Marketing consultant Keith Laggos, hired by Zeek Rewards in June 2011, abruptly left the company last week, following a promotional call for another multi-level marketing firm, Lyoness. Laggos had previously claimed credit for restructuring Zeek's compensation plan to comply with anti-pyramid and Ponzi scheme laws.
Laggos describes himself as a "marketing and management consultant" who has worked with "dozens of direct sales companies." He joined Zeek Rewards as a paid consultant, influencing a key change in the company's payout structure. Zeek shifted from guaranteeing a 125% return on investment for every bid purchased to issuing a variable return over 90 days.
Despite Laggos's claims of legal compliance, Zeek Rewards has consistently refused to disclose whether the daily returns paid to affiliates primarily consist of affiliate money. The company cites "proprietary information" for this secrecy. This lack of transparency leaves Laggos's assertions about legal adherence open to question.
Laggos appeared confident that Zeek Rewards operated within legal bounds regarding Ponzi or pyramid scheme accusations. He had reportedly shifted his focus to the penny auction aspect of the business. This change in priorities ultimately led to his unexpected departure from Zeek Rewards.
The fallout between Laggos and Zeek Rewards appears linked to a promotional call Laggos made for Lyoness. This MLM company allows members to invest and earn returns ranging from 730% to 1164%, depending on the investment amount, after a specific number of downline investments occur.
On the call, Laggos claimed his Lyoness "group is the fastest growing group in the history of the company." He contrasted potential earnings between Zeekler and Lyoness. "You put ten thousand dollars in Zeekler, if nothing happens over the next year, you'll probably make twenty or forty thousand if that's all you do without building the front end." He then added, "If you put the same amount of money in Lyoness and don't do anything else, without a single sponsored person you could probably make a quarter of a million dollars."