If you were a victim of P-2-P, here is important information for you.

Victim Notification System:

The Victim Notification System (VNS) is designed to provide you with information regarding the case as it proceeds through the criminal justice system. You may obtain current information about this case on the VNS web site at WWW.Notify.USDOJ.GOV or from the VNS Call Center at 1866-DOJ-4YOU (1-866-365-4968 In addition, you may use the Call Center or Internet to update your contact information and/or change your decision about participation in the notification program. If you update your contact information to include a current email address, VNS will send information to that email address. In order to continue to receive notifications, it is your responsibility to keep your contact information current.

Nick Smirnow, the operator of P-2-P (Pathway-To-Prosperity), had criminal charges filed against him by the Canadian Ontario police in late 09.  An outstanding arrest warrant was issued for him by the Canadian police.

On May 28, 2010 the U.S. government has accused Nick Smirnow, a former Canadian resident possibly living in the Philippines, of bilking some 40,000 investors spanning six continents of $70 million in an Internet-based Ponzi scheme.

A 10-count federal complaint filed Friday charges Nicholas Smirnow, 53, with conspiracy and fraud counts in the alleged scheme the federal investigators say covered two years until 2009 and included victims in every U.S. state except Maine and Vermont.  "This is a case of national importance, there's no question about that," A. Courtney Cox, the U.S. attorney for southern Illinois told The Associated Press.
Friday's complaint includes four counts apiece of wire and mail fraud, each punishable by up to 20 years in prison and $250,000 in fines. The single counts of securities fraud and conspiracy to defraud carry a possible five years in prison and $250,000 in fines.

Smirnow, according to investigators, has:

A. A 2002 conviction for the crime of breaking and entering.
B. A 2001 conviction for the crime of robbery with a firearm.
C. A 1996 conviction for the crime of cultivation of a narcotic for purpose of
trafficking.
D. A 1981 conviction for the crime of possession of stolen property.
E. A 1979 conviction for the crime of trafficking in a controlled drug.

Smirnow “admitted having gone to prison for robbery and characterized his involvement in that crime as being ‘the wheel man,’” according to the affidavit, which is based in part on statements made by Canadian authorities. “Smirnow also admitted involvement in a double homicide in the Hamilton Niagara area of Ontario. He also claimed to have organized crime ties there.”

The United States has initiated extradition proceedings with the Philippine Government where it is believed Nick Smirnow is residing.

The state of Connecticut also fined Nick $85,000, and here is the order from the Connecticut Banking Commissioner:

I. PRELIMINARY STATEMENT
WHEREAS, the Banking Commissioner (“Commissioner”) is charged with the administration of Chapter 672a of the Connecticut General Statutes, the Connecticut Uniform Securities Act (“Act”), and Sections 36b-31-2 to 36b-31-33, inclusive, of the Regulations of Connecticut State Agencies (“Regulations”) promulgated under the Act;

WHEREAS, the Commissioner, through the Securities and Business Investments Division of the Department of Banking (“Department”), conducted an investigation into the activities of Nicholas Alexander Smirnow a/k/a Nick Smirnow d/b/a P-2-P Network and d/b/a Pathway-2-Prosperity (“Respondent”), pursuant to Section 36b-26(a) of the Act, to determine if Respondent had violated, was violating or was about to violate provisions of the Act or Regulations (“Investigation”);

WHEREAS, on February 26, 2010, based on the Investigation, the Commissioner, acting pursuant to Sections 36b-27(a) and 36b-27(d) of the 2010 Supplement to the General Statutes (“2010 Supplement”), issued an Order to Cease and Desist (“Order”), Notice of Intent to Fine (“Fine Notice”) and Notice of Right to Hearing against Respondent (collectively “Notice”), which Notice is incorporated by reference herein;

WHEREAS, the Commissioner alleged in the Notice that Respondent offered and sold securities to at least one Connecticut investor, which securities were not registered in Connecticut under the Act, and that the offer and sale of such securities absent registration constitutes a violation of Section 36b-16 of the Act, which forms a basis for an order to cease and desist to be issued to Respondent under Section 36b-27(a) of the 2010 Supplement, and for the imposition of a fine against Respondent under Section 36b-27(d) of the 2010 Supplement;

WHEREAS, the Commissioner alleged in the Notice that Respondent’s conduct constitutes, in connection with the offer, sale or purchase of any security, directly or indirectly, employing any device, scheme or artifice to defraud or omitting to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, or engaging in any act, practice or course of business which operates as a fraud or deceit upon any person, and that such conduct constitutes a violation of Section 36b-4(a) of the Act, which forms a basis for an order to cease and desist to be issued to Respondent under Section 36b-27(a) of the 2010 Supplement, and for the imposition of a fine against Respondent under Section 36b-27(d) of the 2010 Supplement;

WHEREAS, the Notice stated, inter alia, that the Commissioner intended to impose a fine against Respondent, that Respondent would be afforded an opportunity for a hearing on the allegations set forth in the Notice if a written request for a hearing was received by the Department within fourteen (14) days following Respondent’s receipt of the Notice, and that if Respondent failed to request a hearing within the prescribed time period, the Commissioner may order that the maximum fine be imposed upon Respondent;

WHEREAS, on March 1, 2010, the Notice was sent by registered mail, return receipt requested, to Respondent at two addresses;

WHEREAS, on April 7, 2010, the Notices were returned to the Department marked “Return to Sender – Unclaimed”;

WHEREAS, on April 12, 2010, the Notice was served on the Commissioner, and on April 14, 2010, in accordance with 36b-33(h) of the General Statutes of Connecticut, Notice of Service on the Banking Commissioner dated April 13, 2010 (“Notice of Service”), was sent by registered mail, return receipt requested, to Respondent;

WHEREAS, Respondent has failed to request a hearing on the allegations set forth in the Notice within fourteen (14) days of the date of the Notice of Service;

WHEREAS, on May 18, 2010, a Certification was issued rendering the Order permanent as of April 28, 2010, which Certification is incorporated by reference herein;

WHEREAS, Section 36a-1-31(a) of the Regulations of Connecticut State Agencies provides, in pertinent part, that:  "When a party fails to request a hearing within the time specified in the notice, the allegations against the party may be deemed admitted.  Without further proceedings or notice to the party, the commissioner shall issue a final decision in accordance with section 4-180 of the Connecticut General Statutes and section 36a-1-52 of the Regulations of Connecticut State Agencies, provided the commissioner may, if deemed necessary, receive evidence from the department, as part of the record, concerning the appropriateness of the amount of any . . . fine . . . sought in the notice."

WHEREAS, Section 36b-31(a) of the Act provides, in pertinent part, that “[t]he commissioner may from time to time make . . . such . . . orders as are necessary to carry out the provisions of sections 36b-2 to 36b-33, inclusive”;

AND WHEREAS, Section 36b-31(b) of the Act provides, in pertinent part, that “[n]o . . . order may be made . . . unless the commissioner finds that the action is necessary or appropriate in the public interest or for the protection of investors and consistent with the purposes fairly intended by the policy and provisions of sections 36b-2 to 36b-33, inclusive.”

II.  FINDINGS OF FACT AND CONCLUSIONS OF LAW

III.  ORDER
Having read the record, I hereby ORDER, pursuant to Section 36b-27(d) of the 2010 Supplement, that:

This Order was sent by registered mail,
return receipt requested, to
Respondent on June 4, 2010.

Nicholas Alexander Smirnow 
a/k/a/ Nick Smirnow
d/b/a P-2-P Network and Pathway-2-Prosperity
2635 Highway #117
P.O. Box 66
Baysville, Ontario, Canada POB 1AO
Registered mail no. RB027869736US

Nicholas Alexander Smirnow 
a/k/a/ Nick Smirnow
d/b/a P-2-P Network and Pathway-2-Prosperity
1013 Fairy Falls Road 
Baysville, Ontario, Canada POB 1AO
Registered mail no. RB027869740US