Zeek hearing continued

Published: Friday, June 7, 2013 at 2:12 p.m.

Last Modified: Friday, June 7, 2013 at 2:12 p.m.

A federal court judge will hear a request later this month to dissolve the receivership effort for the alleged Lexington-based Ponzi scheme, Zeek Rewards.

A hearing has been set for 10:30 a.m. June 17 in U.S. District Court in Charlotte.

The request to dissolve the receivership, made by several of Zeek Rewards' "net winners," was scheduled to be heard this week. However, the Securities and Exchange Commission requested a continuance.

The SEC alleges that Zeek Rewards and its former CEO, Davidson County resident Paul Burks, swindled close to 1 million people out of their money through online programs based on penny auctions.

The SEC froze the company's assets last August, and court-appointed receiver Kenneth Bell has collected more than $300 million in funds for what he estimates as nearly 800,000 "net losers" of the program.

Source