Shoaib Ahmed Shaikh

Last updated

Shoaib Ahmed Shaikh
Born
Shoaib Ahmed Shaikh

Karachi, Sindh, Pakistan [1]
Nationality Pakistani
Occupation(s)CEO and Chairman at Axact, BOL Network
Years active2013-present
SpouseAyesha Shaikh
Conviction(s)
Multiple counts of fraud involving a worldwide diploma mill organization, and obstruction of investigation authorities
Criminal chargeConspiracy of mass fraud of manufacturing and selling fake academic degrees
Penalty7 years in prison along with a ₹1,300,000 fine [lower-alpha 1]

Shoaib Ahmed Shaikh, also known as SAS, is a Pakistani businessman and convicted felon. He is the founder of BOL Network. He also founded diploma mill company Axact. [4] [5] [6]

Contents

Career

In June 2013, Shoaib Ahmed Sheikh started Pakistani 24-hour news cycle network BOL.[ citation needed ]

Fake diplomas scandal and arrest

This section is an excerpt from Axact § Fake diplomas scandal.[ edit ]

The New York Times investigation

On 17 May 2015, The New York Times published an investigative story reporting that Axact ran at least 370 degree and accreditation mill websites. The report alleged that, although the company did sell software, its main business was to sell fraudulent degrees and certifications on a global scale. [7] The Times further reported that the company had around 2,000 employees, some of whom pretended to be American educational officials and worked in shifts to keep the company open 24 hours per day. [7]

Company response

Axact denied all allegations. [8] [9] The company accused The New York Times of "baseless, substandard reporting", and of sabotaging its expansion into TV and related media with BOL Network, which was scheduled to begin operations soon. It also threatened several news organizations and bloggers reporting on the issue with lawsuits. [10]

Initially, Shoaib denied any association with the fake educational websites besides selling them software. He later claimed that Axact did provide office support and call center services to the websites, but it did not itself "issue any degree or diploma, whether fake or real." [11]

Investigations

Following the publication of the New York Times article, Pakistan's interior minister Chaudhry Nisar Ali Khan directed the country's Federal Investigation Agency to begin inquiry into whether the company was involved in any illegal business. [12] Following the interior minister's order, a cyber crime team of the FIA raided Axact's offices in Karachi and Islamabad and seized computers, recorded statements of employees, and took into custody 25 employees of the company and 28 employees from Rawalpindi office. [13] [14] The FIA team found and seized several blank degrees as well as fake letterhead of the US State Department. [15] The investigation was transferred from the FIA's cyber crime department to its corporate department. [16] [ citation needed ]

On 26 May 2015, the Federal Investigation Agency arrested Shoaib Ahmed Shaikh for investigation. [17] [18] As the FBR had received intelligence that BOL had been using illegal equipment, Shoaib was ordered to submit evidence of legitimate procurement. [19] On 5 June 2015, Ayesha Sheikh, Shoaib's wife was indicted on charges of money laundering in connection with Axact and BOL. [20]

The issue was also taken up in the Senate of Pakistan where Chairman of the Senate Raza Rabbani constituted a committee to probe into the issue. [14] Pakistan's tax authorities and the SECP also initiated investigations into the company. [11]

It is alleged that Axact took money from over 215,000 people in 197 countries; that the CEO Shoaib Shaikh is the owner of several shell companies in the US and other Caribbean countries that were used to route the monies into Pakistan; that Shaikh used an alias on documentation linked to these offshore companies; that Shaikh became a citizen of Saint Kitts and Nevis, a small Caribbean island nation that sells passports to rich investors; that Axact sales agents' employees used "threats and false promises" and impersonated government officials to take money from customers generally in the Middle East; and that the company earned at least US$89 million in its final year of operation. [21]

Aftermath

Axact CEO Shoaib was acquitted of money laundering charges in August 2016.

Shoaib was initially acquitted of all other related criminal charges, but this was reversed when it became clear that the presiding judge had been bribed. [22]

During the investigations, Pakistan Chief Justice called the scam a national shame. [23] In 2018, Shoaib and 22 others were convicted and sentenced to 7 years in prison. The judge also imposed a fine of Rs1.3 million on each of the convicts. [24]

In December 2016, Axact's Assistant Vice President of International Relations Umair Hamid was arrested in the United States. He was charged with wire fraud, conspiracy to commit wire fraud, and aggravated identity theft in a US federal district court for his Axact-related activities. [25] [26] [27] [28] Hamid was found guilty in August 2017 and sentenced to 21 months in prison. [29]

In March 2023, Shoaib was arrested and remanded to custody on a charge of bribing the judge in the 2016 case to secure an acquittal. Shoaib was reported in the 2023 bribery case to have confessed to having completed a transaction worth Rs1,500,000 to the judge in the prior case. [30]

Shoaib has since been acquitted of all charges by the Sindh High Court and the Islamabad High Court. [31]

Further revelations

Most of Axact's revenues from its fake diploma sales came from the United Arab Emirates, where hundreds of residents used Axact diplomas to obtain high-paying jobs. [32] Axact sold over 200,000 fake degrees in Gulf countries. [33] More recently, Axact employees have impersonated Emirati government officials in an effort to extort "legalisation fees" from unsuspecting fake degree and diploma holders in that country. [34]

The Canadian Broadcasting Corporation's television series Marketplace carried out an investigation into the prevalence of fake academic credentials in September 2017. The documentary focused on Canadians with fake degrees occupying positions such as college instructors and medical doctors. All fraudulent certificates were found to be from Axact. [35] [ further explanation needed ]

Employee leak

In February 2024, the IT podcast Darknet Diaries published excerpts from an interview with a former Axact sales employee in episode 142 ("Axact"), who provided insights into the company's alleged sales strategy. According to the witness, Axact was able to develop a completely new website for non-existent universities within days. Axact created very detailed profiles of its potential victims. For example, passwords were stored in plain text and then used to log into social media accounts. These profiles were then used to personalize the marketing of said fake universities by exploiting psychological weaknesses. The former employee also alleged that Axact invented not only its universities, but also accreditations, including from a US politician. Further, while the employee didn't believe that Axact sold medical degrees, the podcast mentions Canadian broadcaster CBC being able to track down a practitioner with a fake degree from Axact. [36]

Notes

  1. ↑ Sentenced on four counts, with each prison sentence to be served at the same time: [2] [3]
    • Three years rigorous imprisonment along with a fine of ₹100,000 under Section 419 of the Pakistan Penal Code
    • Three years rigorous imprisonment along with a fine of ₹200,000 under Sections 420 of the Pakistan Penal Code
    • Seven years rigorous imprisonment along with a fine of ₹500,000 under Sections 468 of the Pakistan Penal Code
    • Seven years rigorous imprisonment along with a fine of ₹500,000 under Sections 471 of the Pakistan Penal Code

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References

  1. ↑ Walsh, Declan (10 April 2016). "Behind Fake Degrees from Pakistan, a Maze of Deceit and a Case in Peril". The New York Times . Archived from the original on 14 April 2016. Retrieved 9 May 2017. He became a citizen of St. Kitts and Nevis, a small Caribbean island that sells passports to rich investors.
  2. ↑ "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case". 5 July 2018. Archived from the original on 5 July 2018.
  3. ↑ "Fake degree scandal: Axact CEO Shoaib Shaikh sentenced to 7 years in jail". Archived from the original on 5 July 2018.
  4. ↑ "Court indicts Axact CEO, others in money laundering case". 20 June 2018. Archived from the original on 11 July 2018.
  5. ↑ "Dailytimes | Behind fake degrees from Pakistan, a maze of deceit and a case in peril". dailytimes.com.pk. 11 April 2016. Archived from the original on 26 August 2016. Retrieved 23 August 2016.
  6. ↑ "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case". 5 July 2018. Archived from the original on 3 January 2019. Retrieved 2 January 2019.
  7. 1 2 Declan Walsh (17 May 2015). "Fake Diplomas, Real Cash: Pakistani Company Axact Reaps Millions". The New York Times. Archived from the original on 9 May 2019. Retrieved 1 March 2017.
  8. ↑ "Fake degrees? Axact-ly!". Pakistan Today. 19 May 2015. Archived from the original on 18 May 2015. Retrieved 19 May 2015.
  9. ↑ Kugelman, Michael (18 May 2015). "The Axact Scandal and Pakistan's Growing Tech Sector". Wall Street Journal. Archived from the original on 20 May 2015. Retrieved 19 May 2015.
  10. ↑ Imtiaz, Saba; Walsh, Declan (20 May 2015). "Pakistani Investigators Raid Offices of Axact, Fake Diploma Company". The New York Times. Archived from the original on 26 May 2015. Retrieved 23 May 2015.
  11. 1 2 Walsh, Declan (22 May 2015). "Pakistan Widens Inquiry Into Fake Diplomas". The New York Times. Archived from the original on 26 May 2015. Retrieved 23 May 2015.
  12. ↑ "Chaudhry Nisar orders inquiry into NYT report on Axact". Dawn. 19 May 2015. Archived from the original on 20 May 2015. Retrieved 19 May 2015.
  13. ↑ "FIA raids Axact's offices, computers confiscated". Daily Pakistan Global. 19 May 2015. Archived from the original on 20 May 2015. Retrieved 19 May 2015.
  14. 1 2 "An Insider Discloses How Axact Seduces Individuals With Certified US Degrees". Today Streams. 20 May 2015. Archived from the original on 12 June 2015. Retrieved 20 May 2015.
  15. ↑ "Live Updates: Dozens of Axact employees detained for questioning after FIA raids in Karachi & Islamabad — 2 main servers to be shut down". ARY News. 19 May 2015. Archived from the original on 21 May 2015. Retrieved 19 May 2015.
  16. ↑ Castel, J.-G. (31 December 1969). "Custody Orders - Jurisdiction and Recognition". Alberta Law Review: 15. doi: 10.29173/alr2404 . ISSN   1925-8356.
  17. ↑ Imtiaz Ali (27 May 2015). "FIR registered against Axact CEO, six others in fake degree scam". Dawn. Archived from the original on 27 May 2015. Retrieved 27 May 2015.
  18. ↑ "Axact CEO Shoaib Shaikh arrested". Dunya News. 27 May 2015. Archived from the original on 3 August 2023. Retrieved 27 May 2015.
  19. ↑ "Equipment at Bol TV 'imported illegally'". The Express Tribune. 26 May 2015. Archived from the original on 18 September 2016. Retrieved 17 September 2016.
  20. ↑ "Axct Scandal: FIA likely to arrest Shoaib Sheikh's wife". thenewstribe. thenewstribe. Archived from the original on 28 February 2019. Retrieved 30 May 2023.
  21. ↑ Walsh, Declan (10 April 2016). "Behind Fake Degrees From Pakistan, a Maze of Deceit and a Case in Peril". The New York Times. Archived from the original on 5 January 2017. Retrieved 23 June 2017.
  22. ↑ Asad, Malik (5 July 2018). "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case". dawn.com. Archived from the original on 5 July 2018. Retrieved 30 May 2023.
  23. ↑ "Axact scam embarrassed the country globally: CJP". tribune.com.pk. 19 January 2018. Archived from the original on 11 January 2019. Retrieved 4 January 2019.
  24. ↑ "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case". dawn.com. 5 July 2018. Archived from the original on 3 January 2019. Retrieved 4 January 2019.
  25. ↑ "US charges Pakistani executive in $140m fake diploma scheme". dawn.com. 22 December 2016. Archived from the original on 11 May 2017. Retrieved 23 June 2017.
  26. ↑ "Axact executive could face 20 years in US prison over fake degree scam". www.geo.tv. Archived from the original on 10 May 2017. Retrieved 23 June 2017.
  27. ↑ "Fake-diploma mill: US authorities charge Axact official in $140m scam". tribune.com.pk. 23 December 2016. Archived from the original on 18 May 2017. Retrieved 23 June 2017.
  28. ↑ "Pakistani man charged in $140 million 'diploma mill' fraud in US - Latest News & Updates at Daily News & Analysis". dnaindia.com. 23 December 2016. Archived from the original on 8 August 2017. Retrieved 23 June 2017.
  29. ↑ Helen Clifton & Matthew Chapman (16 January 2018). "'Staggering' trade in fake degrees revealed". BBC News. Archived from the original on 16 January 2018. Retrieved 16 January 2018.
  30. ↑ Geo News, Arfa Feroz Zake (13 March 2023). "Axact CEO Shoaib Shaikh's remand extended for two days". Geo.tv. Archived from the original on 15 March 2023. Retrieved 1 August 2023.
  31. ↑ Usborne, David (January 2024) [27 May 2015]. "Fake degrees: Software tycoon arrested as police investigate credentials from 'Barkley' and 'Columbiana'". Independent.
  32. ↑ "Exposed: VPs, CEOs with fake degrees in the UAE". www.xpress4me.com. 27 May 2015. Archived from the original on 21 March 2016.
  33. ↑ "Xpress". Archived from the original on 9 February 2018. Retrieved 9 February 2018.
  34. ↑ "www.xpress4me.com". Xpress. Archived from the original on 9 February 2018. Retrieved 9 February 2018.
  35. ↑ "Fake Degrees - Exposing Canadians with phoney credentials". CBC Marketplace . 15 September 2017. Archived from the original on 25 November 2017.
  36. ↑ "Axact – Darknet Diaries". darknetdiaries.com. Retrieved 7 February 2024.
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