Thread: Banners Broker HYIP ponzi scam

You can read the original article here on The Star.com

You can read the original article here at The Globe and Mail

Toronto Police news release

I like how the cop said that the advertising in BB was all BS.....Pity he made no mention of the $40+million in off shore accounts....If they seized that and did claw backs the victims would get something back...

Originally Posted by okosh

I like how the cop said that the advertising in BB was all BS.....Pity he made no mention of the $40+million in off shore accounts....If they seized that and did claw backs the victims would get something back...

but there is something mentioned in other articles so they know it exists and still said victims won't get anything.. they're just going through the motions just to say they 'did' something.

courtesy of BBPonzi Scam Facebook page and
$126M Banners Broker pyramid scheme dismantled by Toronto police - Toronto - CBC News

Seems My estimate of 60 million was wrong.

'Two men who allegedly ran a Toronto-based pyramid scheme that netted more than $126 million from people around the world were arrested this morning and face charges, police said.

'We're alleging this was a pyramid scheme from the get-go.'
- Det. Sgt. Ian Nichol, Toronto Police Service
Det.-Sgt. Ian Nichol said the suspects, both 45, operated the online advertising company Banners Broker from an office on Church Street between October 2010 and March 2013.

Nichol said by the end of 2012, the scheme had taken in about $93 million US — the equivalent of more than $126 million Cdn — though some $45 million US of the total was paid back to early participants in the scheme.

Nichol said when Banners Broker started, it made little to no attempt to conceal the fact that it was a pyramid scheme, and investors at that time either knew or ought to have known what they were getting into.

"We're alleging this was a pyramid scheme from the get-go," Nichol told reporters at Toronto police headquarters.

Later, though the business continued to provide "little or no actual product," its website did more work to pass itself as legitimate and brought in more investors through referrals.

Some early investors — those at the top of the pyramid — made money, but as in all similar schemes "somebody gets left holding the bag," Nichol said.

The remaining millions were moved to offshore accounts in Belize, St. Lucia and other small countries, police allege.

Nichol said thousands of victims lost hundreds or thousands of dollars each, and it's doubtful they'll get any money back.

Victims sucked in

Victims were sucked in with the promise they could double their money by investing with the advertising company. Banners Broker boasted it had access to a "globally renowned network," police said.

The company also used false or misleading representations when approaching new clients, police allege.

Police launched an investigation in January 2013 after receiving a complaint from the Canadian Competition Bureau. The lengthy investigation also involved the RCMP and government agencies in Canada and the United States.

Nichol said police seized electronic equipment and paper records while executing a search warrant during the complex investigation.

The two men, one of whom is from Toronto while the other is from Vancouver, face five charges each, including defrauding the public and operating a pyramid scheme.

They're scheduled for a court appearance Wednesday.

Originally Posted by Beacon

courtesy of BBPonzi Scam Facebook page and
$126M Banners Broker pyramid scheme dismantled by Toronto police - Toronto - CBC News

Seems My estimate of 60 million was wrong.

They're scheduled for a court appearance Wednesday.

If I am not mistaken, they were in court yesterday. Just haven't heard what happened when they appeared. Usually these type of appearances are to confirm they are the parties in the criminal complaint, they understand the charges, and to set the date for the bail hearing, pleading to the charges, trial date etc., etc.. I'm sure that info will be released shortly and we'll find out their next court date.

Originally Posted by Mr. Anderson

It's also on the Globe and Mail:
Two men charged in multimillion-dollar Toronto-based pyramid scheme - The Globe and Mail

"The charges were laid following a complex two-year investigation involving the Toronto police, RCMP, Competition Bureau, government ministries, the U.S. Federal Trade Commission, FINTRAC and the Canada Revenue Agency."

Quote from Det.-Sgt. Nichols, who heads the mass marketing section of the Toronto Financial Crimes Unit:


I wonder why they wouldn't charge any of the other ringleaders. They surely know who they are and already questioned them. Perhaps they made a deal? Or it's not a priority?

It is my guess they will be called as witnesses for the prosecution and therefore some kind of deal was made for their testimony, but that is just my conjecture at this time. Or it could be a combination of everything you asked.

Originally Posted by EagleOne

If I am not mistaken, they were in court yesterday.... This is going to be one very interesting trial.

FWIW while I respect the police and particularly the work of RCMP Judd I think it was the Canadian Coverage is about the police taking this down. I am aware investigations take time but this criminal case was preceeded by an ongoing civil suit which was brought about not by police but by Realscam, TaraTalks, Patrick Petty, Jason and others who publicised and researched this scam. This led to people taking the Isle of Man case which then became the Canadian case. I also believe from an international inter-jurisdictional perspective the Canadian Court has been very accommodating to the European liquidator. I think it may well set precidents in international law and improve the situation in combatting scams. But this is all aside from the criminal case. As for the US extradition in cases like these one might well get 100 years in prison in the US. While I do think Raj Chris etc. scammed people I also believe giving the ood scammer 100 years is about as useful as giving murderers the guillotine. It does not deter crime. More effective vigilance and reaction what is needed. Corporates for example did little or nothing here. The likes of Facebook or Linkedin still allowed these scammers in Banners Broker to continue their groups TO THIS VERY DAY and to migrate to MAPS Empower and a host of other scams. It is not right that corporates facilitate scammers in this way. It also poses questions for offshore havens such as Isle of Man, Belize etc.

Originally Posted by EagleOne

If I am not mistaken, they were in court yesterday. Just haven't heard what happened when they appeared. Usually these type of appearances are to confirm they are the parties in the criminal complaint, they understand the charges, and to set the date for the bail hearing, pleading to the charges, trial date etc., etc.. I'm sure that info will be released shortly and we'll find out their next court date.

It will also be interesting to see if the U.S. made a request for extradition. This is going to be one very interesting trial.

I doubt Canada will extradite them until they have finished their sentence, whatever it is, in Canada first. It's a process and is secondary to sentencing them locally.

In the words of Freddie Mercury and Queen, "Another one bites the dust!"

Originally Posted by Beacon

FWIW while I respect the police and particularly the work of RCMP Judd I think it was the Canadian Coverage is about the police taking this down. I am aware investigations take time but this criminal case was preceeded by an ongoing civil suit which was brought about not by police but by Realscam, TaraTalks, Patrick Petty, Jason and others who publicised and researched this scam. This led to people taking the Isle of Man case which then became the Canadian case. I also believe from an international inter-jurisdictional perspective the Canadian Court has been very accommodating to the European liquidator. I think it may well set precidents in international law and improve the situation in combatting scams. But this is all aside from the criminal case. As for the US extradition in cases like these one might well get 100 years in prison in the US. While I do think Raj Chris etc. scammed people I also believe giving the ood scammer 100 years is about as useful as giving murderers the guillotine. It does not deter crime. More effective vigilance and reaction what is needed. Corporates for example did little or nothing here. The likes of Facebook or Linkedin still allowed these scammers in Banners Broker to continue their groups TO THIS VERY DAY and to migrate to MAPS Empower and a host of other scams. It is not right that corporates facilitate scammers in this way. It also poses questions for offshore havens such as Isle of Man, Belize etc.

The only Ponzi operator in the USA that was given 100 years or more was Madoff (150 years) and he scammed people out of a lot more than $93 mil. The US isn't any tougher on white crime than most countries.

The question is, how many other countries will ask for extradition of Chris and Raj and prosecute them in their countries. Also, how many countries will go after the country representatives that promoted this scam and charge them with running a Ponzi scheme? I will bet that not a single country will do anything even though they had offices/representatives in many countries.

Originally Posted by Ken Roklin

I doubt Canada will extradite them until they have finished their sentence, whatever it is, in Canada first. It's a process and is secondary to sentencing them locally.

I misspoke, it was for another case in Canada that the possibility of extradition by the US authorities, not this one.

but, but, but this wasn't in Canada. right ken?

Originally Posted by Whip

but, but, but this wasn't in Canada. right ken?

please not another blame Canada/defend Canada sub thread

Originally Posted by Ken Roklin

The only Ponzi operator in the USA that was given 100 years or more was Madoff (150 years) and he scammed people out of a lot more than $93 mil. The US isn't any tougher on white crime than most countries..

90-Year Prison Sentence For Florida Man Convicted Of $2.7 Million Ponzi Scheme - Ponzitracker - Ponzitracker 90 years

10 20 30 years https://en.wikipedia.org/wiki/List_of_Ponzi_schemes

Man gets 90 years for bilking elderly investors of $11 million - The Orange County Register
BULLETIN: California Man Sentenced To 90 Years In Prison For Fleecing Elderly Investors In Ponzi Scheme - PatrickPretty.com
90 years

Well boys and girls happy days! A long time coming but here all the same. I wonder though where this will end? Should David Hooker and those who fronted the scam in other countries be worried? IMO, there will be no extradition requests but perhaps a sharing of info between law enforcement with the various countries affected? I really hope that there is an appetite for this as some sort of deterrent for others contemplating these scams!

Originally Posted by EagleOne

I misspoke, it was for another case in Canada that the possibility of extradition by the US authorities, not this one.

If either one of them were US citizens I am pretty sure they would. However, now knowing they ran a Ponzi scheme, the US should go after BannersBroker USA and at least the top promoters there. And if they don't , why not? They are as guilty as Dixit and Smith. If every country were to charge the top promoters or the regional managers (or whatever title they had) of these Ponzi scams there wouldn't be that many launching new ones on a daily basis. In BB's case the authorities already know who they are, i.e. UK / Ireland. Ian Driscoll should be one of the first charged in this scam rather than profit from it. But, that's just my opinion.

Originally Posted by Ken Roklin

If either one of them were US citizens I am pretty sure they would. However, now knowing they ran a Ponzi scheme, the US should go after BannersBroker USA and at least the top promoters there. And if they don't , why not? They are as guilty as Dixit and Smith. If every country were to charge the top promoters or the regional managers (or whatever title they had) of these Ponzi scams there wouldn't be that many launching new ones on a daily basis. In BB's case the authorities already know who they are, i.e. UK / Ireland. Ian Driscoll should be one of the first charged in this scam rather than profit from it. But, that's just my opinion.

You're dead right, Ken.

Unless and until the "enablers" are bought to account, as is slowly starting to happen in the US, these things will continue

Originally Posted by Ken Roklin

If either one of them were US citizens I am pretty sure they would. However, now knowing they ran a Ponzi scheme, the US should go after BannersBroker USA and at least the top promoters there. And if they don't , why not? They are as guilty as Dixit and Smith. If every country were to charge the top promoters or the regional managers (or whatever title they had) of these Ponzi scams there wouldn't be that many launching new ones on a daily basis. In BB's case the authorities already know who they are, i.e. UK / Ireland. Ian Driscoll should be one of the first charged in this scam rather than profit from it. But, that's just my opinion.

Ken good to see you back, hope you have a great XMAS or whatever you Canadians celebrate.


I would like to see the US do a lot more against the big promoters. The again I was emailing a regulator in Malta when MAP was heading to town. Planned on calling it the Malta Cocktail until the guy found out the event was on a Saturday, radio silence.


Here is the blow-off I got from "Don't Kiss in Public Dubai", apparently too busy arresting bloggers for Infideling I reckon.



We refer to your complaint to the Dubai Financial Services Authority (DFSA) dated 13 October 2015.

The DFSA is the independent regulator of financial services for the Dubai International Financial Centre (DIFC). The DIFC is a 110 acre free zone located within the City of Dubai. As such the DFSA only has civil and commercial jurisdiction and deals with issues involving firms that it regulates. The list of regulated firms is available on DFSA’s public register which can be accessed at Public Register - Firms.

A search of both the DIFC and DFSA public registers indicate that My Advertising Pays and Simon Stepsys are neither registered nor authorised by the DIFC or DFSA.

The regulation of financial services outside the DIFC (including in the city of Dubai) falls within the jurisdiction of:

The Central Bank, for firms providing banking services;

Telephone: +971 2 665 2220; Facsimile: +971 2 665 2504; URL: مرØ*با بكم Ù�ÙŠ الموقع الرسمي للمصرÙ� المركزي لدولة الإمارات العربية المتØ*دة.

The Emirates Securities and Commodities Authority (ESCA), for firms offering securities;

Telephone: +971 2 627 7888; Facsimile: +971 2 627 4600; URL: www.sca.ae.

The Dubai Police, for firms engaging in criminal conduct;

URL: Al-Ameen -Al Ameen Online Submission Form, or the Economic Crimes Combating Department of the Dubai Police at Telephone: +971 4 203 6341.

The Department of Economic Development (DED) for other services.

Telephone: + 971 600545555; Email: consumerrights@dubaided.gov.ae or info@dubaided.gov.ae; URL: Department of Economic Development
Accordingly, you may wish to forward your concerns to the Central Bank/ESCA/Dubai Police/DED for consideration.

The DFSA has assessed your complaint and based on the information you have provided, we are unable to take further action as we do not have jurisdiction over My Advertising Pays or Simon Stepsys. If you are able to advise on the venue where the event will be held, then please provide us with the information.

Should you have any queries in relation to the contents of this email please feel free to contact us.

Yours sincerely

DFSA Complaints
Dubai Financial Services Authority
Level 13, The Gate
P. O. Box 75850
Dubai, UAE
Tel: +971 (0) 4 362 1500
Fax: +971 (0) 4 362 0801
Dubai Financial Services Authority

Originally Posted by Ken Roklin

there wouldn't be that many launching new ones on a daily basis.

I love these wins and hope justice will be served, it's like many other things though people need to rely on themselves if they hope to keep their stack. This scam was far from elaborate, people simply suspended their disbelief. That will always be the case, and the authorities will always be two steps and a 90 minute lunch behind.

At long last! Its taken its time but got there in the end.

Interesting Banners Broker thread over at 4Networking started 8th Sep 2015

There are several new posts since the news of the arrests came out.

What ever happened to Bannersbroker? http://www.4networking.biz/Forum/ViewTopic/163220?page=1

Our old friend and Banners Broker Scammer Ian Parker puts in an appearance (not in front of a Judge yet though unfortunatly)

You will no doubt be surprised to learn that the savvy businessman who is Ian Parker was "fooled" and by Chris Smith and Raj Dixit.

Our other old friend and 4NETWORKING member, Banners Broker conman Roland Millward has yet to offer his defence.

I wonder if he was also fooled?

Courtesy of Ribshaw's post on the MAPS discussion
https://www.youtube.com/watch?v=en4UNqBgzRw

I respect investigations take time but...
He mentions that investigating Pyramids is "not usual" for them. How about "not at all" or "so rare we might do one every few years"? The journalist was lazy. They should have asked "how many have you done in the last five years and what amounts of money were involved in each of them" ?


I note he mentioned the Toronto Police got into this because the Competition Authority involved them.
Now Im sure some of us contacted the toronto Police before that and Im sure people in Canada did.
It was only when the civil case got running that they were told to act.
So how did the Competition Authority case get running? Was it because of information sent to them ...from WHOM?
Or was it because of another Civil Case? the one where spergel are involved?
And how did that come about?
Because of a UK Liquidator from and Isle of Man Liquadation.
And why did that come about?
Because of mainly UK but to some degree Irish and other victims ( and some scammers on the bandwagon for what they could get from the Isle of Man account) took a case there.
Annd why did they take that case?
Because people on the net were informing and organising them and asking them to get involved.
So it is my contention that the police didn't get involved in this on their own initiative but the whole thing was prompted by Realscam Petty Tara Jason and others who pushed this case in cyberspace.
I man be wrong about that but the officials in Canada gave no credit at all to the large amount of background details supplied by parties online who are interested in exposing scams.
And I think it is important to highlight this because if I am right people will think the system is doing all the work and not that people who are trying for YEARS to get the system to act did most of the work for them already and deserve recognition for that because if they are not recognised that isnt a positive step for many reasons ,some obvious, which I dont want to go into here.

News Release accompanying above video. My suggestion? get victims to email the police officer Ian Nichol at the top of this release asking him to acknowledge their post and also the work of Realscam.com and others and congratulating the Toronto Police on being first in several jurisdictions to bring criminal charges. And also to ask the police to point out to the court and to media that there is an ongoing civil liquidation of Banners Broker.

Streamed live on Dec 9, 2015

Arrests in $93M US pyramid scheme,
Toronto and Vancouver men charged

Info contact Toronto Police Detective Ian Nichol Ian.Nichol@TorontoPolice.on.ca 416-808-2222

Anonymous Crime Stoppers tips:
Talk: 1-800-222-8477
Type: http://222tips.com
Text: TOR plus your tip to 274637


Broadcast time: 10:39
Wednesday, December 9, 2015

Financial Crimes
416-808-7300

Case #: 2014-1863297


The Mass Marketing Section of the Toronto Police Service Financial Crimes Unit is a member of the Toronto Strategic Partnership against Cross-Border Fraud. The partnership represents a combined enforcement strategy, specializing in the investigation of mass marketing fraud in, or originating from within the province of, Ontario with cross-border implications.

In January 2013, the Financial Crimes Unit started an investigation into an alleged pyramid scheme. The Toronto Police Service was assisted by investigators from the RCMP, Competition Bureau of Canada, Ministry of Government and Consumer Services, Ministry of Finance, U.S. Federal Trade Commission, FINTRAC, and the Canada Revenue Agency.

It is alleged that:

- between October 2010 and March 2013, a pyramid scheme known as “Banners Broker” was operated out of a Church Street address in Toronto

- the scheme offered participants the opportunity to double their money by investing in an advertising company that had access to a “globally renowned network”

- participants were led to believe their investments were being applied towards a program that offered payment for the direction of web traffic via referral links

- the program's existence was entirely dependent upon the fee-based entry of new members and little or no real product or service was provided

- new investors were drawn into the scheme via a series of false or misleading representations

- by the end of 2012, over $93 million US was obtained from thousands of participants, of which approximately $45 million was paid back to participants in the scheme

- the remaining funds were funneled to a number of offshore accounts in Belize, St. Lucia, Cyprus, and others

On Wednesday, December 9, 2015, Christopher George Smith, 45, of Toronto, and Rajiv Dixit, 45, of Vancouver, were arrested. They are charged with:

1) Defraud the Public - Over ($5000)
2) Possession of Proceeds of Crime
3) Launder Proceeds of Crime
4) Operate Scheme of Pyramid - Selling (Competition Act)
5) Make False or Misleading Representations (Competition Act)

The were scheduled to appear in court at Old City Hall on Wednesday, December 9, 2015,. The proceedings are subject to a publication ban.