FIA warns illegal web-based Referral Schemes Companies in Pakistan
Pakistan Times National News Desk

ISLAMABAD: The Director General Federal Investigation Agency (FIA) in Pakistan, Sayed Mohib Asad has warned the general public to be careful in dealing with illegal web based companies which are involved in the business of generating finances on the basis of referral schemes.

FIA Commercial Bank Circle alongwith CBC Lahore, on the instructions of the Director General and under the direct supervision of Muhammad Ilyas Shaikh, Director FIA Economic Crime Wing conducted raids and arrested Directors of NAFAY COM, APNAA (PVT) LTD and MLM Series namely Farhan Mansoor Qureshi, Arshad Iqbal Qureshi, Ateeq-ur-Rehman, Tauseef-ur-Rehman, Habib-ur-Rehman, Tahir Abbas and Syed Mateen Shah.

Backdrop

A considerable number of complaints were received regarding those web based firms/companies who have bilked millions of rupees from innocent people on the pretext of huge profits and discounted goods.

The discount scheme is a cover to operate and generate further reference on the basis of finance. In fact there has been no product available with them and there has been no formal agreements with any of the merchants/manufacturers whose products are displayed on the website.

"Profits given by such companies are actually money coming in from fresh members and there is no alternate business activity/equity which can safeguard the interests of the innocent citizens", commented Muhammad Ilyas Shaikh, Director FIA.

These companies create financial memberships without the permission of Security Exchange Commission of Pakistan or State Bank of Pakistan.

Rate of Profit

The rate of profit claimed by such companies is so exorbitant that people conveniently ignore the risk involved. People are allured to the extent that they even sold out their valuables and started investing in such companies.

Pyramid like Structure

These companies create a pyramid like structure which offers discounted products or cash profits with the condition that every member will further refer more members to earn his profit.

After the inclusion of a new member the one sitting at the top gets his commission while the money of the rest of the members becomes stuck. Since there has been no equity built up by the company, a stage arises when more members do not join and the whole pyramid collapses, leaving behind a few rich beyond imagination while throwing away a huge quantum of people as bankrupt.

FIA Commercial Bank Circle Islamabad under the supervision of Sajjad Taslim Azam, Deputy Director, FIA has registered cases under the Electronic Transaction Ordinance 2002 and is presently investigating with his team.

Massive Financial Frauds

They have dug out massive financial frauds under the cover of such schemes, huge amounts have been siphoned off from bank accounts of the company into the personal accounts without any legal justification.

FIA is also investigating the conduct of various "networkers" who have pioneered the system in this country and later on took huge amounts from the general public while signing in as achievers/members in various schemes under fictitious names.●