Langley man involved in $90 million pyramid scheme

Rajiv Dixit entered a plea agreement and was fined $2.5 mllion. Victims from 120 countries.

A Langley man has been sentenced in connection to a $93 million pyramid scheme that victimized people around the world.

Rajiv Dixit, 45, and his business partner, Chris Smith, 45, of Toronto, pleaded guilty in April to operating a pyramid scheme. They were each given a conditional sentence in Supreme Court in Ontario in May.

Both Smith and Dixit entered into plea agreements. Pursuant to these agreements, Dixit was fined $2.5 million and Smith was fined $1.43 million.

The first $50,000 must be paid by each within two years. The remainder must be paid within five years. If they do not pay their respective fines within five years there will be a ‘default hearing’ and a presumptive five-year prison sentence.

In a Supreme Court of Ontario hearing into the pyramid scheme’s financing, held in May 2016, it was learned that at the height of the scheme, Dixit had purchased five Mercedes Benz vehicles using funds from his Stellar Point bank accounts, placing the vehicles in names of Dixit Holdings. He also purchased jewelry, watches, clothing, the use of private jets and chartered flights.

According to a hearing in Supreme Court of Ontario, looking into the finances of the pyramid scheme, the judge laid out how the fraud was carried out.

Beginning in late 2010, tens of thousands of people from over 120 countries were induced to pay hundreds of millions of dollars to Banners Broker, a purported internet advertising business, which promised Banners Broker members the opportunity to double their money through participation and recruitment of others, explained the Supreme Court documents.

At the time, the court documents said, “Now defunct, the Banners Broker enterprise is currently subject to insolvency proceedings in Canada and the Isle of Man as well as ongoing criminal proceedings in Canada against Banners Broker’s principals, including the defendant Dixit, wherein the Crown alleges that Banners Broker was an illegal pyramid scheme.”

The Court appointed MSI Spergel Inc. as the Receiver in this case and they have determined that Dixit, a former principal and guiding mind of the Banners Broker enterprise, personally received $4.8 million US, either directly or through corporate entities under his ownership and control.

The defendant, Kaldip Josun, similarly received $3.8 million in affiliate funds.

Individual affiliates were told that with their money spent on Banners Broker advertising, products would be contributed towards advertising space on high-traffic websites and gathering advertising revenue based on the traffic to those advertisements. In reality, Banners Broker did not track website traffic, nor did it have access to high-volume websites, the Supreme Court hearing documents state.

During a press conference in December 2015, Ontario Police announced that Dixit and Smith were arrested in Toronto and charged with offences under the Criminal Code and the Competition Act in relation to fraud, possession of proceeds of crime and money laundering using an illegal pyramid scheme. The money was hidden in banks in the Bahamas and other places.

Dixit is a former resident of Whitby, Ont. and was a principal and guiding mind of Stellar Point, Dixit Consortium, Dreamscape and the Banners Broker enterprise. In August 2015, Dixit moved from Toronto to Langley, said the courts.

At least $1.28 million US was transferred to Dreamscape by various Banners Broker entities. Of that, approximately $240,000 US remains unaccounted for on the Dreamscape bank statements from its account at the Bank of Cyprus which have been reviewed by the Receiver, said Spergel to the impacted affiliates through a Facebook page.

Just Posted

Cancer campaign close to home for firefighters

Annual daffodil drive collects money to fight an illness all too comon in the profession

Langley gymnasts golden at provincials

LGF and Flip City win multiple all-around champion awards

Aldergrove Easter event line-up for families staying local

Easter egg hunts in apple orchards, bouncy castles, facepainting, bunny-petting and more.

Young ukulele players wow Langley audience

The performance highlights several upcoming concerts.

Langley police seek new leads in hit and run cold case

Six years ago, someone struck a young woman with a car and drove off

VIDEO: Alberta man creates world’s biggest caricature

Dean Foster is trying to break the world record for a radio show contest

Man driving wrong way on Highway 17 ‘seriously’ injured after crash: Surrey RCMP

Police say the driver hit a transport truck, then another car after merging from the off-ramp onto highway

Should B.C. lower speed limits on side roads to 30 km/h?

Vancouver city councillor wants to decrease speed limits along neighbourhood side roads

Lawsuit eyed over union-only raise for B.C. community care workers

‘Low-wage redress’ leaves 17,000 employees out, employers say

Landlord of alleged Okanagan shooter recounts deadly day

Tony Friesen was working in one of the units of his Penticton building when he heard shots

Foreign national arrested in connection to thefts at YVR

A woman, 60, is being held in police custody as Richmond RCMP investigate

Police pursue pesky porker on Vancouver Island

‘This was allegedly not the pig’s first escape’

Rare ‘Snow Tower’ tree blooming in Vancouver city park

A plant rarely grown in Canada is now flowering at the Bloedel Conservatory in Queen Elizabeth Park

Westjet tries again to dismiss proposed class-action lawsuit alleging discrimination

Former flight attendant claims airline broke contractual promise to create harassment-free workplace

Most Read