New Mexico couple that declared bankruptcy in hopes of dodging a SEC claw-back lawsuit. The wife apparently worked for the MLM program, was a affiliate and apparently received payment before the whole thing was shut-down by the SEC.  The SEC court receiver gathered all the transaction records and sued the people who were the big winnings. This couple is getting sued for almost a million bucks, but they're just 1 of the 175 cases filed by the court receiver over this MLM program.  The court receiver sued both the couple's business (which received 300K+ from the program), as well as them individually.  The business already lost its 300K lawsuit, while the other case against them individually is still pending, so the couple decided to declare Chapter 7 bankruptcy to get away from the claw-back litigation.  While this couple may be able to get away from other debts with a bankruptcy, there is a substantial "means test" that will be applied and accepted before any debts are discharged.  And technically, a claw-back lawsuit, to recover funds (like MLM program payments), are not consider a debt and not covered under Chapter 7 bankruptcy laws.

And for those Zeek affiliates that think they can HIDE the money by transferring it to relatives, friends, or hiding it under their bed.  This will not work as financial forensic analysts will find it, then you'll be charged with contempt of court, plus your bankruptcy case will be thrown out of court.

I am sure there are a lot of  Zeek "big winners" that are also considering the bankruptcy route to try and "keep" their winnings.  But to declare bankruptcy you have to pretty much laid bare your entire financial history to court scrutiny and it then becomes public record.  Just think what that will do to your reputation in the MLM market?

Luckily I am not one of the ZeekRewards winners (I was a net loser like 95% of most Zeek affiliates) so I am safe, but I do know personally some Zeek affiliates that were big winners.  I only hope they did the right thing and negotiated returning a portion their Zeek winnings back to the court appointed ZeekRewards receiver already.  If not then I wish them well, as the road ahead looks like it is going to get VERY BUMPY for them.

Just My Opinion,
Philip Reitcheck

Please to comment

sign in

Remember Me

New to IM faceplate? join free!

Lost Password? click here