General FAQs

  1. What Is This Lawsuit About?
  2. I was enrolled in a ZeekRewards monthly subscription plan, purchased ZeekRewards “VIP Bids,” or otherwise invested in ZeekRewards. Will I receive back all of my money that I invested in ZeekRewards?
  3. I purchased a cashier’s check payable to ZeekRewards that has not yet been cashed. Can I stop payment on the cashier’s check? Why doesn’t the Receiver just destroy the cashier’s check or let me stop payment?
  4. Can I submit a valid declaration of loss to my bank for the cashier’s check I sent to ZeekRewards?
  5. I sent a certified check to ZeekRewards that has not yet been cashed. Can I stop payment on the check?
  6. I sent a personal check to ZeekRewards that has not yet been cashed. Can I stop payment on the check?
  7. I sent a money order to ZeekRewards that has not yet been cashed. Can I stop payment on the money order?
  8. I send regular automatic payments from my account to ZeekRewards. Can I stop further payments?
  9. Is the Facebook account at www.facebook.com/ZeekRewardsReceivershipcom officially authorized by the Receiver?
  10. What if I have additional questions?


  1. What Is This Lawsuit About?

    In a Complaint brought by the SEC on August 17, 2012 it was alleged that online marketer Paul Burks of Lexington, N.C. and his company Rex Venture Group had raised money from more than one million Internet customers nationwide and overseas through the website ZeekRewards.com, which Mr. Burks began in January 2011.

    According to the SEC’s complaint, filed in federal court in Charlotte, N.C., customers were offered several ways to earn money through the ZeekRewards program, two of which involved purchasing securities in the form of investment contracts. These securities offerings were not registered with the SEC as required under the federal securities laws.

    The SEC alleged that investors were collectively promised up to 50 percent of the company’s daily net profits through a profit sharing system in which they accumulated rewards points that could be used for cash payouts. However, the website fraudulently conveyed the false impression that the company was extremely profitable when, in fact, the payouts to investors bore no relation to the company’s net profits. Most of ZeekRewards’ total revenues and the “net profits” paid to investors had been comprised of funds received from new investors in classic Ponzi scheme fashion.

    The SEC’s complaint alleged that the scheme was teetering on collapse with investor funds at risk of dissipation without its emergency enforcement action. In July 2012, ZeekRewards brought in approximately $162 million while total investor cash payouts were approximately $160 million. If customers continued to increasingly elect to receive cash payouts rather than reinvesting their money to reach higher levels of rewards points, ZeekRewards’ cash outflows would have eventually exceed its total revenue.

    The law suit brought by the SEC was settled by consent on August 17, 2012. The consent settlement included agreements by Mr. Burks to pay a $4 million penalty and hand the company over to a court appointed temporary Receiver. No one representing Rex Venture Group has contested the merits of the SEC’s allegations. As a result, the order of the court settled the case.

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  2. I was enrolled in a ZeekRewards monthly subscription plan, purchased ZeekRewards “VIP Bids,” or otherwise invested in ZeekRewards. Will I receive back all of my money that I invested in ZeekRewards?

    According to the SEC’s complaint, ZeekRewards paid out nearly $375 million to investors up to the date of the Complaint and held approximately $225 million in investor funds in 15 foreign and domestic financial institutions. Those funds have been frozen under the emergency asset freeze granted by the court at the SEC’s request and subsequent orders of the court. Meanwhile, Mr. Burks has personally siphoned several million dollars of investors’ funds while operating Rex Venture and ZeekRewards, and he distributed at least $1 million to family members. Mr. Burks has relinquished his interest in the company and its assets, and has paid a $4 million penalty. Additionally, the court has appointed a temporary Receiver to collect, marshal, manage and distribute remaining assets for return to harmed investors.

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  3. I purchased a cashier’s check payable to ZeekRewards that has not yet been cashed. Can I stop payment on the cashier’s check? Why doesn’t the Receiver just destroy the cashier’s check or let me stop payment?

    No. When you purchase a cashier’s check, the bank immediately debits the money from your account, and the cashier’s check represents the bank’s obligation to pay the amount of the check. A bank issuing a cashier’s check is deemed to have accepted the check upon its issuance.

    The Uniform Commercial Code provides that a customer purchasing a cashier’s or teller’s check has no right to stop payment (see Section 4-403, cmt. 4). If a bank refuses to pay a cashier’s check or teller’s check presented by the Receiver, it may be required to pay for the Receiver’s expenses and loss of interest resulting from the nonpayment, as well as consequential damages (see Section 3-411).

    All cashier’s checks and teller’s checks issued to ZeekRewards constitute assets of the Receivership Estate. Claims for monies invested in ZeekRewards through cashier’s checks will be administered together with other claims on the Receivership Estate.

    The court’s orders and the Uniform Commercial Code establish that cashier’s checks in the Receiver’s possession are Receivership Assets. The Receiver is required to present these cashier’s checks for payment and has no discretion not to.

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  4. Can I submit a valid declaration of loss to my bank for the cashier’s check I sent to ZeekRewards?

    No. Declarations of loss cannot be submitted for checks that you sent to ZeekRewards, because you did not actually lose the check. Cashier’s checks are assets of the Receivership Estate. If you obtain payment from your bank using a declaration of loss for a cashier’s check that you sent to ZeekRewards, and your bank denies payment on that cashier's check when it is deposited by the Receiver, the Receiver may bring legal action against you to recover the amount of the cashier’s check and additional damages.

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  5. I sent a certified check to ZeekRewards that has not yet been cashed. Can I stop payment on the check?

    No. A certified check is subject to the same rules as a cashier’s check (see above).

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  6. I sent a personal check to ZeekRewards that has not yet been cashed. Can I stop payment on the check?

    Yes, so long as the check has not yet been cashed and you give your bank sufficient notice (see Section 4-403).

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  7. I sent a money order to ZeekRewards that has not yet been cashed. Can I stop payment on the money order?

    It depends. If your money order is a bank money order signed by your bank, it is treated as the equivalent of a teller’s check, and your bank cannot stop payment on the money order. If your money order is a personal money order signed by you and not by the bank, it is treated as the equivalent of a personal check, and payment on the check may be stopped so long as the check has not yet been cashed and you give your bank sufficient notice (see Section 3-104, cmt. 4).

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  8. I send regular automatic payments from my account to ZeekRewards. Can I stop further payments?

    Yes. That is a matter between you and your bank. Banks are required to stop such payments if they receive notice at least three business days before the next scheduled payment (see 12 C.F.R. § 205.10(c)).

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  9. Is the Facebook account at www.facebook.com/ZeekRewardsReceivershipcom officially authorized by the Receiver?

    No. This Facebook account was not created by the Receiver and it is not an account authorized by the Receiver. All information from the Receiver will be provided to you at this web site only.

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  10. What if I have additional questions?

    If you have any additional questions, please contact the Receiver by email at: info@ZeekRewardsReceivership.com

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