The Zeek Receivership's fourth quarter 2014 report, filed on January 30, 2015, details the ongoing efforts to recover assets and settle claims related to the Zeek Rewards Ponzi scheme. The 31-page document outlines the Receiver’s fees and expenses from October 1 through December 31, 2014, and touches upon several persistent issues.
A significant challenge involves resolving claims stemming from dishonored cashier's checks, teller's checks, and bank money orders. These instruments, some held uncashed by Zeek Rewards prior to its shutdown, became property of the Receivership. However, some investors acted to stop payment after the SEC’s intervention, creating disputes with financial institutions. The Receiver’s conflicts counsel, Erwin, Bishop, Capitano & Moss, P.A. (EBCM), continued to work on these cases. As of December 31, 2014, EBCM had resolved six claims and was actively pursuing thirty-two others with a combined adjusted value of $465,668. Negotiations with thirty banks proved unproductive, leading the Receiver to initiate legal action through turnover and civil contempt motions. Litigation against these institutions is expected later in 2015.
In addition to the cashier's checks, the Receivership is still seeking the return of approximately $13.2 million held by Payza and/or Payment World. Discussions with Payment World's legal representatives were ongoing, focusing on obtaining necessary documentation and information to facilitate the recovery of these funds. The Receiver’s team engaged with Payment World’s counsel to advance these negotiations.
The report also covers the Receiver's fees and expenses for the period. These costs are a necessary component of the complex asset recovery and claims administration process following a large-scale financial fraud. The fees reflect the legal, administrative, and investigative work undertaken to maximize returns for defrauded investors. The continued pursuit of these outstanding funds and resolution of complex claims underscore the protracted nature of unwinding a Ponzi scheme of Zeek Rewards' magnitude.