Intended to be a summary of the financial status of the Zeek Receivership as of December 31st 2014, the Reciever’s latest fees and expenses report nonetheless provides us with some new tidbits of information.

The report comes in at thirty-one pages in length, with much of what is presented having already been reported on here at BehindMLM (check our
Zeek Rewards archive articles
between October and December 2014).

Due to the size of the report, for simplicity’s sake I’ve broken it down into new information under various subheadings below.

Cashier’s Checks

One of the long-running issues in the Zeek Ponzi cleanup has been that of cashiers checks sent in by affiliates.

Prior to the shutdown, Zeek Rewards held a large number of uncashed checks. After the Receiver was appointed these became property of the Receivership (Rex Ventures Group).

Trouble is a number of investors panicked following the SEC shutdown, and had their banks dishonor the checks.

In the quarter ending December 31, 2014, the Receiver’s conflicts counsel, Erwin, Bishop, Capitano & Moss, P.A. (“EBCM”) continued working to resolve claims against financial institutions arising from dishonored cashier’s checks, teller’s checks and bank money orders.

As of December 31, 2014, EBCM had resolved six claims pending completion of settlement documentation, and continued work on thirty-two active claims with a gross adjusted value of $465,668.

Discussions with responsible parties on the thirty-two remaining claims are at impasse such that litigation will be required to resolve these claims.

In an effort to resolve these issues, a claims process was set up to initiate a dialogue between the Receivership and financial institutions who dishonored the checks in question.

EBCM also assisted the Receiver by preparing and administering claim stipulations for eligible banks and related parties that paid money to the Receivership to resolve claims for dishonored instruments after the court-authorized extended December 1, 2013 claims deadline for certain financial instruments.

As of December 31, 2014, claim stipulations are complete or in process for thirty-two financial institutions.

Thirty financial institutions that are potentially eligible to file claims against the estate did not respond to the Receiver’s invitation to enter into a claim stipulation.

The Receiver is at an impasse in negotiations with several banks over the cashier’s check claims.

As a result, the Receiver has decided to pursue those claims through turnover / civil contempt motions under the freeze order.

Expect those lawsuits to hit sometime later this year.

Payza

Payza currently hold $13.2 million in Zeek Rewards funds, which the Receiver continues to negotiate the return of.

With regard to the approximately $13.2 million outstanding from Payza and/or Payment World, the Receiver Team met and conferred with Payment World’s counsel, seeking the production of outstanding information and documents responsive to the

🤖 Quick Answer

What was the primary purpose of the Zeek Receivership's 4th Quarter 2014 report?
The report intended to summarize the financial status of the Zeek Receivership as of December 31st, 2014, detailing the Receiver's fees and expenses. Spanning thirty-one pages, it documented accumulated financial information previously reported throughout the final quarter of that year.

What issue concerning cashier's checks affected the Zeek Ponzi cleanup process?
Prior to shutdown, Zeek Rewards held numerous uncashed checks submitted by affiliates. Following the Receiver's appointment, managing these outstanding cashier's checks became a significant administrative challenge requiring proper documentation and resolution procedures.

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