ZeekRewards Closing Down – The MLM Attorney Speaks Out!

by Kevin Thompson on August 17, 2012

Kevin Thompson - The MLM Attorney

 

+Kevin ThompsonThe MLM attorney speaks out about the Zeekrewards situation

The Law Office of Kevin Thompson specializes in providing legal services specializes in providing legal services for startup direct sales organizations.

Named as one of the top 25 most influential people in direct sales, Kevin Thompson has extensive experience and helps entrepreneurs launch their businesses on secure legal footing.

Disclaimer: This article contains my opinions. I’m not stating with certainty that Zeek is fraudulent; however, in my opinion, I believe that to be the case.  I think the investigation is timely and will serve a valuable function.    

It’s official.  Zeek Rewards has recently closed its doors.  Literally.  In fact, the SEC and U.S. Secret Service are now involved. This is what we know: the doors are locked and the website is down.  It’s not looking good.  Was this done voluntarily?  Were they required to do this by the SEC?  This all has occurred recently after the North Carolina AG’s office expressed “concern” over the Zeek model.

I’ve got mixed emotions.

I’m both angry and relieved.

Why am I angry?

  I really think we lost our minds with this model. The MLM community took the bait and walked off a cliff like a herd of lemmings. Do you want to know what happened?  I’m going to be candid:

Zeek exploited the gray.  They took a bath in it.  They skinned it and made a coat out of it.  They hired the right people and adopted the right lexicon.  And who is going to pay the price?  The entire industry.  This is bigger than just the participants.  There’s an ocean of gray separating legitimate network marketing companies from pyramid schemes.  Instead of shrinking the gray, we fight like hell to obfuscate.  As an industry, we’re self-delusional.  It’s true.  We think it’s better to have vague standards.  But now we’re seeing first hand what happens when the inmates take over the asylum.

“Those are not investments, those are ‘samples’ given to ‘customers’ in an effort to entice them into buying more….it’s like Amway distributors giving samples of soap to customers.”

It’s not the same thing! Amway distributors are not spending $50,000 on soap, giving it all away to strangers while dramatically increasing their earning potential. Amway distributors have a direct, real connection with customers.  With Zeek, it’s just a combination of 1s and 0s on a computer screen.  Who in the hell were these customers?  Where were they coming from?  Were they real?  Were they ever asked to verify their accounts? Nobody knew and nobody seemed to care.  People knew the angle.  They read from the script, mastered the narrative and explained with eloquence why Zeek was “just like Amway, but with penny auctions.”  Zeek affiliates were essentially rewarded IMMEDIATELY after they bought the bids, regardless if they were ever used. This is not consistent with traditional MLMs.

I’m angry because they leveraged your credibility. They leveraged the credibility of my colleagues and competitors. They leveraged mine.  And we all look like idiots.

I’m angry because this recent news is going to be devastating for tens of thousands of people.  People that will likely associate this horrible experience with “network marketing.”  These were the people that cashed in on their 401(k)s because they were promised tremendous gains in a short amount of time.  These were the people that “invested” more money than they could afford to lose, hoping that maybe, for once in their life, they could get a decent ROI. If the money ends up being locked away in receivership, which is a possibility, it’s not coming out without a court order. Will everyone get their money out? I’m not sure.

I’m angry because this actually impacted my relationships with clients, current and former.  When I gave my candid advice, I was sometimes met with hostility.  I was considered “out of touch.”  I was told that Zeek was “spending countless dollars to be compliant” and I was just envious to be on the outside.

I’m angry because we allowed the cancer to infiltrate the host and spread.  We opened the door and welcomed it with open arms.  Zeek leadership took on top positions with trade associations, recruited top distributors from reputable companies and networked intelligently with industry influencers.  Have cash?  We’ll dance. We provided them with the semblance of legitimacy, and they ran with it. We empowered them.

Why am I relieved?

I’m relieved because the conversation is finally over.  I’ve been fielding calls at least twice a week with somebody else looking to launch their version of Zeek.  It’s hard to tell someone “no” when there’s someone across the street making a fortune with the exact same model.  Finally, it’s over.  We can resume normal business.

I’m relieved because this should mark the end for companies having to defend themselves from Zeek. Zeek was soaking up a lot of leaders from a lot of different companies, causing a considerable disruption in the space. Companies, trying to hold onto their people, found themselves in the cross hairs between zealous distributors looking for a quick buck and industry pundits, all defending the Zeek model. It put company executives in an awkward spot.

What did we learn?

Money Clouds Judgment

When people have a serious economic position with something, they’ll fight hard to protect it. They’ll go to great lengths to find a mental justification, even if it defies all logic and intuition.  There were a lot of distributors in Zeek that really should have known better.  They were around for the FutureNet, SkyBiz and Equinox cases. They knew better. And despite that experience, they really believed they were in the clear on this one.  I think their belief was genuine. They were just under a spell.  Once they got a taste of the enormous commissions, they were hooked and went to great lengths to defend the business.  Adults under the influence of serious cash are like teenage boys with girls…all logic goes out the door.

Watch Out For Name Dropping

People relied heavily on the credibility of Zeek’s lawyers: Gerald Nehra and Kevin Grimes.  They said “These guys are good; therefore, we’re good.”  I can speak on this first hand: hiring an attorney by itself does not legitimize a program.  At the end of the day, we MLM attorneys explain the boundaries for our clients and provide advice.  It’s on them to follow the advice and stay within the lines. I can guarantee you of one thing with 110% certainty, Zeek is not surprised by recent events. Grimes and Nehra are both good attorneys and good competitors. I’m confident Zeek was fully informed of these potential issues. MLM attorneys can lead horses to water…we can never make them drink.

Commissions Must Be EARNED

If someone promises you easy, run fast!.  We can do better.  Any measure of success in life requires hard work. Really, really hard work.  In the network marketing industry, we need to stand for meritocracy: as you perform, so shall you bonus.  We work hard to ensure the pay plans are fair and that reps are rewarded commensurate with the work they do.  With Zeek, the general tone was that people could make money with minimal effort. There was very little effort involved in reaping the rewards from the penny auction platform (with the exception of buying some customers and placing ads online). I understand that measures were taken to strengthen the program i.e. the compliance course, eliminating the customer co-op, etc; however, rewards were still allocated immediately upon purchases, regardless if the bids were ever used. This was a problem. There must always be a direct connection between the rewards received and work performed.

With modern technology, there seems to be more “make money while sitting on your rear-end.” And as typical Americans, we’re drawn to it! As network marketers, we need to promise VALUE instead of promising EASE.

If It Looks Like a Duck….

Richard Brooke recently said, “If it quacks like a duck, it may not be technically a duck but duck hunters WILL KILL IT!”  Zeek just looked too much like a security. I understand that there are countervailing arguments, but the bottom line is simple: Zeek fought hard to train people to NOT call it an investment opportunity because that’s exactly what it looked like.  People, when they were pitching the program as an investment opportunity, were just following their instincts.  Why?  Because it looked like a duck….

Conclusion

There are a number of issues that will likely come to light during this investigation.  Is it a Ponzi scheme?  Is it a pyramid?  Is it an unregistered security?  Is it all of the above?  Will criminal charges follow?  Who knows…

As an industry, I think it’s time to tighten up the skates.  This should serve as a wake up call. This is embarrassing.  Absolutely embarrassing.  Zeek flew under the banner of protection provided by US, the network marketing community.  They danced in the gray and profited. We need to stop drinking our own kool-aide and shrink the gray. When I first started practicing, I wrote an ebook that has been “read” (according to scribd.com) over 12,000 times). It’s titled, Pyramid Schemes: Saving the network marketing industry by defining the gray. I propose some ideas on ways to make the space better. I think it’s time. Otherwise, this WILL happen again. And at the pace of technology, it will happen soon.

As for my representation of Bidify, which I’m sure will be an issue, they’re paying attention to this situation. Since retaining me, they’ve made a number of difficult decisions. I’m not going to comment further on their business other than to say they’re working hard to stay within the lines. Their recent decision to reduce the max cost to 5,000 euros forever is proof of it. If you want to park a lot of cash, Bidify is not the spot for you.

If you learned something, please hit the +1 or “Like” button above and get it out there. Thanks.

Kevin Thompson - The MLM Attorney About Kevin Thompson:

Kevin Thompson is one of the most sought after attorneys in the country in the direct sales industry. Named as one of the top 25 most influential people in the industry, Kevin Thompson has extensive experience and helps entrepreneurs launch their businesses on secure legal footing.

As a Direct Sales Association supplier member, Kevin Thompson is actively involved on the Ethics Committee and Government Relations Board to help steer the industry into a promising future.

Kevin has published multiple ebooks accruing over 65,000 reads and 2,500 downloads. He has served as a keynote speaker at multiple conferences throughout the world.

Prior to starting his law practice, Kevin gained valuable experience while serving as Chief Counsel for Signature Management Team. Team is one of the largest providers of sales aids for marketers in the direct sales industry.

While at Team, Kevin worked closely with Amway and MonaVie’s compliance departments to ensure all marketing materials passed regulatory review. He has the experience, knowledge, connections and tools necessary to help entrepreneurs launch their businesses on solid legal footing.

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79 comments… read them below or add one

Barbara Heaton August 19, 2012 at 10:05 am
Zeekler is neither a pyramid, nor a Ponzi or selling securities. For every person that bought $10,000 in bids, there are thousands of low income people like me who came in with no money to buy bids, but worked our way up to start to make some income. In my case, I'm retired on S.S. and was thrilled to be able to work on the internet to supplement my income to pay bills my S.S. didn't cover. Now the SEC seems to be saying that Zeekler and Paul Burkes is "Guilty until proven Innocent".How hypocritical all this is!!! It's legal to take a "risk" and waste your money on STATE LOTTERY tickets, hoping to win MILLIONS! Sounds like a pyramid to me, maybe even a PONZI. Legal to go to the gambling casinos, taking a "risk" of losing all your money. That's just fine!!! But don't let someone start an internet business that is helping thousands of "little" people like me to make some income from home!!! If Zeekler and Mr. Burkes made any what you call "illegal" mistakes in his business, let them make it right, and the business go on. This is America, where we're supposed to still be "INNOCENT until proven GUILTY"

maria r August 23, 2012 at 4:59 am
In some ways I cant believe this is happening to zeek Rewards but at the same time I do believe it. what I've seen through my working career is that corperation and companies only want people to stay in what I like to call survival mode which means that they like to keep people in the point where they're making enough money to pay for Utility bills, tansportation and other expenses, leaving the hard working people with not enough funds for savings and security. Thats how the corporations controls the working people. A big percentage of the working Americans dont have enough money left to travel, enjoy life & family or start something they've dreamed of doing. other corporations want to keep people at the buttom. Zeekler was setting people free, free to start there dreams weather it was helping people in need, starting the buisness the've always been dreaming about or just being able to travel the world and learn from different people and cultuers, zeekler gave that oppertunity. This problem will be seen by others who's dreams have been destroyed. Zeekler is being attacked by people who are affriad of change and want things to stay the way they are. They say that zeekler was stealing from people but the truth is that the people who are trying to diminish zeekler are the one who are truly stealing peoples freedom and in that note, my firends seems to always be the problem in this world!!! support zeekler all the way its the future.

SHAIK.BABA August 19, 2012 at 10:36 am
OOOOh......My God Plz Re-open To Zeek. Otherwise i will die.

Luis Garcia August 19, 2012 at 3:54 pm
If you bid on an auction, loose and don't get your money back it's called GAMBLING! Zeek Rewards reminded me of one Twilight zone episode where a black box with a red button was given to a lady. All she has to do is press the red button and she would receive a million dollars. But someone in the world will die if she does. She eventually pressed the red button and gets the million dollars but her name was put on the list to die next. Zeeklers didn't care where the money was coming from so long as it kept coming. It was a Ponzi scheme from the start!

Joe Hill August 19, 2012 at 5:13 pm
I believe that Zeek's business model was legit based on what I understood it to be. Which is to say, they sold bids/sample bids for penny auctions and took in revenues for website hosting, penny auctions, etc. The moment those funds cleared for those "purchases" it could/should be considered part of the daily net profit of the company after taking out the cost of doing business. From what I understand from the recent news stories is that they took in a lot and paid out a lot. I think many people including the regulatory agencies or "govco" may have mistakenly assumed that VIP points are the equivalent of money that could be withdrawn and should everyone have attempted to withdraw their accumulated VIP Points as cash that the system would collapse. That could not happen as any VIP Points were just that VIP Points and not cash available for withdrawal. The only monies people could take out are the daily rewards that were not used to repurchase sample bids and nothing from the already accumulated VIP points which self expired after 90 days.. In other words should someone have 50,000 VIP points in their account they could not withdraw that as cash because it is only a reflection of the rewards for repurchases of sample bids and not cash on hand. It was only the daily share of net profits that could be adjusted towards cash outs that was available with the remaining points acting as a sort of expiring base which would only grow as a result of continued purchases of additional sample bids. Adjusting the daily receipt of daily profits in the form of VIP points to reflect anywhere from 0% repurchase to 100% repurchase, keeping in mind that the base amount of VIP points expired 90 days after receipt which would make it impossible to continually withdraw money should you say make your repurchase rate 0% as the daily net profits were to be paid only to those who had VIP points in their account and those points are expiring daily beginning with the 91st day after receiving them. That is why I considered the compensation plan so viable. People who's VIP accounts dwindled because they chose not to repurchase sample bids would no longer have compensation accruing to their account because of the VIP Points expiring. That is why I believe the model was good despite the claims of govco and other detractors. Now, whether or not there was other hanky-panky going on unbeknownst to me that may eventually be shown to have been the real problem for the downfall of Zeek, but until it's demonstrated I'm willing to give the company the benefit of the doubt. What I saw was the company dealing with phenomenal growth and trying to reach out to the experts in order to help right any wrongs that may have been occurring. Employing prudent and reasonable measures to stay on the straight and narrow was also part of my wanting to give the company the benefit of the doubt. Given that it's already been stated that they took in a lot of money and yet they paid out a lot of money gives me the impression they were trying to do the right thing and not just squirreling it away for themselves in some kind of big swindle. IMHO

Eric Clerc August 19, 2012 at 7:40 pm
Hello everyone, I understand the pain, frustration and bewilderment of all those “investors” (I use the term investor, because that is how it is mentioned elsewhere), but at the risk of being mistaken, I think that it is once again a bad that will turn into good for the health of our Network Marketing Industry.I think that it is once again a bad that will turn into good for the health of our Network Marketing Industry. A few weeks ago, I studied the Zeekreward business plan, because some of my entrepreneurs in Russia asked me for the relevant information. And, frankly, I do not understand the meaning of this company! Or at least it was nothing like what I have learned and shared over the past 20 years! In short, I perceived is as something that has nothing to do with network marketing. I don’t know if one day we would find out the denouement of the Zeekreward story, I don’t know whether the original concept of its founders was fair or not. But what I do know is that, away from the country of its origin, in a far-away Russia, the way “investors” are using this concept, it simply looks like an unhealthy pyramid. When I asked our lawyers about the business plan, I almost immediately got a reply, “it could stop at any moment.” And that is what I passed on to our entrepreneurs. To succeed, to achieve a success, using only computer keyboard, without communicating with other people, – it makes no sense from the point of my culture of Network. Hence my confusion and questions that arise as to the regular promotion, which Ted made of this company on his website. And this comment Kevin Thompson made is just fantastic, as it puts everything in its place. Thank you! I am proud of my profession and the network marketing industry. And I am actually glad that there is such a “barrier” preventing too many pyramids from completely tarnishing the reputation of one of the best professions in the world. And if for some people Zeekreward is now in the past, I recommend that these “investors” turn to a real network marketing company and learn how to create a real network of people, with a dream team that will stay with you no matter what happens. This is the biggest “security” that you can create in your life and in the lives of your children. Below you can see my comments and those of Kevin Thompson, translated into Russian! Eric Clerc

Joe Hill August 19, 2012 at 9:41 pm
BTW - The graphic at the top of this webpage which shows a woman writing words (on what appears to be a clear markup board) has the word "Vision" spelled incorrectly as "Vison". I guess only discriminating minds would care anyway.

Tahirshah August 19, 2012 at 10:27 pm
Plz let zeek working its aray of hope for millions of people on the globe.They are really paying and running honestly

Jim Ryan August 20, 2012 at 12:36 am
100 Ponzi Scheme...simply ask Bernie Madolf!

Harry Fassett August 20, 2012 at 1:54 am
Well, the writing was on the wall for Zeeks, because a lot of bad signals where coming from them and their HYPE marketers, and when it came to paying the piper, Zeeks came up short, and got canned like spam, and with the Feds involved now, you can "stick a fork" in Zeeks, because they are tarred, feathered and done.

roberto August 20, 2012 at 4:38 pm
Hello, I never invested in zeekrewards,but what from i have heared,it was not an bad company.Alot of people around the globe made money,with this business and who are we to judge about that. There are people talking about that mlm is about hard working,and building your network of affiliates and sell real products.But if you look at the products they sell nowdays in the mlm industry it is just the same as the air they sell with online programs.In mine perspective it is all crap.The mlm industry and now this mlm industry is using zeekrewards as the bad guy,to level up their own reputation and business,but it is just crap.This kevin guy is just using zeekrewards as an example and in the mean time he tries to level up his own business and mlm business. the real facts are,that the mlm leaders and people that are involved are not into hard working at all.They let others do the hard work and they only are developing their binary structure or plan.In the mean time they yell that they have real products but the products involved is just a bunch of crap. The same with the owner of this website claiming to put zeekrewards as an illegal identity on the page and at the same time,let the opinion of the expert shine on the zeekrewards and using it as an object for their own business is just absurd and meaningless. They are the same not working,not selling just networking and built their own network,and in the mean time talking crap about other companies which are not exactly mlm and at the same time level up their own mlm. I will never do business with any mlm company. I rather invest money in mine own business of choice and let the money do the work. In the end it is basically all the same.If you recruit people they have to do the work for you and i am letting mine money do the work for me. thank you Roberto

ERAMOS August 20, 2012 at 7:48 pm
Hello, I have recently invested in zeek rewards and I want to know what is going to happen to my money??? I know the business is honest due to I know people who have gained from this. My question is if there is a way to contact zeek rewards to see if some money cant be returned or what is going to happen with it. Any one feel free to comment this back because I really want to know. Or if there is any number to call them about the issue. Thanks

Franciso August 20, 2012 at 9:45 pm
I think the SEC is trying with banks and other institutes to close zeekler becouse they where paying us a llot more then the banks where and thay protect the banks then co. like zeekler that pay more good money. you do not care about us we work hard for our money and you do not want us to make money only the banks or reach people, you do not protect su you protect reach people

Joseph Chu August 20, 2012 at 9:57 pm
The majority of the detractors making comments on this page are ignorant of how Zeekrewards actually works. I admit that I don’t know it all as well but most of you are either self serving or just parroting thing you hear. If you truly care then be quiet for now until you hear the verdict. Zeekrewards, from my point of view, tried to make things work right and legally for anyone. As time went on they were trying to make thing better. Zeekrewards has only been up and running a mere year and a half. Changes are bound to be made; improvements to make the business better. All businesses do this, and this includes all other mlm’s. If you really want to study a “Ponzi Scheme/Pyramid Scheme then check out the Social security system, this is a scheme forced on you by your Uncle Sam. This was to be a retirement system that you could take advantage of without much of an advantage. For 30 to 40 years they took money out of your wallet automatically and you were forced to gamble that you would receive what it should be worth had you not participated. You are forced to wait 30 to 40 years before you see a dime. You couldn’t get your money back if you wanted to. You could not get out of the program if you wanted to. Meanwhile, how could they promise you such a rosy future, it wasn’t based on moving any useful product. In the first year when they started the pyramid they had to count on forcing others into the system, generation after generation. Do you think this system can sustain itself? No, as evidenced by the fact that they keep moving the full retirement date. How about the fact that the generation entering the system is way less than the generations in place receiving their so called benefits! That’s why there is so much worry that this is not going to be available much longer, and this doesn’t include the fact that the funds have been misused to the tune of Billions of dollars. After all this and more, now they tell you to not look at Social Security as an entitlement. Why not? We were forced to pay for this, and we paid it! So think about what the government Pyramid/Ponzi scheme is doing to you and then get mad! Now let’s get back to Zeek. If you really haven’t studied Zeek then don’t comment because you are just going by feel. Like a blind person, blind in your thinking. Especially bibify types. I could be wrong, but Zeek is probably setting a new marketing model that many have become jealous of and others are out to imitate. Those who are should hope that this model passes the test. So don’t come out so high and mighty in your thinking and self-righteous. If you are true network marketers you need to hope that Zeek actually passes the test with flying colors. I’m not saying that everything Zeekrewards did was right but, can’t we give them the chance to make improvements? I know that they were aware of major problems in a few of their processes and I wish they could have cleaned up their laundry so that there would have been less frustration and as a result less complaints because this is really what has bade Zeek look bad. So give them the chance. I know that if you were them, you would like to try to improve as well. There is much more to say but there is not enough room here. If there are a lot of positive comments to this posting I might add more information on how Zeekrewards actually works so you can really understand. Thanks

Harrison Williams August 20, 2012 at 11:31 pm
The faster way is to ask your friend or his friend in your Zeek upline to pay you back from there profits. The receiver has a list of all those who received the $300million plus paid out I assure you they will all be paying the money back, cars, houses, and other stuff the money was spent on. Its a simple call. If they refuse you take action and file a small claims suit. really easy to do. Most small claims suits will also lead to criminal charges since sec won the Ponzi charges here against Zeek. The IRS would love a courtesy call to for those who been bragging how much money they made in Zeek. IRS has a rewards program for whistle blowing too. Call the credit card company explain to them the deal with sec and you will win back the monthly charges.

Toby S August 21, 2012 at 3:55 am
Well said, Barbara Heaton and Joe Hill. Can't believe I missed the "vision" misspelling, Joe. You are mean-spirited, Harrison Williams! All in Zeek felt it was the most awesome way on Earth to help the little guy have hope! After all, isn't Social Security a Ponzi Scheme? I'm putting in way more than I will ever get to take out - and don't even have a choice!

Joe Hill September 4, 2012 at 5:25 pm
Thanks Toby S. I guess it was too bad that Zeek was opened in the U.S. where "the land of the free and the home of the brave" is shrinking. I agree that Social Security is a REAL "Ponzi" scheme and don't get me started on the non "Federal" Reserve which creates money out of thin air with nothing backing it anymore except for the "good faith and credit" of the United States which is now one of the biggest debtor nations (if not the BIGGEST debtor nations) in the world and I don't mean as a percentage of GDP which would have put us at #20 but rather total amounts: Gross external debt: $14.959 trillion 2011 GDP (est.): $15.040 trillion, External debt per capita: $47,664. See http://www.cnbc.com/id/30308959?slide=2 I guess we shouldn't be surprised that GOVCO would want to shut anything down which competes with the monopolistic schemes they allow to flourish, whether it be public or private. I also won't be surprised if GOVCO figures out another scheme to perpetrate on an unsuspecting public which will be based on what Zeek did and make it illegal for anyone else to do. We've seen it all too often with legalized lotteries, casinos, eminent domain, theft through the ballot box (voting to tax your neighbors as well as yourself). I LOVE my Country but FEAR my Government!

hellena August 21, 2012 at 1:17 pm
I am new to zeek too but what i know is that it helped lots of my friends stop illegal acts like scamming, selling drugs, and much more. I worry very about its trouble because i dont know what will happen to my friends and others that changed because of zeek. Zeekrewards was the best thing that ever happened to them

Jean le Roux August 22, 2012 at 11:09 am
Listening to Tim Sales again this morning, he talked about people's bugs and one in particular: bad experiences in previous industries. His response to that, and this is basically what I want to motivate all Zeek associates with, is that if you had a bad meal at a particular restaurant, it should not mean that you will never eat at any restaurant again! Don't discard the industry because of the bad experience of one company. Use this experience and see the good that can come from it. Never discard the experience, the training, the personal development, the industry and most important, your dream! Stand up stronger and run towards what you believe in! All the best to you all and I pray this adversity will make you stronger!

David August 22, 2012 at 10:42 pm
1.5% compounded DAILY is all one should need to consider to figure out the Zeek Rewards was absolutely, positively guaranteed to collapse. A $10,000 investment compounded daily at 1.5% would grow to $2,291,423.70 ($2.3 million). No educated person would fail to see the law of large numbers - hundreds of thousands of participants - makes such a payout IMPOSSIBLE to maintain. A mere 1,000 participants, at $10,000 dollars each - would call for a payout/funding amount of 22,914,237,000 ($22.9 BILLION), and that's after just a single year of daily compounding at 1.5%. There is NO WAY Zeek Rewards was going to be able to generate that kind of revenue. In reading some of the pro-Zeek comments here it becomes pretty clear many of the "Zeekers" are uneducated and borderline illiterate. ...people with little education, virtually no understanding of business, from the lower economic strata, hoping to catch magic in a bottle, or find some miraculous, easy way to wealth and prosperity. If amassing huge fortunes were that easy everyone who put forth the very minimal amount of effort would become a millionaire. I had a friend pitch "Zeek" to me about a month ago, and she actually become very angry when I told her it was a pyramid scheme, and I would have no interest in getting involved with it. Needless to say she's now singing a very different tune. "A fool and his/her money are soon parted, if, in fact, they ever manage to get together in the first place." - Gordon Gekko (Michael Douglas), "Wall Street"

Joe Hill September 4, 2012 at 4:51 pm
David, It's obvious that you either don't know or chose to ignore the fact that there was no "compounded DAILY" " "returns", "interest" etc. that accumulated on a non-expiring principle base that your typical Banks and other financial services are legally allowed to do. There was a "profit share" that amounted to around 1.5% daily which accumulated on a 90 day EXPIRING VIP Point base. That is not to say that the accumulated VIP Point base was the equivalent to cash as it most certainly was NOT. The "VIP POINTS" base which someone like yourself might have to consider as a "non-cash principal" (to try analogize to a bank scheme) which could NOT be converted to CASH. The daily "REWARDS" that accumulated due to the ever expiring VIP Point base could either be received in the form of repurchased Sample Bids or CASH to be received. Of course, those who chose to take out their REWARDS as "all" cash would only be able to do that for so long as the VIP Point base for which REWARDS were being issued expired after 90 days so there would be no growing exponentially as you tried to make the case out to be. The fact is that the VIP Points that accumulated expired 90 days after receiving them and would no longer be eligible to receive "PROFIT SHARE". To try and draw an analogy to your standard bank investment scheme (for illustrative purposes only)...if you take your deposits out of a Bank, you would no longer be eligible to receive any interest or return on your "non-expiring" principal whereas in Zeek you had what YOU might consider a "principal" but the principal had an expiration date of 90 days. Unless people used their REWARDS to in a judicious way, their principal base would dwindle to nothing. Maybe after you've investigated and learned what "was" with respect to the Zeek opportunity versus what you've heard through the minds and mouth's of those who hadn't participated in Zeek, will you then understand what this opportunity was to those who actually participated and were perfectly content with prior to GOVCO getting involved. Given that many Attorneys and Accountants had participated in Zeek should also give you an inkling that maybe, just maybe, Zeek was an opportunity worth pursuing, that is until GOVCO got involved. If you intend to reply...please do so without relying on the party line of the government and other detractors. Please try and come up with your own original thoughts and arguments based on the facts as they "were" and not based on what they are "now" after GOVCO has pressed their mighty weight against the company. In other words please spare us the Monday morning quarterbacking or your 20/20 hindsight . Regards!

Joe Hill September 15, 2012 at 2:16 am
Those people calling Zeek a Ponzi Scheme or Pyramid scheme should be calling out the real schemers like billionaire Bill Gross is doing: "Stocks Were A Ponzi Scheme For The Last Hundred Years" http://www.forbes.com/sites/steveschaefer/2012/07/31/pimcos-bill-gross-says-stocks-are-a-ponzi-scheme/ See also his comments regarding Pyramid Scheme: http://moneymorning.com/ob/bill-gross-normal-economic-growth-impossible-now/