updated - May 19, 2013 Sunday EDT
The shutdown of the headquarters of Rex Venture Group, the company that runs Zeekler.com and Zeek Rewards, took a new turn Friday when Secret Service agents showed up at the company’s office in Lexington, NC.
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The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company's chief executive officer, Paul Burks.
Special Agent Glen Kessler said the Secret Service, in coordination with the U.S. Securities and Exchange Commission, is working a joint case on Zeek Rewards.
The Secret Service does not comment on ongoing investigations, Kessler said.
This happens after 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.
The company also announced it is canceling its upcoming "Red Carpet" event, scheduled for Wednesday. The announcement, made on zeekrewardsnews.com, also advised readers to continue to monitor its websites for more information to be forthcoming.
Online reports indicate there are more than 700,000 affiliates using Zeek Rewards, however company officials gave the paper a lower estimate of more than 200,000.
The Attorney's General office has opened a hotline for concerned Zeek Rewards affiliates or Zeekler.com retail customers, which can be reached by calling (919) 716-6046.
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