Paul Burks, founder of the $600 million Zeek Rewards Ponzi scheme, broke his silence to the Associated Press. He offered no apology to the investors who lost money. Instead, Burks told the news agency that victims should not blame him for their financial losses.
"I never told anyone to invest more money than they could afford," Burks stated. "I didn't tell them to do that. Never." He added that if investors lost money, "it's their fault. Not mine. Don't blame me." This statement came after the SEC fined him and shut down Zeek Rewards.
A secret recording earlier detailed discussions Burks had with initial investors. This conversation laid out the history of the Zeek Rewards operation. Its existence fueled ongoing debate about how much Burks personally knew about running a Ponzi scheme. His recent comments suggest he understood the business model.
Other key figures from Zeek Rewards have largely disappeared from public view. Ex-COO Dawn Wright-Olivares and her husband, Alex DeBrantes, now market e-cigarettes under the brand "Savage Smokes."
Greg Caldwell, who served as "Acting" COO, publicly dismissed critics as "self-appointed with no standing" just weeks before the SEC intervention. Caldwell has not been seen or heard from since the shutdown. Robert Craddock, who called himself Caldwell's sidekick, convinced investors to fund his legal defense and that of 12 top Zeek Rewards earners. Craddock has also vanished. Sales Director Darryle Douglas disappeared weeks before the SEC shut down Zeek Rewards and remains out of public sight.
The scheme's impact extended beyond its immediate management. Well-known MLM industry figure Keith Laggos boasted of making "$40,000 a month" in Zeek Rewards weeks before the SEC acted. He has not been publicly seen or heard from since. The Association of Network Marketing Professionals (ANMP) described Zeek Rewards as "the model of legal compliance" at its March 2012 annual convention. This endorsement occurred due to significant involvement in Zeek.
