A company that pocketed nearly $10 million helping a massive Ponzi scheme process payments now claims it's a victim.

Plastic Cash International is asking a federal court to believe it got duped by Zeek Rewards, the Rex Venture Group operation that defrauded investors of $850 million. The Zeek Rewards Receivership isn't buying it. The Receiver is demanding PCI return $8.9 million in fees the company collected while providing payment processing services that kept the fraud running.

The numbers tell a different story. PCI collected $9.7 million in fees from Rex Venture Group. Then, after the scheme collapsed, the company filed a claim against the Receivership demanding another $14.9 million in stolen investor funds. The Secret Service seized $812,433.96 from a PCI bank account during its investigation.

When the Receivership first contacted PCI in mid-2013, the company played dumb. It had routed all Zeek business through a bank account labeled "SecureNet," a separate payment processor, to hide the connection. That deception unraveled after forensic accountants discovered $8.9 million stashed in an account at the Los Angeles Firemen's Credit Union. By then, PCI had already withdrawn the money. Its location remains unknown.

The Receiver filed a motion asking the court to force PCI to surrender the funds and hold the company in contempt. PCI fired back yesterday with a 25-page response claiming victim status.

The filing reveals how PCI got tangled with Zeek. Nathan Shew, described as a broker working for Rex Venture Group, approached PCI in March 2012 about providing prepaid card products to Zeek customers. This was roughly three months before the SEC shut down RVG's operations.

Shew presented PCI with a proposition: RVG would allow PCI to market Zeekler-branded prepaid cards only if PCI agreed to process payments for Zeekler and ZeekRewards monthly memberships. In other words, deepen your involvement in our scheme or get nothing.

PCI took the deal. By June 2012, the company was processing transactions and collecting fees from what would become the largest Ponzi scheme the SEC had seen in years. The company knew it was dealing with a high-risk operation. Internal discussions show PCI understood it was moving money for a membership-based business model, the defining characteristic of the pyramid scheme.

Yet PCI executives signed on anyway. They processed payments. They collected fees. They watched their account balances grow while investors got fleeced.

Now PCI wants a court to believe the company couldn't have known what was happening. The Receiver's motion paints a different picture: a company that deliberately concealed its relationship with Zeek, stashed money in multiple accounts, and fled with funds once the fraud was exposed.

The court will decide whether PCI's claim of victimhood holds water. Based on the facts, don't bet on it.

🤖 Quick Answer

What is the dispute between Plastic Cash International and the Zeek Rewards Receivership?
Plastic Cash International collected $9.7 million in payment processing fees from the Zeek Rewards Ponzi scheme while it operated. After the fraud collapsed, the Receivership demanded PCI return $8.9 million in fees, while PCI simultaneously filed a claim seeking $14.9 million in investor funds, claiming victim status.

How much money did Zeek Rewards defraud from investors?
Zeek Rewards, operated by Rex Venture Group, defrauded investors of approximately $850 million through its Ponzi scheme before authorities shut down the operation.

What enforcement action did the Secret Service take against PCI?
The Secret Service seized $812,433.96 from a Plastic Cash International bank account during its investigation into the Zeek Rewards fraud and

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