In contrast to
Paul Burks’ criminal trial brief
, the Zeek Receiver’s 
facts
make it abundantly clear Zeek Rewards operated as a Ponzi scheme.

Like all classic Ponzi schemes, the vast majority of the Zeek winners’ money came from the Zeek losers rather than legitimate business profits.

Of the over $900 million that was paid in to Zeek, only approximately $10 million (1.1%) came from actual retail purchases.

More than 97% came from the sale of “VIP bids” and “subscriptions,” which were the currency of the scheme. And, nearly all (93%) of those payments came from net losers.

Two of the primary creators and operators of the ZeekRewards scheme have already admitted it was a Ponzi scheme and pleaded guilty to criminal conduct in connection with the scheme.

In sum, the evidence that ZeekRewards was a Ponzi scheme is overwhelming.

Even the Defendant class’ expert has acknowledged finding no evidence that “disproves that the business as a whole operated as a Ponzi scheme.”

Long-time readers will remember Zeek’s victims had to
cough up $35,000
to pay for the net-winner’s expert witness analysis.

As above, that analysis failed to disprove Zeek Rewards wasn’t a Ponzi scheme. Armed with that conclusion, the Zeek Receiver has filed for summary judgement against Zeek’s net-winners.

In total, Zeek’s “net winners” (those who received more money from Zeek than they paid in to Zeek) received over $282 million in net winnings, with the largest winners each receiving well over a million dollars.

Largest winners named in the Receiver’s lawsuit who have so far refused to settle include:

Jerry Napier (over $1.74 million)

Durant Brockett (over $1.72 million

Darren Miller (over $1.63 million)

Rhonda Gates (over $1.42 million)

T. Le Mont Silver Sr. (over $773,000)

Global Internet Formula, Inc. (owned by T. Le Mont Silver, over $943,000)

Karen Silver (T. Le Mont Silver’s wife, over $600,000)

Aaron and Shara Andrews (over $1 million)

Innovation Marketing, LLC (owned by Aaron and Shara Andrews, as above)

David and Mary Kettner (over $930,000)

Desert Oasis International Marketing, LLC and

Kettner & Associates, LLC (both owned by David and Mary Kettner, as above)

Default judgement has already been granted against net-winners 
Michael Van Leeuwen
,
Todd Disner
,
David Sorrells
,
Trudy Gilmond and Trudy Gilmond, LLC
.

In September of 2015, Berkeley Research Group was authorized to act as an expert witness for the Zeek net-winner class. The Receiver’s expert witness is FTI Consulting Inc.

David Turner, a Senior Managing Director at FTI who regularly performs analyses of financial and accounting data and who is an expert in the areas of system and database design, management and analysis, led the FTI engagement and authored the expert report detailing FTI’s findings.

In Mr. Turner’s report, he first concludes that nearly all funds (approximately

97%) came in to Zeek in the form of payments made for VIP bids and subscriptions from Affiliates and th

🤖 Quick Answer

What was the primary source of funds distributed in the Zeek Rewards scheme?
According to the Zeek Receiver's filing, of over $900 million paid into Zeek, approximately $10 million (1.1%) derived from legitimate retail purchases. The remaining 97% originated from sales of "VIP bids" and "subscriptions," with nearly 93% of those payments coming from net-losing participants, confirming Ponzi scheme characteristics.

How did the Zeek Rewards scheme operate financially?
The scheme functioned as a classic Ponzi mechanism wherein the vast majority of payments to net-winners derived from net-losers rather than legitimate business profits. Revenue streams consisted primarily of membership subscriptions and bid package sales, which constituted the scheme's currency system and primary redistribution mechanism.

What legal admissions have been made regarding Zeek Rewards?
Two primary creators and

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