Accused ZeekRewards Ponzi mastermind pleads not guilty

The accused mastermind of what prosecutors are calling one of the largest Ponzi schemes in U.S. history pleaded not guilty Thursday morning in Charlotte federal court.

Paul Burks, 67, of Lexington, requested a jury trial to settle charges including conspiracy and tax, wire and mail fraud. He was indicted last month, accused of running an Internet scam known as ZeekRewards that used penny auctions that attracted almost 1 million investors in 150 countries. Some 50,000 North Carolinians took part, including 1,500 Charlotte residents.

In all, investors lost more than $800 million while Burks, a former retirement home magician and country music disc jockey, pocketed more than $10 million.

He faces a maximum penalty of 65 years in prison and a $1 million fine. Prosecutors are also calculating a forfeiture notice that could cost Burks millions more.

At a little past 9:30 a.m., the tall, gray-suited Louisiana native stood before U.S. Magistrate Judge David Cayer to hear the charges lodged against him.

Afterward, he stood silent as his attorney, Noell Tin of Charlotte, addressed the media outside the federal courthouse.

“Mr. Burks did not commit any crime,” Tin said. “We look forward to presenting our case in court.”

Tin then led his client away, with Burks remaining quiet when asked if he had any remorse or anything to say to his local investors.

This story was originally published November 13, 2014 at 11:35 AM with the headline "Accused ZeekRewards Ponzi mastermind pleads not guilty."