The Zeek Rewards Receiver was appointed back in August of 2012.

Saddled with recovering funds for distribution to victims of the $900 million Ponzi scheme, other than a few disappointing settlements the Receivership has overall been a success.

The Receiver has marshaled total assets of approximately $361.4 million during the period between August 17, 2012 and June 30, 2016, while disbursing approximately $269.1 million during the same period.

In the latest Status Report for the second quarter of 2016, the Receiver advises that he’s almost ready to wind up the Receivership and call it a day.

The Receiver describes the class-action lawsuit filed against US net-winners as ‘
the driver in bringing the Receivership to a close.
‘

Once this action is completed, the Receiver’s work in any remaining litigation and the claims process should end soon thereafter.

In the second quarter of 2016, the Receiver was paid

the remaining $5 million NewBridge Bank owed as part of their
settlement agreement
 and

$218,504.76 and $5,785.30 into the Affiliate Payments Account and the Settlement Account

In total, $987,288.64 was paid back to Zeek Rewards victims during the second quarter.

Pending the outcome of the net-winner lawsuit, for the most part the Receivership has otherwise begun to wind down.

In no particular order, here’s a run down of the rest of the Receiver’s report.

Funds held by the Receiver

As of June 30, 2016, the Receivership Estate held approximately $92.6 million in the Affiliate Payments Account as a reserve against distributions to claimants who have yet to provide the required Release and OFAC Statement, and approximately $1.4 million in the Holdback Account.

Sale of Jaymes Meyer’s assets

Through his company Preferred Merchants, Jaymes Meyer (right) received millions of dollars in stolen Ponzi funds.

When Zeek Rewards was shut down, Meyer attempted to
hide funds in his possession
. He later used the funds to purchase property in California and the Turks and Caicos Islands.

The DOJ caught up with Meyer and
filed obstruction of justice charges
against him back in March. Likely realizing he was screwed, Meyer entered into a settlement agreement with the Receiver.

During the second quarter of 2016 the Receiver Team continued to work with counsel in the Turks and Caicos Islands (“TCI”) to complete the sale and transfer of a house and car purchased by Jaymes Meyer with Receivership assets.

The transaction was complicated by a “caution,” or a lien, of $700,000 having been placed on the house by a contractor who had performed services for Meyer without being paid, and by the fact that renovations to the house by Meyer resulted in it encroaching onto Crown, or government, land.

Extensive discussions and documentation were required to gain TCI Court approval and complete the sale for a total purchase price of $485,000.

During the third quarter of 2016 the Receivership will receive payment of $110,000 and receive the balance of $375,00

🤖 Quick Answer

When was the Zeek Rewards Receiver appointed and what was the primary objective?
The Zeek Rewards Receiver was appointed in August 2012 to recover funds for distribution to victims of the $900 million Ponzi scheme. Between August 2012 and June 2016, the Receivership marshaled approximately $361.4 million in total assets and disbursed roughly $269.1 million to affected parties.

What is the current status of the Zeek Receivership?
As of the second quarter 2016 status report, the Receiver indicated near-readiness to wind up the Receivership. The pending class-action lawsuit against US net-winners is described as the primary driver for bringing the Receivership to closure, with work expected to conclude upon completion of this litigation.

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