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Zeek Rewards – SEC Has SHUT IT DOWN!
Company Name: Zeek Rewards
Website: previously www.zeekrewards.com That site is now disabled.
Price: No longer available.
Owners: Paul Burks, The Rex Venture Group
Overall Rank: 0 out of 100
Zeek Rewards, a Brief Look.
Zeek Rewards was a program that allowed members to earn rewards through various programs including the purchase of special securities. They also had a very active affiliate program. However, the site has since been shut down with several different legal and ethical issues yet to be resolved. There was much backlash within the industry when this happened as there were many affiliates actively promoting this illegal Ponzi, many of whom had invested a considerable amount of money into promoting the program…money that was never recouped.
The program was one of the 100 most popular websites in the world by the middle of 2012, but like any other Ponzi scam the rise and fall of a product like this is going to happen, it is just a matter of when. Here is the evidence of the rise and fall of ZeekRewards.com, based on their Alexa website traffic chart.
On August 17, 2012, the SEC (Security and Exchange Commission) announced that Zeek Rewards was being shut down amid allegations of running a pyramid/Ponzi scheme that allegedly lured in over 1 million investors and became what the regulators have coined the “$600 million dollar Ponzi scheme”.
Burks, who was the founder of the company, drew approximately $11 million out of the company during this amazing 20 month run but was required to give up his Texas-based company, Clifton Jolley, along with all of the assets. He was also required to pay a $4 million dollar penalty to the SEC. This is one of the most profound Internet Ponzi schemes ever created and it is amazing that 1 million people were sucked into this mess. Or is it?
Pros vs. Cons of this horrible program
- There are no pros: this site has been shut down and the owners are being investigated for varying counts of fraud by the SEC.
- The now defunct Zeek Rewards is being investigated by the Securities Exchange Commission for securities and trust fraud related to its business practices.
- Most experts are calling the former Zeek Rewards nothing but a Ponzi scheme which has scammed as much as $600 million dollars from former members.
- The former program had a Better Business Bureau score of F and had several outstanding reports filed on Ripoff Reports.
- The program no longer exists!
What Was Zeek Rewards?
Before it was shut down by the SEC, the program was designed to be used by over a million people. It consisted of two entities, ZeekRewards.com which was the “affiliate advertising” entity and the penny auction website Zeekler.com.
Zeek Rewards was a program where you paid in at a set level and then made money by getting others to sign up under you. All of the “profits” made were then sent up the line to be distributed in varying amounts to the people below. It was nothing more than a well orchestrated pyramid scheme that fooled a massive group of folks into buying into the next big thing.
The problem was that many of the people who joined did not understand how the full program worked and seemingly no one questioned the validity of the various securities that were being sold. In essence, the founder leveraged the idea that Zeek was going to be the next big thing and was able to accrue a massive following (a herd of unknowing victims) in the process.
What Happened to All of the Zeek Rewards Folks?
There was huge industry backlash after Zeek Rewards fell. People had a lot invested and had centered their entire businesses around the ZeekRewards platform. Like any other Ponzi, it was reliant on more people coming into the lower tiers to drive the earnings of the folks within the upper tiers and this all collapsed with one big gavel when the SEC laid down the law.
Unfortunately what happens when a program like this collapses, the unethical groups that were “leading” the pack move onto the next best thing. The vicious cycle of people getting ripped off with the “next big thing” continues, then that program falls, and onto the next thing people go…
Even after ZeekRewards was terminated by the SEC, the “upper tier” members were still advocating it as a legit program. They were defending it to the bitter end and they were so brainwashed into thinking it was legit (because they were making money doing it), that they were defending something that was proven legally to be scam! People get crazy when there is a bit of money on the table.
But where did these folks go…
Most of these folks have moved onto several programs structured in the style similar to that of a Ponzi and I have already seen some big backlash in the industry rooted from some of these systems. I hope for the sake of the folks out there that are unsuspecting that they don’t act like the lemmings that got trapped into thinking ZeekRewards was a real opportunity. It is reminiscent of the Bernie Madoff scheme but there is a bit less money involved and it targeted the affiliate marketing and MLM community on the Internet.
If you are doing this and something feels “not right”, don’t DO IT. Your instinct is usually right and there are many scams within the online world (you can read about the top ones within the header of the site here).
My Final Word on Zeek Rewards
If you are researching a company and the first thing that you find is a notice that the Securities Exchange Commission has shut that company down, you know that there is some seriously unethical stuff going on. On August 17, 2012, the SEC announced that Zeek Rewards was being shut down amid allegations of running a pyramid/Ponzi scheme. Fraud charges were also filed at that time against the company, owner Paul Burks and the Rex Venture Group.
The Internet is a safer place because of this move by the SEC, unfortunately the unscrupulous folks that were involved in this scam are still out there promoting the “next best thing” to others. If you look at the history of someone and you see they were heavily involved in ZeekRewards, you may want to avoid taking any advice from them and definitely DO NOT get sucked into anything they are promoting to you.
Zeek Rewards, a Final Glance!
Name: Zeek Rewards, Zeeklr
Owners: Paul Burks, The Rex Venture Group
Overall Rank: 0 out of 100 points.
VERDICT: SCAM, Shut down by SEC
Do you have a personal review that you would like to add about Zeek Rewards (ripped off by chance)? If so, I would love to hear your personal experience of the the system and how it impacted the way you view the “opportunity” online. Thanks for taking the time to read this and I wish you all the success in the world!