ZEEK REWARDS called a $600 Million Online Pyramid and Ponzi Scheme by the Securities and Exchange Commission.
** CLICK HERE** for a copy of the original complaint filed by the SEC.
Before being shut down as a Ponzi Scheme by the SEC, Zeek Rewards ran an international online penny auction site under the name Zeekler. Investors brought into the scheme was promised daily returns as high as 1.5%, all they had to do was put in their money and perform a few tasks such as bringing in new customers and giving away “bids” to new users. Customers were encouraged to keep their money invested and letting it keep growing, but eventually people started to catch on and the company started receiving thousands of complaints through the Better Business Bureau, who then notified authorities.
In July of 2016 the United States Attorney’s Office of the Western District of North Carolina announced:
“Former ZeekRewards CEO Is Convicted Of Federal Charges For Operating $900 Million Internet Ponzi Scheme”
The former CEO of ZeekRewards, Paul Burks, 70, of Lexington, N.C. was sentenced to 176 months in prison for operating a $900 million Internet Ponzi scheme, one of the lagest such schemes in US history. He was also ordered to serve three years of supervised release and to pay $244,000,000 as restitution. A federal jury convicted Burks in July 2016 of wire and mail fraud conspiracy, wire and mail fraud, and tax fraud conspiracy following a three-week trial.