zeekrewards19 minutes after an SEC agent informed him about an asset-freeze applicable to Zeek Rewards funds, Jaymes Meyer made a phonecall to wire $4.8 million in stolen Ponzi funds out of a Zeek Rewards trust account.

Meyer’s error in judgement cost him his freedom yesterday, with Judge Cogburn handing down Meyer a fifteen month sentence.

To his credit Meyer co-operated with authorities, even going to so far as to provide testimony to the DOJ regarding Paul Burks.

But Meyer’s cooperation only came about after he became aware he was under criminal investigation.

It was Meyer’s non-cooperation which landed him a criminal charge of obstruction of justice.

Put in his own words, or rather that of his attorney, Meyer’s account of what happened is as follows:

By the time the SEC informed Mr. Meyer of the fraudulent nature of RVG’s activities, his small business had expended significant energy in providing services to RVG, including by hiring 5 temporary workers to process RVG’s checks.

Mr. Meyer, who consulted legal counsel after being approached by the SEC, mistakenly believed that he was entitled to compensation for
his work regardless of the source of the funds or the allegations of the SEC and took improper steps to keep the money he felt he had earned.

After consulting with experienced criminal counsel, Mr. Meyer immediately recognized that this lapse of judgement was criminal and
accepted full responsibility for his actions.

He entered into a plea of guilty for obstruction of justice and very soon thereafter traveled from Northern California to Charlotte, at his own
expense, to provide information to the prosecutors as they prepared for the Burks trial.

In the same short time frame, he also settled with the court-appointed receiver, agreeing to forfeit assets purchased with money taken from the RVG trust account.

Left unsaid is the fact that by the time Meyer realized he was under criminal investigation, it was too late.

Mr. Meyer initially defended his transferring of funds and resisted the
collection of the RVG funds by the SEC and the United States Secret Service.

However, that was prior to his awareness of a criminal investigation.

Upon receiving a target letter and engaging experienced criminal counsel, Mr. Meyer cooperated with both the prosecutors and the
court-appointed receiver for RVG.

Meyer had effectively been caught with his pants down and was well and truly busted.

In a sentencing memorandum requesting he be spared prison, Meyer argued that his ‘lack of knowledge or involvement in the underlying scheme, his unique personal history and family circumstances and his very low risk of recidivism‘ warranted a probation sentence.

That didn’t convince Judge Cogburn, who handed down Meyer’s sentence at a hearing on August 23rd.

In addition to serving fifteen months, Meyer was also ordered to pay a $4.8 million dollar judgement.


Footnote: Our thanks to Don@ASDUpdates for providing a copy of Jaymes Meyer’s “Sentencing Memorandum” (filed August 16th).