SECP And NAB Are Doing About The B4U Global Scam?

KARACHI: B4U Global aka B4U Trading is an “ill-gotten gains” company operating in Karachi, Lahore, and other cities in Pakistan, according to the Securities and Exchange Commission of Pakistan (SECP). However, the national accountability bureau (NAB) and federal investigation agency (FIA) failed to arrest its owners despite clear indications from the SECP.

A SECP warning in January 2021 urged the public not to invest in “fraudulent investment schemes, like B4U Global Investment, that promised hefty profits and unrealistic incentives”. NAB also investigated B4U after receiving complaints against the company and asked victims for details of investments by contacting its Rawalpindi office.
B4U’s owners, Saifur Rehman and his son Ahmar, filed a pre-arrest bail application in the Islamabad High Court (IHC) to avoid arrest by NAB. They were granted interim bail until June 9, 2021. During the last court hearing, B4U CEO Saif reportedly “tested positive for Coronavirus”.

Bail plea was opposed by NAB. The high court was informed that CEO’s companies were losing money in its response to the plea. It appeared that their profits were unrealistic, according to NAB, asking for a rejection of the bail application. The court, however, granted bail and adjourned the hearing until June 9.

Bravo Cab (Hyderabad), Alfa Dream Land (Lahore), Haris Tower (Hyderabad), Gawali Malik Brand (Lahore) are owned by Saifur Rehman. The SECP and the Association of Builders and Developers (ABAD) are not registered with these companies.

As well as Nooriabad (Sindh), Patori (Punjab), Islamabad, and Karachi, Saif also purchased land in these locations.

HOW DOES B4U WORK:

A Malaysia-returned Pakistani is using a controversial multi-level marketing business model to promise investors unrealistic profits, and Pakistani investors are falling for it.

Currently, the company’s website is not active due to increased scrutiny by the NAB, although its offices remain open in several cities across Pakistan, including Lahore. By using its agents, the company is running alleged financial scams and giving investors huge returns up to 7% to 20%.

In order to earn more profit, the accused company B4U asks investors to bring in more investors. The average investment is $50-$750, depending on the investor. To complete the first step, one investor must get seven more investors. A profit of 14% would be achieved by the first investor after this. An inside source familiar with the company’s workings told The Correspondent that this chain of investors would continue and each investor would bring seven more investors.

It is estimated that this financial scam has touched Rs119 billion and the company is still paying profits to its investors and agents despite having no income – this correspondent has confirmed that its Lahore office is still operational. According to the source, the company’s investment has increased despite the COVID-19 pandemic in Pakistan, bringing its number of investors to 450,000.
Saifur Rehman’s businesses in Pakistan and Malaysia are “bogus”, according to a source in the investigation agency. It is worth mentioning that the real estate company [NAME] of B4U is not even registered with the Association of Builders and Developers (ABAD).

B4U has also been the subject of several complaints and inquiries, according to the SECP. The entity is raising unauthorized deposits from the general public under the guise of different investment plans. “B4U” is not registered with the SECP; however, legal proceedings have already been initiated against its various companies and directors registered with the SECP.

ACTION AGAINST B4U:

After allegations of fraud surfaced against Saif and his son Ahmar, the authorities placed them on the Exit Control List (ECL).

FIA sources claim that B4U Global/B4U Trading company accounts were seized a few weeks ago. The sources also claim that the amount in these accounts does not correspond to the investment scam that amounts to over 100 billion. Until the FIR against the accused persons is registered, the sources claim they cannot reveal anything.

Multiple attempts were made to contact the company’s CEO, Saifur Rehman, but he was unavailable for comment. The Correspondent spoke with a company customer representative on the company’s helpline, who confirmed that the company was still operating in Lahore despite the investigation. According to Hamza, the representative, things have been settled with NAB and B4U is a “safe investment.”