SECP Uncovers Alleged Fraudulent Investment Scheme

The Securities and Exchange Commission of Pakistan (SECP) has detected a potentially fraudulent investment scheme, aggressively promoted on social media platforms by Syed Mohsin Sultan Shah under the banner of “MAG Ventures.”

This scheme entices individuals with propositions of business partnerships focused on meat exports to Gulf countries, promising guaranteed monthly “halal” profits ranging from 5% to 12%, purportedly backed by a fatwa. The investment packages vary from Rs. 100,000 to Rs. 10 million, with assurances of security through agreements on stamp paper and the provision of post-dated cheques.

The operation also asserts designs to broaden its activities into diverse sectors, including real estate development, supermarkets, automotive commerce, cafés, fashion and beauty, Apple product sales, and international operations headquartered in Dubai.

To project an image of legitimacy, Syed Mohsin Sultan Shah registered a company under the Companies Act, 2017, bearing a similar name, MAG Ventures (SMC-Private) Limited, in the trading sector, along with two additional companies: MAG Organic Meats (SMC-Private) Limited and MAG Builders & Developers (SMC-Private) Limited. However, funds are being amassed through the bank account of an unregistered entity called “Galaxy Traders,” as well as through cryptocurrency wallets.

The SECP emphatically advises the public against investing or depositing funds with “MAG Ventures,” “Galaxy Traders,” MAG Ventures (SMC-Private) Limited, MAG Organic Meats (SMC-Private) Limited, MAG Builders & Developers (SMC-Private) Limited, or any affiliated entity. These entities are not authorized to solicit deposits or provide investment schemes under any form of arrangement.

These companies’ names have been added to the SECP’s List of Companies Involved in Unauthorized Activities, which is accessible on the SECP official website. The case has been submitted to the appropriate investigative bodies for further action.

The public is reminded that a Certificate of Incorporation only signifies the registration of a company and does not permit it to collect deposits or launch investment schemes. Investors are strongly encouraged to validate the legitimacy of any investment opportunity through the SECP’s official channels before investing.