Zeek Updates: Coach Van, zCustomers, Grimes & Kaplan
Three brief updates from the Zeek Receiver today, coming in from the Receiver’s Application for Fees and Expenses (1st quarter, 2015), a docket report for a new lawsuit and a settlement agreement in the Kevin Grimes litigation.
Michael Van Leeuwen (Coach Van)
Michael Van Leeuwen had default judgement entered against him for the amount of $1,617,444.99 in August 2014.
Van Leeuwen hasn’t been interested in paying back his victims, with the Receivership now escalating attempts to recover the funds Van Leeuwen stole.
The Receiver continued work to collect a judgment obtained against Michael Van Leeuwen.
During the quarter ending March 31, a Notice of Filing of Foreign Judgment in Cumberland County was served, via Sheriff, on Mr. Van Leeuwen.
On March 11, 2015, following Mr. Van Leeuwen’s return from a trip to the Philippines, the Cumberland County Clerk of Court issued a Notice of Rights to Have Exemptions Designated.
The Notice of Rights to Have Exemptions Designated was delivered to Cumberland County Sherriff’s Department for service.
The Receiver anticipates a Writ of Execution and commencement of post judgment discovery in the second quarter following completion of the Notice of Rights procedure.
Sounds to me like Van Leeuwen’s going to have assets seized by the end of the year if he doesn’t start playing ball.
Out of curiosity I checked in on Coach Van to see what he was up to.
Apparently his latest ruse is something called “DoNothingAndGetPaid”:
Anyone can get paid for doing absolutely nothing and I will show you how.
Gary Bessoni & Peak USA (zCustomers)
Originally conscripted by Zeek Rewards to flood their affiliates with bogus email addresses, Peak USA went on to launch zCustomers when Zeek decided to no longer offer the service.
Basically for a few bucks a pop, Zeek investors could buy bogus email addresses from zCustomers to dump bids onto. Zeek Rewards had them do this in order to grow their Ponzi point pools.
We’re not entirely sure what this is yet, but a lawsuit was filed by the Zeek Receiver against Peak USA LLC, Peak Impact LLC and Gary Bessoni (owner) on May 26th, 2015.
I’d assume it’s an insider lawsuit, looking to clawback funds Bessoni charged Zeek investors for bogus email addresses. As of yet no complaint is listed on docket report though, so we’ll have to wait and see.
Kevin Grimes & Howard Kaplan
It looks like the Kevin Grimes “legal malpractice” lawsuit has been resolved, following a mediation conference held on April 20th.
In addition to Grimes, Spencer Reese (his former partner) was present, with a whole bunch of other lawyers.
According to a Report of Mediation filed on May 26th,
The case has completely settled.
Counsel will promptly notify the court of a settlement by the filing of a stipulation of dismissal signed by the parties within ten (10) days of filing this report.
The Receiver had alleged Grimes played an “integral role” in promoting Zeek Rewards, in addition to receiving $843,000 for selling Zeek affiliates a “bogus compliance course”.
The details of the settlement will certainly be interesting to read once made available.
Of related interest is the Zeek Receiver’s lawsuit against Howard Kaplan for “legal negligence“.
Kaplan had filed a motion to dismiss, which the court recently stayed ‘pending the Receiver’s mediation efforts in the case against the Grimes defendants.‘
If the Grimes settlement sees him pay back funds to the Receiver, then I imagine Kaplan will have his motion to dismiss denied, and instead be required to agree to similar terms Grimes did via mediation.
We’ll have more on that once the finer details of Grimes’ settlement are filed.
Footnote: Our thanks to Don@ASDUpdates for providing a copy of the Receiver’s Application for Fees and Expenses (1st Quarter 2015), the Report of Mediation in the Grimes litigation and docket report for the new zCustomers case.
Update 30th April 2016 – As per the Receiver’s first quarter report for 2016, Howard Kaplan’s Motion to Dismiss was denied on all but one claim, aiding and abetting.
The Zeek Receiver has filed an appeal against the decision, with the appeal currently before the court.