Two operators of a company that promoted the Zeek Rewards Ponzi scheme are about to walk away with a fraction of what they stole.

Oscar H. Brown and Robert Mecham helped defraud Zeek Rewards victims out of $1.8 million. The Zeek Receiver sued them in 2015 along with USHBB and operator James More. Default judgments were already entered against USHBB for $675,000 and More for $109,130.

Now Brown and Mecham have negotiated their way to a sweetheart deal. Settlement agreements were reached on May 14th and May 8th respectively, pending court approval.

Here's where it gets interesting. Both men claim they committed no unlawful acts and didn't know Zeek Rewards was running an illegal Ponzi and pyramid scheme. This comes despite both having documented histories of participating in similar scams before Zeek Rewards. Their defense crumbles further given that they acknowledge receiving over $1 million in stolen investor funds combined and that USHBB's promotional videos helped perpetuate the fraud.

The Receiver's reasoning for accepting a settlement is straightforward: Brown and Mecham say they're broke. The Receiver determined that litigation costs and the drain of enforcement proceedings would make collecting a full judgment economically pointless. So instead of fighting, the Receiver cut a deal.

The numbers tell the real story. Both men agreed to a Confession of Judgment for $1 million dollars. But the actual cash they're returning to the Receivership? $37,500 each. That's based on their sworn financial statements and testimony about their current financial condition.

The public doesn't get to see those statements. Neither does the settlement agreement explain where the $1.8 million went or why two alleged scammers suddenly have nothing to show for their million-dollar haul from stolen funds.

There is one small mechanism in place. If either Brown or Mecham breaches the settlement agreement, the full $1 million plus interest becomes immediately due. But the chances of enforcement seem slim given that these are serial fraudsters making sworn statements about their finances.

Judge Mullen approved both settlement proposals on June 8th, 2018. Brown and Mecham faced a choice between a long legal battle and walking away with minimal consequences. They chose the latter, and the court signed off on it.

🤖 Quick Answer

What were the settlement negotiations regarding Oscar H. Brown and Robert Mecham in the Zeek Rewards case?
Settlement agreements were reached with Brown and Mecham on May 14th and May 8th respectively, pending court approval. Both defendants claimed they committed no unlawful acts and were unaware Zeek Rewards operated as an illegal Ponzi and pyramid scheme, despite their documented histories in similar fraudulent schemes.

How much did Brown and Mecham allegedly defraud from Zeek Rewards victims?
Oscar H. Brown and Robert Mecham helped defraud Zeek Rewards victims out of $1.8 million collectively. The Zeek Receiver sued them in 2015 alongside USHBB and operator James More, who received default judgments of $675,000 and $109,130 respectively.

🔗 Related Articles

- BitConnect class-action lawsuit filed over $771,000 in losses
- Seventh BitConnect class-action voluntarily dismissed (California)
- Seventh BitConnect lawsuit filed in California ($110,000 in losses)
- Trevon James facing $2 million BitConnect SEC clawback
- US BitConnect promoters sued by SEC