Those who thought their financial dreams had come true through Zeek Rewards are probably wishing they'd kept their cash in the stock exchange or bank. The Securities and Exchange Commission shut down Zeek.com, declaring it was operating a Ponzi scheme.
The SEC filed an emergency complaint in Charlotte, North Carolina to stop the company from operating and to save 'investors' dramatic losses. As reported, one of the allegations against Paul R. Burks, age 65, a resident of Lexington, North Carolina and his company Zeek Rewards is that:
"Unbeknownst to its investors, ZeekRewards is, in reality, a massive Ponzi and pyramid scheme."
An asset and receivership order was released by the courts on Friday against Rex Venture Groups, ZeekRewards and Burks and a SEC news release announced its charges of fraud against the company.
As stated in The International Business Times, Zeekler.com operated as a penny auction site. Users bid for consumer goods in timed auctions. However, what made the site so attractive and 'successful,' according to the SEC filed action, was its ZeekRewards.com division. running as an affiliate advertising system.
An Israeli user who wished to remain anonymous had this to say:
I don't feel angry with anyone. I don't feel we were scammed or anything. I thought if I could make easy money by clicking a few buttons - why not?
I don't have any complaints against Zeek or Zeekler; It looked good and attractive and I knew someone who was having great success with the site so I joined.
I thought the shares are falling, bank rates are almost zero and if I could make some extra money easily to give to our kids and grand-kids - why not?
We were warned recently that an investigation was taking place and were told it was only a civil complaint and not to be alarmed because the owner of the company had nothing to hide.
If I don't get any money back - so be it - I can only blame myself for my own naivety.
The number of those who may have lost out in this scheme in the US and internationally is stated to be over 1 million, making Zeek the largest Ponzi scheme in history by the number of investor 'victims.'
According to Forbes: "Paul Burks, Zeek’s founder, was cooperating with authorities and had agreed to pay a $4 million civil penalty and relinquish all interests and assets in the company – all without admitting or denying any culpability."