Table of Contents
Introduction
One of the biggest and most complicated receiverships in history was the one for Zeek Rewards. It involved getting assets back from different places around the world and giving those assets to tens of hundreds of thousands of investors. After almost a decade of lawsuits and attempts to get assets back, the receivership is now over and the last payment has been made. In an unexpected turn of events, on the other hand, the receiver has confirmed that new checks will be part of the final payout. In the next few paragraphs, we’ll talk about what led to this decision and what investors need to know about it.
Background
The Zeek Rewards plan was a way for investors to make a lot of money by putting ads on the web. But in the end, it turned out that the program in question was a Ponzi scheme, and that the people running it were using the money from new investors to pay returns to people who had put money into the program earlier. In August 2012, the SEC put an end to the scheme and set up a receivership to recover the scheme’s assets and give them back to the investors.
Most complicated receiverships
One of the biggest and most complicated receiverships in history was the one for Zeek Rewards. It involved getting assets back from different places around the world and giving those assets to tens of hundreds of thousands of investors. After almost a decade of lawsuits and attempts to get assets back, the receivership is now over and the last payment has been made.
In the final distribution, there will be new checks
Unexpectedly, the person in charge of Zeek Rewards said that fresh checks would be part of the final payout to investors. Everyone involved is a little surprised by this. The receiver said that new checks had to be written because some of the earlier distribution checks were not cashed. This meant that some investors did not get the full amount of the distribution that they were due.
The receiver said that investors who did not get their full distribution amount or whose first distribution checks were not cashed will get new checks. Even if their first distribution checks were not cashed, these investors can still get the new checks. More checks will be sent to investors who have already been paid for their investments. These checks will come from the money that is still in the receivership.
Also, the receiver has confirmed that the same terms and conditions will apply to the new checks that will be sent out as they did to the first checks. Before an investor can cash a new check, they must sign it and send it back to the person who gave it to them.
Some of the reasons for the new checks are as follows
Several investors were surprised by the decision to give out new checks as part of the final distribution. This has led people to question how well the receivership process works for giving out assets. But according to the receiver, the extra checks were needed to make sure that all investors got the full amount of money they were promised and that the rest of the money in the receivership was split in a fair and equal way.
The receiver has also said that it is not unusual for new checks to be written during a receivership. It’s very rare for receiverships to send out extra checks when the original checks are returned uncashed or when investors don’t get their full distribution amount. This happens all the time.
How it affected the investors?
As part of the final distribution, new checks will be sent to investors. This will affect them in several important ways. The extra checks are meant to make sure that all investors get their full distribution amount, but they will slow down the process of distributing money to investors.
Will have to be patient
Investors who are expecting new checks from the company will have to be patient while they wait for the checks to be sent out and processed, which could take a few weeks or even a few months. Investors who have been waiting for their distribution for years may be frustrated by the long time it takes to get it. This is because the distribution process takes a long time.
Have to deal with more paperwork
The investors might have to deal with more paperwork because of the extra inspections. This could take a lot of time for investors who get new checks because they will have to sign them and send them back to the person who gave them the money after they have been cashed.
Lesson Learned:
The fact that more checks had to be written as part of the final distribution is a good reminder of how complicated receiverships can be and how important it is to have the most effective distribution procedures possible. The Zeek Rewards receivership has been one of the biggest and most complicated in the industry’s history, but it’s not unusual for creditors to get new checks during a receivership.
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