First Zeek victim payments will go out September 30th
Despite Plastic Cash International’s objection and concerns their litigation might delay payments, Judge Mullen has come through and ordered that the first payments to Zeek victims will go out on September 30th.
Plastic Cash International’s claim wasn’t ignored, with Mullen observing
the Court specifically notes that this Order does not purport to determine the validity or priority of PCI’s claim.
The PCI Claim will be addressed through the Claim Determination process and separate litigation.
Plastic Cash International facilitated the operation of the Zeek Ponzi scheme by providing access to payment processor services. As such, the Receivership classified PCI as a “trade creditor” and designated them “class 2” claimant status.
Under the Receivership, class 2 claimants are not entitled to ‘receive a distribution from the Receivership Defendant‘.
PCI have objected to this classification, arguing that they were no different than Zeek’s net-loser investors. As such, until their class determination could be resolved, they demanded no money was paid out to Zeek’s victims.
In his recently filed second quarter report, the Receivership had claimed PCI’s ‘objection threatens to significantly delay the payment of an interim distribution to Affiliates‘.
In order to both see payments to Zeek’s net-loser investors not be delayed and satisfy the possibility that PCI might be granted their objection, the Receivership has set aside the $14.9 million PCI are seeking. Judge Mullen ruled that this action was “proper”, in effect endorsing it.
Should PCI’s objection be denied (which I’m tipping it will, seeing as they clearly are nothing more than a trade creditor), one would assume the $14.9 million would then be re-pooled with the funds being used to pay out net-loser investors with.
Footnote: Our thanks to Don @ ASDUpdates for providing a copy of Judge Mullen’s order.