LEXINGTON, N.C. — The appointed receiver in the case of ZeekRewards.com, a Lexington-based online rewards program that was dubbed a Ponzi and pyramid scheme by the SEC, is reportedly asking investors who profited from the program to return their gains.
According to the Lexington Dispatch, Charlotte attorney Kenneth Bell sent a letter last week to all ZeekRewards affiliates asking them to “surrender their gains” in an effort to “make everyone as whole as possible.”
Bell was appointed temporary receiver of all ZeekRewards assets when they were ordered frozen following the shutdown of parent company Rex Venture Group, LLC. As receiver, Bell’s responsibility is to garner what funds remain from the operation and then establish a plan for fairly redistributing them among the scheme’s victims.
As many as 2 million people may have invested in the $600 million scheme, according to The Associated Press.
While most never saw any return on their investments, others claim to have made thousands of dollars. The-Dispatch reports 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.
The paper reports the home of Paul Burks, the company’s former CEO, is still being monitored by a private security firm. Burks settled with the SEC’s charges in August, paying a $4 million fine.