The Scams are Getting Dumber and So Are You

Sorry, how else to explain why this redneck with a one-year-old website was able to launch a $600 million ponzi scheme?  $600 million, I said.  You could buy the Tampa Bay Buccaneers for $600 million, just to put the enormity of that number into context.

Anyway, here goes…

From Reuters:

The U.S. Securities and Exchange Commission said it shut down a $600 million online Ponzi scheme on the verge of collapse and won a court ordered emergency asset freeze to protect some of the more than 1 million investors it had attracted., created in January 2011 by Paul Burks and touted as a “private, invitation only, affiliate advertising division” of penny auction website, promised investors up to 50 percent of “daily net profits” through a system based on rewards points, the SEC said.

The regulator said this created a false impression of “extreme” profitability, when in reality 98 percent of revenue and so-called net profits paid to earlier investors came from newer investors.

U.S. District Judge Graham Mullen in Charlotte, North Carolina issued an emergency freeze on Friday on the $225 million of investor funds that ZeekRewards still holds at 15 U.S. and non-U.S. financial institutions, and which were at “imminent” risk, court records show.

Oh my god.  What the hell is wrong with you people?  Can’t even blame Wall Street for this – Burks probably referenced Facebook in his con pitch.


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






This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. SKBproductionsllc Film in Atlanta commented on Sep 12

    … [Trackback]

    […] Read More here to that Topic: […]

  2. bitcoin trading software commented on Sep 22

    … [Trackback]

    […] Find More Info here to that Topic: […]

  3. blazing trader commented on Sep 30

    … [Trackback]

    […] Read More to that Topic: […]

  4. Mossberg guns in stock commented on Oct 13

    … [Trackback]

    […] There you will find 84507 additional Information to that Topic: […]

  5. td online commented on Nov 10

    … [Trackback]

    […] Find More on that Topic: […]

  6. last minute hotel booking commented on Nov 22

    … [Trackback]

    […] Read More on that Topic: […]

  7. 토토사이트 commented on Dec 15

    … [Trackback]

    […] Information to that Topic: […]

  8. fake watches commented on Dec 17

    … [Trackback]

    […] Find More to that Topic: […]

  9. dumps cc sites commented on Dec 23

    … [Trackback]

    […] Info to that Topic: […]

  10. wigs for women commented on Dec 31

    … [Trackback]

    […] Here you will find 27094 more Information to that Topic: […]

  11. Engineering commented on Jan 05

    … [Trackback]

    […] Read More Information here to that Topic: […]

  12. Digital Transformation commented on Jan 16

    … [Trackback]

    […] Information to that Topic: […]