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ZeekRewards Being Shut Down As $600 Million Ponzi Scheme

August 20, 2012

The SEC has accused Zeekler and ZeekRewards of being a $600 million Ponzi scheme. I’ve been following this story below the radar for the past several weeks with LazyMan. As it stands, the companies have shut down their operations.

A number of former MonaVie high-level distributors left the purple juice company in recent months to go over to ZeekRewards. It appears they are back at square one.

The SEC estimates that one million “investors” were sucked into Zeek’s scheme, making it the largest Ponzi scheme in history.

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21 Comments leave one →
  1. MustHaveBeenTerribleMother permalink
    August 20, 2012 2:52 pm

    @AMTHRAX:

    An article quote from the site you listed says: “ZeekRewards customers were offered several ways to earn money through the site, including buying unregistered investment contracts that promised a share the company’s profits through rewards points that could be traded for cash payouts.”

    My question, due to ignorance of this type of biz is: what are unregistered investment contracts? Unregistered with whom and composed of what?

  2. August 20, 2012 4:16 pm

    Hmmphf…not surprising, I’m sick of hearing zeek, zeek, zeek, blah! I never joined up with those guys as I never could understand it no matter how hard I tried. Just that everyone was excited over them.

    What does SEC stand for?

  3. Freedomhaha permalink
    August 20, 2012 5:43 pm

    Next is LIFE cult? Wishful thinking…

  4. Speak Your Truth permalink
    August 20, 2012 6:50 pm

    Oh joy, things are starting to ‘catch-up’ for these dishonest scammers, and I agree freedomhaha, there is HOPE!

  5. August 20, 2012 9:38 pm

    U.S. Securities and Exchange Commission – http://www.sec.gov

  6. August 21, 2012 5:51 am

    any good news of Amway closing down? I wanted to see if my up-line diamond puts his resume in job portals!

  7. Dwayne R permalink
    August 21, 2012 6:03 am

    I put $5K into Zeek and never withdrew a penny, so obviously I am sick to my stomach because I thought I did enough due diligence to “know better”. Guess I am the laughing stock now. But, it’s okay because I will continue on. Hopefully we might get some of our money back, we’ll just have to see.

    I did find this new company that is in pre-launch that “on the surface” looks really good, but we have all heard that story before. I signed up for FREE (you can too) while it’s still in pre-launch and they are expecting THOUSANDS of people to be in this program. I was only 8 away from the top spot so, (considering it did not cost anything) I locked my spot. Can’t wait for massive spill over.

    http://www.ultimatepowerprofits.com/dwayneroberts

  8. delfina permalink
    August 21, 2012 9:03 am

    I to was a zeek affiate hopeing we could someday pull out a good large of money to get ahead ,I guest in away we know it’s a gamble how can these $#%$*#%!!!! live happy knowing they RIPPOFF so many people got hurt than in away that they right now could do something hurable to themself or others i thank god, i don’t live near your town, but there is lots of people that do.all I can do now is hope they return my money.But went? who knows I’m sure you eat and sleep why would you worry right!!!

  9. Burned Out With Mona Vie permalink
    August 21, 2012 10:06 am

    This makes me sick ….. the SEC shuts one down and another one one springs up the same day.

    “Zeek Rewards Shut Down by SEC Leaving Thousands of Zeek Rewards Affiliates Seeking Income Replacement – Empower Network Offers Legitimate Alternative to Zeek Rewards Zeek Rewards has been officially shut down by the SEC, leaving Zeek Rewards Affiliates worried about the future of their online income. Many affiliates relying on Zeek Rewards as their sole source of income are seeking new opportunities to make money online. Empower Network is a legitimate online business opportunity that many Zeek Rewards Affiliates are turning to for residual income”

  10. Speak Your Truth permalink
    August 21, 2012 2:20 pm

    Burned Out~

    Couldn’t agree more. The dishonest Industry of MLM deceivers, fakers and Make-believer & scammers will be celebrating because they now have a million prospects to go bounce on for their scam. It will be or already is a scrambling, cut-throat frenzy to get those burnt by Zeek Awards into the old scams or latest & greatest one, that all those will be jumping ship to!

    This is the biggest tragedy of all! They have already been groomed, primed, & brainwashed with all the deception and lies of the dispicable MLM Religion: “MLM is the ONLY way” and are the easiest targets and “path of least resistance” to get to. People are just dollar signs!

    This could mean Amthrax site will ‘explode'(haha) with a bunch of new real life horror stories, losses, and damages. 600 million dollars were scammed from all these people but doubt it’s the largest, perhaps the largest to get caught!

    What makes me sick and I pray for is that people… just ‘wake-up’ out of the MLM fantasy slumber and realize there is NEVER a next one that is going to be different from the last one!

    STOP believing the MLM fantasy and lies, STOP “getting started” in ANY of them!!

    Then the destructive, thieving industry would be taken care of! And IF by some fluke there is 1 MLM company left standing or one that is legit and miraculously shows up…Then it will reveal itself when all the rest of the INDUSTRY will collapse! People will no longer be ‘falling for’ the line of BS they have been fed.

    The people have to ‘unlearn’ and flush the indoctrination, face reality that IF there is 1 good one in the whole world then it will stand on it’s own! Then they can all jump in that one and Live Happily Ever After! But until that 1 shows up…. I wish People would STOP spreading the disease.

  11. August 24, 2012 1:29 pm

    After reading the verity in Speak’s comments, the familiar sentiments shared by Burned Out, the unsavory mlm story by Defina and the !@#$% 5k shizzle by Dwayne R I was fixin to say a bunch but I will refrain. Instead I’ll let this perpetually ardent time proven truth by MonaVie Scam from his juicescam site sum it all up, that “These MLMs are in competition with each other, because the war is over distributors, not products. Distributors are too brainwashed by the false hope of financial freedom to see that they are the pawns in the game.” Precisely! Or AKA MLM fluff.

  12. dan permalink
    August 29, 2012 6:24 am

    So I looked at dwaynes link and I can get in for free and make millions by tomorrow? Wholly Balls!!!!! dwayne should be mega rich already, if he’s been in more than 24 hours that is.

  13. webelieved permalink
    August 29, 2012 6:44 am

    Exambot- great comment from juicescam site! Oh so true!

  14. Speak Your Truth permalink
    September 5, 2012 1:12 pm

    dan~

    That is hilarious! We can only hope the SEC is reading Amthrax, they certainly have ‘job security’ with all the multitude of MLM scams out their including orrin’s. Perhaps when the ‘LIEfer’ defenders ask the question..”What Are You Offering?”…hmm…solution…get a job with the SEC!

  15. Speak Your Truth permalink
    September 5, 2012 1:36 pm

    Here is a an interesting small piece on “ponzi schemes” and a quote I found telling from the grand daddy of Ponzi Schemes..Charles Ponzi..you can find it here>http://www.neatorama.com/2008/12/22/9-most-brazen-ponzi-schemes-in-history/

    “When it was discovered that Ponzi was paying old investors with money from new ones, his scheme collapsed and he was sent to jail … for 5 years! After serving his federal sentence, Ponzi was sentenced by the State of Massachusetts for an additional 9 years, but he skipped town. Ponzi ended up in Brazil, where he spent his last years in poverty and sickness.”

    “Before he died, Ponzi gave one last interview where he confessed to his crime “My business is simple. It was the old game of robbing Peter to pay Paul. You would give me one hundred dollars and I would give you a note to pay you one-hundred-and-fifty dollars in three months. Usually I would redeem my note in 45 days. My notes became more valuable than American money … Then came trouble. The whole thing was broken.” (Zuckoff, Mitchell, Ponzi’s Scheme: The True Story of a Financial Legend, p. 313)”

    Noticed the coward skipped town and how he spent time his last years, wonder if he said anywhere, he didn’t promise easy but he promises worth it? Just curious, it will be interesting to read more. 🙂

  16. Speak Your Truth permalink
    September 5, 2012 1:41 pm

    Oh and the game of “robbing Peter to pay Paul”..I believe fits the description perfectly and is much to much common practice in the MLM world.

  17. Speak Your Truth permalink
    September 5, 2012 1:59 pm

    The 9 Most Brazen Ponzi Scheme link I posted above; the article is a very interesting read.

    #7 The Ant Farming Scheme, my favorite as far as the most ridiculous con jobs, but oh boy…read the fate of the schemer: Wang Fengyou…sentenced to death! Ouch, that is a sure sign, Ponzi Scheme’s aren’t worth it and especially for those thinking it is a great idea in China.

  18. Speak Your Truth permalink
    September 5, 2012 2:23 pm

    Correction: It was rivial was sentenced to death.

    “Wang’s rival, who conned people with a similar ant-breeding scheme, was sentenced to death.”

  19. Speak Your Truth permalink
    September 9, 2012 8:14 pm

    “It’s not a good time to be in the Ponzi-scheme business. The SEC today announced charges against a Puerto Rico resident allegedly running a $7 million Ponzi scheme, the regulator’s fourth such charge against an individual or company in just six days.”

    Find and read the quote and link>

    http://blogs.wsj.com/deals/2012/08/21/another-day-another-ponzi-scheme-allegation/?mod=WSJ_article_outbrain&obref=obnetwork

    Looks Like the Ponzi-schemers are getting caught and the SEC seems to be the ones to contact. Seems like a domino effect. They are kicking butt and I hope they keep bringing them down! 🙂

  20. Melanie Morgan permalink
    November 2, 2014 8:25 pm

    UPDATE***** A VICTORY FOR THE VICTIMS & SEC 🙂

    Zeek Rewards Founder Charged In $850M Scheme

    http://www.wfmynews2.com/story/news/local/2014/10/24/zeek-rewards-founder-charged/17864659/

    ZeekRewards Founder Indicted For $850 Million Ponzi Scheme

    http://www.lexisnexis.com/legalnewsroom/banking/b/banking-finance/archive/2014/10/27/zeekrewards-founder-indicted-for-850-million-ponzi-scheme.aspx

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