Beverly Trca-Kitchen, a Canadian resident, offered a $2,801 settlement to the Zeek Rewards Receiver in March, seeking to resolve a $314,228 debt. This amount represents the net profit she withdrew from Zeek Rewards before the $900 million Ponzi scheme collapsed. Her proposal was promptly rejected by the Receivership, prompting Trca-Kitchen to file a letter with the court on March 23rd, asking a judge to override the Receiver's decision.
Zeek Rewards operated as a massive pyramid and Ponzi scheme, ultimately defrauding over a million participants worldwide. The operation, based in Lexington, North Carolina, promised daily returns through retail profit pools and penny auction bids. Its founder, Paul Burks, was later convicted and sentenced to federal prison for orchestrating the fraudulent enterprise. Following the scheme's collapse, a court-appointed Receiver began the process of recovering funds for victims, including clawing back profits from net-winners like Trca-Kitchen.
In her filing, Trca-Kitchen described herself as financially distressed when she joined Zeek Rewards. She claimed to be a single parent and homeless in 2010, amid an ongoing divorce that finalized in mid-2012. She further stated that the aftermath of the Zeek collapse exacerbated her personal hardships, making it difficult to secure employment due to her public association with the scheme. Trca-Kitchen asserted that she now holds total assets of just $8,798.
The Receiver questioned Trca-Kitchen's accounting. "You made over $300,000 in the ZeekRewards scheme. We cannot possibly recommend a settlement amount that is approximately 1% of what you made. Where did all the money go?" the Receiver asked. Trca-Kitchen responded by reiterating her narrative, attributing the dissipation of funds to "business expenses," "taxes (a huge portion)," "divorce debts," and "paying for other affiliates' bids." She provided no documentation for these claims, such as receipts for legal fees, tax payments, or business expenditures.
The Receiver's office did not accept this explanation. "Thank you, we are sorry for your alleged financial circumstances, but again we cannot recommend a settlement of such a low amount," the Receiver replied. The office advised Trca-Kitchen to prepare a formal response to its motion for Summary Judgment. The lack of verifiable evidence for her expenditures raised significant concerns for the Receivership, which must account for every dollar recovered for the scheme's victims.
Trca-Kitchen also claimed she had abandoned network marketing entirely, citing a lack of confidence and inability to find traditional employment. However, her public social media activity, specifically her Twitter feed, contradicted this assertion. Records show her promoting several other multi-level marketing and alleged pyramid schemes after Zeek Rewards collapsed. These included "The Your Night pyramid scheme" in 2010, "The Staged pyramid scheme" in 2011, "The defunct Select Skinny MLM" in 2011, "Empower Network" in 2012, "The PureNRG FX pyramid scheme" in 2013, "The Rippln MLM disaster" in 2013, "The Karatbars International pyramid scheme" in 2013, and "The Neurs social network MLM" in 2014. Her involvement in these subsequent ventures casts doubt on her claims of disengagement from the industry and her general financial precarity.
Her reported 2016 income was $8,858, primarily from cashing out retirement savings. At 55 years old, she reports total debts of $54,962 (Canadian dollars). Trca-Kitchen lives with her parents, providing care and household services in exchange for room and board. She states she has not owned property in over ten years and still drives a car purchased in 2003. Her proposed settlement of $3,750 Canadian, or $2,801 USD, represents less than one percent of her Zeek Rewards profits. She argued that a judgment against her for the full amount would force her into immediate bankruptcy.
The court has given the Zeek Rewards Receivership until April 6th to file its response to Trca-Kitchen's request.