Zeek Rewards closes headquarters

Rex Venture Group, which operates the online penny auction site Zeekler.com and affiliates program Zeek Rewards, has closed its headquarters for the remainder of the week for undisclosed reasons.

The company, known to most as Zeek, posted three signs on the windows of its headquarters at 803 W. Center St. in Lexington by about 4 p.m. on Thursday that stated the office will be closed, telling visitors to “check the website for more information.” As of 6:22 p.m., there was no further information available on Zeekler.com or zeekrewards.com.

Both Zeekler.com and Zeek Rewards have recently come under the scrutiny of the North Carolina Attorney General’s office, after dozens of users filed complaints and inquiries in the past six months. The company, which is rooted in its penny auction website, has expanded in the past year to let users buy in through an “affiliates program.” Some say the company is a good way to make a little more cash while others condemn it as the makings of a pyramid or Ponzi scheme.

Paul Burks, chief executive officer of Rex Venture Group, could not be reached for comment. Dr. Clifton Jolley, the company’s media representative, also could not be reached.

Details about the closing were conflicting on Thursday.

Dozens of people arrived at the company’s headquarters throughout the afternoon on Thursday, only to find locked doors and confusion. The Dispatch spoke to about eight different people gathered outside at about 5 p.m., all of whom refused to comment on the situation.

One man, who said he was speaking on behalf of Zeek but wished to remain anonymous, said the building was being closed so Zeek could answer inquiries from the Attorney General, made in the form of a Civil Investigative Demand (CID). According to N.C. General Statutes, a CID is an administrative subpoena that can be issued by the Attorney General whenever there is reason to believe a person, or entity, has information that is relevant to an ongoing investigation.

The Attorney General’s office could not be reached for comment on Thursday.

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8/17/2012 – The latest news report is titled, “U.S. Secret Service, SEC investigate Zeek” . . .

The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company’s chief executive officer, Paul Burks.
…

The Secret Service does not comment on ongoing investigations, Kessler said.

Secret Service agents were taking statements from Zeek Rewards affiliates Friday afternoon at the company headquarters at 803 W. Center St