Claimants are able to check the status of their claim by accessing the following Status Check Link The Status Check Link allows you to log in to a webpage using the Registration ID and Password you selected when you registered on the Claims Portal.


On September 11, 2015, Judge Graham Mullin entered a Consent Order Appointing Class Counsel appointing Kevin Edmundson, counsel for several of the large named net winner defendants, to represent the Net Winner Class defendants previously certified by the Court in Bell v. Disner, et al., Civil Action No. 3:14-dv-91 (W.D.N.C.) (See Notice of Certification of Defendant Class Action). As instructed by the Court, Mr. Edmundson will be communicating with the Net Winner Class primarily through a website and collective emails. He has now set up a website for that purpose, which can be found at


Since September 30, 2014 we have distributed nearly $245 million to affiliate claimants. At the end of October we will issue approximately 1,500 distribution checks to claimants who have not already received a distribution because they had not previously submitted the release and OFAC certification required by the Court. Please note that all distributions are made to affiliates who filed a claim by the Court ordered deadline of September 5, 2013, and have had their claim allowed. I have no authority to allow claims filed after that date. Contrary to misinformation circulating among some affiliates, there are no new claims being accepted.

Unfortunately, approximately 44,400 Affiliate claimants have accepted claim determinations, but have not submitted the required release and/or OFAC certification that is necessary to allow me to pay those Affiliates. If you are in this group, please log in to the claim portal and provide those documents through the webform available in the claim portal. Doing so will permit me to pay you on account of the money you are owed.

Nearly 6,000 claims eligible to be paid have not yet been sent a distribution because the amount to be paid is less than $100. It would be an inefficient expense to send distribution checks for an interim distribution for less than $100 followed by a final distribution check. We will send distribution checks to all eligible claimants at the end of the receivership.

Many non-US claimants have reported difficulty in cashing or depositing distribution checks. We are considering asking the Court for authority to make distributions to overseas claimants by wire transfer. However, wire transfer fees range from $25 to $50, an expense that would have to be borne by the claimant. Also, there would be added expenses to the receivership to solicit, receive, process and maintain required additional information from claimants, as well as additional bank fees and further governmental requirements and disclosures. It is not clear that such additional expenses are a good and fair use of receivership funds.

Many of you have asked when the receivership will end, and when a final distribution will be made. We are in litigation, or pre-litigation negotiations, with individuals and institutions seeking to recover millions of dollars on your behalf. Most notably, we continue our litigation against a class of more than 9,400 net winners (those who took more money out of the Ponzi scheme than they put in) in the United States and in several foreign countries. Litigation takes time, and collecting on the judgments we expect to win against the net winners will also take time. I can’t tell you how long. If the receivership at any time holds sufficient funds to make another interim distribution cost effective we will do so.

Finally, we have been contacted by numerous Affiliate claimants regarding the lack of 1099s being issued on account of tax withholdings that were made from such Affiliate claimant's distributions. On December 19, 2014, I announced that there would no longer be tax withholdings made on account of distributions to be made by the Receivership and any amounts that were previously withheld on account of prior distributions would be paid out to the Affiliate claimant from which money was withheld. Distribution of these withholding amounts was made in late 2014. As such, no taxes have been withheld from any Affiliate claimant's distribution and no 1099s need to be issued. Additionally, we have consulted with tax professionals and determined that the Receivership estate will not issue 1099s, even if requested by the claimant.

I greatly appreciate your continued support and patience as we work on your behalf.


On July 31, 2015 we mailed 112,374 distribution checks to eligible claimants in the total amount of $89,200,834.29. Including that distribution, we have made distributions totaling $246,048,079.29.

Distribution checks have not been mailed to 9,394 claimants because the amount of each distribution check would have been less than $100. Due to cost efficiencies, the Court orders provide that distribution checks below $100 will not be mailed until the end of the receivership and payment of final distributions. We have created a reserve to insure those claimants will be paid at the same rising tide distribution percentage as all other claimants. If a claimant’s distribution amount reaches an amount in excess of $100.00 before the final distribution, the claimant will be paid.

Unfortunately, approximately 35,400 claimants were not mailed a distribution check on July 31 because they still have not electronically signed the release and OFAC certification required by Court orders. Had these claimants done so we would have mailed an additional $46,237,165.62 in distributions. We have posted an instructional video on this site showing how these forms can be electronically signed. You may review that video by following this link: Those who do so before October 20, 2015 will be mailed their interim partial distribution representing 60% of their allowed claim (calculated using the rising tide method) on October 31, 2015.

Efforts to recover additional funds for the benefit of claimants continue. I fully expect that we will recover tens of millions of additional dollars that we can then distribute to claimants. It is not possible to project with any certainty, but I believe that total recovery by eligible claimants will exceed 70% by the closing of the receivership case.

I greatly appreciate your continued support and patience as we work on your behalf.


I am pleased to announce that we will be making a second partial interim distribution to all Affiliates who hold Allowed Claims on the next Court authorized distribution date (July 31, 2015), which, when combined with the first partial interim distribution and the amounts paid by Zeek Rewards before it was shut down, will return to victims 60% of allowed claimed losses due to the Zeek Rewards Ponzi scheme.

There has been some confusion about how the amounts of distributions are calculated using the Court ordered “rising tide” method. The rising tide method of loss calculation is designed to make every recognized claimant equally whole (as a percentage of their investment). Take for example two recognized claimants, each of whom invested $10,000 into the Zeek Rewards Ponzi scheme. The first claimant received nothing back from Zeek Rewards while the scheme was operating. The second claimant received $4,000 out of Zeek Rewards before it was shut down. Under the rising tide method, the second claimant is deemed to have already received 40% of her investment back, while the first claimant has received nothing back. When we made the first partial interim distribution of 40% the first claimant received $4,000, but the second claimant did not receive a distribution check.

When the second interim partial distribution is made, the first claimant will receive an additional $2,000, and the second claimant (who did not get a first distribution) will receive $2,000. This will ensure that both claimants have received 60% of the amounts they invested. While some Affiliates have complained about the rising tide method, I believe it is the most fair way to make the Zeek Rewards victims equally whole; two investors put $10,000 into the scheme and each will receive $6,000 total, whether it was received from the scheme itself, or from distributions from the receivership, or a combination of both.

There also has been some confusion about our quarterly distributions. Some mistakenly believe that they will receive a distribution every quarter. There was a first partial interim distribution and will soon be a second. Each quarter we send distribution checks only to claimants who completed the claims process since the last quarter.

Unfortunately, nearly 50,000 claimants with recognized claims have not received a first, nor will they receive a second, partial interim distribution. The only reason for this is that those 50,000 claimants have not electronically signed the Release and OFAC certification available through the claims portal. Many have called or emailed asking for personal assistance signing and submitting these forms. We will soon create and post on the receivership website an instructional video showing how to electronically sign and submit the Release and OFAC certification through the claims portal. The cost to create and post this video will be a minimal expense to the receivership.

We have received calls and emails asking that we cut off the recovery rights of the 50,000 recognized claimants who have not completed the process and distribute their share of distributions to those who have. That day may come, but it has not yet. I will give each claimant with a recognized claim every opportunity to receive their share of the recovery. Nonetheless, I implore everyone to promptly complete the Court required process. Sometime before the end of the receivership I will have no option but to ask the Court for permission to distribute all remaining receivership assets to only those recognized claimants who have completed the process.

If your contact information has changed, or the claims portal shows that you were issued a check that you have not received, or a check you were mailed was issued in the wrong name, please click on the following link to learn how to let us know:

After this second partial interim distribution, the receivership will maintain sufficient funds to pay those claimants who have not yet, but hopefully will, electronically sign the Release and the OFAC certification, and sufficient funds to allow the receivership team to continue to pursue additional recoveries for the ultimate benefit of eligible Affiliates. We are not going to hold onto money that we could otherwise distribute to victims.

We are in negotiations or litigation with financial services firms to recover tens of millions of dollars for Affiliates. The litigation against U.S and foreign net winners (those who took more money out of the scheme than they put in, essentially holding the victims money) is progressing. I remain confident that we will succeed in all of these efforts. Unfortunately, litigation is never quick, and once we have judgments against the net winners, in amounts exceeding $200 million, we will have to collect on those judgments. I don’t anticipate making a third partial interim distribution for quite some time because the funds for such a distribution will largely have to come from litigation recoveries that will take quite some time.

I know and understand that recovering only 60% of your investment is not what you want. I have read letters from and spoken to many of you. I know the hardships that Zeek Rewards inflicted on thousands of people. It may be no comfort, but a 60% recovery by victims of a Ponzi scheme is unusually high, and I am proud that the receivership team spends less as a percentage of total recoveries than any receivership of which I am aware.

I am entirely confident that when we are finished with our work on your behalf your total recovery will be more than the 60% we will distribute. I ask you for your patience, and thank you for your continuing support.


On February 10, 2015, the Court granted the Receiver’s Motion for Class Certification in the lawsuit Bell v. Disner et al., Case No. 3:14-cv-91 (W.D.N.C.). In that case, the Receiver alleges that because ZeekRewards’ Net Winners “won” (the victims) money in an unlawful combined Ponzi and pyramid scheme, the Net Winners are not permitted to keep their winnings and must return the fraudulently transferred winnings to the Receiver for distribution to the ZeekRewards victims. A copy of the Order certifying the class and the initial Complaint in the lawsuit are available at the following links:

Order Certifying Defendant Class

Complaint in Bell v. Disner, et al.

Specifically, the Court certified a defendant class (the "Net Winner Class") comprised of all persons and entities (approximately 9,400 in total) who were “net winners” of more than $1000 in ZeekRewards. By this ruling, each of the members of the Net Winner Class becomes a defendant in the case. An updated list of those persons and entities that RVG records show to be Net Winners of more than $1000 is available here.

The Receiver believes that the certification of the Net Winner Class will provide the most fair and efficient process to resolve these legal claims and recover more funds for victims. The Court determined that “a class action is the only means to reasonably and efficiently resolve the Receiver’s claims against 9,400 net winners.” In addition, the Court found that the proposed class representatives (the named defendants) and their counsel are able to fairly and adequately represent the interests of the defendant class. However, any member of the Net Winner Class may of course consult personal counsel to advise them on their legal rights.

The Receiver looks forward to moving ahead in this lawsuit and the others he has filed to maximize the recovery of funds for the benefit of ZeekReward’s victims.


At the end of January we mailed another 8,143 first interim partial distribution checks totaling $12,708,427.80 to claimants holding qualified allowed claims. While I am pleased that we have now mailed distributions to nearly 100,000 claimants and distributed approximately $147 million to victims of the ZeekRewards scheme, I very much regret that nearly 75,000 claimants have not yet completed all the steps necessary to be eligible to receive their distribution. Some 60,000 claimants have not even responded to the Letter of Determination emailed to them. Thousands more have failed to provide the release and OFAC certification required by the Court to be eligible to receive a distribution.

We receive many calls and emails from claimants who have not received a distribution check claiming that they have done all that is required to become eligible. That simply is not correct. I again strongly encourage every claimant that has not yet received a distribution check to log into the Claims Portal (, respond to your Letter of Determination if you have not already done so, and, if you accept the Letter of Determination, provide the Release and OFAC certification. We will send a reminder email to all holders of a recognized claim who have not completed these required steps to be eligible for a distribution. We will make the next distribution to those who complete these steps and who have not already received a distribution at the end of April.

Many distribution check recipients have asked whether we will issue IRS Forms 1099 showing the disbursement. We have consulted with tax professionals and determined that the Receivership estate will not issue 1099s, even if requested by the claimant.

Finally, many affiliates call and email asking for a claim status report or help with the claims process. Because there are 175,000 claimants we decided not to offer personal, individualized assistance by phone or email. The costs of such assistance would be great and would significantly reduce the amount of money we have and will have available to send to all victim claimants. Please see my message of November 25, 2014 for further explanation of our reasoning.

We continue to pursue additional recoveries for the benefit of the victim claimants, with great success. You can read about our efforts in our quarterly status reports filed with the Court, available on the Case Documents page of this website. Thank you, as always, for your continuing patience and support.


The Receivership will no longer withhold taxes from distributions paid to affiliates. If the Receivership previously withheld taxes from a distribution, we will issue a new check on December 23, 2014 to distribute the previously withheld funds to that affiliate. As I have said before, so that we do not expose the receivership to potential fines and penalties that would dramatically decrease the amount of money available to those claimants eligible for a distribution, we have sought assurance from the United States Internal Revenue Service that no withholding is required. We have not been able to get such assurance. However, I have received a tax opinion from a professional that persuades me that tax withholding is not necessary.

On December 23, 2014 we will mail approximately 58,000 checks to claimants that were mailed a distribution on September 30, 2014 from which a withholding was made. Those checks will be in the amount of the taxes previously withheld for tax purposes from that affiliate’s distribution. On that day we also will mail checks to those individuals who requested (through a formal request on the claim status portal) that their September 30 check be reissued because the original check out was not properly delivered, was lost or was made payable to the wrong name through inadvertent error of the claimant.

In late January 2015, we also will send distributions to those qualified affiliate claimants who completed the online claim allowance requirements after August 15, 2014 and have not yet received a check. Somewhat frustratingly, there are nearly 62,000 affiliate claimants that have received a letter of determination but have not yet accepted (or objected to) the recognized claim. We have the funds on reserve to make a distribution to all these claimants in the same manner we did for approximately 90,000 affiliate claimants in September. But, unless a claim is accepted (or has had an objection resolved) and the affiliate claimant completes the release and OFAC certification, a distribution check cannot be mailed. I encourage all of these affiliate claimants to go online and complete the process to be eligible for a distribution check in late January 2015. For cost efficiency reasons, we will issue checks only quarterly, so if an affiliate claimant has not completed these steps by December 31, 2014 the next opportunity to receive a distribution check will not be until late April 2015. I would much rather send all qualified affiliate claimants a check than hold those funds in a bank account.

Finally, we are making great progress in recovering and marshalling additional funds which, together with the funds we currently hold, will be later distributed to all qualified claimants.


Today, new features were added to the claim status portal in response to issues that have arisen in the distribution process. The claim status portal can be accessed by following: These updates allow for a claimant who is eligible to receive a distribution to be able to check the status of that distribution by logging on to the claim status portal. In addition to claim status, that portal will now provide those affiliates who are eligible to receive a distribution with: the date on which his/her distribution check was issued; the amount of the distribution check; whether the distribution check has been cashed; and whether the distribution check was returned to us as undeliverable. Second, if your check was returned to us, lost, destroyed, or your check was issued in the wrong name (for example, if you inadvertently provided your Zeek username instead of your real name when you provided your payment information), you will now be able to request a new check be issued to you in the proper name. We hope that these updates will address many of the issues you have been asking us about.

With these improvements to the claims status portal we will no longer respond to emails and calls that request the status of a claim that can otherwise be answered by logging into the claim portal and checking on the status of your claim. We have been spending a considerable amount of receivership assets responding to affiliate claimants’ inquiries about the status of their claim, all of which can now be answered through self-help. The savings generated by this automated system will allow us to make larger distributions to all affiliate claimants holding allowed claims.

Among the inquiries to which we will no longer be responding are requests from affiliates who registered on the claims portal but did not complete and finally submit a claim. The claims system was continuously operational and was tested and verified as accurate during the claims period and afterward. If review of your claim status shows that you did not finally submit a claim through the claim portal by the Court ordered deadline of September 5, 2013, I have no authority to accept or permit you to file a claim thereafter, including now. I regret that anyone who could have validly submitted a claim failed to do so.

If you hold a claim eligible for a distribution, but were not mailed a check on September 30, 2014, I encourage you to login to the claims status portal and accept the letter of determination you were issued (or have any objection you raised to the claim determination resolved) and submit the required Release and OFAC certification so that we may distribute money to you. If you take these steps, you will be mailed a first interim partial distribution at the end of January 2015.

By the close of business on December 1, 2014, we will have issued Letters of Determination to all affiliate claimants who timely filed claims.

Finally, we continue to receive many inquiries about tax withholdings from distribution checks. We are trying very hard to get reliable guidance from the Internal Revenue Service. I do not want to withhold taxes from distribution checks, but unless and until I receive assurance that the IRS agrees with me, withholdings will be made. We cannot expose the receivership, and the assets which we have and from which we will make distributions to victims, to potential penalties and fines by the IRS.


Various foreign claimants have reported that their banks have refused to deposit the distribution checks I have sent to you. It is likely that these banks are mistakenly seeking to deposit the checks in the local currency instead of in United States dollars. ALL checks issued by the Receivership are issued in United States dollars. Please inform your bank when you are depositing your check that it is in United States dollars. I am unable to issue checks in any currency other than United States dollars.


Today, a federal grand jury returned a criminal indictment against Paul Burks. The indictment alleges four felony counts, including conspiracy to commit wire and mail fraud, wire fraud, mail fraud, and conspiracy to commit tax fraud.

The press release is available here.

The bill of indictment is available here.


I want to address the question many of you are asking about why a percentage was withheld from some distribution checks.

On September 30, 2014 we mailed more than 90,000 checks to claimants as part of the first partial interim distribution. These payments were calculated to equal 40% of an accepted claim using the rising tide method of distribution previously ordered by the Court. For those claimants to whom checks were mailed that did not provide an IRS Form W-9 (for US residents) as requested on the claims portal we withheld a certain percentage for tax purposes. For non-US claimants a percentage was withheld whether or not an IRS Form W-8 was provided. I have heard from many of you that this withholding should not have been made because these distributions are not taxable. The tax laws on this issue are not entirely clear. We have attempted to get a definitive opinion from the IRS but have not yet been able to do so. Given this uncertainty we acted on the side of caution and made the withholding.

If and when we receive assurance that withholding from distributions to Affiliates is not necessary we will send additional checks to those claimants from whom a withholding was made in the first interim partial distribution in the amounts that were withheld. For US residents, online completion of an IRS Form W-9 will allow us to send an additional check in the amount that was initially withheld. Click here to provide tax form.

While I am gratified that we were able to send 90,000 Affiliates a distribution, there were approximately 48,000 claimants to whom I wanted to send a check but was not permitted to pursuant to the Court’s orders. If you have received a letter of determination, in order to be sent your first partial interim distribution, you must accept the determination (or have had an objection resolved) and complete the release and OFAC certification provided on the claims portal. At the end of January 2015 we will make a first partial interim distribution to those claimants with allowed claims who were not mailed a distribution check on September 30, if these steps are taken by December 31, 2014.

Approximately 12,000 Affiliates with approved claims were not mailed a check because the amount would have been less than $100. It was not cost efficient for the receivership to mail these checks at this time. At the end of the receivership Affiliates holding approved claims due a payment of less than $100 will be mailed a distribution check.

If you have questions regarding whether your claim determination has been issued, the general status of your claim or to provide the required release and OFAC certification, please log into the following website:

I want to re-emphasize that these distributions are the first, and partial, distributions I believe you will receive. We continue to pursue and recover additional funds that will be distributed on later dates.

Kenneth D. Bell


I am pleased to announce that today, September 30, 2014 approximately 90,297 checks are being issued and mailed to Affiliates that hold Allowed Claims as their first interim, partial distribution. These first interim, partial distributions total approximately $134.2 million (with approximately $23 million of the $134.2 million required by law to be withheld for tax purposes) of the assets collected by the Receivership Team.

This first interim, partial distribution represents, with certain limited exceptions, an amount equal to 40% of the Allowed Claims of all Affiliates holding Allowed Claims as of August 15, 2014, using the "rising tide" method of calculation previously approved by the Court.

Affiliates that are being mailed checks on account of the first interim, partial distribution have each filed a claim, had such claim determined by the Receivership Team, accepted that claim determination, and provided the required release and OFAC Certification to the Receivership team. These items are all required by the Court in order to have an Allowed Claim. If you met these criteria as of August 15, 2014, and your first interim, partial distribution is in excess of $100, you will receive a distribution check via mail.

If, as of August 15, 2014, you had not received a claim determination, had not accepted a claim determination, or had not provided the required release and OFAC Certification to the Receivership team, you did not hold an Allowed Claim on August 15, 2014, and were not eligible to receive a first interim, partial distribution. Additionally, if you held an Allowed Claim, but you would have received a distribution of less than $100, no first interim, partial distribution will be paid to you. You will be paid on account of your Allowed Claim in the future.

Additionally, approximately 70,000 Affiliates hold claims that will be allowed against the Receivership Estate if and when any of those Affiliates provide the required release and OFAC Certification to the Receivership team. All of these 70,000 Affiliates (or any additional Affiliates that receive and accept their claim determination prior to December 31, 2014) will be issued their first interim, partial distribution on January 30, 2015 if that Affiliate provides the required release and OFAC Certification to the Receivership Team by December 31, 2014. Affiliates whose claims become Allowed Claims after December 31, 2014 will receive their first interim, partial distribution on a subsequent distribution date.

We have 7,000 more claims to review. If you have not received your claim determination, please be patient; it is coming shortly. If you have already received a claim determination, or when you do, I encourage you to respond as soon as you are able and provide all the required information so that we can mail you your first interim, partial distribution on the next distribution date on which you are eligible.

If you have questions regarding whether your claim determination has been issued, the general status of your claim or to provide the required release and OFAC certification, please log into the following website:

Our efforts on your behalf continue. Thank you for your continued support and patience.

Kenneth D. Bell

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