By COLlive reporter
All ‘too good to be true’ things come to an end.
U.S. Securities and Exchange Commission said it has shut down ZeekRewards.com, a $600 million online Ponzi and pyramid scheme that was on the verge of collapse, the Wall Street Journal reported.
Online marketer Paul Burks of Lexington, N.C., and his company, Rex Venture Group, raised money from more than 1 million customers through the website ZeekRewards.com, the allegation said.
Burks agreed to pay $4 million in a settlement without having to admit to deny the allegations. He relinquished his interest in the company.
It was reported that “a significant amount” of frum Jews were among the investors that were promised up to 50% of the company’s daily net profits through a profit-sharing system in which they accumulated rewards points that could be used for cash payouts.
However, the SEC said the company’s website fraudulently conveyed that the company was extremely profitable when instead most of ZeekRewards’ revenue and the net profits paid to investors were composed of funds received from new investors, the Journal said.
On an Israeli haredi website, one comment claimed that a group of residents of Modi’in Illit have made a joint purchase. “Each yungeleit invested $3000 and now it all collapsed,” it read.
Y., an Israeli Lubavitcher said he too invested in the website. “I lost a few thousand dollars,” he told COL.org.il. “I hope the authorities in America will work to return the money; that’s what they said.”
Hatzlocho rabbo. May Hashem send a refuah and lots of parnosso your way.
so much #42
unfortunately due to my wifes illness we dont live in a heimishe frum neighborhood as we need to be close to a particular hospital. I am willing to do anything that can be done from home online that is not a scam.
Please help us keep our head above water.
thanks for listening.
Perhaps you can provide a service or product that is sold from home. Maybe linens, tablecloths, editing service, web design… Think of what you are capable and then try to do it via web from home. Perhaps an ebay store of liquidations you can access… This website we are commenting on for example, is a work from home business that was created from nothing and presumably brings the owner parnassa.
I have a very sick wife and two sick children. as a result I cannot work full time as I am their primary carer and they need constant attention!and it would be a great chessed and blessing if I could work from home to earn some parnassah as we have extremely large expenses for medications, transport to doctors and hospitals and special medical equipment that has to be on 24/7 resulting in high utility bills. I am desperate to find something that would give me the opportunity to work from home. Can anybody point me in the right direction pleease?… Read more »
As 28 there’s no comparison, it’s very different. Learn English.
#25 is pretty accurate with his assessment, I worked for Ambit until
I realized that the only way to make money is by preying on unsuspecting victims (consultants) I should have done my DD,
but shame on the person who preyed on me.
This sounds amazingly like a scam.
If you have enough health to call and type to friends, you have enough health to do basic secretary work or data entry. On a level of ethics, don’t you find it a bit questionable and morally dubious to say that you need the extra income at the cost of your friends/family brought into the Ambit MLM scheme?????? Why not tell them to turn around so they can’t see your hand go into their wallets? Much easier, more direct. It is the same ethical problem without some goy’s big fancy brochures and sales pitch. Ambit is not working for the… Read more »
To #11 Can you expand on what you said, it sounds like you know how to do it right…
Here is a good option to spend money: help a new Chabad house to get SEFER TORAH!!
http://www.chabadsouthshore.com/sefertorah
Carefull, you might be on COL for that too 😉
The MLM mentioned in post 19 is a DOUBLE scam that preys on people’s decency as well as their desire to make money.
Do NOT fall for it!!!
cannot get a regular job,such as my self, my husband tells me to get a job,and l’d ask him would you hire me? he said no,so what would you like me to do? l work for the rebbe,and help comes from hashem, unless you can help us
Ambit is a scam as discussed by #25. As for your question about stay-at-home parents and the $$ it should be obvious that your money is coming from consultants…who? your friends….why? because they pay the fees..and you get paid with it. Ambit and all the other MLM scams are just a way for people to be lazy and make fast money if they’re aggressive. HaShem wants you to make a solid, real parnassah. It doesn’t even have to be 40 hours a week. Some people make jewelry in their spare time and sell that. Others paint and sell those. I… Read more »
It is the small winners that end up having to give everything back (you are a small winner) and it is the small losers that do not get anything back, so word to the wise, stop investing in these get rich schemes, cause it is a lose, lose, lose!
ambit is a scam
It is clear that you have no idea what you are talking about. You clearly have never worked for Ambit and have not actually made money. I am an ambit consultant and B”h I have made a lot of money and I feel bad that you are so ill advised. Some work from home jobs are scams , ambit is not one of them. i actually attended a a zeekler meeting and an Ambit one and let me tell you there is a big difference. Maybe you should really know your info before you talk..
The difference is, lotteries aren’t sold as an income generating machine. It’s sold as a fun way to try your luck. Not to mention that it’s only a buck and not hundreds.
Whereas, MLM IS SOLD as an income generating…
I have to take issue with you. Though the BBB is a great resource, some times I see A – rated businesses that should be F rated. BBB should be a start, but in NO WAY is the BBB’s rating proof that a business deals with ethics.
(In my lengthy response to; “Is Ambit a scam?”)
I believe it is. There is no question that it’s a pyramid. They don’t make any bones about that. What I noticed is, the only way to succeed is if you solicit lots of “consultants”. Those consultants have to solicit other consultants. What they are paying you from is the fees the consultants pay for “the honor to join Ambit”. That’s a classic Ponzi scheme. Had they been paying you from the electricity profits it wouldn’t be a scheme, but they are not. Their major profit’s are the 150,000 consultants who paid $450 as a sign up fee , which… Read more »
A ponzi scheme is like a lottery. People put in money on the hopes of a payback. A few win, most lose their money and the organizers get the windfall. Whether a government run lottery or a tzedakah lottery, they all work the same way. They promise the chance of being a big winner knowing full well that nearly everyone will lose their money. The winners are getting a piece of the lost money of the “investors” into the lottery! If you play in lotteries and think that is okay, why not play in Ponzi schemes too? By the way,… Read more »
Is Ambit a scam?
If it seems too good to be true, it really is too good to be true. Sadly, people think that making money like this is easier than getting a job and actually working for a pay check. I know it might seem easier to sit online and try to find get rich schemes, but the time will be better spent getting a real job. I pray to G-d that my kids will not sit around praying for money instead of getting up and doing the work and thanking G-d for a job.
How can you be so happy when your fellow frum Yidden were duped & lost thousands? You made money on their tsur. I am truly speechless & disgusted & because I’m a nice person & clearly very naive I find it hard to believe your post is genuine. I can’t believe there would be people who seem to be frum who would be rejoicing in your “success.” These profits are tainted . How could you enjoy them? Get rid of the money, use it for good like #5 said.
Maybe you should do research about Ambit before you speak to quickly, its not a scam! if you did your research you would see. What is wrong for a family who is struggling to make a few extra bucks on the side, or a stay at home mom to make a parnasa for her family and still have time to be with her children?
Any one who got duped I am sorrry to hear about your loss. Anyone who brags about how they made money before they pulled the plug. I have news for you the FEDS will be coming after you to as you have stolen money in your hands. IF you want to earn an honest living. This company I work for is 100% and supports the largest humanitarian project the world has ever seen. Join today for FREE, and Save a Life! Check our video and site here: http://www.youtube.com/watch?v=etKFAnohJAw FREE to Join at: http://ultimatepowerprofits.com/pioneerpowerprofits This is not a zeek scam but… Read more »
Don’t be so excited, hotshot. The people who made money with Madoff had to give it back! Hope you didn’t spend it yet!
if not everything is legit not everything is fraud, if u don,t take risks u won,t go far, feel free to check bbb before investing in a company,
To number 2:
You are a ganef. Your Teshuvah is to give the money back to those who lost money. This is not the same as buying stocks. They were tricked into giving money for an illegitimate business.
Like #2, I also made money. So did some of my friends. I told everyone to get out and those who listened didn’t lose a dime, a few even made some money. The GREEDY ones stayed and lost everything. The stock market is also a gamble and you make money off the other guy who buys your stock for much more than you paid. The real estate market is the same. You sell your land for much more than you paid. Sometimes the stock or real estate market collapses, no one knows in advance.
Sruly Clapman, Was he a Georgian or Bucharian type guy? If so, I think he tried to get me in as well. As a rule, MLMs are scams. If you go to a presentation that makes claims that make you dizzy, run for the hills. If they get confrontational when you ask, run for the hills. When they tell you that you must act quick and put down your credit card, run for the hills. I never heard of an honest business man who insists you don’t give thought to a business proposal before joining / investing. Last but not… Read more »
I went to a Zeek presentation just 2 weeks ago, after 1 minute into it, I started asking the guy questions, he seemed very irritated, that I asked the questions and said you have to listen and EVERYTHING would be understood.
Obviously, I realized it was all a scam, smiled, and left.
The guy giving the demo was a Frum yid from Queens, if anyone invested money because of him and wants to take him to a Beis Din or court for lying, I would be glad to assist, cause there were a few straights out lies he said.
I heard about zeek around pesach time. At first I thought it was legit. Then the more I looked into it the more questions I had. Then I came across a blog called behindmlm.com which did an amazing job of uncovering this and other MLM ponzis. Glad I never put in a penny. Lastly never has a company claimed to give a daily 1% ROI (return on investment) that hadn’t proven to be a ponzi. So the next time someone tells you, invest here (or as zeek would have you say “buy bids” since they didn’t allow you to say… Read more »
Yes people get rich by one off wild investmets but the risks are huge and most get burned.
What you need is a varied diversified investment portfolio… hedge against inflation, bank on future growth, profits, possible start ups etc..
Your idea of an investment basket is a mix of secure low interest bonds, CD’s, large company stocks, metals etc..
I cant understand why you folks dont get this ? Invest in coins, stamps, art, judaica, property, stocks, government bonds…
Put time and effort into earning a livelihood. If money grew on trees (or on the internet), we’d ALL be loaded. Never get involved with such schemes.
As I was looking to start a new Chabad House, I was really in a crunch for $ as I wasn’t properly working an income job… Someone mentioned Ambit and I joined after seeing a presentation. After one week (I’m embarrassed it took me so long) I was convinced it was a Ponzi Scheme like thing so I hit the exit. A few months later, the guy who got me into Ambit called me. As soon as I heard his voice I realized it was same guy and he asked me if I had a minute. I said I doubt… Read more »
I beg to differ. My friend bought into this company and she adamantly insisted that it was not a ponzi scheme. There are very innocent people out there who got into this because they trusted others, not knowing what the real deal is…. it’s sad to say, but unfortunately, you can’t trust people these days….
Pirkei Avos says that it is a mitzvah for a father to teach his son a trade, and, if he doesn’t he is teaching thievery.
Stop with Zeek, Ambit, and all the other garbage schemes and get dayjobs and earn a living. Adirim Tachtonim starts with your bare hands!!!!
I wouldn’t announce your profits too soon. The govt. may try and claw back the “profit” and return it to the duped investors. That’s what they did with Madof and wouldn’t be surprised to see it happen here.
What boggles my mind is that people knew it was a ponzi scheme which means they knew that by pulling out their profits would come at a potential lost to the new investors and yet they had no compunction doing it and even announcing it on COL!
I do not know how you can be so proud of your “timing” and your little fortune that “you” made on this garbage, just for your info “Mr #2” you have in your hands exactcly what others like you lost… this game doesn’t make you better than the original GANAVIM
If I were you, I would give ALL this money to TZEDAKA, maybe this little fortune will get back to the original VICTIMS by hashgacho protis…
I was considering this. I am glad I saw this article.
BS”D
This (and several others, BTW) was presented as a MLM Ponzi scheme. Anyone who bought in to this illegal scheme knew exactly what they were doing, but hoped to make a quick buck before it colapsed. No one was duped, and no one deserves get their money back.
Timing is everything! You gotta know when to buy and when to sell. I went into this company, made a small fortune, and got nearly everything out. I only left a small amount. Right now, I am ahead over $25,000! It’s like everything else – nothing lasts for ever.
I don’t know the details of this specific story,but I hope that the people who lost money didn’t put anywhere near 10% of their net worth in this. Sadly I can totally see the lure of get rich quick leading people to put their entire family’s emergency money into this.