Federal receiver: Refunds coming from Ponzi scam

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LEXINGTON, N.C. (AP) - The lawyer managing refunds for investors caught in a huge Ponzi scheme says he’ll ask a court this month for permission to start paying refunds, perhaps by mid-summer.

The Dispatch of Lexington reports (http://bit.ly/1iYGjDu ) court-appointed attorney Kenneth Bell is updating victims of the ZeekRewards pyramid scheme.

Bell says his firm is reviewing about 175,000 claims from people who want to reclaim money lost in the scam. Nearly all will be decided by the end of the month.

The U.S. Securities and Exchange Commission seized the assets of ZeekRewards and its parent company in August 2012, calling it a $600 million Ponzi scheme on the verge of collapse. As many as 2 million people may have invested in ZeekRewards.com, an online company that promised big returns on a small investment.

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Information from: The Dispatch, http://www.the-dispatch.com

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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