The U.S. Securities and Exchange Commission (SEC) today shut down Zeek Rewards, also known as ZeekRewards.com as a $600 million ponzi scheme. Touted as a private, invitation-only advertising division of Zeekler.com – a penny auction site, the SEC determined today that Zeek Rewards was in fact a $600 million online Ponzi scheme.
A U.S. District Judge issued an emergency freeze on Friday on the $225 million of investor funds that ZeekRewards still holds at 15 U.S. and non-U.S. financial institutions. Court records show that these funds were at “imminent” risk.
ZeekRewards.com was created in January 2011 by Paul Burks. Burks agreed to settle without admitting any wrongdoing.
According to reports, ZeekRewards took in $162 million last month. Investor cash payouts the same month totaled $160 million. The SEC reported that if more customers chose to receive cash payouts rather than reinvest to boost rewards points, then ZeekRewards would eventually exceed total revenue.
The SEC went onto say that “ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing.”
This described ZeekRewards, ZeekRewards.com and Zeekler.com. The SEC today announced ZeekRewards to be a $600 million ponzi scheme and moved to freeze investor assets which it said were at “imminent risk”.
KEYWORDS: ZeekRewards, ZeekRewards.com, Zeekler.com, ZeekRewards ponzi scheme
said it shut down a $600 million online Ponzi scheme on the verge of collapse and won a court ordered emergency asset freeze to protect some of the more than 1 million investors it had attracted.