We recently reported on the Securities and Exchange Commission of Pakistan’s (SECP) operation and investigation against social media “gurus” who are affecting market trends using their influence and a network of accomplices.
SECP, in a press conference held recently, revealed that it had arrested a social media guru and disclosed his identity to the press and public. SECP further cautioned against such practices as well.
Background
A few days ago, SECP’s Head of Market Surveillance, Supervision and Law enforcement, Yasi Manzoor, said that some people are acting as stock market gurus and are making suggestions to the public, which is illegal. This form of manipulation is called Inducement and is a crime under the Securities Act 2015.
On 8th May 2017, SECP released info on a gang operating through social media which made millions by scamming young investors. However, no one was named at the time and the alleged had not shared his side of the story.
SECP’s Allegation
According to the authority, Mir Muhammad Ali Khan (commonly known as Mir MAK), was caught red handed while trying to influence the market and make money off the stock exchange.
He, allegedly, used a pump and dump strategy, where he would buy a large number of shares of a company and inform his Facebook followers that a certain company’s financial prospects are improving rapidly. When those social media followers followed their gurus advice, buying shares of the recommended company, he would sell his own holdings and make huge sums of money.
SECP claims that Mir MAK made an illegal profit of about Rs. 58 million within a period of just six months and that they had been onto such social media activity for the past 6 to 9 months. He was, according to the SECP, leading a gang in order to avoid any suspicions. The commission has asked the alleged person’s name to be put in ECL and has fielded a case against him. According to media reports, Mir MAK has been arrested by the authorities.
Mohammad MAK’s Response
Mohammad MAK is Co-Chairman at AMZ MAK Capital Limited and Patron in Chief of Pakistan Blind Sports Federation.
He claimed on his Facebook page that he only works for the betterment of the youth of Pakistan. Ali Khan, through a Facebook status update. has claimed that he travels across the country to spread positivity and mentor people, write articles and give speeches without charging anyone.
Here’s his response after SECP charged him:
Just give up. Praise the corrupt. Be in bed with the system. Write in favor of the looters. Bad mouth your armed forces. Hate Pakistan. Leave the country and settle abroad. Never come back to Pakistan. If this is what the world is expecting from me to say today… Well, I will not say any of this.
Mir Mohammad Ali Khan refutes all allegations by the SECP and points out that he is being targeted due to his love for the army, Pakistan’s youth and his voice against corruption.
In a separate Facebook post, Mir MAK informed his followers that he was sick and all reports regarding his arrest and ‘gang’ were baseless.
The case is developing and we will be covering all updates so remain tuned.
An unbiased investigation is required to uncover the reality ! As both sides have their doubts and concerns .
Those who fall for this conman, deserve him. Is he as important that the whole world is conspiring against him? Dont know why his farce is getting any attention at all. Honestly, if proved guilty, US should extradite him for complete justice.
MAK, just because you have been able to con many more with your charm and charismatic words, does not mean you will get away with it everytime. You are absconder in various cases of fraud overseas and this is common knowledge. Hiding behind the guise of your love for army should not and will not take attention away from your fraudulent crimes, one which has just been picked up by SECP. People like you are a bigger threat to our nation’s integrity than anyone else!
#BravoSECP
As much as I would like to believe he is guilty…
I have no proof. In fact, nobody reading or writing on this page likely has proof of his innocense or guilt.
So why don’t we all take a page from the upcoming month and stop backbiting?
The Prophet (s) once gave counsel to Abu Dharr, saying: O Abu Dharr! Beware of backbiting, for backbiting is graver than adultery. Abu Dharr (r) said: Why is that so, O Messenger of Allah? He (s) replied: That is because when a man commits adultery and then repents to God, God accepts his repentance. However, backbiting is not forgiven until forgiven by its victim.
THE ISSUE OF REGULATORS AND COMPLIANCE IN PAKISTAN.
A BRIEF LIGHT ON THE SUBJECT
1. OUR HOUSES ARE CONSTRUCTED WITHOUT A CIVIL ENGINEER.
2. FAKE MEDICINE IS MANUFACTURED AND SOLD IN THE COUNTRY.
3. EVERY PHARMACY DOES NOT HAVE A PHARMACIST.
4. FAKE DOCTOR TREATS A PATIENT.
5. CNG STATIONS WERE OPENED IN THE PAST WITHOUT A LICENCE.
6. MOST OF THE ELECTRICIANS DO NOT HOLD A DIPLOMA.
7. NONE OF THE PLUMBERS HOLD A DIPLOMA.
8. NONE OF THE BUTCHERS HOLD A DIPLOMA.
9. NONE OF THE MOTOR AUTO MECHANICS HOLD A DIPLOMA.
10. NONE OF THE RESTAURANTS AND EATING PLACES KEEP THE REQUIRED HYGIENE EXCEPT A FIVE STAR HOTEL.
11. PRIVATE SCHOOL CHARGE A VERY HIGH FEE.
12. IN THE ENTIRE COUNTRY THERE IS A LAW THAT SHOP KEEPERS WILL NOT KEEP GOODS IN THE FOOTPATH, BUT WE CAN HARDLY FIND A WAY TO WALK. THE REGULATION IS THERE ON A PIECE OF PAPER.
PEOPLE CONSUME THE ELECTRICITY BY STEALING IT AND DO NOT BELIEVE IN PAYING THE BILL.
13. IN MODARBA CASE BILLIONS WERE LOOTED AND ROBED.
14. IN THE TIME OF PRESIDENT ZIA COOPERATIVE BANKS ROBBED THE PEOPLE.
15. IN A COUNTRY OF 200 MILLION PEOPLE ONLY ONE MILLION PEOPLE PAY THE TAXES.
16. 3 STOCK BROKERS RAN AWAY IN A ROW, CASING BILLIONS OF LOSS.
17. WE CAN NOT GET A LEGAL PAPER FROM THE PATWARI AND TAHEELDAR EASILY.
18. JSCL SHARE WAS RS 1400 AND BACK TO 3.5 RS AND THE OWNER IS STILL OPERATING IN PAKISTAN.
19. EXACT ISSUED FAKE DEGREES FOR MANY YEARS AND WE CAME TO KNOW THROUGH U.S. GOVT.
THESE ARE JUST FEW EXAMPLES. I DO NOT NEED TO TELL PEOPLE THEY KNOW THE FACTS.
I HAVE NO INTENTION TO EXPRESS THAT WE SHOULD NOT RESPECT THE LAW. I MUST EMPHASIS THAT EVERY PERSON SHOULD COMPLY THE REGULATION OF THE REGULATORS, AS DESCRIBED IN THE LAW.
THE ONLY ISSUE WHICH I WOULD LIKE TO RAISE, IS THAT PLEASE GET HOLD OF THE BIG FISH FIRST.
PEOPLE ON FACEBOOK ARE NOT THAT MUCH INFLUENTIAL WHO CAN CHANGE THE VIEW OF LOT OF PEOPLE.
THOSE PEOPLE WHO ARE FULL TIME TRADERS, THEY NEED AN ACTIVITY TO KILL THE TIME, AS TO WATCH A SCREEN ALL OF THE TIME IS VERY BORING.
IF THE REGULATOR WANTS US NOT TO DISCUSS A SHARE ON ANY GROUP OR OPEN FORUM, WE SHOULD COMPLY THE REGULATION AND BE A LAW ABIDING CITIZEN.