A federal judge has ordered Trudy Gilmond to repay nearly $1.75 million she stole from victims of the Zeek Rewards scheme, capping a case where her own refusal to cooperate with regulators sealed her legal fate.

Gilmond, a top promoter for the fraudulent operation, got hit with default judgment in April after repeatedly ignoring SEC investigators and court orders. The Securities and Exchange Commission had sued her in June 2015, but by late 2016 Gilmond stopped responding to discovery requests—the documents and evidence needed to prepare for trial.

When the SEC asked the court to sanction her for obstruction, she ignored that too. A judge warned her. She still wouldn't comply. The court had seen enough and entered default judgment against her, meaning she lost the right to defend herself. Her fraud was deemed factual by the court without her ever stepping foot in a hearing.

On June 21st, Judge Mullen signed a final judgment ordering Gilmond to pay $1,752,673.47 in disgorgement—money she has to return to victims. She'll also owe $169,084 in prejudgment interest and face a $150,000 civil penalty on top of that.

The judgment bars Gilmond from violating securities laws going forward. She has thirty days to pay up and show proof to the SEC.

Gilmond's downfall illustrates how Zeek Rewards operated. The operation marketed itself as a penny auction site but actually functioned as a Ponzi scheme, with money from new recruits paying returns to earlier investors rather than coming from legitimate business. Gilmond made her fortune recruiting others into the scam, profiting as they lost their savings.

The SEC filed its motion for judgment and remedies on June 5th, arguing that Gilmond's conduct amounted to "fraud, deceit and manipulation" in her role as a top tier promoter. Rather than fight those claims in court, Gilmond's silence handed the SEC an easy victory.

The case sends a message: ignore federal regulators at your own peril. Gilmond's refusal to cooperate cost her the chance to present any defense. The court simply accepted the SEC's version of events as true and ordered her to make victims whole.

🤖 Quick Answer

What was the final judgment against Trudy Gilmond in the Zeek Rewards case?
A federal judge ordered Trudy Gilmond, a top promoter of the fraudulent Zeek Rewards scheme, to repay approximately $1.75 million to victims. The default judgment was entered in April after she repeatedly refused to cooperate with SEC investigators and ignored court orders regarding discovery requests and sanctions.

Why did Trudy Gilmond receive a default judgment?
Gilmond received default judgment due to her persistent non-compliance with court procedures. After the SEC sued her in June 2015, she stopped responding to discovery requests by late 2016, ignored SEC sanction requests, and failed to comply even after judicial warnings, forfeiting her right to defend herself.

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