Receiver recovers $312 million in Zeek Rewards Ponzi scheme
CHARLOTTE, N.C. — Over $300 million has been recovered so far during the investigation of the Zeek Rewards Ponzi scheme that attracted more than a million investors, the Associated Press is reporting.
The case involves Rex Venture Group, who operated Zeek Rewards and other online projects.
Court-appointed receiver Kenneth Bell filed a document in federal court in Charlotte detailing his expenses. As of Dec. 31, Bell says he has recovered $312 million and has incurred $1.6 million in fees and services for the investigation.
The Securities and Exchange Commission froze the company’s assets in August.
The SEC says the company, operated by Paul Burks of Lexington, ran a $600 Ponzi scam, where money from new investors is used to pay out old ones.
While most never saw any return on their investments, others claim to have made thousands of dollars. Some of those profiteers are working together online and hiring attorneys in an effort to battle what they refer to as “unlawful action” by the SEC.