Jim Donnan, former coach at Marshall and Georgia 1990-2000, waves to the crowd after receiving his blazer during the College Hall of Fame pep rally in South Bend, Ind. The U.S. Securities and Exchange Commission is accusing Donnan of orchestrating a Ponzi scheme. (AP Photo/Joe Raymond, File)
RALEIGH, North Carolina— Federal securities regulators have filed fraud charges and an emergency order to freeze the assets of a North Carolina company officials say operated a $600-million Ponzi scheme that is on the verge of collapse.
The action by the Securities and Exchange Commission Friday is intended to help investors recoup money and avoid devastating losses.
Online marketer Paul Burks is accused of raising money from more than 1 million customers through ZeekRewards.com, a website in operation less than 2 years.
ZeekRewards customers were offered ways to earn money through the site, including buying unregistered investment contracts that promised a share the company’s profits through rewards points that could be traded for cash payouts.
Burks could not be reached for comment Friday and the website has been taken down.