A federal judge on April 28th granted summary judgment against Beverly Dawn Trca-Kitchen, rejecting her claim that she only had $8,798 in assets and had spent most of the $314,228 she profited from the Zeek Rewards Ponzi scheme. The court found her explanation for the missing funds unconvincing.
The Zeek Rewards Receiver had alleged Trca-Kitchen unlawfully obtained $314,228 from victims. This figure emerged from a forensic accounting of the scheme's backend operations. Trca-Kitchen, a Canadian resident, was identified as a significant net-winner.
She attempted to settle the matter by offering the Receiver $2,800, claiming her remaining assets totaled only $8,798. When pressed by the Receiver for an accounting of the $314,228, Trca-Kitchen stated the money was spent on "business expenses, taxes (a huge portion), debts that were paid from (her) divorce (and) paying for other affiliates’ bids."
The Receiver found this explanation insufficient and rejected the settlement offer. Trca-Kitchen then filed a motion asking the court to overrule the Receiver's objection and approve the reduced settlement.
Judge Mullen sided with the Receiver. The court's order declared that based on the undisputed facts of Trca-Kitchen's net winnings from Zeek Rewards, the Receiver's motion for summary judgment was granted. The judgment was officially entered by the court clerk the same day. Trca-Kitchen had previously suggested she would file for bankruptcy if the summary judgment was granted. It remains unclear if she will proceed with that threat.
No updates have been provided regarding summary judgments against other Canadian net-winner affiliates in the Zeek Rewards case.