The Securities and Exchange Commission (SEC) shut down for conducting Ponzi scheme activity. News outlets are reporting that ZeekRewards raised over 600 million dollars from over one million customers. Here are some links to the news reports:

SEC Shuts Down ZeekRewards as Scam – Wall Street Journal

U.S. SEC says shuts $600 million Ponzi scheme – Reuters

Investors in Lexington Ponzi scheme confused, upset – Fox8

Read the official SEC Complaint [PDF]. Or, read the official SEC Complaint online (i.e. text only).

Be sure to visit the blog at to read MLM Attorney Jeffrey Babener’s article, And the Leaves that are Green Turn to Brown – MLM Penny Auctions, of ZeekRewards’ recent allegations and to learn more about illegitimate direct selling companies.

You may also be interested in reading the following articles which help to identify pyramid schemes vs. legitimate MLM companies:

Is it a Pyramid or Legitimate MLM?

Identifying Illegal Pyramid Schemes

Pyramid: Yes or No?

Tired of reading? Attorney Jeff Babener will explain pyramid schemes to you on video:

From a Legal Perspective: The Difference Between a Pyramid Scheme and Legitimate MLM [Video]

How to Tell if a Company is a Pyramid or a Legitimate MLM [Video]

Not all Direct Selling Companies are Pyramid Schemes [Video]

Be sure to visit and for the latest on the MLM / direct selling / network marketing / party plan industry.

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