World models visible through 3D2D texture

[Wildfire]

I've been working on a script that essentially places images of my choosing on a combine monitor. After spending some time getting the coordinates and tweeking the coordinates yesterday, I finally put up a picture with surface.DrawTexturedRect inside of a cam.3D2D. When I got the picture rendered, I noticed world models were visible through the material. I converted the picture from a .png to a .vtf and .vmt using VTFEdit with the default settings. It doesn't return any errors at all, any idea whats wrong?

[B]My code:[/B]

-- Called when the entity should draw.
local SignMaterial = Material("banners/banner1.png")
	function ENT:Draw()
		self:DrawModel()

		local position = self:GetPos()
		local angles = self:GetAngles()
		angles:RotateAroundAxis(angles:Up(), 90)
		angles:RotateAroundAxis(angles:Forward(), 90)

		local f, r, u = self:GetForward(), self:GetRight(), self:GetUp()

		cam.Start3D2D(position + f*53.80 + r*-(-45.5) + u*95.75, angles, 1)
			surface.SetDrawColor( 255, 255, 255, 255 )
			surface.SetMaterial( SignMaterial )
			surface.DrawTexturedRect( 0, 0, 90, 190 )
		cam.End3D2D()
end;

[B]My VMT:[/B]

"UnlitGeneric"
{
"$basetexture" "banners/banner1"
"$nolod" 1
"$vertexalpha" 1
"$vertexcolor" 1
}

[B]Picture:[/B]
[IMG]http://images.akamai.steamusercontent.com/ugc/313368332395864253/CDC41582CD5CE917BFB6C6F7D5C23900AB34EF97/[/IMG]