Yesterday BehindMLM reported on a court order directing Payza, Payment World and VictoriaBank to return $13.1 million dollars in funds stolen through Zeek Rewards.

Today the Zeek Receiver’s filed accompanying Memorandum has also been unsealed, shedding light on the games the three entities have been playing over the past three years.

In 2010, Zeek Rewards CEO Paul Burks opened an account with Payza (then known as AlertPay), in the name of Rex Venture Group LLC.

Prior to operation of the account, Payza purportedly ‘
conducted due diligence, collecting and reviewing information about Paul Burks and the (Zeek Rewards) business
‘.

Despite these procedures, Payza did not identify or address the red flags indicating that Zeek Rewards was a Ponzi scheme and, instead, together with PaymentWorld and VictoriaBank, facilitated access and payment to and from Zeek Rewards by numerous affiliates worldwide.

All in all Payza, PaymentWorld and VictoriaBank processed $23 million dollars in stolen Ponzi funds, with $13.1 million dollars remaining unaccounted for (the Secret Service already seized $8.9 million from Payza).

In an effort to secure the funds for distribution to Zeek Rewards victims, the Receiver approached Payza, PaymentWorld and VictoriaBank.

Negotiations were entered into, but three years later the funds remain unreturned.

Payza was the Receiver’s first port of call, with the payment processor claiming the funds in question were ‘
held in an account at VicrtoriaBank in Moldova, owned by a PaymentWorld entity over which it has no control
‘.

Well alright then. So contact PaymentWorld and get them to send the funds over?

Nah.

PaymentWorld US ‘
claims it has no access or control over the PaymentWorld account at VictoriaBank that is titled in PaymentWorld Moldova’s name
‘.

Here’s the thing though, PaymentWorld US and PaymentWorld Moldova have the same management and oversight personnel. Or in other words, they’re run by the same people.

So uh… contact VictoriaBank directly and get
them
to send the funds over?

Nah.

VictoriaBank claims that it is not obliged to return the funds under the Freeze Order because there is no evidence that this account and these funds are connected with RVG.

Seriously?

VictoriaBank know the account in question is in PaymentWorld Moldova’s name, who at the time the deposits were made were conducting payment processing for Payza, who in turn was acting as Zeek Rewards’ payment processor… but they’re 
still
going to claim there’s no proof the funds are connected to RVG?

Bloody hell, no wonder the Receiver has filed a contempt motion.

Here’s the thing though, while it might all appear innocent on the surface, the reality appears to be nothing more than Russian scammers refusing to give up their stolen loot.

Recent information indicates that the funds at VictoriaBank may have been transferred from the PaymentWorld account to another bank in Russia.

Citing “a lack of co-operation” from VictoriaBank and PaymentWo

🤖 Quick Answer

What role did Payza play in the Zeek Rewards fraud?
Payza processed transactions for Zeek Rewards through an account opened by CEO Paul Burks in 2010 under Rex Venture Group LLC. Despite conducting due diligence on the business, Payza failed to identify Ponzi scheme red flags and continued facilitating fund transfers, ultimately requiring a court order to return $13.1 million in stolen investor funds.

Why didn't Payza's due diligence procedures detect the Zeek Rewards scheme?
Although Payza collected and reviewed information about Paul Burks and the Zeek Rewards business before account operation, the payment processor failed to identify or address critical warning indicators of fraudulent activity. This oversight allowed the scheme to continue operating through their platform.

What legal action resulted from Payza's involvement with Zeek Rewards?
A court

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