URGENT >> BULLETIN >> MOVING: (UPDATED 8:59 P.M. EDT U.S.A.) The U.S. Secret Service has seized more than $11.5 million allegedly traceable to the Zeek Rewards MLM “program,” according Preferred Merchants Solutions LLC (PM), which cited an “asset seizure warrant” in a new court filing.
PM is a Zeek vendor. The company also says it is in possession of between $10 million and $15 million of “unprocessed checks” linked to Zeek. Moreover, the company has advised a federal judge that there may be an additional $3 million in checks that were not processed due to “processing errors.”
The Secret Service confirmed on Aug. 17 that it was investigating Zeek. The filing by PM is believed to be the first public document that shows the agency is seizing Zeek-related money. The SEC has described Zeek as a $600 million Ponzi- and pyramid scheme.
PM, according to Florida records, is a Miami-based company. The company, whose registration in Florida was marked reinstated on July 2, also lists an address in Napa, Calif., in Florida records.
Separately, North-Carolina-based Four Oaks Bank & Trust Co., which earlier said it needed more time to establish how much it was holding in Zeek-related funds through Rex Venture Group LLC, has advised the judge it does not have an account in the Rex name “or any other direct relationship” with Rex.
However, the bank went on to say that it “does have a commercial account in the name of “Nx Systems Inc.” and that the bank “froze the entire NX Systems’ Commercial Account” on Aug. 17.
Rex Venture is Zeek’s purported parent company.
Nx Systems was a Zeek vendor. What the freeze of its “entire” commercial account means to other NX Systems’ customers was not immediately clear. Four Oaks advised the judge that it could not “independently certify” the amount of funds Nx Systems holds in the name of Rex and that Nx Systems told the bank it was working on a reconciliation for presentation to the court.
Earlier this year, Zeek identified NX Systems as a service-provider. Zeek also scolded members for making phone calls to NX Systems, which operates an entity known as NxPay.
See June 26 story on BehindMLM.com.
Link to PM filing (courtesy of ASDUpdates.)