Mad4Flash Blog

Topics: Affiliates Knew ZeekRewars Would Shutdown, Clever Ponzi Schemes, Here is My Story and The Truth., IAmA Dishonest Person Part of a 600 Million Dollar Ponzi Scheme, Reddit, ZeekRewards Planned Ponzi Scheme

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Hello, I am Chris Groves: A former ZeekRewards affiliate before the clash of the company went underway as Paul Burks surrendered all assets of the company and funds to the SEC. August 16, 2012  declared ZeekRewards and Zeekler; entities of Rex Venture Group a 600 Million dollar ponzi scheme. Over one million individuals(affiliates) being involved. Affiliates simply purchased subscriptions and bids in volume ranging from $10 to $10,000 maximum, while on average the company return was 1.5% daily in accumulated points which then could be redeemed for cash.

I personally have been following the trending and breaking news topics on ZeekRewards from multiple sources such as: The Dispatch (North Carolina s local news page), The SEC, Troy Dooly, Behind MLM, forums and more trying to put the facts together. Millions of people as we know were affected as well as those close brought in by friends and family. The outrage of the internet exploded as daily users attempted to login to the website only to find that they were shutdown with no answers as to why at the time. Hundreds of thousands affiliates felt stranded, however with a recent post going around proclaimed by one of Zeeks top affiliates is stating that ZeekRewards was nothing but one big planned ponzi scheme and it all started with a comment originally left on this blog.

The proclaimed statement states the following written by anonymous affiliate on August 19, 2012 at 5:49 pm:

“Okay…

I can’t take it anymore, after reading all these comments I don’t care. I know everything that happened, I was greedy and I was selfish and I am exposing everything I know because I am probably the only affiliate high up that will do so:

I was personally introduced by a couple in Hawaii as I was vacationing about ZeekRewards and Zeekler. Daryl Douglas which I have connections with as well communicated on a regular basis. I was told I could join as an affiliate in May of 2011, and I signed on with 10K because I was told what nobody else besides us at the top were, and it was the following:

“ZeekRewards is designed as bid purchases but in reality the cash is from new affiliates, there is a design to slow the growth and plans to keep this running for at least 2 years before it crumbles.” The plans were shown to me clear in writing and I even had access to the actual earnings from the penny auction which was very low.

I knew I would make money, because a few affiliates were “planted” in some of the fastest growing MLM states, Florida, Utah and a couple others.
Every who was planted put in 10K or got a loan knowing they would get their return. Not only were we guaranteed are money back from Daryl Douglas and Dawn Wright Olivares, we had direct contact information. I myself spoke to Dawn about twice a week and I allegedly knew that this would fall apart in 2 years or just a bit less.

The month is November 2011: I start recruiting some people, showing them how much I am making. I am dishonest telling them I only started with $500 and where I am at now, which is only about 30,000 points from May. I am making about $500 per day and show a guy who is trying to sale me insurance. He looks at it and of course believes it signing up just a bit later.

I know from speaking to Dawn on a regular basis that we are nothing more then just a recruitment scheme, luring in people one after the next by telling people about the penny auctions and how much they make which in reality it makes up less than 2% of the profit coming in, but they don’t have to know that.

By December I start recruiting more people, but I start using Facebook knowing that I don’t want too many local enemies since I am doing everything out of my small business. I also know that the people in early will get their money back… it’s all timing and a recruiting game now.

I add as many friends as possible on Facebook (5,000) being the limit and build report, anyone who doesnt talk to me I delete and move to the next. I know that the money is there and Zeek continues to grow.

That month I become Senior Executive in ZeekRewards, I have my 6 diamonds and a few gold and silver affiliates. Nobody has put big money in yet other then $500 here and 1,000 there.

I get a call from Daryl Douglas, his account is nearing 400,000 VIP, he tells me how he recruits and his personal success.. I know I need to push the recruiting more.

I start working even harder at Zeek, but by this point and time one of the affiliates I recruited in November of 2011 is a recruiter himself. He pulls in doctors, lawyers and more even unapproved spreadsheets are going around showing what you will make. The business grows, but remember only a few planted affiliates know the true business model, we use our backoffices to lure people in with the large amounts we are making. We know better not to tell anyone else because when it all crashes it will trickle back up to us, we continue presenting the “penny auction” as usual.

By now I almost have 500 people in my Matrix and my account is over 100,000 VIP. I have pulled out just over 10K and show people proof of checks occasionally to lure them in. It works.

I start hosting group meetings out of my business getting the word out, the group grows and grows every week and so does my account, know that the bigger the VIP, the easier to lure people in and the more my cashout option will be.

By this time ZeekRewardsNews which is the official blog and news site ZeekRewards is launched keeps affiliates up to date as well as their Facebook page. The news site is only used to build a trusting relationship with readers, nothing more than just to lure people in.

Updates range from when the site will be down, maintenance, and upcoming details.

May 2012: This marks the date Zeek changes banks, the banks are offshore in South Korea. I have a personal call with Dawn and she tells me how fast the business is growing, gives me a few numbers of what we are making per day, at the time we are over 3 million per day- the actually penny auction site bringing in about 10-15k per day while the other is all affiliate money.

No more paper checks are being sent out by Zeek, simply because of using off-shore bank accounts, Zeek hides the mess by using ewallets NXpay, AlertPay and SolidTrust. Zeek hopes that some people wont know how to take the money from their account leaving more in for us we we cashout.

Zeek happily allowed anyone who requested money to take money out knowing that checks and proof would entice more people to join and put more money in- this worked just as was planned by Dawn, Daryl and Paul.

It’s the end of May 2012, I get an urgent call from Paul surprisingly, he tells me that the payouts and VIP accounts are growing to fast and he doesnt want to scare people away. He manages the Retail Profit Pool and continues to average it at 1.5% so others don’t pull their money out leaving more for all of us.

Paul uses about 1.9 to 2% on Thursdays, 1.4% Fridays and weekends are about 0.8%. I am told by Paul as well as Dawn later in a conference call to draw out money but not all of it.

Dawn: “Don’t draw all of your money out, it will be too suspicious for those who see your account and its under 10,000 VIP or really low” We don’t want people catching on, pull out a decent amount but leave quite a bit in there.

My VIP at the time was over 500,000… I drew out over $35,000 per week in increments. and I knew that all funds that I actually wanted had to be out soon.

It’s now the mid of June, I get call from Dawn telling me that the plugs will be pulled on the company in August and to take out what I need or can. I set my account to 0 taking out $60,000 here, $40,000 there totaling a little over $350,000 in the period of just 2 months.

I’m not allowed to tell anybody on my team, even the guy below me who has 2 accounts for him and his wife that total nearly 500,000 points. I give hints and recommend he takes some money out to take a nice vacation, he does pull out a little over $50,000.

I know that by exposing the scheme it will only be bad for me at this point and time, there is no point. I tell people on the team to 0 out their accounts to move over to Bids That Give (this was a hint) but few listened.

We are now in August, people still ask to see my account, even after pulling out over $350,000 recently my VIP remains at 474,000.

The final meeting I have people want to buy bids, I know I could refuse seeing that we are coming to an end, but that would only cause suspicion if I refused.

It’s Tuesday August 14, just a few days before Zeek shuts down its site. I get a final call from Dawn telling me thank you, we are walking a way before we can continue paying out anymore. We talk and I know it’s coming to an end.

Dawn asks me where my VIP on the account is making sure I have a good amount in there to cover the trail, in the even I didn’t they could manually input the numbers for me. I did leave close to 500,000 in my account. In Zeek total since I started I have taken out close to $800,000 being the top guy in my state and knowing how the scheme worked and when it would end.

What I did was dishonest, greedy, hurtful and more. Why am I admitting this? Because I am ashamed, it doesn’t matter anymore. I created many debts as only a few people on my team pulled out what they initially made. It’s too late to come out and knowingly admit my name now…

All the updates on ZeekRewards News about prepaid cards, ZeekBates and other new stuff coming out was just a shame to funnel in more money and keep the money in the affiliates accounts.

I even told people that with the new updates the VIP earnings would double from the revenue, I lied. I did many wrong things,and now I admit them

You see, this was organized and disguised so well, that thousands of people got hurt. Call me an idiot, tell me to burn in hell, but I am the only affiliate in the upline with connections to Dawn, Daryl and Paul who will share my story- my story is the truth and I believe people should know for the sake of their own good.

Zeek was nothing more than a hurtful scheme, buying fake customers and more.”

Originally I read this post and my stomach churned as many of the affiliates that I sponsored personally lost $10,000 here, $1,000 here totaling up to well over $20,000 in losses for my group. I was starting to work the system and push ZeekRewards and Zeekler hard… Just weeks later they shutdown. I was devastated. Initially reading this, I was furious knowing that such dishonest individuals could pull off this scheme, but that’s when I started to do some research.

This post blew up after being featured on Reddit under IAMA: Reddit is a social media site full of the latest news, stories and links submitted by its online community.

The post titled on Reddit was as followed: IAmA Dishonest Person Part of a 600 Million Dollar Ponzi Scheme, Here is My Story and The Truth.

Reddit IAMA Ponzi Scam Post Printscreen CLICK TO ENLARGE

The first thing you should know about Reddit IAMA is that there needs to be some type of validated proof by the original poster, this would mean documents, pictures, audio, video or anything of that nature. No adequate proof was submitted to the moderators or linked to which is why the post was REMOVED 24 hours later.

I would like to address some very interesting and valid points throughout this post:

Point A: Who would just come out and confess on the internet, reaching multiple web blogs and a high traffic site like Reddit? Moreso, that is practically turning yourself in. Obviously if the above written statement from our Anonymous Affiliate was true: Dawn, Daryl and Paul would know who to trace it to by the description as well as Greg Caldwell and a few other (top leaders) in Zeek. Would the anonymous affiliate really be this detailed, afterall that is the point of being anonymous right? And if they were going to provide this much information online why not just provide documents, papers and more? It doesn’t make sense.

Point B: Nobody would just come out nearly instantly admitting everything that happened in a short period of time.

Perhaps this is the most interesting find that I found and it was a link to the supposed affiliates backoffice… Let’s take a really close look:

ZeekRewards Backoffice CLICK TO ENLARGE

This is where the line draws is with the “supposed” backoffice printscreen of the affiliate who submitted this as proof.

Exhibit A: Notice the Bonus Balance. Bonus points in ZeekRewards carry over the the VIP pool after 60 days, if this affiliate started in May of 2011 they would ave carried over July 2011. According the the affiliate on Reddit this is a current Print Screen

Exhibit B: The P in points is capitalized whereas it should be lowercase as in the bonus points.

Exhibit C: Look closely above the 4, you can see a blue line where this number was cropped in, completely fake and edited.

Okay, so now you may still be a critic and state “well so the image is fake, I proved that… But how can the rest of the story be accounted for?

The affiliate states the following ‘”I was told I could join as an affiliate in May of 2011″. First of all ZeekRewards launched in early January of 2011 (correct me if I am wrong) If affiliates were truly planted as stated then why would it be May of 2011, more-so it would be in the beginning or launch of ZeekRewards and Zeekler. By May 2011 which is 4-5 months later then the launch of ZeekRewards there would already be many other affiliates marketing the business…

Secondly, Would a person honestly enter a business venture knowing that they would be part of a Ponzi scheme and would be charged with federal felonies? I doubt it, how could this affiliate know how the end would turn out, there is no way even with planning to determine how the business would come to an end, that would be like predicting the end of the world. Be logical people.

Next point: No more paper checks are being sent out by Zeek, simply because of using off-shore bank accounts, Zeek hides the mess by using ewallets NXpay, AlertPay and SolidTrust. Zeek hopes that some people wont know how to take the money from their account leaving more in for us we we cashout.

That statement is completely false. Paper checks were still being issued in May, the transition was in early June; however you could still get checks through Payza.

Putting the Puzzle Together:

Look guys, I am an affiliate too- am I upset that millions lost money? Yes. However lets be logical and use common sense. If an individual truly knew how this so called “scheme” would turnout would they have originally joined in the first place knowing that possible criminal charges would be held against them and all money would be forfeited? No…. Why? Put yourself in the position of this hoax story that is doing nothing but creating rumors around the internet. Why would the affiliate be in Hawaii? It would make more sense if the individual was at the company headquarters for one showing proof of the business and its documents. The story doesn’t quite add up folks, and those who are believing it are fools to do so.

Also finally imagine the timing for everything to occur, any business can end at any point and time… How could they predict it would last less then 2 years? It’s clear to me that somebody created a fake post on the internet that spread virally from the outraged affiliates once in ZeekRewards.

Troy Dooly also addresses this post that has been spread around:

What’s your thoughts?

I am saying its nothing more than an outraged hoax seeking attention. Be logical and put the pieces together and you will clearly see that nothing like this could be pulled off and precisely timed. If this individual really wanted to confess there are legal channels to go through and the internet consists of lots of opinionated people- unfortunately whoever originally posted this did it out of despise and its a shame that some people are taking it negatively as I can assure you it’s not true.

Looking for Something After Zeek Rewards?

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