Burks, Wright-Olivares and son to pay Receivership $600M

As the Zeek Rewards Receivership continues to pursue financial settlements with insiders who should have known better, news broke today that those at the top have already settled.

In his status report for the second quarter of 2014, Receiver Kenneth Bell has revealed that

By the filing date of this report, the Receiver had reached settlement agreements with Paul Burks, Dawn Wright-Olivares, and Daniel Olivares, pending Court approval.

Each of these defendants agreed to a consent judgment of $600 million to be satisfied with substantially all of their assets.

How the $600M figure will be paid back, in particular who is paying what amount, is unclear. Ditto how much of the judgement will be distributed to the scheme’s victims by the Receivership.

What is clear though is that it appears to be a lump sum, and after it’s paid – those primarily responsible for the creation and operation of the Zeek Rewards Ponzi scheme will have absolutely nothing left to show for it.

As someone who was actively covering Zeek Rewards during the height of the Ponzi insanity that gripped so many within the MLM industry, this latest judgement is a far cry from the hype and cheerleading that went on during Zeek’s heyday.

Not withstanding Burks, Wright-Olivares and her son being left penniless as a result of settling with the Receivership, the trio of Zeek’s top scamsters still have the civil and criminal cases against them to contend with.

That said, the $600M judgement clearly dwarfs the $4 million Burks agreed to settle the civil case against him by the SEC.

On the criminal front, last December Dawn Wright-Olivares and her son Daniel pled guilty to fraud. What additional penalties they face are as of yet undetermined.

Meanwhile criminal charges have yet to be filed against Zeek’s owner, Paul Burks. Speaking with the Secret Service a few days ago, the Dispatch confirmed ‘
no criminal charges have been filed on Burks
‘.

That criminal charges will eventually be filed against Burks is a certainly, it’s just a matter of when.

Other issues covered in the Receivership’s quarterly report include

ongoing negotiations with NxPay to recover $13 million in stolen affiliate funds ($3.98 million has already been recovered)

a letter sent to Preferred Merchants and its CEO Jaymes Meyer demanding $4.8 million in stolen affiliate funds be returned ($1 million has already been recovered)

ongoing attempts to recover $9.8 million from Plastic Cash International

continued investigation into how to best recover $13.9 million in stolen affiliate funds held by Pazya, $1.7 million from Solid Trust Pay and $5.1 million from CyberProfit (“a
s part of these efforts, the Receiver Team is working closely with various government agencies at various levels to investigate, pursue outstanding information, and recover funds from these foreign accounts
“)

the interviewing of Kevin Grimes, Gerald Nehra, Richard Waak, Howard Kaplan, other attorneys and “a former employee of RVG” (note that
K

🤖 Quick Answer

Who were the main defendants in the Zeek Rewards Receivership settlement?

What was the total settlement amount in the Zeek Rewards case?
The three defendants agreed to a combined consent judgment of $600 million. Each defendant's individual contribution to this total amount was not clearly specified in the Receiver's second quarter 2014 status report.

What remained unclear regarding the $600 million settlement?
The specific payment structure and individual liability amounts for each defendant were not disclosed. Additionally, the distribution methodology to victims through the Receivership remained undefined at the time of the report filing.

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