Lexington, NC - 2 Wants to Know is uncovering how people lost money with Zeek Rewards even after the S.E.C. closed down the Lexington-based company last year for allegedly being a ponzi scheme.
New evidence shows thousands of cashier checks to the company were cashed days after the business's doors were locked up.
Joyce, for example, wrote on Facebook: "How could Zeek cash my money order for a thousand dollars on August 30th when they shut down on August 17th?"
It turns out, Zeek rewards had cashier's checks and money orders in their office when they closed, and it was the government appointed receiver's office who actually cashed them. It's natural to wonder why couldn't the government agents just tear up those un-deposited checks and let people keep their money? The receiver says that wasn't an option.
"I know some people think I shouldn't have done that. I know a lot of people are upset that I did. But it was what had to be done under the law and under the courts order," Receiver Ken Bell said.
By federal banking law they have to cash your cashier's check. It's because of the difference between a personal check and a cashier's check. When you write a personal check, Bell says you legally have every right to stop payment with your bank before it's deposited. But Bell says once you authorize a cashier's check, it's more like cash. The money is legally the asset of who it's going to. Bell says it doesn't belong to you anymore.
Bell adds thousands of checks were cashed after the doors closed - ranging up to $10,000. Those people will most likely receive some of their money back, but probably not the full amount.
Earlier this month, Bell said he would go after everyone who made money from the company. But now he says not all of those people will be headed to court.
"We're going to litigatate litigation against probably not all, it wouldn't be cost effective for all, but I was say thouands, maybe tens of thousands of people who took out more money then they put in."
But what if you are home thinking, "well I'm going to hedge my bets and hope I'm one of those people that's not all."
Bell says, "it will have to be pretty low.I mean the threshold. The only reason we wouldn't is if it's just not cost effective to do so from an expense basis, but that number is pretty low. We can bring in a lot of pepople at one time and do this pretty efficently."
Bell will not release a specific threshold amount for who he will or will not go after. But he says about 16,000 e-mails were sent out to people who made money off Zeek Rewards.
If you got the e-mail, Bell says the reciever's office will certainly be coming after you.