Secret Service shut Down Zeek Rewards Ponzi Scheme – Millions Seized in Raid.

SEC Shuts Down 0 Million Online Pyramid and Ponzi Scheme FOR IMMEDIATE RELEASE 2012-160 Washington, DC, Aug. 17, 2012 — The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze to halt a 0 million Ponzi scheme on the verge of collapse. The emergency action assures that victims can recoup more of their money and potentially avoid devastating losses. The SEC alleges that online marketer Paul Burks of Lexington, NC and his company Rex Venture Group have raised money from more than one million Internet customers nationwide and overseas through the website ZeekRewards.com, which they began in January 2011. Additional Materials SEC Complaint According to the SEC’s complaint filed in federal court in Charlotte, NC, customers were offered several ways to earn money through the ZeekRewards program, two of which involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws. The SEC alleges that investors were collectively promised up to 50 percent of the company’s daily net profits through a profit sharing system in which they accumulate rewards points that they can use for cash payouts. However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company’s net profits. Most of ZeekRewards’ total revenues and the …