zeekrewardsAn update from the Zeek Rewards Receveirship today concerning insider and net-winner settlements.

At the time of publication, all insiders bar Darryle Douglas have entered into settlements with the Receivership.

Douglas has thus far failed to hold himself accountable for his part in the $850 million Zeek Ponzi scheme, and remains in hiding. Default judgement in the order of $2.2 million was entered against him last month, with the Receivership yet to collect.

As for the other insiders, named we have Paul Burks, Dawn Wright Olivares, Daniel Olivares, Alexandre De Brantes as individuals and Beth Plyler and James
Quick as Co-Trustees of the Roger A. Plyler Revocable Trust and Co-Administrators of the Estate of Roger Plyler.

Burks Dawn Wright Olivares and her son Daniel Olivares agreed to a consent judgement back in July. This judgement saw

each of these defendants agreed to a consent judgment of $600 million to be satisfied with substantially all of their assets.

As to the other insiders,

The Co-Trustees of the Roger A. Plyler Revocable Trust and Co-Administrators of the Estate of Roger Plyler have confessed judgment in the amount of $5 million (which substantially exceeds the amount of Mr. Plyler’s estate).

Lori Weber and P.A.W.S. Capital Management have confessed judgment in the full amount of their net winnings.

Lori Weber’s settlement is of particular note, as she isn’t part of the core Zeek management group. Rather Weber is one of the named top net-winner investors.

Weber’s name appeared on a list of Zeek’s top investors facing clawback litigation back in March to the tune of $1,940,000.

To date, it would appear she is the only name on that list who has made efforts to settle with the Receivership. Good on her for returning the $1.9 million she stole from victims, her fellow net-winners now only look all the more despicable.

As to the specifics of each insider settlement,

Dawn Wright Olivares and Daniel Olivares, consistent with their guilty pleas to engaging in securities fraud and/or tax evasion, acknowledge in their settlement agreements that they received fraudulent transfers and breached their fiduciary duties to RVG.

Alexandre de Brantes admits the same, but states that he did so “unknowingly.”

The representatives of Mr. Plyler’s estate and trust similarly acknowledged receipt of fraudulent transfers based on the guilty pleas of the other Insiders, but neither admitted nor denied the allegations against Mr. Plyler because they lacked knowledge of the specifics of his involvement with RVG.

Mr. Burks, who continues to be under criminal investigation, neither admitted nor denied the allegations against him in his settlement agreement (but, as noted above, agreed not to contest the validity, amount or enforceability of his Confession of Judgment).

Lori Weber and P.A.W.S. Capital Management acknowledge that they received fraudulent transfers from the ZeekRewards scheme.

Fair enough on the technicalities, with the recovery of funds being what’s primarily important for the meantime.

And wow, the Burks criminal investigation is still going. Can’t wait to read about that when they’re done.

In addition to the above insider settlements, another wave of 36 settlements have been reached between the Receivership and named net-winners. The total amount recovered in these new settlements amounts to just shy of $704,000 (an average 59% recovery of what was paid out).

In his latest filing, Receiver Kenneth Bell has asked the court for permission approve the various settlement agreements reached.

Efforts against those still holding out continues…

 

Footnote: Our thanks to Don@ASDUpdates for providing a copy of the Receiver’s “Motion To Approve Settlement Agreements With Insiders And Additional Net Winners“.