ZTeamBiz not done fleecing Zeek Rewards affiliates
Following the SEC shutdown of the $600M Zeek Rewards Ponzi scheme, a group of merry net winners bandied together and began fleecing their downlines for money.
These net winners formed the cream of the crop of Zeek Rewards net winners, led by Captain Robert Craddock, a Zeek Rewards affiliate himself and former second in command of the company’s “threatening of critics” department.
The money ZTeamBiz fleeced from affiliates who donated was originally gathered to be used to defend all Zeek Rewards affiliates who donated against impending SEC litigation. Shortly after the bulk of the money that would be donated was donated however, this changed to the offering of a cookie-cutter attorney letter, provided at an additional cost.
Where did the rest of the money go?
It is widely believed that the bulk of it went towards financing the legal defences of the Zeek Rewards net winners that formed ZTeamBiz. In the months following the SEC shutdown, a number of legal initiatives were launched by ZTeamBiz affiliates to try to thwart attempts to recover funds they stole from their fellow affiliates.
To date, every single one of these actions has failed.
It is believed the rest of the money was put towards the launch of OfferHubb, which was touted as a viable Zeek Rewards replacement for disenfranchised affiliates.
OfferHubb sought to resurrect Paul Burks’ Ponzi points business model, replacing Zeek Rewards’ penny auction front with that of a daily deals platform.
At least that was the initial plan. When the litigation filed by Zeek Rewards’ top net winners was filed, with the rest of the ZTeamBiz affiliates watching on with bated breath, OfferHubb took a back seat.
Once said litigation was revealed to fruitless, with net winners and affiliates of ZTeamBiz likely having to pay back the bulk of their Ponzi proceeds, OfferHubb resurfaced and eventually launched a few months ago.
With nobody interested in Zeek Rewards v2.0 except those who made the most money in v1.0, OfferHubb all but flopped.
Facing impending clawback litigation from the Zeek Rewards Receivership, the ongoing failure of Offer “Zeek Rewards 2.0” Hubb and the widespread acceptance by non net-winners that Zeek Rewards was nothing more than a Ponzi scheme, it seems the folks at ZTeamBiz are launching one final effort to convince whoeever will listen to follow them into “new opportunities”.
In a notice titled “update on the events after Zeek Rewards” published on October 10th,
Robert Craddock ZTeamBiz wrote
As you know, August 16, 2012 (the day Zeek Rewards was shut-down) seems like a long time ago, and many things have happened, alleged to have happened, and honestly — just never could have happened.
Sadly we have seen rumors and attempts to confuse all Zeek Affiliates and separate them from their hard-earned money. Please understand that the purpose of this email is to provide you with some valuable updates and help you navigate the mountain of information (and disinformation) that has circled the web over the last 14 months.
The circulation of disinformation? I’ll say. Could it be Robert Craddock and the Craddock 12 are finally going to come clean and atone for the mountains of bullshit they pushed onto Zeek Rewards affiliates?
So, let’s put some rumors to rest. First of all … “is Zeek Rewards coming back?”
Sadly the answer is “no.” The harsh reality is, back on the 15th of August 2012, when Paul Burks voluntarily signed over ALL the assets of Rex Venture Group – it was just like reaching over and flipping a “kill-switch” and Zeek was officially history.
While I’m glad to see
Robert Craddock ZTeamBiz finally admit this, it would have been nice if instead of running around promising affiliates the Zeek Rewards shutdown was temporarily and could be revered if everyone sent money to ZTeamBiz, that had of been acknowledged from the start.
Unfortunately that’s the only truth in the notice, with the rest of it reverting back to the absolute rubbish we saw circulated by Craddock and his crew just after the shutdown.
Second … “was Zeek Rewards a Ponzi scheme?” As of the date of this email, there has been NO court action to support or prove that Zeek Rewards was a Ponzi scheme!
While criminal charges are expected at a later date against Zeek’s management, the fact that the courts have appointed a Receiver, on the basis of evidence presented by the SEC that Zeek was a Ponzi scheme, pretty much kills the above sentiment.
That is if you’re delusional enough not to accept that taking affiliate money and paying it out over 90 days to existing affiliates was a Ponzi scheme all along. I call this “Ponzi points net-winner syndrome”.
Hell, here’s what Paul Burks himself, mastermind of the Zeek Rewards “not a Ponzi scheme” Ponzi scheme, said to Zeek Rewards victims just a few short months ago:
Asked if he had anything to say to victims, he shook his head.
“I never told anyone to invest more money than they could afford,” Burks snapped. “I didn’t tell them to do that. Never.”
He said if they lost money, “it’s their fault. Not mine. Don’t blame me.”
Could it be any clearer how this is going to play out in court?
The simple fact is, the reason why the Receiver attempted to get Affiliates to “voluntarily” turn over and give-back their earnings, was to help the Receiver build his case regarding “unregistered securities.”
Wait what? The Receiver was appointed by the court based on the evidence the SEC presented to them in their complaint. At no time has the Receiver had to build a case regarding “unregistered securities”.
The Receiver’s sole responsibility is the securing of funds from anyone who made money in Zeek Rewards and company assets, with the mind to return as much of it as possible to those who lost money in the scheme.
Keep in mind, it was “alleged” that the operation of the Revenue Share program was nothing more than a sale of unregistered securities. Again, this argument has NOT been proven in court.
Yet a Receivership has been appointed by a court to extract funds from the company’s net winners to pay back the net losers of the scheme. Why was the Receivership appointed?
Because a Judge agreed with the SEC’s evidence that Zeek Rewards was selling unregistered securities.
Does anyone, other than Robert Craddock and the Craddock 12, seriously believe that after Zeek’s net-losers have been made as whole as possible that Paul Burks is going to be able to talk his way out of this in court?
Third … “is it true that the Receiver is offering to make deals with certain Affiliates (with large earnings) with a “promissory note” to pay back a reduced amount over time?” The answer is “yes.”
CAUTION! Although the promissory note option may sound tempting … you might want to think twice.
Currently, NO motion(s) have been filed, and to enter into such a “promissory note” document with the intention of defaulting on the agreement may place you in a criminal proceeding — when as of now, this is a civil action.
Firstly Zeek Rewards was a $600M Ponzi scheme, resulting criminal proceedings aren’t a possibility, they’re a surety.
Secondly any “affiliates with large earnings” (read: Robert Craddock and his friends in ZTeamBiz) who don’t agree to pay back the victims they stole from, are going to be sued by the Receivership in any case.
Whether or not fleeing the US, as top Zeek Rewards affiliate T. LeMont Silver has recently done, will permit them to escape litigation from the Receivership remains to be seen.
The fact remains however that most of Zeek’s affiliates aren’t going to go to the extreme measure of relocating their families just to escape Ponzi clawback charges as Silver has done.
That means settling with the Receivership or duking it out in court… and then having to settle with the Receivership.
Like it or not, based on participation alone and any resulting criminal liability (such as the promotion of a blatant Ponzi scheme), anyone who made money in Zeek Rewards runs the risk of criminal proceedings being filed against them. All in due course once the net-losers in the scheme have been made as whole as possible.
Making deals with the Receivership has no bearing on this either way.
With Craddock’s garbage above out of the way, and keeping in mind the colossal flop his OfferHubb opportunity turned out to be, we then get to the real reason behind Craddock’s update:
With your permission, over the next few weeks we would like to continue to update you about the case, as well as provide recommendations of new opportunities that may be able to help you and your family recover your loss of income and the hope for a better tomorrow.
We look forward to helping you to make the best informed decisions and quickly put the challenges of the past 14 months behind you.
Pooling together what’s left of ZTeamBiz’s audience of net-winners into an email list for Craddock and Craddock 12 to pitch more Ponzi schemes to.
Ironically, all in the name of “recovering the loss of income”. Income that was lost as a direct result of participating in Ponzi scheme scam(s) Craddock and the Craddock 12 over at ZTeamBiz encouraged people to join in the first place.
In their defence, with clawback litigation just around the corner and failure of pretty much every MLM revenue sharing company that has launched this past year, I suppose Craddock and friends have to fund their eventual payments to the Zeek Rewards Receiver somehow.
Let’s face it, even participation in the few opportunities currently operating out of Hong Kong is hardly going to cover the mountains of money these people stole from Zeek Rewards affiliates.
Open up your wallets folks…
Footnote: The full ZTeamBiz October 10th update can be viewed over at the ASD Updates website.