24 Mar James D. Helgeson Investigated by Securities Lawyers in Connection with Rex Ventures and Zeekler Alleged Participation
James D. Helgeson, a former Kovack Securites registered representative, was sanctioned by the securities regulators. Helgeson consented to a one-month suspension and a fine of $5,000 from the Financial Industry Regulatory Authority (FINRA) without denying or admitting FINRA’s factual findings. Securities attorneys Joe Peiffer and Alan Rosca are investigating this matter.
Helgeson posted advertisements on the Internet to recruit investors to a subscription-based, penny auction website known as Zeekler on which auction participants paid a fee to place bids, usually $.50 to $1 per bid, on electronic and consumer goods, according to FINRA.
Rex Ventures operated Zeekler and solicited individuals to invest in its “rewards” program, which promised “Qualified Affiliates” a share of up to 50% of the daily profits earned by Rex Ventures and Zeekler.
Helgeson become an affiliate of Rex Ventures in December 2008, according to FINRA. Helgeson, on behalf of Rex Ventures, posted Internet advertisements on a daily basis on various advertising websites as part of Rex Ventures’ internet marketing campaign for its Zeekler auction website, according to securities regulators. By placing ads, Helgeson was allegedly compensated by earning VIP Rewards points which could be redeemed for cash on a one point-to-one dollar basis.
Helgeson anticipated receiving $280,000 in compensation from redeeming VIP Rewards points he accumulated from Rex Ventures based on his work recruiting investors for Rex over the internet and purchasing approximately $20,000 worth of sample bids in furtherance of Rex Ventures’ penny auction business and certain other activities, according to FINRA.
Subsequently the SEC took action against Rex Ventures, Zeekler and its founder in which the SEC sought to halt the allegedly fraudulent unregistered Ponzi and Pyramid scheme perpetrated by Rex Ventures.
Helgeson did not provide written notice of his affiliation and activities with Rex Ventures to his firm prior to engaging in the activity, thus violating FINRA rules.
The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.