Press Release, Top Story, Zeekler.com and ZeekRewards under Seize by the SEC

Saturday August 18,2012 !:25 p.m.

In the Top Story today SEC shuts down Zeekler.com and ZeekRewards. after seizure from the SEC for creating a Ponzi. As many affiliates woke up to find they could not access their accounts this morning. And are looking for answers as to when they will allowed to be able to get their money back. This is what was reported by ibtimes.com

Zeekrewards.com was shut down by the Securities and Exchange Commission after the regulating agency declared it a $600 million Ponzi scheme, according to reports.

The alleged scam took money from more than a million customers, the Wall Street Journal reported, and theSEC claimed that the pyramid scheme was on the verge of collapse.

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The company was described as a "penny auction website" that went by the names Zeekler.com and Zeek Rewards, according to Myfox8.com, and its headquarters was shut down in Lexington, N.C., after the U.S. Secret Service, the North Carolina Attorney General's office, and the U.S. Securities and Exchange Commission began investigating the company's CEO.

According to reports, there were more than 20,000 inquiries filed against the company in the past month, with most of those occurring in the past few weeks.

The SEC said it shut down the Ponzi scheme and froze its assets with an emergency court order, Reuters reported, and Paul Burks, the CEO of the company, settled with the SEC, without admitting any wrongdoing and agreeing to cooperate with a receiver.

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According to Reuters, ZeekRewards.com was created in 2011 as a "private, invitation only, affiliate advertising division" of Zeekler.com, a penny auction website.

The SEC claims that ZeekRewards collected more than $160 million from customers and created a false impression of "extreme profitability."

"ZeekRewards misused the power of the Internet and lured investors by making them believe they were getting an opportunity to cash in on the next big thing," said Stephen Cohen, an SEC enforcement director, Reuters reported.

The company encouraged investors to reinvest money back into the company. However, if investors cashed out at the rate at which they were doing so before the SEC shut it down, instead of reinvesting their money back into the company, it would have quickly become insolvent. The company was about to reach that point, according to reports.

To report problems or to leave feedback about this article, e-mail:b.forman@ibtimes.com

To contact the editor, e-mail: editor@ibtimes.com 

In my next article I will be discussing what a Pyramid Scheme is and what a Ponzi is. So continue to back and get the information you need to make a knowledgeable decision.