Published: Aug 21, 2012 5:45 PM EDT
Updated: Aug 21, 2012 6:39 PM EDT

CHARLOTTE, N.C. - A warning if you've ever used Zeek Rewards, an online penny auction site.  The Securities and Exchange Commission shut the company down, calling it a massive ponzi scheme.  

Zeek Rewards started up about two years ago under the names Zeekler and Zeek Rewards.  They promised investors 1.5% per day on their money.  It's a simple case of it's too good to be true.

The Federal Government estimates the number of victims in this company may surpass one million.

Authorities say the way this scam worked is Zeekler was an international penny auction website that offered you the chance to win things by placing $0.01 bids.

Zeek Rewards then offered you the chance to share in up to half of the daily reports by finishing a set of tasks each day.  At the end of the day, you were paid the profit points but many people chose to reinvest their profits instead of receiving it in cash.

So many chose to rollover, the Federal Government believe the outstanding profits total nearly $3 billion.

Now the founder of Zeek Rewards is working with federal authorities and has agreed to pay $4 million civil penalty and give up all interests and assets in the company without admitting or denying any guilt.

If you feel you might have been a victim of Zeek Rewards or Zeekler, the North Carolina Attorney General has established a hotline and email address:

Hotline - (919) 716-6046

Email - Zeek@ncdoj.gov

http://www.ncdoj.gov/News-and-Alerts/Alerts/Information-about-Zeekler-Zeek-Rewards.aspx