Rolled up dollar bill in a cage meant to conceptualize enticing money in illegal situations.

California Pair Tied to $900M Ponzi Scheme Sent to Prison

A stepmother and stepson who helped run a penny auction company tied to a massive $900 million Ponzi scheme were sentenced to a combined nine years in prison for their roles in the scheme.

Dawn Olivares, once the COO of ZeekRewards, was sentenced to 7.5 years in prison for her role in persuading investors to fund an alleged retail profit-sharing business that was mostly paid out with other investors’ money. Her stepson, Daniel Olivares, was sentenced to two years in prison for his role as a senior technology officer.

Each pled guilty to one count of investment fraud conspiracy, and Dawn Olivares also pled guilty to one count of tax fraud conspiracy in February 2014. An estimated 900,000 investors lost money in the Olivares’ scam.

They, along with Paul Burks, ran Zeekler, an internet-based penny auction company. They convinced investors that their company was generating significant retail profits from its penny auctions, and that investors could share in the profits through investment.

Instead of actual profit sharing, the money was used to pay older investors, while Burks took home $10.1 million and the Olivareses received $14.6 million.

Call a Los Angeles Stock Fraud Attorney Today

If you invested with Zeekler, ZeekRewards, Dawn Olivares or Daniel Olivares, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles stock fraud attorney today for a consultation to discuss your rights and options.