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he Zeek Rewards Receivership was formally closed on May 19th, 2022, according to the Zeek Receiver. The final distribution has been made, according to the receiver’s May 19th statement, and the receivership is now administratively closed.
The closure comes after the final distribution checks were mailed out in January.
“We distributed approximately 121,000 distribution checks on Wednesday, January 19th, totaling $14.3 million to victims of the ZeekRewards Ponzi fraud.
Regarding any outstanding payment difficulties, the receiver notifies that the 120-day check expiration date has now expired, and no further distributions will be made.
Please expect a reissued check to arrive in the coming weeks if you received confirmation from the Receivership team that one is being sent to you.
At this time, no more requests for replacement checks or wire transfers will be allowed.
The Receiver also provided insight into non-communication reported by Zeek victims, but it was more of a TelexFree thing.
Over the last few months, I’ve received thousands of phone calls and emails requesting distributions and reissued checks.
While I would like to answer everyone’s messages, due to the large number of claimants, I am unable to respond to individual emails about distribution-related questions.
Please note that the receivership has now concluded as of this update, and there will be no more responses to distribution-related emails.”
This also applies to us. We do not provide tech assistance for receiverships or trusteeships, and never has. Overall, victims with authorized claims recovered 84 percent of their losses as a result of the Zeeek Receivership.
“With this final payout, we have now refunded a total of $371 million to the victims of the scheme. I am proud of the receivership team’s hard work, which has resulted in such a substantial return to the claimants.
Sincerely,
Successor Receiver: Matthew E. Orso”
To put the $371 million payout in perspective, Zeek Rewards was a $900 million Ponzi scam (the SEC had originally estimated it at $600 million).
Zeek Rewards was eventually shut down by the SEC in August 2012. Paul Burks (right), the man behind Zeek Rewards, was sentenced to fourteen years in prison in February 2017. Burks is presently being imprisoned at FCI Butner in North Carolina, a “medium-security federal penitentiary institution.” Burks will be released on February 15th, 2028, at the age of 75.
