Ponzi Scheme Devastates N.C. Town

    In this Feb. 28, 2013 photo, Sarah Chavez stands on the porch of her home in Lexington, N.C. Desperate to raise money for their 6-year-old daughter's cancer treatments last summer, friends told Jose and Sarah Chavez of a way to quickly turn their meager savings into a small fortune. But what the Chavez family and many others didn't know was that state and federal regulators for months had received complaints that ZeekRewards was a scam. (AP Photo/Chuck Burton)

    Investment scam victim Sarah Chavez. (Chuck Burton/AP)

    The tiny town of Lexington, North Carolina, has been left devastated after a $600 million Ponzi scheme by one of its own. Paul Burks, 66, has been accused of masterminding the Ponzi scheme—one of the largest in history—with a company called ZeekRewards, with 50,000 of the nearly 1 million of victims coming from North Carolina. Authorities say Burks siphoned off millions for his own personal use, although Burks insisted that “everything will come out in time” about the alleged scheme. Burks has not been charged, although he agreed to pay a $4 million penalty. ZeekRewards and its sister site Zeekler.com were both shut down in August amid the investigation.

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