As promised in his quarterly report filed yesterday, the court-appointed Receiver for ZeekRewards has filed his Final Liquidation Plan ("Plan") that details his plans to liquidate the assets of the entity behind the scheme. In the Plan, Kenneth Bell, the Receiver, provides the clearest indications to date as to how he plans to administer what is thought to likely be the largest claims process in the context of a Receivership action with nearly 1,000,000 victims having a possible claim to recovered funds. Additionally, the Receiver has also released 'screenshots' of the expected claim form that will soon be provided to victims once the Court has approved the claims process.
One of the biggest questions surrounding the institution of a claims process for such a staggering amount of victims concerned the process by which such an undertaking would proceed. Perhaps anticipating the sheer amounts of paper that would be involved in mailing and overseeing close to one million claim packets, the Receiver indicated he would seek approval of electronic noticing procedures and an online claims submission process. Noting that the underlying nature of Zeek was an internet business, the Receiver expects to use investor email addresses both previously provided to him and those retrieved from the computer systems maintained by Zeek. Interested parties would be provided the address to a unique and customized claims website.
The screenshot attached to the Plan contains the depiction of a multi-step process to file a claim. After filling out claimant information and registering various contact information, a claimant would identify the type of claim they have from seven listed categories. For affiliate claims, which are believed to be the majority of the claims, the claimant would be required to provide a variety of specific details related to various purchases made, including subscription fees, sample bids, retail bids, auction items purchased, and training materials. Once the total amount of each category is listed, the claimant will then be required to list the date, amount, and reason for each payment and the corresponding payment type. Cnce all payments to Zeek have been provided, the claimant will then be required to list all payments the received from Zeek, the reason, and the payment type.
After this information is provided, the Claimant will be required to answer several questions relating to their involvement in Zeek. This includes:
- A list of all usernames they created;
- A list of all lawsuits or legal proceedings they are involved in;
- Whether they were an employee or officer, or related to any employee or officer of, Zeek;
- Whether they sponsored or assisted any entity or person become an affiliate;
- Whether they paid cash to Zeek on behalf of any other entity or person;
- Whether another person or entity paid cash to Zeek on their behalf or transfer bids to their account; and
- A listing of their upline/downline.
Importantly, the Receiver requires not only that the submission of the claim form constitutes consenting to the jurisdiction of the Court, but also that the answers are submitted under penalty of perjury. Some or most of these answers are likely to have a direct effect on whether a claim is rejected or accepted.
Each claimant will have the ability to upload supporting documentation, and upon completion will receive a receipt by email indicating that the claim was received.
While engaging the services of an attorney is certainly not required, it may be recommended to ensure not only that victims receive the maximum amount they would be entitled to, but also to monitor compliance with court deadlines which are historically strictly enforced. Those with questions are encouraged to contact Jordan D. Maglich at firstname.lastname@example.org.
A copy of the Claim Form screenshots is here.
A copy of the final plan is here.