LEXINGTON, N.C. — The company behind the penny auction website Zeekler.com and Zeek Rewards has closed its headquarters in Lexington as the U.S. Secret Service, North Carolina Attorney General’s office, and U.S. Securities and Exchange Commission investigate Zeek Rewards and the company’s CEO.
Three signs posted outside the headquarters of Rex Venture Group LLC at 803 West Center St. indicate the building will remain closed for the rest of the week. The signs also instruct visitors to check the company’s websites for more information.
The signs were posted on the windows of the building around 4 p.m. Thursday, while the websites themselves began featuring the notices around 9 p.m. Wednesday.
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.
The Attorney General’s office made a Civil Investigative Demand for specific documents from the company on July 6.
However, the company has not been shut down.
The Attorney’s General office opened a hotline for concerned affiliates or retail customers. The number is (919) 716-6046.
A spokesperson with the Better Business Bureau told FOX8 that their office began receiving complaints concerning the company about one year ago.
At least 39 complaints have been filed regarding the investment aspect of Zeekler, however there have been more than 20,000 inquires filed against the company within the past 30 days alone, the spokesperson said.
Most of the complaints have appeared in recent days, the spokesperson added.
When asked if those with money tied up in Zeekler have any reason to be concerned, the spokesperson said, “Yes.”
However, he could not elaborate further.
Dozens of complaints and inquiries have been filed through the Attorney General’s office since February 2012.
On ZeekRewardsNews.com, the company stated it was canceling its ‘Red Carpet Wednesday’ event. No further information was provided in the notice other than to continue searching for updates on Zeek’s websites.
The company announced Monday on ZeekRewards.com that there would be no training, recruitment or leadership calls in the coming days “while planning is going on.”
While rooted in its penny auction website, Zeek expanded in the past year by allowing users to “buy in” through an “affiliates program,” The-Dispatch reports. Online reports indicate there are more than 700,000 affiliates using Zeek Rewards, however company officials gave The-Dispatch a lower estimate of more than 200,000.