The Securities and Exchange Commission of Pakistan (SECP) has issued a warning advising the general public against investing in fraudulent investment schemes of ISMMART Group.
In a press statement issued on Monday, SECP said it has noticed that an entity, namely “ISMMART Group”, owned by Shaukat Ullah Khan, is prima facie raising deposits from the public by promising them unrealistic monthly returns. SECP said that the said entity does not hold any license to collect deposits from the public.
SECP also mentioned that it had imposed penalties on Shaukat Ullah Khan for marketing such illegal investment schemes through companies of the Shaukat Marwat Group.
In addition, he has been disqualified from becoming a chief executive or director of any company in Pakistan, and the matter has been referred to the National Accountability Bureau (NAB), which has already initiated an inquiry against Khan and his companies.
SECP pointed out that since Khan is not eligible to form a company, he has registered 12 new companies through his family members and other associates.
Further, in order to give the public, the impression that ISMMART Group is a large business group with a global presence, he has also registered a number of 1-pound companies with Companies House UK.