Zeek Rewards: Aftermath
Zeek Rewards Podcast Now Posted
Those of you following the Zeek Rewards debacle have probably heard about the two alleged class action lawsuits that are supposedly in the works. One is on behalf of Zeek victims against Zeek Rewards, and depending on what happens with the receiver, and how much money is eventually returned, this one may actually happen. But then there’s the one where funds are being raised to sue the SEC in an effort to get Zeek back in business. That one will never happen. In fact, in my opinion, it’s a scam designed to extract money out of victims of a scam.
The SEC claims ZR hit the trifecta of illegal schemes: they were a pyramid scheme, a Ponzi scheme, and an unregistered security. The lawsuit against the SEC has not yet been filed, probably never will be, and even if it is will likely be thrown out. But assuming it actually does get filed, and survives a demand for summary judgement against it, there is virtually no chance of it ever succeeding. All the SEC has to do it prove one of it’s three charges against ZR, and although I still believe (although not quite as strongly as when I wrote my ZR report) that they were not a Ponzi scheme, they very likely were an unregistered security, and they absolutely were a pyramid scheme.
If you’re rather hear me explain why rather than read my 35 page exposé, here’s the latest edition of my Inside Network Marketing podcast:
http://www.insidenm.com/podcasts/
Also, it has been alleged by a certain industry watchdog that the lead attorney in one of the class action lawsuits against Zeek Rewards, J. Calvin Cunningham, has been reprimanded by the North Carolina state bar for “cheating his clients”, and affiliates participating in the suit my be “jumping out of the frying pan into the fire”. Within this commentary a link is provided leading to an article asserting Mr. Cunningham “rips offs” his “clients” (plural).
J. Calvin Cunningham Jr. did, in fact, receive a reprimand from the state bar for overcharging one of his clients. About 36 years earlier he had a son, which he named James Calvin Cunningham. His son went on to also become and attorney – and file a class action lawsuit against Zeek Rewards!
J. Calvin Cunningham III has not only never been reprimanded by the state bar, he has had a rather exemplary career.
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Len Clements
Founder & CEO
MarketWave, Inc.
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