UPDATED 4:20 P.M. EDT (U.S.A.) Attorneys for accused Ponzi schemer Paul R. Burks of the Zeek Rewards MLM “program” operated through North Carolina-based Rex Venture Group LLC have filed thousands of records under seal.
On Sept. 17, Burks’ attorneys sought the approval of Senior U.S. District Judge Graham C. Mullen to file the documents under seal.
The “anticipated filing contains account and financial information concerning not only Rex Ventures Group, LLC d/b/a ZeekRewards.com, but also thousands of individuals who either paid funds to and/or received funds from Receivership Defendant since January 1, 2010,” the attorneys said in advance of the massive filing.
Mullen permitted the attorneys to submit the documents under seal. The filings now have been made and will remain under seal until further order of the court. The precise form of the filings is unclear because they are not available to the public.
As things stand, the records will be available to Burks, the SEC and to Kenneth D. Bell, the court-appointed receiver in the Zeek case.
Zeek was described Aug. 17 by the SEC as a Ponzi- and pyramid scheme that had gathered $600 million.
The sheer complexity of Ponzi-scheme cases often leads to spectacular paper chases because of the enormous number of records that must be reviewed. But the Zeek case could set a new standard for volume because Zeek used as many as 15 financial vendors and perhaps ensnared between 1 million and 2 million victims while operating over the Internet between January 2011 and August 2012.