With $13.1 million dollars of stolen investor funds in the balance, the court’s decision to grant VictoriaBank a Motion to Dismiss on May 3rd was pretty unbelievable.

Along with dismissing the Receiver’s claims against the bank, the decision would also dissolve the freeze order currently in place.

That freeze order is the only thing stopping the $13.1 million dollars disappearing for good.

To recap, the Zeek Reciever identified some $23 million dollars of Zeek Rewards investor funds passed through Payza.

The Secret Service recovered $8.9 million, with the remaining $13.1 million outstanding.

Following the filing of a lawsuit in 2013 seeking to recover the balance, the Receiver filed a
contempt motion
back in February 2016.

Payza
claimed
the funds were held in a VictoriaBank account in Moldova. PaymentWorld was the alleged owner of the account, with Payza claiming they had no access to it.

PaymentWorld US in turn claimed it had no access to the account, because the account was held by PaymentWorld Moldova.

This despite the fact that PaymentWorld US and PaymentWorld Moldova are the same company
owned and operated by the same people
.

Unable to access the $13.1 million held abroad, a freeze order was granted on $13.1 million VictoriaBank held in a US account at the Bank of New York Mellon.

The freeze order was to be in place pending resolution of the Receiver’s Contempt Motion, which VictoriaBank objected to with a Motion to Dismiss.

To date there is nothing on the case docket indicating a decision on the motion was made on May 3rd itself.

An appeal filing by the Receiver on May 23rd however reveals Judge Mullen announced an intent to grant the dismissal motion in open court, but gave the Receiver thirty days to file an appeal.

In effect the order granting the dismissal was stayed for thirty days pending an appeal, which the Receiver filled on May 23rd.

Notice is hereby given that Kenneth D. Bell, the Court appointed Receiver of Rex Venture Group, LLC hereby appeals to the United States Court of Appeals for the Fourth Circuit from the Court’s ruling in open court on May 3, 2017 granting Victoriabank’s Motion to Dismiss and indicating its intent to dissolve the Freeze Order entered by the Court on February 12, 2016 in the absence of an appeal.

On May 25th Judge Mullen acknowledged the Receiver’s appeal, and ordered the dismissal order stayed until its conclusion.

VictoriaBank meanwhile has filed a motion to vacate the freeze order on May 30th.

In its motion, VictoriaBank claim the May 3rd ruling was correct in that the court had no jurisdiction over it.

VictoriaBank acknowledge the Receiver’s appeal filing, but cite alleged shortcomings in the Receiver’s original filing for the stay.

This Court has already ruled that it does not have jurisdiction over Victoriabank, and that, therefore, the Receiver’s Motion must be dismissed and the 2016 Freeze Order dissolved.

This ruling was made less than a month ago.

Nothing new has emer

🤖 Quick Answer

What was the significance of the court's decision to dismiss VictoriaBank's motion?
The dismissal granted on May 3rd removed legal obstacles preventing access to $13.1 million in frozen Zeek Rewards investor funds held in a VictoriaBank account. The decision would have dissolved the freeze order protecting the funds from disappearing, creating substantial risk for recovery efforts in the ongoing litigation.

How much Zeek Rewards investor money was ultimately recovered?
The Secret Service successfully recovered $8.9 million of approximately $23 million in Zeek Rewards funds that had passed through Payza and VictoriaBank accounts. The remaining $13.1 million balance remained outstanding and subject to the Receiver's recovery efforts.

Why did the Receiver appeal the VictoriaBank dismissal?
The Receiver appealed because dissolving the freeze order would enable the $13

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