On February 14th the Zeek Rewards Receiver filed his Status Report for the fourth quarter of 2016.

Nothing much new in the report, but it does give us a current status update as to where everything’s at.

I’ve included the more interesting parts of the report below under respective headings.

Flow of money

During the 2016 fourth quarter, the Receiver deposited

$439,315 from settlements with third-parties and

$500,000 from the liquidation of Preferred Merchants CEO Jaymes Meyer’s
forfeited
Napa, California property

As of December 31, 2016, the Receivership Estate held approximately $89 million in the Affiliate Payments Account and approximately $1.5 million in the Holdback Account.

To date Zeek Rewards victims with allowed claims have recovered a minimum of 60% of funds invested.

$13.1 million VictoriaBank, Payza, PaymentWorld case

The $13.1 million dollar saga between the Receiver, Payza, PaymentWorld and VictoriaBank
began a year ago
and remains unresolved.

During the third quarter of 2016, the Receiver had issued subpoenas to BNY Mellon, which holds Victoriabank’s correspondent bank account, and Deutsche Bank Trust Company, which was involved in certain wire transfers as part of the Payza/PaymentWorld processing relationship.

These entities produced responsive records to the Receiver during the fourth

quarter of 2016, and the Receiver team has begun analyzing these records in preparation for briefing the jurisdictional issues before the Court.

Considering the timing of additional discovery, the Court ordered an extended briefing schedule regarding the jurisdictional challenge of Victoriabank.

As set forth in the Order, the Receivers supplemental brief in opposition to Victoriabank’s Motion to Dismiss is due on March 24, 2017; Victoriabank’s response is due on April 7, 2017; and the hearing will be conducted during the week of May 1, 2017 if the Court has availability during that week.

Preparing Dawn Wright-Olivares’ house for sale

The Receiver team worked to maintain a residential home in Clarksville, Arkansas through the engagement of local contractors.

This property was surrendered to the Receiver as part of a settlement with Defendant Dawn Wright-Olivares.

The Receiver’s local counsel in Arkansas continues work to remove a lien from the property’s title that was filed by a general contractor who had worked on the home.

In the interim, the Receiver has worked to prepare the property for sale.

Notification to US net-winners about clawback amounts

Last November
Summary Judgement was granted
against Zeek Rewards’ top net-winners.

The Receiver has conferred with counsel for the net winner class and presented to the Court a proposed plan that will provide notice to the net winner class and a process to determine the amount of judgment owed to the Receivership by each of the class members.

This process is expected to take several months.

In addition, the Receiver Team worked with collections counsel to pursue collection

🤖 Quick Answer

What did the Zeek Rewards Receiver report in the fourth quarter of 2016?
The Receiver filed a status report on February 14th detailing financial movements, including $439,315 from third-party settlements and $500,000 from liquidating CEO Jaymes Meyer's forfeited Napa property. The Receivership Estate held approximately $89 million in the Affiliate Payments Account and $1.5 million in the Holdback Account as of December 31, 2016.

What recovery rate have Zeek Rewards victims achieved?
Victims with allowed claims have recovered a minimum of 60% of their invested funds to date through the ongoing receivership proceedings and liquidation activities.

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