Inside info Zeek Rewards Shut Down By S.E.C. Securities & Exchange Commision

Many are unclear as to what is going on with Zeekler - Zeek Rewards. As one of the top producers with nearly all leaders in Vitel on my team I have direct access to the CEO of Vitel Scott Rogers, who had banking business matters ONLY with Zeek that help keep the company going when they had banking problems the past couple of months. He OFFICIALLY knows what is going on at Zeek Rewards.

We had a live call on the matter. I would post the replay but there are other things as to Vitel extending help to Zeek affiliates that may not be appropriate for the forum. If you want to inbox me feel free.

I'm not hyping this matter just providing validated facts.

If anyone thinks that Zeek Rewards is coming back this should end the argument. If you haven't seen the Zeek Rewards notice of charges by the SEC here it is:
http://www.sec.gov/news/press/2012/2012-160.htm

The owner of Zeek has already acquiesce to the charges. Last night people thought we (Vitel) were lying, today they see we were telling the truth and we took action to help.

I understand the shock that many are having with Zeek, having believed that the big name mlm attorneys made the new biz model safe. However, that is not the case as explained here:
http://www.businessforhome.org/2012/08/zeekrewards-closing-down-the-mlm-attorney-speaks-out

All the best,

Jah Kafele

Here's the official SEC complaint that was filed on Zeek Rewards http://www.sec.gov/litigation/complaints/2012/comp-pr2012-160.pdf

Knew it was coming...it was just a matter of time.

I felt the same way crisstar. But I still feel bad for the people who lost money with Zeek.

Not me!

People promoting these scams are so quick to sell you the latest money maker, without actually investigating. They simply want to make a buck for themselves regardless of the outcome for others.

They deserve what they get!

Well, a lot of innocent people got sucked in and lost money. I really do feel sorry for them. I agree they should have investigated Zeek more though, before jumping in.

Once Zeek hired all the attorneys to attempt to get out of the illegal area they were operating in, many people took that as a sign that it was okay to go full steam. So in some respects you can't blame the people. Zeek had people doing over an hour of compliance training.

Fact is that penny auctions do not appear to work for a mlm biz model. I always thought it was an issue of product stuffing at the least. Can you imagine a juice company and you asking people to buy 5 figures worth of juice, and then a 100 monthly worth to follow? FTC would have screamed product stuff and shut it down.

Bids That Give is the only one trying to maintain their stance, proceed with caution, home biz seekers

Bidify has now gone with a typical mlm structure so it will be interesting to watch what happens there.

It will be interesting to see if Bidify and other penny auction mlm's will survive. I was with a company a couple years ago that tried and didn't make it. The Penny Auction biz does look to be effective for the mlm biz model.

Penny auctions are a rip off... It's well known they have shills to keep the bidding going.

Penny auctions AND mlm?
That's a match made in scam-heaven...!

Penny auction deals are making a killing, too bad Zeekler deal wasn't stuctured properly. I have know Paul for years, and this one just got away from him as I see it. Tried to get into compliance when FTC came a knocking, but it was too late, once they saw $600M flowing through accounts, it was all over. Banks tipped off FTC on this one, as they only had 8 complaints, 7 resolved, and this is never enough to pull in FTC, or SEC, so this one was clearly a bank tip off, and this is why it was shut down so fast, and why Paul took the $4M fine deal so fast, he knew his goosed was cooked and he may still face criminal charges. I would bet they blackmailed him to take the deal or face criminal charges, so time will tell.

As more details come out on Zeek, it is sad to see that they took the wrong appraoch with a very powerful and profitable model which the penny auctions are. There is so much profit in the actual auctions that it defies logic why Zeek would have put all the focus on selling bids with the hopes of a high return while not even using the bids personally. They encouraged distributors to just give them away, which indicates they were worthless for what they were, sort of like selling any intagible, if the product is not used, it is worthless.

When you look inside the penny auction industry, and see the huge profits being made, it would have made more sense to pay distributors on the actual merchandise being auctioned and not on the bids being sold. With FunkyShark, they are paying out 50% of total profits made on the actual winning bids in penny auction. Do the math, each penny bid brings in say .70 cents, it is pretty simple to see why the bidder can save big, on average, 70% less than retail of same name brand products, plus with the profits being high, at 50%, this equates into a very high commission rate, and not based on investing in bids.

The more you learn, the less likely you will be burned, so having saved thousands over the years using penny auctions, this is an industry which will grow and grow as I see it, just like ebay has, as long as you offer the average consumer a means in which to save money on name brand merchandise, penny auctions are here to stay. The reason I see FunkyShark as the real deal is they mandate you use bids or the are worthless, the exact opposite model Zeek was using as I saw it. The focus cannot be on pushing bids, it must be on the end product, the merchandise won at the auction. Until you have tried any of the half dozen penny auctions and actually won a big item at a fraction of average selling price, you won't fully understand why this industry is exploding as it is. I would have bet if Zeek would have used the FunkyShark compesation plan, it would have still brought in hundreds of millions. Time will tell.