The SEC complaint filed in North Carolina District Court revealed that Rex Venture Group, its CEO Paul Burks, Zeek Rewards, and Zeekler raised over $600 million from approximately one million investors. This investigation culminated yesterday in the shutdown of Rex Venture Group's entire operations.
Initial reviews of Zeek Rewards in September 2011 questioned the business model. The attraction of retail customers seemed unclear. A follow-up explored its passive investment nature shortly after.
Over eleven months, a communal firestorm of critical analysis dissected Zeek Rewards. Analysts explored its business model, money trail, compensation plan, and commission structure from every angle. Dozens of articles and thousands of comments exchanged views among analysts, supporters, and critics. Today, that analysis found its conclusion.
Critics often heard dismissals about "not having the facts." The SEC investigation, however, provided direct figures. These facts detailed the accuracy of earlier discussions that deconstructed the $600 million Zeek Rewards Ponzi scheme.
The SEC claims the defendants raised more than $600 million from around one million investors nationwide and overseas since January 2011. This money came from unregistered offers and sales of securities through the ZeekRewards website. Premium Subscriptions and VIP Bids were the primary mechanisms.
Revenue generated by Shopping Daisy, Zeekler retail bids, and the FSC Store was presumably too low for the SEC to even include figures in their complaint. Rex Venture Group's other properties consistently showed irrelevance in terms of revenue. A complete lack of retail customers made it clear that affiliates' purchasing VIP bids generated all of Zeek Rewards' revenue.
One strong criticism against analysis of Zeek Rewards' Ponzi nature involved constant claims that "critics" lacked all the facts. Evidence from affiliates, observations of payout mechanics, and tracking of commissions paid to thousands of affiliates mounted. Still, claims that Zeek Rewards paid a daily ROI consisting mostly of new affiliate money often met dismissal.
The SEC's complaint confirms that the $600 million raised came primarily from Premium Subscriptions and VIP Bids, not retail sales.