Organization:Axact

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Short description: Degree mill
Axact Pvt. Ltd.
Native name
ایگزیکٹ
IndustrySoftware
Founded1997
FounderShoaib Ahmed Shaikh
Headquarters
Karachi
,
Pakistan
ProductsIT software, illegitimate academic qualifications
OwnerShoaib Ahmed Shaikh
Website{{{1}}}

Axact (Urdu: Template:URDU‎) is a Pakistan software company that runs numerous websites selling fraudulent academic degrees.[1] The company used to own the media company BOL Network.[2][3][4]

History

Axact was founded by Shoaib Ahmed Shaikh, who serves as its chairman. It is based in Karachi, and has over 2,000 employees.[2] According to Shaikh, the company was founded in 1997 with fewer than 10 employees working in a single room. In 2013 he said Axact was the world's leading IT company and that it had eight broad-business units and products, more than 5,200 employees, and associated globally and as many as 8.3 million customers worldwide.[5] The company website said in 2015 that the company had 10 diverse business units that offer more than 23 products, more than two billion users, and a global presence across 6 continents, 120 countries and 1,300 cities with more than 25,000 employees and associates.[6]

According to Securities and Exchange Commission of Pakistan records, the company was registered in June 2006 and had a paid up capital of Rs. 6 million (US$58,860) by 2010. Government records show that it paid an income tax of approximately Rs. 18,90,000 (US$18,543) for the year 2014, and that Shaikh paid a personal income tax of Rs. 26 (US$0.26) for the same year.[6]

In September 2018, Shoaib Shaikh, the owner and CEO was arrested and sentenced to 20 years for the scam along with 22 of his staff members.[7]

Fake diplomas scandal

The New York Times investigation

On 17 May 2015, The New York Times published an investigative story reporting that Axact ran at least 370 degree and accreditation mill websites. The report alleged that, although the company did sell software, its main business was to sell fraudulent degrees and certifications on a global scale.[2] The Times further reported that the company had around 2,000 employees, some of whom pretended to be American educational officials and worked in shifts to keep the company open 24 hours per day.[2]

Company response

Axact denied all allegations.[8][9] The company accused The New York Times of "baseless, substandard reporting", and of sabotaging its expansion into TV and related media with BOL Network, which was scheduled to begin operations soon. It also threatened several news organizations and bloggers reporting on the issue with lawsuits.[10]

Initially, Shoaib denied any association with the fake educational websites besides selling them software. He later claimed that Axact did provide office support and call center services to the websites, but it did not itself "issue any degree or diploma, whether fake or real."[11]

Investigations

Following the publication of the New York Times article, Pakistan's interior minister Chaudhry Nisar Ali Khan directed the country's Federal Investigation Agency to begin inquiry into whether the company was involved in any illegal business.[12] Following the interior minister's order, a cyber crime team of the FIA raided Axact's offices in Karachi and Islamabad and seized computers, recorded statements of employees, and took into custody 25 employees of the company and 28 employees from Rawalpindi office.[13][14] The FIA team found and seized several blank degrees as well as fake letterhead of the US State Department.[15] The investigation was transferred from the FIA's cyber crime department to its corporate department.[16][citation needed]

On 26 May 2015, Federal Investigation Agency arrested Shoaib Ahmed Shaikh for investigation.[17][18] As the FBR had received intelligence that BOL had been using illegal equipment, Shoaib was ordered to submit evidence of legitimate procurement.[19] On 5 June 2015, Ayesha Sheikh, Shoaib's wife was indicted on charges of money laundering in connection with Axact and BOL.[20]

The issue was also taken up in the Senate of Pakistan where Chairman of the Senate Raza Rabbani constituted a committee to probe into the issue.[14] Pakistan's tax authorities and the SECP also initiated investigations into the company.[11]

It is alleged that Axact took money from over 215,000 people in 197 countries; that the CEO Shoaib Shaikh is the owner of several shell companies in the US and other Caribbean countries that were used to route the monies into Pakistan; that Shaikh used an alias on documentation linked to these offshore companies; that Shaikh became a citizen of Saint Kitts and Nevis, a small Caribbean island nation that sells passports to rich investors; that Axact sales agents' employees used "threats and false promises" and impersonated government officials to take money from customers generally in the Middle East; and that the company earned at least US$89 million in its final year of operation.[21]

Aftermath

Axact CEO Shoaib was acquitted of money laundering charges in August 2016.

Shoaib was initially acquitted of all other related criminal charges, but this was reversed when it became clear that the presiding judge had been bribed.[22]

During the investigations, Pakistan Chief Justice called the scam a national shame.[23] In 2018, Shoaib and 22 others were convicted and sentenced to 7 years in prison. The judge also imposed a fine of Rs1.3 million on each of the convicts.[24]

In December 2016, Axact's Assistant Vice President of International Relations Umair Hamid was arrested in the United States . He was charged with wire fraud, conspiracy to commit wire fraud, and aggravated identity theft in a US federal district court for his Axact-related activities.[25][26][27][28] Hamid was found guilty in August 2017 and sentenced to 21 months in prison.[29]

In March 2023, Shoaib was arrested and remanded to custody on a charge of bribing the judge in the 2016 case to secure an acquittal. Shoaib was reported in the 2023 bribery case to have confessed to having completed a transaction worth Rs1,500,000 to the judge in the prior case.[30]

Further revelations

Most of Axact's revenues from its fake diploma sales came from the United Arab Emirates, where hundreds of residents used Axact diplomas to obtain high-paying jobs.[31] Axact sold over 200,000 fake degrees in Gulf countries.[32] More recently, Axact employees have impersonated Emirati government officials in an effort to extort "legalisation fees" from unsuspecting fake degree and diploma holders in that country.[33]

The Canadian Broadcasting Corporation's television series Marketplace carried out an investigation into the prevalence of fake academic credentials in September 2017. The documentary focused on Canadians with fake degrees occupying positions such as college instructors and medical doctors. All fraudulent certificates were found to be from Axact.[34][further explanation needed]

Network of websites

A New York Times investigation identified more than 370 websites associated with Axact's alleged fake diploma operations, including 145 sites for fictitious universities, 41 for high schools, 18 for fake accreditation boards, and 121 degree portals.[10] The following is an incomplete list of those websites:

Educational websites

Accreditation websites

References

  1. ↑ "Pakistan jails Axact boss over $140m fake diploma scam". 26 September 2018. https://gulfnews.com/world/asia/pakistan/pakistan-jails-axact-boss-over-140m-fake-diploma-scam-1.2283215. 
  2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 Declan Walsh (May 17, 2015). "Fake Diplomas, Real Cash: Pakistani Company Axact Reaps Millions". The New York Times. https://www.nytimes.com/2015/05/18/world/asia/fake-diplomas-real-cash-pakistani-company-axact-reaps-millions-columbiana-barkley.html. 
  3. ↑ "Former Axactian reveals he lured customers into buying degrees from Karachi office". GEO. May 26, 2015. http://www.thenews.com.pk/article-185988-Former-Axactian-reveals-he-lured-customers-into-buying-degrees-from-Karachi-office. 
  4. ↑ "Unabated disclosures: Axact's ex-employee spills the beans". Express Tribune. May 26, 2015. http://tribune.com.pk/story/892395/unabated-disclosures-axacts-ex-employee-spills-the-beans/. 
  5. ↑ Shah, Benazir; Mohydin, Rimmel (13 October 2013). "Axactly Right". Newsweek. http://newsweekpakistan.com/axactly-right/. 
  6. ↑ 6.0 6.1 Devjyot Ghoshal (18 May 2015). "The Pakistani man accused of making millions from fake degrees paid 26 cents in tax last year". http://qz.com/406701/the-pakistani-man-accused-of-making-millions-from-fake-degrees-paid-26-cents-in-tax-last-year/. 
  7. ↑ Mazhar Marouqui. "Pakistan jails Axact boss over $140m fake diploma scam". https://gulfnews.com/world/asia/pakistan/pakistan-jails-axact-boss-over-140m-fake-diploma-scam-1.2283215/. 
  8. ↑ "Fake degrees? Axact-ly!". Pakistan Today. 19 May 2015. http://www.pakistantoday.com.pk/2015/05/19/national/fake-degrees-axact-ly/. 
  9. ↑ Kugelman, Michael (18 May 2015). "The Axact Scandal and Pakistan's Growing Tech Sector". Wall Street Journal. https://blogs.wsj.com/washwire/2015/05/18/the-axact-scandal-and-pakistans-growing-tech-sector/. 
  10. ↑ 10.0 10.1 Imtiaz, Saba; Walsh, Declan (20 May 2015). "Pakistani Investigators Raid Offices of Axact, Fake Diploma Company". The New York Times. https://www.nytimes.com/2015/05/20/world/asia/pakistani-investigators-raid-offices-of-axact-fake-diploma-company.html. 
  11. ↑ 11.0 11.1 Walsh, Declan (22 May 2015). "Pakistan Widens Inquiry Into Fake Diplomas". The New York Times. https://www.nytimes.com/2015/05/23/world/asia/pakistan-widens-inquiry-into-fake-diplomas.html. 
  12. ↑ "Chaudhry Nisar orders inquiry into NYT report on Axact". Dawn. 19 May 2015. http://www.dawn.com/news/1182928. 
  13. ↑ "FIA raids Axact's offices, computers confiscated". 19 May 2015. http://en.dailypakistan.com.pk/pakistan/fia-raids-axacts-offices-seals-records-765/. 
  14. ↑ 14.0 14.1 "An Insider Discloses How Axact Seduces Individuals With Certified US Degrees". Today Streams. 20 May 2015. http://www.todaystreams.com/News/an-insider-discloses-how-axact-seduces-individuals-with-certified-us-degrees. 
  15. ↑ "LIVE UPDATES: Dozens of Axact employees detained for questioning after FIA raids in Karachi & Islamabad — 2 main servers to be shut down". ARY News. 19 May 2015. http://arynews.tv/en/axact-scam-aitzaz-demands-inquiry-of-nyt-claims. 
  16. ↑ Castel, J.-G. (1969-12-31). "Custody Orders - Jurisdiction and Recognition". Alberta Law Review: 15. doi:10.29173/alr2404. ISSN 1925-8356. 
  17. ↑ Imtiaz Ali (27 May 2015). "FIR registered against Axact CEO, six others in fake degree scam". Dawn. http://www.dawn.com/news/1184433. 
  18. ↑ "Axact CEO Shoaib Shaikh arrested". Dunya News. 27 May 2015. http://dunyanews.tv/index.php/en/Pakistan/281231-Axact-CEO-Shoaib-Shaikh-arrested. 
  19. ↑ "Equipment at Bol TV 'imported illegally'" (in en-US). 2015-05-26. http://tribune.com.pk/story/892412/equipment-at-bol-tv-imported-illegally/. 
  20. ↑ "Axct Scandal: FIA likely to arrest Shoaib Sheikh's wife". thenewstribe. https://www.thenewstribe.com/2015/06/09/axct-scandal-fia-likely-to-arrest-shoaib-sheikhs-wife/. 
  21. ↑ Walsh, Declan (10 April 2016). "Behind Fake Degrees From Pakistan, a Maze of Deceit and a Case in Peril". The New York Times. https://www.nytimes.com/2016/04/11/world/asia/pakistan-axact-degree-scam.html. 
  22. ↑ Dawn.com, Malik Asad | (2018-07-05). "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case" (in en). Archived from the original on 5 July 2018. https://web.archive.org/web/20180705173852/https://www.dawn.com/news/1418156. 
  23. ↑ "Axact scam embarrassed the country globally: CJP". January 19, 2018. https://tribune.com.pk/story/1611033/1-cjp-takes-suo-motu-notice-axact-fake-degrees-scandal/. 
  24. ↑ "Axact CEO, 22 others sentenced to 20 years in jail in fake degrees case". July 5, 2018. https://www.dawn.com/news/1418156. 
  25. ↑ "US charges Pakistani executive in $140m fake diploma scheme". 22 December 2016. http://www.dawn.com/news/1303824/us-charges-pakistani-executive-in-140m-fake-diploma-scheme. 
  26. ↑ "Axact executive could face 20 years in US prison over fake degree scam". https://www.geo.tv/latest/124765-Axact-executive-could-face-20-years-in-US-prison-over-fake-degree-scam. 
  27. ↑ "Fake-diploma mill: US authorities charge Axact official in $140m scam - The Express Tribune". 23 December 2016. http://tribune.com.pk/story/1272424/fake-diploma-mill-us-authorities-charge-axact-official-140m-scam/. 
  28. ↑ "Pakistani man charged in $140 million 'diploma mill' fraud in US - Latest News & Updates at Daily News & Analysis". 23 December 2016. http://www.dnaindia.com/world/report-pakistani-man-charged-in-140-million-diploma-mill-fraud-in-us-2285713. 
  29. ↑ Helen Clifton & Matthew Chapman (2018-01-16). "'Staggering' trade in fake degrees revealed". https://www.bbc.co.uk/news/uk-42579634. 
  30. ↑ Geo News, Arfa Feroz Zake (13 March 2023). "Axact CEO Shoaib Shaikh’s remand extended for two days" (in en). Archived from the original on 15 March 2023. https://web.archive.org/web/20230315130133/https://www.geo.tv/latest/476137-axact-ceo-shoaib-shaikhs-remand-extended-for-two-days. 
  31. ↑ "Exposed: VPs, CEOs with fake degrees in the UAE". www.xpress4me.com. May 27, 2015. http://gulfnews.com/xpress/courts-crime/exposed-vps-ceos-with-fake-degrees-in-uae-1.1522897. 
  32. ↑ "XPRESS". http://gulfnews.com/xpress/courts-crime/axact-sold-over-200-000-fake-degrees-in-gulf-countries-1.1533046. 
  33. ↑ "www.xpress4me.com". XPRESS. http://gulfnews.com/xpress/news/fake-degree-holders-get-fake-calls-1.2158749. 
  34. ↑ "Fake Degrees - Exposing Canadians with phoney credentials". CBC Marketplace. 2017-09-15. http://www.cbc.ca/marketplace/episodes/2017-2018/fake-degrees-exposing-canadians-with-phoney-credentials. 
  35. ↑ 35.000 35.001 35.002 35.003 35.004 35.005 35.006 35.007 35.008 35.009 35.010 35.011 35.012 35.013 35.014 35.015 35.016 35.017 35.018 35.019 35.020 35.021 35.022 35.023 35.024 35.025 35.026 35.027 35.028 35.029 35.030 35.031 35.032 35.033 35.034 35.035 35.036 35.037 35.038 35.039 35.040 35.041 35.042 35.043 35.044 35.045 35.046 35.047 35.048 35.049 35.050 35.051 35.052 35.053 35.054 35.055 35.056 35.057 35.058 35.059 35.060 35.061 35.062 35.063 35.064 35.065 35.066 35.067 35.068 35.069 35.070 35.071 35.072 35.073 35.074 35.075 35.076 35.077 35.078 35.079 35.080 35.081 35.082 35.083 35.084 35.085 35.086 35.087 35.088 35.089 35.090 35.091 35.092 35.093 35.094 35.095 35.096 35.097 35.098 35.099 35.100 35.101 35.102 35.103 35.104 35.105 35.106 35.107 35.108 35.109 35.110 35.111 35.112 35.113 35.114 35.115 35.116 35.117 35.118 35.119 35.120 35.121 35.122 35.123 35.124 35.125 35.126 35.127 35.128 35.129 35.130 35.131 35.132 35.133 35.134 35.135 35.136 35.137 35.138 35.139 35.140 35.141 35.142 35.143 35.144 35.145 Palmer, Griff (17 May 2015). "Tracking Axact's Websites". The New York Times. https://www.nytimes.com/2015/05/17/world/asia/tracking-axacts-websites.html. 
  36. ↑ 36.0 36.1 36.2 36.3 "List of schools linked to Axact - Marketplace - CBC News". https://www.cbc.ca/marketplace/blog/list-of-schools-linked-to-axact. 

External links



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