Two Canadians have been arrested following an investigation into a pyramid scheme that allegedly took in more than US$93 million.

The scheme operated between October 2010 and March 2013, out of an address on Church Street, Toronto police said Wednesday.

Police said the scheme, known as "Banners Broker," offered participants a chance to double their money by investing in an advertising company.

They were told their money would be applied toward an online advertising company. The company claimed it would post banner ads on websites hosted around the world, that would redirect users to other sites if they clicked on the ads. Clients would pay the advertising company, which would in turn pay its investors.

In reality, the only way investors made money was off of other investors’ contributions, police said.

"The program's existence was entirely dependent upon the fee-based entry of new members and little or no real product or service was provided," police said in a statement.

"In the initial stages, it's alleged that Banners Broker made little or no effort to even imply it was anything other than a pyramid scheme," Det. Sgt. Ian Nichol said at a news conference Wednesday.

"I believe the majority of the participants knew or ought to have known that they were entering into a pyramid scheme."

Later on, the package was remarketed and some people were "duped" by the scam, Nichol said.

He added that it is believed that thousands of people invested in the scam over the three-year span.

Some were defrauded of a few hundred dollars, while others "invested" several thousand, Nichol said.

It is alleged that more than US$93 million, or C$126 million, was obtained by the end of 2012. Approximately US$45 million was paid back to participants, police said.

The remaining funds were transferred into offshore accounts in Belize, St. Lucia, Cyprus and other countries, they said.

Toronto police worked with RCMP, the Competition Bureau of Canada, the Ministry of Government and Consumer Services, the Ministry of Finance, the U.S. Federal Trade Commission, the Financial Transactions and Reports Analysis Centre of Canada and the Canada Revenue Agency to investigate reports from victims.

As a result of the investigation, 45-year-old Christopher George Smith, of Toronto, and 45-year-old Rajiv Dixit, of Vancouver, have been charged.

The men face five charges each, including possession of the proceeds of crime and defrauding the public over $5,000.