Might I submit that perhaps the first two sentences of my previous post may in fact be construed as constructive notice
of a keyboard warning but of course I'll submit to the judgment of the Illuminated (just please, no ferrets).
Not wishing to push my luck any further, while not equal on a humor scale the following is a summery of last nights Craddock call penned by a true believer. Cups down, etc..,.
Summary of tonight's call: Phase (1) Kenneth Bell has put it in writing that he is only interested in the assets of Rex Venture Group and our attorneys have been told to contact the ewallet companies individually to release the money that is frozen. Our attorneys are starting to do that. It is believed that this will happen this year.
Phase (2) Our attorneys will go after the money that was requested from our cash available but never made it to the ewallets. For most people this will represent two more weekly checks. This will require a motion before the court coupled with arguments as to why Zeek is not a Ponzi, Pyramid scheme or unregistered security.
Phase (3) Paul Burkes joins us in the fight and the case gets dismissed. Last Wednesday at 4:00 PM Robert Craddock received a phone call from someone who is in direct contact with Paul Burkes and this person informed Robert that if we win the ewallet money that Paul Burkes would reevaluate his position and join us in the fight.
Robert also mentioned that checks cashed after August 16 were deposited by Kenneth Bell and this should not have happened. End of Summary
If all goes well and the case is dismissed. I would estimate that Zeek Rewards would need another 2 months to get organized again and reopen. Personally I am hearing the best news I have ever heard about Zeek Rewards. Robert said there is a 99% chance that we will complete phase 1 this year. This should brighten everyone's Christmas.
Robert in fact said there was a 99.9% chance that the Zeek money in the e-wallets would be released and his explanation is that the money in those accounts belongs to the affiliates and are not assets of Rex Ventures Group (Zeek). I think he's playing a few games here.
First off it's starting to look like they are starting to clear some of the backlog of paperwork regarding these e-wallet accounts. Initially any e-wallet account that sent funds to or received them from Zeek were frozen. But now reports are being seen of some
but by no means all of these accounts being released. My best guess is that if you only used an account to send funds to but didn't receive money from Zeek (and if you are also owed money from the estate) then it makes sense that your account would be released. I find it somewhat impossible to believe that Robert Craddock would let the simple fact that he had nothing to do with this from keeping him from claiming credit for it happening.
On yesterday's call Robert came dangerously close to admitting a truth, that being that unless they can convince Paul Burks to violate his consent agreement and actually fight the SEC's allegations there really isn't all that much he and the Fun Club can do. But of course he's enthusiastic for that possibility. You see it all get's down to those e-wallets. If they can prove to a judge that the money in those accounts really does belong to the affiliates and not to Rex Ventures then that will be the first domino to fall unraveling the whole "ponzi scheme" argument the SEC mislead the judge into believing.
But of course there's the small matter of having legal standing to make such an argument which Robert seems to gloss over. Which is why, if my surmise about some
e-wallet accounts being unfrozen is correct AND Robert's claim that if they can gain traction on the e-wallet front then maybe
Paul Burks will find the courage to put up the fight he backed down from last August. In the first instance he's taking credit for something he didn't do and for the second he's got someone to blame when the plan falls apart. And best of all he has weeks to perhaps months of productive fund raising before true believers lose faith.
It's a win win for Fun Club.
(And a late edit to avoid a double post)
OK, this is where it get's strange.,...Burks denies allegations from Zeek class-action suit
[Link to the Dispatch article]
By Nash Dunn
Published: Tuesday, November 27, 2012 at 4:10 p.m.
Last Modified: Tuesday, November 27, 2012 at 4:10 p.m.
Former Zeek Chief Executive Officer Paul Burks said he denies allegations that his company was a large Ponzi and pyramid scheme.
In a formal response filed Monday in North Carolina Business Court, Burks addressed a class-action lawsuit filed against him and his company in Davidson County in August. Going through the complaint paragraph by paragraph, Burks largely denied allegations that he defrauded millions throughout the world through unregistered offers and sales of securities through Zeek Rewards and penny auction site Zeekler.com.
The complaint Burks is now responding to is a separate class-action lawsuit filed by about 82 local Zeek Rewards affiliates on Aug. 22. The lawsuit, targeted at Burks, Zeek Rewards, the program's parent company, Rex Venture Group, and profiting investors, seeks damages for all affiliates and demands a jury trial. The lawsuit was originally filed in Davidson County Superior Court but was transferred to North Carolina Business Court in October.
In his response filed Monday, Burks denied nearly the entire original complaint. The only things he admitted to included that he is a citizen of Davidson County, that his former company was shut down by the SEC, that Zeekler.com started in 2010 and allowed participants to purchase "bids," and that Zeek Rewards was created in 2011 and that affiliates were able to join, among other things.
"Mr. Burks' response to the lawsuit against him is to hide behind the receiver and blame the victims," said Lexington attorney Cal Cunningham, who represents the affiliates who filed the class-action lawsuit. "We are prepared to prove our case and have proposed a cooperative arrangement with the receiver to do so. We look forward to a lift of the stay that allows us to go forward."
OK, I'm not sure why Paul is even responding to a class action suit, it was just about sure to be stayed by the receiver anyway. I haven't seen what Paul filed yet but will post as soon as (Don) makes it available. But section 16 of the consent agreement Paul signed
with the SEC made it clear that Paul was not permitted to "consent to a judgement or order that imposes sanction while denying the allegations in the complaint or order for proceedings." So if he's denying the allegations in a class action suit he must be treading a fairly fine line with his agreement with the SEC. Again, we have yet to see what he's filed.
It will be interesting to see how Robert spins this, I mean of course it's a victory for Fun Club, that goes without saying. But on the other hand, per the above linked article:
Burks requested to the court that the affiliates "have and recover nothing," and that their complaint and claims be "dismissed with prejudice," according to the response. He also requested to the court that he recover his costs incurred in the lawsuit and that those costs and attorney's fees be taxed to the affiliate claimants.
So it almost seems like Paul's position is in some ways antagonistic to the affiliates. But then again, any affiliate who would sue Paul Burks isn't a loyal Zeek affiliate to begin with.