Monday, August 20, 2012
ZeekRewards Shut Down
So I learned that the other day ZeekRewards was shut down by the SEC. ZeekRewards was an affiliate program for the penny auction site Zeekler.com. This does not surprise me at all when I read that this company was worth $600 Million in the year and a half they have been around. The owners would preach up and down on the conference calls that its not a Ponzi scheme because you need to do all this stuff to make the money. That was a scam to get people to sign up for their Co-op program. You also needed to pay for the VIP Bids, whatever those were. ZeekRewards was free to try but in order for you to get company profits you needed to sign up for a monthly payment which was $10-$99. Many people were spending 100's of dollars a month at least. You were encouraged to put more money into the company by having your daily profits go right towards purchasing VIP Bids. That's why the company grew so fast because people were putting all kinds of money into it! I put a little bit of money into this program but quit because something didn't feel right. I guess my instinct was right again! I even wrote an article about this company saying that it didn't appear to be a Ponzi scheme but you needed to put a lot of money into it to see good results. I was wrong about the Ponzi scheme but they fooled A LOT of people. The SEC froze a couple hundred million from the companies account and assets to make sure that the investors get paid. Paul Burkes the owner of ZeekRewards needed to pay a $4 Million penalty and relinquish his interest in the company. You can view more information on this here.