Despite Plastic Cash International’s objection and concerns their litigation might delay payments, Judge Mullen has come through and ordered that the first payments to Zeek victims will go out on September 30th.

Plastic Cash International’s claim wasn’t ignored, with Mullen observing

the Court specifically notes that this Order does not purport to determine the validity or priority of PCI’s claim.

The PCI Claim will be addressed through the Claim Determination process and separate litigation.

Plastic Cash International facilitated the operation of the Zeek Ponzi scheme by providing access to payment processor services. As such, the Receivership classified PCI as a “trade creditor” and designated them “class 2” claimant status.

Under the Receivership, class 2 claimants are not entitled to ‘
receive a distribution from the Receivership Defendant
‘.

PCI have
objected
to this classification, arguing that they were no different than Zeek’s net-loser investors. As such, until their class determination could be resolved, they demanded no money was paid out to Zeek’s victims.

In his recently filed
second quarter report
, the Receivership had claimed PCI’s ‘
objection threatens to significantly delay the payment of an interim distribution to Affiliates
‘.

In order to both see payments to Zeek’s net-loser investors not be delayed and satisfy the possibility that PCI might be granted their objection, the Receivership has set aside the $14.9 million PCI are seeking. Judge Mullen ruled that this action was “proper”, in effect endorsing it.

Should PCI’s objection be denied (which I’m tipping it will, seeing as they
clearly
are nothing more than a trade creditor), one would assume the $14.9 million would then be re-pooled with the funds being used to pay out net-loser investors with.

Footnote: 
Our thanks to Don @ ASDUpdates for providing a copy of Judge Mullen’s order.

🤖 Quick Answer

When will Zeek victims receive their first compensation payments?
Judge Mullen has ordered that the first payments to Zeek Ponzi scheme victims will be distributed on September 30th, despite objections from Plastic Cash International regarding potential litigation delays affecting the restitution timeline.

What is Plastic Cash International's role in the Zeek case?
Plastic Cash International facilitated the Zeek Ponzi scheme operation by providing payment processor services. The Receivership classified them as a "trade creditor" with class 2 claimant status, which limits their entitlements compared to primary victims.

How will Plastic Cash International's claim be handled?
The Court acknowledged that this payment order does not determine the validity or priority of PCI's claim. Their claim will be separately addressed through the Claim Determination process and additional litigation proceedings.

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