Zeek Rewards Receiver’s Motion For Approval Of Claims Process The court-appointed receiver overseeing the $600 million ZeekRewards Ponzi scheme has filed a motion seeking approval of a claims process to compensate what could be nearly 1 million victims. In a 21-page motion (the “Motion”), the receiver, Kenneth Bell, seeks court approval for the proposed procedures and manner of filing claims to be used by victims, as well as the use of an online claims submission form. Victims would be notified by email, would have 120 days from the Order approving the Motion to submit their claims, and any late-filed claims would be disallowed in their entirety. The Proposed Claims Process In the Motion, the Receiver estimates that while approximately 1 million affiliates paid money into Zeek, over 800,000 suffered losses, and the remainder were fortunate enough not only to recoup their principal investment but may also have profited. Should the Court approve the Motion in its current form, the Receiver proposes that he will provide notice to all interested parties via several methods: 1.Making the Claims Process publicly available on the Reeiver’s website at a soon-to-be-functional Claims Portal; 2.Emailing all known affiliates through email addresses obtained from Receivership records and collected at the Receiver’s website; 3.By U.S. Mail to trade creditors and other known, non-affiliate creditors; and 4.Publishing the Receiver’s Notice on the Receiver’s website, certain multilevel marketing sites, certain newspapers, and sending the Notice to certain trade groups in the financial industry. As previously alluded to in earlier articles on Ponzitracker, the Receiver cites the “great cost” of serving the over-2 million claimants by any other method and seeks court approval for the proposed notice procedures. As a last resort, should an email be found to be no longer valid, the Receiver will attempt service of the notice by an alternative method, which includes a different email address or postcard to the last known address. Within 14 days of court approval of the Motion and included in the court-approved notice to claimants, the Receiver proposes to have a Claims Portal active on his website, www.zeekrewardsreceivership.com. According to the Receiver, the Portal is “designed to capture the claims of all Claimants…in the most cost effective way possible.” Thus, all claimants, whether affiliates or non-affiliates, should files claims at the Claims Portal. Indeed, Failure to submit a validly completed claim on the Claim Portal (or by alternative means that are agreed to between such Claimant and the Receiver prior to the Bar Date) will preclude a Claimant from receiving a distribution from the Receivership Defendant regardless of the validity of the Claimant’s claims. The Receiver proposes that, if a Valid Proof of Claim is not received by any claimant within 120 days from the date of...
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