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.
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.
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 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.
