Breaking Ponzi News: Irish Examiner Reports Judge Appoints Liquidators To Ponzi Scheme Banners Broker

Banners Broker


Thursday, February 27, 2014 – By Conor Ryan, Investigative Correspondent, Isle of Man

Thousands of Irish investors have been left counting the cost after the company behind Banners Broker, a suspected online pyramid scheme, was wound up owing millions.

Liquidators were appointed to Banners Broker yesterday following a hearing in the Isle of Man. The scheme had attracted investment from more than 12,000 Irish people and thousands more internationally. The court agreed with an uncontested application that Banners Broker International Ltd (BBIL) should be shut down. It came five months after BBIL withdrew support for its Irish office, redirected service calls to Belize and put heavy restrictions on the withdrawals people could make from their accounts.

The court in Douglas heard the company had $6m (€4.4m) in assets but it had nobody from its Canadian operators present.

“The company is currently in limbo. It has no registered office, nobody providing secretarial services, no representative who will appear and significant assets of $6m,” said Judge David Doyle.

The judge said under the Isle of Man’s Companies Act 1931 it was just and equitable for the company to be wound up.

He appointed joint liquidators. One, from local firm Mann Benham, was put forward by Targus Investments. Targus had previously provided BBIL’s Canadian principal, Chris Smith, with nominee services for BBIL in the Isle of Man.

The second appointee was London-based Paul Appleton, of David Rubin and Partners LLP.

Mr Appleton presented the court with claims from people whose money is still locked in BBIL’s complicated internet advertising packages.

A standard letter circulated among some investors asked the Isle of Man court to appoint Mr Appleton as joint liquidator. In it individual claimants set out how much they had put in and what they were owed.

“There are genuine concerns as to the manner in which the business has been operated by others.

“A full and thorough investigation into BBIL’s affairs is, therefore, required to determine the position and explore how best to secure and recover funds for the benefit of its creditors,” the letter said.

The effect on creditors and investors will become clearer over the coming days.  (Read The Rest Of The Article Here)

Breaking MLM News: India SFIO probing 67 companies for running Ponzi, MLM schemes

Like Brazil, India is making huge sweeping changes to the Direct Selling Rules & Regulations surrounding the direct selling industry in the country. Mary Kay has already pulled out leaving close to 4500 distributors without a home, and MonaVie and Amway have seen some of their country managers face legal actions. This is quickly turning uglier than China in the last 2oth Century, but by the time India is done cleaning up the laws, legit direct selling aka Network Marketing Companies will be able to offer a great income opportunity for India’s independent professionals.

SFIO probing 67 companies for running Ponzi  MLM schemes   Moneylife


SFIO is probing 67 companies for running Ponzi or money circulation schemes. In addition, the government has received complaints of financial fraud against 154 companies including Saradha, Rose Valley group, Vaishnavi Corporate Communication, Speak Asia, Reebok India and Alchemist Infra.

Serious Fraud Investigation Office (SFIO) is probing 67 companies for allegedly running Ponzi or money circulation schemes. Corporate Affairs Minister Sachin Pilot said his ministry has ordered SFIO to conduct probe against 67 companies who had allegedly floated Ponzi or multi-level marketing (MLM) schemes.

“…Investigation is being conducted in respect of all of them. As and when the investigation is completed, government orders prosecution in respect of violations of the provisions of the Companies Act, 1956 and Indian Penal Code, 1860,” Pilot said in a written reply to the Rajya Sabha.

Ponzi or MLM schemes are fraudulent investment operations, which lure investors with promise of high returns.

Pilot also said the government is looking into complaints of financial frauds against 154 companies including those connected with Saradha Group and Rose Valley Group.

“Complaints have been received against 154 companies/ organisations during the last three years,” he said, adding that his ministry has ordered probe of the balance sheets and other documents in these cases.

“Some cases have been referred to the Economic Offences Wing (EoW) of the concerned state government for further investigation,” he added.

As per the list provided by the Minister, complaints of financial fraud have been received against Saradha Group’s 10 entities such as Saradha Realty, Saradha Agro Development, Saradha Exports and Saradha Garden Resorts & Hotel.

Besides, the list includes names of 14 entities related to Rose Valley Group including Rose Valley Industries, Rose Valley Marketing and Rose Valley Hotels and Entertainment.

Vaishnavi Corporate Communication, Speak Asia, Reebok India, Alchemist Infra are among the other companies against whom complaints have been received, according to the list.

On steps initiated by the government to detect corporate wrongdoings, Pilot said the ministry is in the process of developing an early warning system to identify cases of frauds or potential frauds at the earliest.

“Pilot testing of the system is expected to be completed during 2013-14,” the Minister said.

In addition, Pilot said various measures had been undertaken to protect the investor’ interests through programmes on awareness and education.

Some of these steps include issue of multi-lingual print media advertisements from time to time to caution the investors about fraudulent investment schemes, creation of facility on MCA-21 website for lodging complaints and for tracking their status and a system of sending SMSes cautioning investors to be careful while making investments.

Source: Money Life