The Zeek Rewards Receivership is one step closer to recovering $13.1 million from VictoriaBank, following the denial of rehearing petition.
Following a successful appeal by the Zeek Receiver, challenging a decision that would see VictoriaBank keep $13.1 million stolen from Zeek Rewards victims, VictoriaBank filed a petition for an appeal rehearing on April 9th.
In a brief two-page order filed on May 22nd, VictoriaBank’s petition was denied.
The court denies the petition for rehearing and rehearing en banc.
No judge requested a poll under Fed. R. App. P. 35 on the petition for rehearing en banc.
Entered at the direction of the panel: Chief Judge Gregory, Judge Keenan, and Senior Judge Shedd.
If I’m understanding the order correctly, none of the three Judges thought the decision warranted a rehearing.
With that out of the way the clawback case bounces back to the District Court.
As per the granted appeal, the District Court has to either grant the Receiver additional discovery or lower the required standard of proof; both of which would ultimately satisfy jurisdictional issues.
Satisfying outstanding jurisdictional issues will see VictoriaBank then try to convince the court why it should be permitted to keep $13.1 million stolen from Zeek Rewards Ponzi victims.
Not quite time to break out the popcorn yet but we’re getting there…