A newly surfaced video shows Zeek Rewards CEO Paul Burks admitting his company operated as a Ponzi scheme during a December 2011 Q&A session. This admission predates the company's collapse and the SEC's subsequent fraud charges against him.
The Securities and Exchange Commission previously alleged that Burks alone manually adjusted the daily percentage return on investment paid to affiliates. However, the full extent of executive management's involvement remained unclear after the scheme's collapse.
Sales Director Darryle Douglas disappeared weeks ago, citing "health reasons." Chief Marketing Officer Dawn Wright-Olivares has not made a public appearance. Their current whereabouts are unknown.
Chief Operating Officer Greg Caldwell has remained largely silent. He is believed to be assisting investigators with corporate inquiries. It is not clear if Caldwell still supports the company or is merely fulfilling contractual obligations.
No criminal charges have been filed yet. This has fueled speculation about future indictments, especially concerning Burks. He paid a $4 million fine to the SEC but has otherwise avoided criminal prosecution so far.
The US Secret Service and the North Carolina Attorney General's Office both have open investigations into Zeek Rewards. The status of these inquiries is not public. Media reports also suggested a third agency was investigating, but details never surfaced.
Some former affiliates, perhaps still denying Zeek Rewards was a Ponzi, proclaimed Burks' innocence. Troy Dooly of MLM Helpdesk, for example, suggested the company might have been infiltrated by an international Ponzi ring.
Burks' own words in the recently found video directly contradict these claims. The video was shot by an attendee at a Q&A session. It shows Burks speaking to top company affiliates, likely members of the rumored "Founders Club."
The video was originally uploaded in December 2011 to the YouTube account 'soljaboy2006' as an unlisted video. A copy later provided by Troy Dooly in August 2012 circulated more widely.