UPDATED 10:05 P.M. EDT (U.S.A.) The SEC today updated its information site on the Zeek Rewards Ponzi scheme case, noting its investigation “is continuing” and pointedly adding language that “ZeekRewards and [Paul R.] Burks immediately consented to an asset freeze, the appointment of a receiver over their assets, and the payment of a $4 million penalty.”
Although the agency gave no specific reason for the update, it occurred against the backdrop of an ongoing effort by Zeek figure Robert Craddock to intervene in the case after collecting donations from individual members of Zeek.
Blogger Jordan Maglich of PonziTracker.com noted yesterday that Craddock reportedly had been subpoenaed to appear before the SEC.
From PonziTracker (italics added):
While the SEC did not provide the reason for the subpoena, some have speculated that recent comments attributed by Craddock to the SEC concerning purported admissions of fault in the SEC’s case against Zeek which were later refuted may have piqued the SEC’s interest.
On Sept. 23, the PP Blog reported that Craddock’s name did not appear on a Sept. 17 list of “EMPLOYEES, OTHER PERSONNEL, ATTORNEYS, ACCOUNTANTS & OTHER AGENTS/CONTRACTORS” submitted by Zeek to Senior U.S. District Judge Graham C. Mullen even though Craddock identified himself in July as a Zeek “consultant.”
Craddock also was present on separate fundraising calls last month with Todd Disner, a Zeek pitchman and a member of the AdSurfDaily 1-percent-a-day Ponzi scheme, and with T. LeMont Silver. Silver was described on a Zeek website in June as a Zeek “employee.”
Among other things, Silver was a pitchman for OneX, which federal prosecutors in the District of Columbia described in April as a “fraudulent scheme” and “pyramid” that was cycling money in ASD-like fashion. Jailed ASD Ponzi scheme operator Andy Bowdoin also was a OneX pitchman.
ASD was a Ponzi scheme that gathered at least $119 million, according to federal prosecutors. Zeek’s business model was very similar to ASD’s business model.
Zeek was a Ponzi scheme that gathered $600 million, according to the SEC.
Visit the SEC’s Zeek infomation page.