Thread: Banners Broker HYIP ponzi scam

"I got your audit reports right here ... Come and get it " - Terry

Originally Posted by Beacon

Maybe I can help? Why don't they just publish Terry's audits up to last year and we can have a look at them wait while they are doing the current one? I mean were they set up in 2010? We should have three or four audits which they have already done to peruse while waiting on one for 2014. I mean they are not going to say they are in operation for three years without a legally required audit which is demanded for "compliance" purposes are they? What were all those "compliance" talks and "compliance" directorships about if they were not doing the simplest legally required compliance
of submitting annual audited accounts?


Then again, maybe the audits were distributed into the "blind network" where nobody can ever see them

I'm not saying they shouldn't have audited statements as promised but "legally" they do not have to provide them. It is a private company and I may be wrong but I believe that in most countries unless you are a publicly traded company audited statements are not a requirement. Since the corporation is incorporated offshore, IOM or whatever, they certainly aren't obligated to have their accounts audited, legally.

Originally Posted by Ken Roklin

I'm not saying they shouldn't have audited statements as promised but "legally" they do not have to provide them. It is a private company and I may be wrong but I believe that in most countries unless you are a publicly traded company audited statements are not a requirement. Since the corporation is incorporated offshore, IOM or whatever, they certainly aren't obligated to have their accounts audited, legally.

That may be true Ken, but is it also not true that it was Terry Stern who brought up the whole audit conversation?

General Overview of the Canada Corporations Act Part II - Corporations Canada
All corporations are required to have an auditor. The auditor must be appointed by the members at each annual meeting. Unless all of the members agree otherwise, the auditor must be independent of the corporation and therefore cannot be a director, an officer or an employee of the corporation or any of its affiliates.

The auditor is required to make an examination of the accounting records and the financial statements. The auditor must report to the members on the examination at the annual meeting. The auditor must state whether the financial statements fairly present the financial position of the corporation and the results of its operations during the past year.[/quote]
Annual Meeting

All corporations, both large and small, must hold at least one annual meeting of members every calendar year and not more than 15 months after its previous annual meetingFootnote 1. The directors may also call special general meetings of members. While any topic affecting the corporation can be discussed, the annual meeting must at least address the following:

presentation of the financial statements;
consideration of the auditor's report;
appointment of the auditor; and
election of directors, if applicable.

Banners Broker has been around since 2010.

In any case
They are obliged to publish accounts.
Now can you tell me how they are going to publish a valid summary of the accounts of over 450,000 clients without an audit?

Originally Posted by Brenda

That may be true Ken, but is it also not true that it was Terry Stern who brought up the whole audit conversation?

Yes it was Terry but it isn't true anyway that they don't have to file audited accounts.
In fact Terry stated they had audited accounts which when challenged on he said they were private. Terry was wrong but suppose he was right. Would you Trust a company who asks you to part with your money for their "foolproof profit making" and then when asked to show you accounts showing profits say "that's private"?

/BB World Tour | Just another WordPress site


Ha ha I love how Banners Broker have included the one place on the planet where they dare not go on their "World Tour" artwork


BB World Tour | Just another WordPress site 2014-02-13 19-48-23.jpg

Well, look here........someone is getting upset about chargebacks! Thanks to Rockin' Ronnie over at the BB Blog:-

BB Blog 13th Feb 14.jpg

And there's more! Stone me, "working together to make Banners Broker the best it can be" eh? Good luck with that then!


BB Blog 2 13th Feb.jpg

Just re-reading that posting about chargebacks (yes, I know I posted it!) - but I'm not sure I understand it.

Are they implying that anyone instituting a chargeback is trying to commit fraud? That's a bit rich, coming from BB, isn't it??

Or are they perhaps starting to be hurt by ex-affilaites successfully making a chargeback? Are financial institutions starting to ask tricky questions, I wonder?

Hilarious! Best blog post Ron has put out.

When Banners Broker receives a chargeback notice, the account in which the service was purchased is immediately blocked, and all associated services in the account are terminated.
He says it like that is a bad thing.


Banners Broker always considers chargebacks to be the result of fraud; since fraudulent purchases go hand-in-hand with malware and phishing, immediate termination of all services related to the chargeback is the best way to protect the public from harm.
Gee Banners Broker is always looking out for folk.



To undo a chargeback, you must contact your credit card provider and issue a chargeback reversal.
Why would anybody want to do that? They did the chargeback 'cos they realised they have been scammed?

Reversing the chargeback is the only way to restore a blocked account.
Again why would anybody want to gain access to their play money once they realise they have been scammed?


Chargeback reversal notices are often sent by postal mail, which can result in days without access to the account or its services; when contacting your provider, please ensure they email a copy of the paperwork to support@bannersbroker.com to allow us to restore account access as quickly as possible. Support will be happy to help you resolve the issue.
I'm sure they will.


Remember, the one and only way to restore a blocked account is to reverse the chargeback. This returns the initial funds to us, cancels the penalty fee we receive for “allowing” fraud to be committed, and generally erases any “black marks” against us for the transaction. We do not accept additional payment for services on a different card.
But fraudsters are what you are, and fraud is what you do.

Banners Broker will be in panic mode.

The Short and Long Term Ramifications of Chargebacks

Every chargeback comes with a fee. The price of chargeback fees varies, depending on the merchant processor. Generally, the fee ranges anywhere from $20-$100. Each separate transaction is susceptible to a chargeback. For example, if a customer wants to dispute six months of service, each month’s transaction will come with a separate chargeback fee.

The chargeback process does allow the merchant to dispute the claim. However, even if the merchant is successful, he or she will still have to pay the original chargeback fee.

If the merchant is unable to fight the credit chargeback or fails to provide sufficient evidence, the merchant will lose the profits associated with the original sale. Rarely does the dissatisfied customer return the item. Therefore, future potential sales are lost too.

Sometimes, chargebacks can spiral out of control. If a merchant incurs too many chargebacks (usually more than 1% of total sales) in a given time frame, the processor will award the merchant a hefty fine. If the rate of chargebacks continues to escalate, the processor can simply terminate the merchant account.

If the account is terminated, the merchant probably won’t be able to secure another – from anyone. At that point, the company will have to stop accepting credit cards as a form of payment or go out of business.

They already are in panic mode or they wouldn't be bringing it up. They think if they do they can stem the tide moving against them. This is going to be fun to watch play out.

Originally Posted by EagleOne

They already are in panic mode or they wouldn't be bringing it up.

Yep, both Banners Broker and the payment processors are in full on panic mode.

Not only do they lose the "sale", but they also incur a penalty fee as well.

Anyone contemplating doing a chargeback had better do so immediately.

No HYIP ponzi can survive this sort of crisis for any length of time ESPECIALLY when the flow of new money has already stopped.

Chargebacks hit their cash reserves hard and fast.

Originally Posted by Brenda

That may be true Ken, but is it also not true that it was Terry Stern who brought up the whole audit conversation?

Yes it was and based on that I agree they should provide them. My comment was in response to a post that stated it was their legal obligation to provide them in order to be compliant which really isn't true. It is a private company and they do not have to have audited statements. Audits are expensive and unless companies are publicly traded they do not go to the expense of getting them. The company accountant/VP Finance can do the same thing without using an outside company to "verify the accuracy" of the accounts.

Originally Posted by Beacon

General Overview of the Canada Corporations Act Part II - Corporations Canada
All corporations are required to have an auditor. The auditor must be appointed by the members at each annual meeting. Unless all of the members agree otherwise, the auditor must be independent of the corporation and therefore cannot be a director, an officer or an employee of the corporation or any of its affiliates.

The auditor is required to make an examination of the accounting records and the financial statements. The auditor must report to the members on the examination at the annual meeting. The auditor must state whether the financial statements fairly present the financial position of the corporation and the results of its operations during the past year.

The key phrase is " Unless all of the members agree otherwise, the auditor must be independent of the corporation and therefore cannot be a director, an officer or an employee of the corporation or any of its affiliates."

In the case of most privately held companies the members of the board, in many cases only 1 person, the sole owner and director appoints himself to be the Chief Financial Officer and Auditor. Audits are expensive and most small businesses operating a "legit" business do not hire an independent auditor. The company accountant/CFO can be appointed the auditor (to be compliant with the Canada Corporations Act ). Because it is a private company it does not have to make the accounts public.

Originally Posted by Della Cate

Well, look here........someone is getting upset about chargebacks! Thanks to Rockin' Ronnie over at the BB Blog:-

BB Blog 13th Feb 14.jpg

Chris Smith Explains The New Chargeback Policy




Chris Smith Explains The New Banners Broker Chargeback Policy Feb 12 2014 - YouTube

Some explanation who the hell is Monetize Group, as i see people everywhere again speculate that it is a Chris's company in Belize, NO - to both of that.

OK, where did Monetize Group came into picture from:

TRANSFERRING OR SHARING YOUR INFORMATION
Banners Broker International does not sell or otherwise transfer personal information to unaffiliated third parties except where you specifically authorize us to do so. Unless prohibited by law, Banners Broker International does however share information with its affiliates, subsidiaries and even third parties providing services on behalf of Banners Broker International, Banners Broker Reseller, the Monetize Group, its affiliates or subsidiaries for the purpose of allowing all the above entities to bring suitable products and services to your attention or upon you request.
....

LINKS TO THIRD PARTY WEBSITES
The content of our Website may contain links to third party Websites. This privacy statement applies only to Banners Broker International and The Monetize Group for information collected by these two companies. It does not apply to any third-party Websites you access from our Website, and we are not responsible for the privacy practices of these sites. It is your responsibility to be aware of and comply with such privacy policies.

URL: Banners Broker

So , why would someone think that Monetize Group is an offshore company in Belize owned by Chris ? - i challenge anyone to show any bit to support that claim (without she said, he said, including Terry who had no idea what he was talking about himself and been shown so, geez he hardly even knew that Chris is black)

Why nobody would consider a popular UK company which is in specific business of targeted marketing and data mining customer information, and BB clearly says they will have access to that data.
read where your personal data ended up: Why Monetize? | The Monetize Group

Banners Broker Business Plan

Originally Posted by Della Cate

Just re-reading that posting about chargebacks (yes, I know I posted it!) - but I'm not sure I understand it.

Are they implying that anyone instituting a chargeback is trying to commit fraud? That's a bit rich, coming from BB, isn't it??

Or are they perhaps starting to be hurt by ex-affilaites successfully making a chargeback? Are financial institutions starting to ask tricky questions, I wonder?

Banks have massive fraud departments. Nice to know chargeback is working...in more ways than one!

p.s just noticed that BB get charged a PENALTY per chargeback. I didn't know that! BONUS!!!

Originally Posted by Banners Broker

TRANSFERRING OR SHARING YOUR INFORMATION
Banners Broker International does not sell or otherwise transfer personal information to unaffiliated third parties except where you specifically authorize us to do so.

Why on earth would anyone think that a company such as Banners Broker which is running an international multi million dollar fraud would suddenly turn honest and not share personal information ??

Like "Yeah, we ripped off a coupla hundred thousand people for millions of dollars and haven't paid anyone for 14 months, but we promise we won't sell our database full of their personal information to the highest bidder"

Yeah, right.

Originally Posted by littleroundman

Why on earth would anyone think that a company such as Banners Broker which is running an international multi million dollar fraud would suddenly turn honest and not share personal information ??

Like "Yeah, we ripped off a coupla hundred thousand people for millions of dollars and haven't paid anyone for 14 months, but we promise we won't sell our database full of their personal information to the highest bidder"

Yeah, right.

I dunno, i Guess because even some scam-busters trying to run around, track down some online bought / worth nothing offshore shelf companies and take them to court :) Like they are some real businesses with the real assets and not a planned scam at all :)

Originally Posted by NikSam

I dunno, i Guess because even some scam-busters trying to run around, track down some online bought / worth nothing offshore shelf companies and take them to court :) Like they are some real businesses with the real assets and not a planned scam at all :)

I wouldn't be too critical.

Every half decent HYIP ponzi always claims it is a "legally registered company" or shows a "Certificate of Incorporation" from some exotic tax haven, so, as a tactic, it obviously works at convincing some people it actually means something.

Summary

Now we could sum all the expenses related to your Seychelles IBC incorporation and there are the results: + Incorporation of Seychelles - not more than U$ 400 + If notarization necessary add not more than U$150 + If apostille necessary add not more than U$200 + If nominee directors necessary add not more than U$200 + If nominee shareholders necessary add not more than U$300 If you do want to form a Seychelles IBC without getting too deep in incorporation details AND do not want to pay too much for this, you can consider the services of Seychelles offshore providers working on high volumes and affordable end user prices, for example Seychelles Offshore company.

And all accomplished without leaving the comfort of your armchair.

Allow me to demonstrate you a chapter of a possible screenplay for a future movie :)

MONETIZE

* Raj and Chris walking into a restaurant and trying to find someone within visitors

Chris: so, what kind of a company Andrew works for ?
Raj: he runs it, they buy any data on people, called Monetize Group
Chris: so why are we meeting him?
Raj: watch and learn,.. Oh there is Andrew

* Both walk to a table occupied by a red-head guy with big fake smile, the guy trying to get up

Andrew: Hello guys, Jerr? right ?
Raj: Raj
Andrew: of course
Chris: Christopher
Andrew: nice meeting you, I am Andrew, And you guys from "Banned Bookers"
Raj: "Banners Broker"
Andrew: right,right

* all sitting down around the table

Andrew: so what do you have for us ?
Raj: names,addresses,birthdays,phones, security question answers, passports and id scans, mixed countries.
Andrew: how many ?
Raj: around 50 thousand to begin with

Andrew: may i ask where is it from ?
Raj: it is ours
Andrew: yours? like you all came here ? all 50 thousand blokes?
Raj: they are users of our site
Andrew: ok , we need to make sure users aware it was given to us, for legal purposes, you have to state our company name on your site agreement or privacy policy and that we will be receiving data collected, I can send you the example we used with other clients, we will work it out. And what do you want for it?

*Chris is trying to open mouth, Raj interrupts

Raj: what is a market price for something like that ? give your standard rate
Andrew: tell you what, I'll give you *beep*.

*Chris is trying to make a face like it is not enough but actually excited

Raj: how about *beep* ?
Andrew: definitely, we will prepare a contract for tomorrow,

....
* Later on a street Raj and Chris walking
Chris: man, it is great, here you go, we found an extra revenue source.
Raj: when you are sitting on a flow of the information, you should know how to convert that flow to a flow of gold.
Chris: users not gonna like it, we will be loosing them
Raj: who ever reads privacy policies ?
Chris: someone will and will make noise, others will know too
Raj: we can say Monetize Group is us
Chris: do you think they will buy it ?
Raj: they bought "panels" , did not they ?


....
* Some undefined time in future
* Terry walks into the office, Chris is sitting in the armchair, Raj is standing looking out the window.
* (Every day Terry was wearing a new design mason ring, when Terry showed up, everyday Chris and Raj were curious which ring is on Terry, but after a couple of weeks stopped caring completely)

Terry: Guys, who is The Monetize Group ? i've been asked that question so many times.
Chris: ahh, this is a company
Terry: what company ?
Chris: my company
Terry: what is its purpose
Chris: just company
Terry: what does it do ?
Chris: it is a "holding" company
Terry: what does it hold ?
Chris: umm, it holds everything
Terry: oh a parent company of Banners Broker ? where is it ?
Chris: Brazz.., oh, Belize
Terry: why Belize? why not here ?
Chris: that is confidential

* "I need to make some 'Monetize Group' website urgent" - thought Chris
****

All characters appearing in this work are fictitious. Any resemblance to real persons, companies or ponzis, living or dead, is purely coincidental.,

Originally Posted by Ken Roklin

The key phrase is " Unless all of the members agree otherwise, the auditor must be independent of the corporation and therefore cannot be a director, an officer or an employee of the corporation or any of its affiliates."

In the case of most privately held companies the members of the board, in many cases only 1 person, the sole owner and director appoints himself to be the Chief Financial Officer and Auditor. Audits are expensive and most small businesses operating a "legit" business do not hire an independent auditor. The company accountant/CFO can be appointed the auditor (to be compliant with the Canada Corporations Act ). Because it is a private company it does not have to make the accounts public.

the Auditor doesnt have to be independent but the Accounts HAVE TO be filed with the Companies Office i.e. Corporations Canada

Im not conversant with the Canadian Act. The UK and Irish ones are different.
Ill stand corrected on that in relation to a company which has no shares

However, I believe BB currently known as Stellar Point Inc. Has Shares.
Canada Corporations Act

128. (1) Fourteen days or more before the date of the annual meeting thereof,

...

(b) every company to which this paragraph applies shall file a copy of such documents with the Department of Consumer and Corporate Affairs together with proof in such form as may be satisfactory to the Minister of due compliance with the provisions of paragraph (a).

(3) Paragraph (1)(b) applies to
(a) a public company, and

(b) a private company whose gross revenue exceeds ten million dollars in any period, ending in or after the year in which this section comes into force, in respect of which a financial statement is required by this Act to be prepared, or whose total assets on the last day of any such period exceeds five million dollars,

but does not apply to a private company that is a personal corporation within the meaning of section 76 of the Income Tax Act in the whole of the year in respect of which a financial statement is required by this Act.

So the only "get out" is if the company is not worth more than five million or is handling less than ten million.

Now Raj and the lads claim it is worth billions, but suppose they know it isn't and they actually collect say eleven million then they are liable to report that.

So lets say they either
A. collect more than ten and only declare less than ten or
B they actually collect say five or something less than ten or have assets less than five million.

So either they are not compliant by lying to the Companies Registration Office or they are lying to the public about how much business they are doing which is itself a breach



Then in case A they are breaking the law by false accounting and in case B they are breaking the law by not carrying out their duties as Directors/Auditors since they are telling people they have billions.

They might have applied for an exemption under ~129.3 (1) but I doubt it and I no judge would grant it.

Now I assume the "no share company" is to allow dormant "shelf companies" who don't do any business to exist and when they start becoming active they become private companies who have to file annual accounts. I could be wrong in that assumption but I dont see how.

Section 128 is what I would call a compliance clause.

Annual returns

133. (1) Every company shall, on or before the 1st day of June in every year, make a summary as of the 31st day of March preceding, specifying the following particulars:

(a) the corporate name of the company;

(b) the manner in which the company is incorporated and the date of incorporation;

(c) the complete postal address of the head office of the company;

(d) the date upon which and the place where the last annual meeting of the shareholders of the company was held;

(e) the names and complete postal addresses of the persons who at the date of the return are the directors of the company; and

(f) the name and complete postal address of the auditor of the company.

Frequently Asked Questions - Answers - Corporations Canada

Compliance

Filing an Annual Return
You have to file an annual return if your corporation's legal status with Corporations Canada is "active" (that is not dissolved, discontinued or amalgamated with another corporation). You can find the status of your corporation by using the Corporations Canada online database.

stellar Point Inc is !active" with respect to the Canadian office
Federal Corporation Information - 7250037
https://www.ic.gc.ca/app/scr/cc/Corp...l?locale=en_CA

The short answer is a "private" company does not mean audited accounts are private or secret and only for the company! the exact nature of what they HAVE TO supply is listed in the Act.

An inactive company if it is on the shelf and not actually doing business does not have to to file accounts
If active, they MUST file annual accounts to be COMPLIANT! Which is why I have stated that Hooker their "Compliance Director" has no idea about compliance!

Originally Posted by Della Cate

Just re-reading that posting about chargebacks (yes, I know I posted it!) - but I'm not sure I understand it.

Are they implying that anyone instituting a chargeback is trying to commit fraud? That's a bit rich, coming from BB, isn't it??

Or are they perhaps starting to be hurt by ex-affilaites successfully making a chargeback? Are financial institutions starting to ask tricky questions, I wonder?

Yes,Chris wants to see the chargebacks as a fraud for 2 reasons 1)the message to the members: don't be a bad guy in a good company 2) Obviously the word fraud is there to blame the members for incoming end - we were doing great but because of fraudulent activity of many dishonest members ,we lost millions