Pyramids and Ponzi Schemes in the Internet Era
Ideka Dowe · ScholarWorks @ The University of New Orleans (The University of New Orleans) · 2013
On August 17, 2012, the Securities and Exchange Commission (“SEC ”) filed a Complaint in United States District Court, Western District of North Carolina, Charlotte Division, against Rex Venture Group, LLC (‘Rex Venture”) d/b/a ZeekRewards.com (“Zeek Rewards”), and Paul R. Burks. The SEC alleged that Rex Venture and Burks fraudulently offered and sold securities in an unregistered offering as part of a combined Ponzi and pyramid scheme. This study sought to differentiate between Ponzi and Pyramid schemes. The study further revealed the challenges faced by the SEC in dealing with these schemes in the Internet era.