For their part in defrauding Zeek Rewards Ponzi victims out of $1.8 million, the Receiver sued USHBB and operators James More, Oscar H. Brown and Robert Mecham in 2015.
Default judgement was entered against USHBB ($675,000) and James Moore ($109,130) in 2015.
Pending approval from the court, the Receiver has reached a settlement agreement with Oscar H. Brown and Robert Mecham.
According to a May 31st filing, the Zeek Receiver entered into settlement discussions with Brown and Mecham earlier this year.
Settlement agreements were reached on May 14th and May 8th respectively.
The Defendants have represented to the Receiver that they have limited financial resources and are not able to return the full amount owed to RVG and claimed by the Receiver.
These limited resources might erode even further during litigation to enforce the Receiver’s claims.
And, there would be a cost incurred by the Receiver to collect any Judgment awarded.
With respect to the settlement agreements, both Brown (as Oscar H. Brown and OH Brown) and Mecham acknowledge their participation in Zeek Rewards.
Both Brown and Mecham contend they ‘committed no unlawful act and did not know that (Zeek Rewards) was in fact operating an unlawful Ponzi and pyramid scheme‘, despite both having a recorded history of participation in similar scams prior to Zeek Rewards.
They did however acknowledge their collective receipt of over $1 million in stolen investor funds, and that USHBB’s corny videos helped perpetuate Zeek Rewards’ fraudulent activity.
Both Brown and Mecham have agreed to a partial Confession of Judgment for $1 million dollars.
The actual dollar amount Brown and Mecham are returning to the Receivership is $37,500 each.
This is based on sworn financial statements and sworn testimony under oath regarding Brown’s and Mecham’s respective financial conditions.
We aren’t privy to these statements, nor does the settlement agreement go into detail as to where the $1.8 million Brown, Mecham and the other USHBB defendants stole went.
With respect to the Confession of Judgment, should the Settlement Agreement be breached, then the entire $1 million plus interest becomes immediately payable.
Don’t think that’s going to happen though.
Steal over a million dollars from Ponzi scheme victims, pay back just under $40,000 and off you go.
Call me cynical, but sworn statements by serial scammers probably aren’t worth much more than used toilet paper.
Both Brown’s and Mecham’s settlement proposals are currently before the court awaiting approval.