According to Team Herald, the Largest Circulated English Daily of Goa (India) – Wednesday, January 2, 2013:
PANJIM: A police complaint has been lodged against an investment company of duping local investors to the tune of Rs 15 lakh or more.
Old Goa-resident Edney Heredia complained that between October 2011 till date one Ana Luisa Onofre Alves Bento and others induced him and others to invest in Banners Broker India Ltd situated at Alfran Plaza, Panjim by promising high returns.
The company however failed to give the promised returns on the funds invested by some locals. A complaint was thereafter filed with the Economics Offences Cell.
“The scheme of the company is also in contravention of the Prize Chits and Money Circulation Schemes (Banning) Act 1978,” states a press release issued by the police department. A case has been registered against the accused.
According to David Hooker, the Chief Compliance Officer of Banners Broker:
This is to inform our affiliates in India about the recent developments in which the Goa police have seized documentation and computers from our offices in Goa. Also note that these offices are temporarily closed.
This is due to some of our affiliates and an ex-employee explaining the compensation plan of Banners Broker incorrectly thus not only causing confusion but breaking the very strict Policies and Procedures of Banners Broker.
As is already common knowledge our International Compliance Department have from time to time not only warned affiliates and employees of the risk of termination for misleading the public but have had cause to suspend accounts as well as terminating such offenders. This not only applies to presenting misleading information verbally but also applies to illegal websites, blogs, and social media content. The most recent termination was that of our CEO and Director of Banners Broker India, Mr Edney Heredia in the month of October 2012.
He was asked to resign by the International management of Banners Broker International for misrepresenting the compensation plan which includes inviting people to join Banners Broker under false pretences and illegal promises in total disregard for the laws of the land, and for mistreating affiliates.
Meanwhile , the police have started investigations into our Indian operations and have charged us under IPC under section 4,5,6 of the PCMC (banning) act 1978 , 406 and 420. This has all been undertaken with limited knowledge and understanding of our business model by the police because of wrong information given to them by three of the misguided affiliates and the recently terminated employee.
The police therefore are looking at it, and quite understandably, from a different point of view and therefore asking us about the approval from RBI. Our Answers to the charges are as follows:- 1) Approval from RBI and 4,5,6 -PCMC (banning) act 1978 – approval from RBI is needed by Banks, Non banking finance companies and the companies promising returns on investments which is not the business model of Banners Broker. Along with the same we also wish to make clear that our compensation plan is not an MLM or a multilevel marketing plan or a chain marketing plan which pays others on the sales done by their down lines. According to our compensation plan, we only pay money to affiliates when…revenue has been generated from the advertisers placing ads on the inventory owned by each affiliate. We do not pay affiliates for introducing new affiliates to the company , and affiliates earn money purely from their own efforts and not from the efforts of others.
It is also important to always bear in mind that there is no guarantee regarding fixed income within the compensation plan and that commission payments are paid purely on the basis of a satisfactory completion of a campaign within the Blind Network, based upon the traffic the website receives. Because traffic varies, Banners Broker International never guarantees a timeline of when an Affiliate will earn revenue. And therefore we are very confident that our business model ( and the compensation plan) does not come under the PCMC (banning) act 1978. 2) I.P.C. 420 – the charges made against the company under this IPC which means that we have cheated the complainants. This can only mean that the affiliates had been induced by other affiliates or our ex employee by giving wrong commitments and information on the compensation plan and our payment procedures. 3) I.P.C. 406 (for criminal breach of trust) – there is no way that the company has not honored the commitments made by it (documented or in writing).Though we feel that the case is based purely on “mischievousness’ caused by the recently fired ex-employee of Banners Broker India who still continues to be a director in the company (till we find a suitable candidate for the same)
We will cooperate with the police to uncover the truth and the reasons behind the allegations made against us.
We state that , we are fully compliant to the laws of the land including company formation – where the company – Banners Broker India Private limited is registered in India and is a reseller of the products , we currently have 2 directors as required by the law – both the directors have signed the agreement with an undertaking that they fully understand of the viability of the business model and have personally conducted hundreds of seminars with that conviction, we do not transfer the funds collected for sale of the product from the Indian affiliates to any other country but keep the funds in our company accounts in India , all taxes are paid in India as per the tax guidelines , all books of accounts maintained as per the rules , etc.
We will try our best to get to get back on track as soon as we manage to convince the police of our business model. Please be patient and refrain from misrepresenting the business model now and in the future.
PS: Please be informed that although Mr Edney Heredia has been terminated from Banners Broker he continues to be one of the directors, and 50% shareholder in the company as he refused to relinquish his shares in the company. He tried to sell his shares for $50,000 and when this was refused he reduced his request to $10,000 which was still refused by the Executives of Banners Broker International.
Please be aware that we have signed documentation supporting all statements above
Affiliates and public are requested to direct all their queries and complaints about him on the email [email protected]