Zeek Rewards victim distributions top 81% recovery
The Zeek Rewards Receiver has provided an update on last partial distribution payments.
In his April 20th update, the Receiver states:
On Friday, April 17, I made a fourth partial interim distribution to affiliate-investors holding allowed claims.
The Receiver Team mailed over 122,000 checks for a total distribution of approximately $28 million.
Some of you have already received your checks, and others should be receiving them in the coming days.
A limited number of non-U.S. claimants opting to receive wire transfers instead of checks did not receive a partial interim distribution.
Because of logistical challenges and cost efficiencies, these funds will be provided along with the final distribution at the close of the Receivership.
At the time of publication there is no timeline for the Receivership closing.
As I understand it the VictoriaBank saga is still playing out, after which the Receivership will wind down.
Zeek Rewards’ Receivership is a major win for victims. As it stands the Receivership has returned 81% to victims with valid claims.
That percentage will increase further pending final distribution payments.
How the Zeek Rewards receivership has been handled stands in stark contrast to the TelexFree Trusteeship.
TelexFree was shut down roughly two years after Zeek Rewards, six and eight years ago respectively.
Since wrapping up the TelexFree claim portal four years ago, the Trusteeship has devolved into unexplained delays, seemingly no accountability and zero communication with victims.
TelexFree’s Trusteeship is headed up by Stephen B. Darr, a Senior Managing Director with Huron Consulting Group.
Wow. The sad thing is, last time the judge asked (a few months ago)the trustee lawyer what percentage they could roughly return to victims…. he answered “nothing we’d want to quantify with specificity at this time your honour”.
We all had such high hopes for mr. Darr and his crew. To say they fell short would be a bigger understatement than “covid is just a flu”.
I remember when the Receiver was first appointed we, at Ealge, were asked by many of the people in Zeek what we thought would be the payout amount to the victims.
I explained that at that time there were too many unknowns. We didn’t know how many victims would file a claim and how many would be approved. We didn’t know how successful the Receiver would be in the clawbacks against the net winners or how low he would go to collect from the winners. Then there was the sale of any assets.
About a year later we predicted the return would be between 75%-85% based on the successes the Receiver was having. Nice to see we actually guessed right; but it was an educated guessing game based on all the information we had.
We also warned the victims that this process would take years to complete so don’t get discouraged why it will take so long to finish. Here we are 4 years later and counting and it is still not done. It feels good to be proven right.
Of course the net winners did not want their downline reporting their claims afraid they would face charges. They said the Receiver would spend all the money and the victims would be lucky to get cents on the dollar. The same lies they all trot out when their Ponzi de Jour gets shut down and a Receiver is appointed.
As for Telex-Free, I am baffled by the lack of information from the Receiver and why the judge has allowed their actions to continue with zero end in sight and demanding the Receiver give a status report to the victims. Their actions are totally disappointing.