The company behind the penny auction website Zeekler.com and Zeek Rewards, Rex Venture Group LLC, has closed its headquarters in Lexington after the U.S. Secret Service, North Carolina Attorney General's office, and U.S. Securities and Exchange Commission began to investigate Zeek Rewards and the company's CEO.
The U.S. Secret Service has confirmed it is investigating Zeek Rewards as well as the company's chief executive officer, Paul Burks.
As of 3:30 p.m. Friday, both Zeekler.com and ZeekRewards.com displayed the same message stating: "Zeek Rewards is currently unavailable. More information will be available shortly on this website."
Special Agent Glen Kessler with the Secret Service's Charlotte office confirmed with FOX8′s Carter Coyle that they are working with the SEC as part of a joint investigation into Zeek Rewards.
Kessler did not provide further comment, but said more information would be released in a press release that will be issued by the end of Friday or early Monday morning.
What exactly is Zeekler and Zeek Rewards? Zeekler.com is a penny auction website, where buyers use "penny bids" to run their luck on products like Apple iPads, Walmart gift cards, televisions and other retail items.
"Penny bids" actually cost the buyer about 65 cents and are purchased through bid packs that range from $32.50 (50 bids) to $260 (400 bids). Buyers can also purchase VIP bids that cost $1 per bid to enter special VIP auctions, according to the Zeekler website.
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.
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.
