BULLETIN: North Carolina Attorney General’s Office Refutes Suggestion That Zeek Has Been Deemed ‘Legal’; ‘We Do Have Concerns,’ Agency Says; TV Station Removes Video Report Zeek Was Linking To On Its Blog
BULLETIN: (UPDATED 2:04 P.M. EDT U.S.A.) The office of North Carolina Attorney General Roy Cooper told the PP Blog this morning that it never said the Zeek MLM or auctions programs were legal.
The agency said it had asked a local television station to issue a corrected report, and the station has removed a video report that Zeek was linking to from its Blog this morning.
“We do have concerns about [Zeek],” said Noelle Talley, a spokeswoman for Cooper.
Zeek has two arms: an MLM program known as Zeek Rewards, and a penny-auction site known as Zeekler. Zeek Rewards plants the seed that participants can earn a return of between 1 percent and 2 percent a day. The Zeekler arm is auctioning sums of U.S. currency and advertising that successful bidders can receive their winnings through offshore payment processors.
Zeek has denied it is operating either an investment program or a “pyramid scheme” through its Zeek Rewards’ MLM arm. It also claims to run clean penny auctions through Zeekler. Some customers, however, have complained they had not received their winnings of auction cash.
The TV station — WFMY Channel 2 — aired a video report that focused on a “penny auction craze.” The report, which made a passing reference to Zeek’s MLM arm, focused on Zeek’s Zeekler arm while explaining the concept behind penny auctions and the potential pitfalls. A Blog version of the station’s report references both company arms and notes that “a court has not yet ruled whether this operation is legal or illegal.”
WFMY’s video version, however, suggested that Cooper’s office had received a handful of complaints about the Zeek arms but had determined Zeek was conducting business legally.
No determination that Zeek is operating legally has been made, Talley stressed this morning.
The PP Blog learned this morning that Zeek’s news Blog was linking to the broadcast version of the WFMY report. The TV station now has removed the video, Cooper’s office said.
In another strange development, at least two Zeek affiliates have spammed the TV’s station’s website with offers for Zeek. One of the spams appears to have originated with Barbara Alford, a promoter of the AdSurfDaily Ponzi scheme and a former moderator of the pro-ASD “Surf’s Up” forum that mysteriously disappeared in 2010 after shilling for accused ASD Ponzi schemer Andy Bowdoin around the clock for more than a year.
Bowdoin pleaded guilty to wire fraud in the ASD Ponzi case last month. He is jailed in the District of Columbia. Zeek’s business model is similar to the model employed by ASD.
Cooper’s office supplied the PP Blog with a list of complaints the state has received about Zeek. (Note: The paragraphs below do not take into account all of the complaints Cooper’s office has received about Zeek. There are at least 10 complaints on file.)
One complaint that originated in Utah on May 16, 2012, alleged that a customer had given Zeek $20,000 in April but never received credit and was unable to get any satisfaction from customer service.
“The customer service is non existent and I am beginning to think Zeekler is a pyramid scam,” the customer told Cooper’s office.
Zeek responded to the complaint by informing Cooper’s office that it believed the Utah complainant wasn’t actually a Zeek customer. Rather, according to Zeek, the complainant was the father of two sons who were Zeek affiliates and had contacted the attorney general out of “personal curiosity.”
Another complaint received by Cooper’s office from a Florida man in November 2011 was forwarded to the Securities Division of the North Carolina Secretary of State’s office for review, according to the correspondence trail. No final outcome is noted.
Another complaint Cooper’s office received on May 8 originated in the District of Columbia after being sent to the Office of the Attorney General of District of Columbia by an individual in Oregon four days earlier. The District of Columbia forwarded the complaint to Cooper’s office, which opened a file.
“This is a Huge Ponzi scheme,” the sender complained. “If not [looked] at carefully and stopped by the US AG, [t]his would be a tremendous task to [sort] out to pay back the consumer. This is [n]o different tha[n] AD Surf Daily ([i]f you remember the [c]ase).”
Meanwhile, a Zeek customer in Miami contacted Cooper’s office and told the agency that he had sent U.S. Postal Service money orders totaling $1,000 to Zeek in April and that the sum never was credited to his Zeek account.
Yet another Zeek customer — this one from California — told Cooper’s office that he had wired more than $2,000 in March from his account at Bank of America to Zeek’s account at NewBridge Bank in North Carolina. Although the complainant said he’d confirmed both through his bank and NewBridge that Zeek had received the money, the money never got credited to his Zeek account.
The California customer also told Cooper’s office that Zeek closed his support ticket without providing a resolution, a circumstance that forced the aggrieved customer to open a second ticket.
Zeek announced suddenly on May 28 — Memorial Day — that it was closing its NewBridge bank account.
Another individual who contacted Cooper’s office suggested she’d also contacted her member of Congress, the IRS, the FTC and the SEC about Zeek and questioned whether a “whistleblower” award might be available if Zeek proved to be a scam. That communication identified several purported Zeek promoters, including former AdSurfDaily promoter Todd Disner.
Quick note: The IP of “Kevin” has been blocked because it is the same IP of “Don.”
At 3:15 p.m. yesterday, “Don” posted in this JSS/JBP thread:
http://www.patrickpretty.com/2012/06/23/jss-triplerjustbeenpaid-now-soliciting-20000-purchase-amid-claim-of-400-per-day-payout/
Fifteen minutes earlier, “Kevin” posted in this Zeek thread.
http://www.patrickpretty.com/2012/06/20/bulletin-north-carolina-attorney-generals-office-refutes-suggestion-that-zeek-has-been-deemed-legal-we-do-have-concerns-agency-says-tv-station-removes-video-zeek-was-linking-to-on-its-bl/
Patrick
admin(Quote)
Quick note: “Don” also posted in this thread today:
http://www.patrickpretty.com/2012/07/01/bulletin-purported-jsstriplerjustbeenpaid-operator-frederick-mann-confirms-for-second-time-that-program-pays-members-with-funds-from-new-members-he-adds-that-all-payments-come-from-members-in-c/comment-page-1/#comment-30600
Patrick
admin(Quote)
The company owner Paul Burk’s is a legitimate Businessman whom has built a fabulous business model. One thing is Penny Auctions are a very lucrative business. Penny auction companies are spending into the multi-millions a month in advertisements, which shows how much the industry makes, it certainly does not take a rocket scientist to figure that out, its a No Brainer. And if the Federal Government would want to do something about the industry it would be a serious impact on aiding our countries recovery, due too the tax revenue that would be lost, and other countries taking up were we left off , and grossing a a better economy if we pass up this opportunity. My conclusion is leave this Legitimate opportunity alone, so we don’t loose one of our thriving Industries, and end up shooting ourselves in the foot.
Chris(Quote)
If the Penny Auction business was so great why the need for the Ponzi investment scheme? Just pay affiliates on straight commission sales. Lol, duh, obviously.
Jimmy(Quote)
And what is your source for this wild assertion?
What proof do you have BUrks is some sort of ‘legitimate businessman’?
I’d be worried about getting my money back out too if I were you. You got in too late.
Whip(Quote)
Is this the *same* Chris that was posting various emotional appeals all over the net, esp. over at Troy Dooly’s place?
Maybe you can ask him why did he start FSCAuctions in march 2010, turned it into Zeekler in June 2010, but only obtained an auction license in March 2012? I am quite sure he is not as legitimate as you think.
Why have ZeekRewards then? What are they paying YOU for?
One could ask if this is indeed why such people join Zeek…
Interesting application of both slippery slope fallacy and appeal to emotional fallacy.
“If Feds go after Zeek it’ll destroy the US economy”. Ha-ha-ha.
And what if they went ONLY after Zeek, not the whole industry?
K. Chang(Quote)
PP’s update on Full TIlt has two interesting aspects
1) Fulltilt setup a bunch of shell companies, and use those to disguise the nature of the funds being transacted through the credit cards, as VISA and MASTERCARD are blocking transactions involving online gambling and US cards due to regulations.
2) Fulltilt also got someone to mess with the transaction codes so they can’t be traced back to Fulltilt and to bypass VISA and MASTERCARD’s aforementioned restrictions
Here’s a theoretical question:
Did ZeekRewards did something similar by
1) (Proven fact) going to half a dozen different credit card processors around the world (AND eWallet vendors)
2) (Proven fact) mess with the transaction codes so they appear to be from other countries / merchants OTHER THAN ITSELF?
I don’t see a reason for them to do so as they are NOT internet gambling?
I’ll first apply Harlon’s Razor… stupidity sufficiently advanced are indistinguishable from malice. (Technically that’s not what it says, but you get the idea). It’s FAR MORE POSSIBLE that their IT progreammer (Dawn’s stepson Dan?) screwed up the credit card API calls, but then that doesn’t explain all the different credit card processors around the world, does it?
K. Chang(Quote)
K. Chang’s comment refers to this post today:
http://www.patrickpretty.com/2012/07/03/raymond-bitar-full-tilt-poker-ceo-arrested-gambling-site-linked-to-three-u-s-banks-that-failed-feds-say-the-on-line-casino-become-an-internet-ponzi-scheme-top-fbi-official-says/
Meanwhile, it’s worth noting that the poker case in New York also has ties to this case in Nevada brought by the SEC against Jeremy Johnson:
http://www.patrickpretty.com/2012/02/08/receiver-in-jeremy-johnsoniworks-frand-case-issues-devastating-report-incredible-number-of-firms-referenced-in-79-page-court-update-dozens-of-companies-used-as-conduits-to-re-route-revenue-and-to/
Patrick
admin(Quote)
@K. Chang – all of the online gambling companies have used numerous third party card processors. In some cases they make 3rd party arrangements with a legit business, which is what it looks like Zeek is doing. In other cases they setup shell companies to process CC through the shell companies. Another technique is to setup multiple shell companies and round robin the CC charges. When you buy $1000 in chips you get an email saying “your purchase on your credit card will show from XYZ company”. The gambling industry knows how to scale. This way when one credit card processor gets declined, and you resubmit the transaction, you hit a different card processor.
The bottom line here is that Zeek has long bee swimming in the high risk payment processor space and it was only a matter of time that they started seeing major banking and credit card processing problems. But to hear Zeekheads spin it, no bank in the world can handle Zeek’s transactions that’s why they are having problems.
Jimmy(Quote)
I wasn’t familiar with Harlon’s Razor so had a look over at Wikipedia.
Here’s what they say:
“Never attribute to malice that which can be adequately explained by stupidity, but don’t rule out malice”
Regardless, KChang, your point is well taken. :)
ARWR
ARWR(Quote)
Zeek isn’t a ponzi scheme, these kind of blogs are from morons who know nothing about the business. I find this pathetic to be honest.
Gary Epps(Quote)
I’m a precious metals broker and a gold company who is the biggest in the country has a A rating with the BBB and they are the biggest rip-off company in the country (GOLDLINE INTERNATIONAL. They charge over 40% in commissions and spreads, they lie to there clients and many of there clients are buried. I give the BBB ratings very little credibility!!! ZEEK has 100,000s of thousands of affiliates and 14 complaints with the BBB, really? Sorry you losers who bash a good thing and a reputable business need to get a life!!
Tim SMith(Quote)
Quick note: I have blocked “Tim SMith” and “Gary Epps” above because they are posting from the same IP with two usernames in eight minutes in apparent “defense” of Zeek.
“Gary” ventures nothing on the story above, instead claiming “these kind of blogs are from morons . . .”
Tim, meanwhile, “defends” Zeek with a strawman argument, deflects from the issues by exclaiming that “I give the BBB ratings very little credibility!!!” and resorts to the oft-repeated ad hominem that program critics are “losers” who “need to get a life!!”
Patrick
admin(Quote)
So you are admitting your alleged business sucks too? lol. What an ass. You got in too late. Not the problem of anyone here. I still have yet to see this blog go after a real ‘legitimate’ business.
Whip(Quote)
Why are some people here so happy about bullying or bashing Zeek and waste time with such a small fry?
If you want to be a self righteous hero exposing ponzies, and saving humanity, why don’t you focus on the biggest grand daddy ponzy of them all which is the the SS system, the Federal Reserve, the IMF, and the World Banks, who prints money out of thin air all day long? You can make a career out this gianormous ponzy!
But we know you are chcikens to go against such Gansters because you’ll be disappear in mysterious way. So go ahead, continue bashing small fries.
John(Quote)
Start with the small stuff first. Never run before you can walk.
K. Chang(Quote)
John,
Zeek seems largely to agree with your Ponzi assessment about Social Security — although Zeek suggested Social Security was a “legal” pyramid scheme.
http://www.patrickpretty.com/2012/05/22/editorial-stepfords-at-the-gate-zeek-trots-out-social-security-argument-in-preemptive-pyramid-scheme-denial-auction-site-makes-its-bizarre-case-with-exclamation-points/
BTW, John, please stick with one email address when you post here.
I received your May 29 comment in which you advised me that Andy Bowdoin of AdSurfDaily is a “small fry fish” and, like today in your remark that described Zeek as a “small fry,” further advised me to “cover the biggest ponzy scheme perpetrated by the biggest criminals enterprises of them all: The Federal Reserve, The World Bank, and the International Money Fund.”
Your May 29 comment was targeted at this thread about the “OneX” scheme Bowdoin was pushing.
http://www.patrickpretty.com/2012/05/03/andy-bowdoin-a-no-show-in-last-nights-conference-call-for-onex-absence-blamed-on-personal-problems-days-after-prosecutors-call-onex-a-fraudulent-scheme/
The reason I didn’t publish your May 29 comment was that it sought to plant a link to a Blog that reported “liens” were filed “against all 12 Federal Reserve Banks.”
At least you didn’t try to plant the link today while “defending” Zeek. Have to say, though, that your conspiracy theory that I’m ["chicken"] to go up against government ["gangsters"] because they’ll make me “disappear in mysterious way” has left me scratching my head and wondering how any person could come to believe that such words of “support” for Zeek were helpful.
Patrick
admin(Quote)
Note to John:
No, John, I am not going to publish your most recent would-be comment that includes links to THREE sites that are off-topic from the story above.
Post on the topic of this thread — what happened in N.C. with respect to the attorney general and Zeek — or stop posting.
The story above is not about “The Criature of Jekyll Island,” Zeigeist and the Federal Reserve” or the “Thrive Movement.”
Patrick
admin(Quote)
Well well well. I see all the critics are out in full force over zeek. In my personal opinion, the biggest ponzi scheme of th. em all is the new york stock exchange. I mean honestly the working man aka zeek affiliates have a better chance of making money with zeek than in the government run exchanges. Leave us alone and worry about yourselves.
Joe patton(Quote)
Once again……*big yawn*
You scammers really need some new material. It’s not anyone else’s fault that you got in too late
Whip(Quote)