Islamabad 2 August: The Securities and Exchange Commission of Pakistan (SECP) issued a stark warning to the public, labeling the “MAG Ventures” investment scheme as a prima facie fraudulent operation aggressively promoted by Syed Mohsin Sultan Shah across various social media platforms.
The alert, released amid rising concerns over financial scams, urges citizens to steer clear of the scheme, which promises lucrative returns under deceptive pretenses.
According to the SECP, MAG Ventures lures investors with offers of business partnerships in meat exports to Gulf countries, touting “halal” monthly profits ranging from 5% to 12%, allegedly backed by a fatwa to lend religious legitimacy.
The scheme offers investment packages from Rs100,000 to Rs10 million, with assurances of security through stamp paper contracts and post-dated cheques. Shah further claims ambitious plans to expand into diverse sectors, including real estate, supermarkets, automotive trading, and fashion, painting an image of a thriving conglomerate.
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To bolster credibility, Shah incorporated MAG Ventures (SMC-Private) Limited under the Companies Act, 2017, alongside two related entities: MAG Organic Meats Limited and MAG Builders & Developers. However, the SECP uncovered a critical flaw—funds are being collected not through these registered companies but via the bank account of an unincorporated entity, “Galaxy Traders,” and cryptocurrency wallets, raising red flags about the scheme’s transparency and legality.
The SECP emphasized that these actions violate regulatory frameworks, as the companies lack authorization to collect public deposits or offer guaranteed returns. “This is a clear attempt to mislead the public,” a commission spokesperson stated, highlighting the use of social media to target unsuspecting investors. The regulator noted that similar scams have previously defrauded millions, urging citizens to verify investment opportunities with licensed entities.
Social media reactions on platforms like X reflect a mix of alarm and skepticism, with users warning others about the scheme’s aggressive marketing. The SECP has called on law enforcement to investigate and advised the public to report suspicious activities to protect their savings. As financial literacy remains a challenge in Pakistan, this alert underscores the growing need for vigilance against fraudulent schemes promising quick riches.
