Whenever I tried to ask questions to my upline about the status of Zeek Rewards' investigation, I got a very vague answer with encouragement that Zeek Rewards would be back in business very soon. This was very confusing since I read the announcement by SEC said that Mr. Paul Burks had already entering settlement process with SEC and paid $4 millions penalty fee on the allegation. So, how could Rex Venture Group d/b/a Zeek Rewards.com would come back in business again? I decided to study the SEC investigation process myself, here is what I found from SEC's website.
SEC investigations can be triggered in many ways, including the review
of forms filed with the SEC, routine inspections of persons or entities
regulated by the SEC, tips from members of the public, referrals from
other government agencies, news reports, and information received in
other SEC investigations. Regardless of how they are triggered, SEC
investigations are almost always conducted privately.
The stages of a typical SEC investigation are represented as a flowchart below. The first stage of an SEC action is typically an informal investigation. At this stage, the Commission staff has no formal subpoena power, and hence must rely on the cooperation of the relevant individuals and entities to gather information. At the conclusion of an informal investigation, SEC staff may recommend that the Commission undertake an enforcement action seeking sanctions, seek a formal order of investigation from the Commission, or conclude the investigation without recommending an enforcement action.
When the SEC staff request and receive a formal order, the next stage is a formal investigation. The Commission approves requests for formal orders when it finds that it is likely that a securities law violation has occurred. The formal order grants designated SEC staff the ability to issue subpoenas and to administer oaths.
When the staff has concluded its investigation, it may recommend to the Commission that enforcement proceedings be commenced, or it may determine to take no further action. If the staff has determined to recommend that the Commission commence an enforcement proceeding, it typically gives prospective defendants a Wells notice informing them of the staff?s intent. The recipient of a Wells notice has a period of time, generally one month, to provide the staff with a Wells submission, which is essentially a brief arguing why an enforcement proceeding is not merited. Upon reviewing the Wells submission, the staff may elect to modify or reverse its recommendation to the Commission.
Upon the staff's recommendation to bring an enforcement action, the Commission has several options. It may authorize a civil action in federal court, an administrative proceeding before an administrative law judge, or no enforcement proceeding at all. Whether the Commission authorizes a civil action in federal court or an administrative proceeding depends on several factors, including the severity of the allegations, the nature of the conduct alleged, tactical considerations, and the type of sanctions sought.
The stages of a typical SEC investigation are represented as a flowchart below. The first stage of an SEC action is typically an informal investigation. At this stage, the Commission staff has no formal subpoena power, and hence must rely on the cooperation of the relevant individuals and entities to gather information. At the conclusion of an informal investigation, SEC staff may recommend that the Commission undertake an enforcement action seeking sanctions, seek a formal order of investigation from the Commission, or conclude the investigation without recommending an enforcement action.
When the SEC staff request and receive a formal order, the next stage is a formal investigation. The Commission approves requests for formal orders when it finds that it is likely that a securities law violation has occurred. The formal order grants designated SEC staff the ability to issue subpoenas and to administer oaths.
When the staff has concluded its investigation, it may recommend to the Commission that enforcement proceedings be commenced, or it may determine to take no further action. If the staff has determined to recommend that the Commission commence an enforcement proceeding, it typically gives prospective defendants a Wells notice informing them of the staff?s intent. The recipient of a Wells notice has a period of time, generally one month, to provide the staff with a Wells submission, which is essentially a brief arguing why an enforcement proceeding is not merited. Upon reviewing the Wells submission, the staff may elect to modify or reverse its recommendation to the Commission.
Upon the staff's recommendation to bring an enforcement action, the Commission has several options. It may authorize a civil action in federal court, an administrative proceeding before an administrative law judge, or no enforcement proceeding at all. Whether the Commission authorizes a civil action in federal court or an administrative proceeding depends on several factors, including the severity of the allegations, the nature of the conduct alleged, tactical considerations, and the type of sanctions sought.
After reading the investigation process, I have a better understanding that in fact Rex Venture Group has already passed the last stage on the flow chart. In other words, SEC has supposedly gone through investigation steps from top to bottom as shown in the flow chart--Informal and formal investigation, Well notice, Wells submission, Civil Action, and Settlement. This makes some top affiliates claimed that they had no idea about this SEC investigation and asset freezing prior to the SEC announcement on the last Friday, August 16th. I imagine that the attorney and CEO at least would be fully aware of the ongoing investigation. It is totally in my humble opinion, of course.
Does it mean this is a game over for Zeek Affiliates? Thank you for your participation in our show sort of speaks? May be, but Not quite!!!! As you may already learned that a group of top Zeek Affiliates including Dave Kettner an experienced internet marketer and Robert Craddock a former employee of Rex Venture Group lead a campaign on Facebook, radio shows, and websites called Zeek Rewards Affiliates United Against The SEC. They accept donation on their website zteambiz.com to hire an international law firm called SNR Denton to be a focal affiliates' representation against SEC that we believe that SEC could be misconducting and mishandling the investigation of Rex Venture Group, LLC. They aim to unlock the involvement of SEC and its receiver Mr. Ken Bell. That would unfreeze the 15 oversea bank accounts and get Rex Venture Group and its popular penny auction website zeekrewards.com back to business.
They claimed that SEC probably used unlawful tactics to force Paul Burks, CEO of Rex Venture Group into settlement and giving up his right in Rex Venture Group's asset and its interests. The fact that Zeek Rewards Affiliates United challenged SEC, this would probably lead to revealing the long and short of how Rex Venture Group conducted their business in a so called penny auction and the affiliate program.
Although we do not know who would prevail eventually, one sure thing is it would take a long time before any of the former Zeek Rewards Affiliates would receive refund checks back.
Although we do not know who would prevail eventually, one sure thing is it would take a long time before any of the former Zeek Rewards Affiliates would receive refund checks back.
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