SECP Uncovers Fraudulent Investment Scheme ‘MAG Ventures’

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

Enticing Offers and False Promises

The scheme attracts individuals by presenting business partnerships in meat exports to Gulf countries, guaranteeing monthly “halal” profits from 5% to 12%, supposedly backed by a religious edict. Investment amounts range from Rs. 100,000 to Rs. 10 million, with investors receiving stamp paper agreements and post-dated checks as security.

The operation also professes aspirations to grow into diverse sectors, including property development, retail supermarkets, car sales, dining establishments, style and cosmetics, Apple product sales, and worldwide operations headquartered in Dubai.

Illusion of Legitimacy

To appear legitimate, Syed Mohsin Sultan Shah registered a company with a similar name, MAG Ventures (SMC-Private) Limited, involved in trading, along with MAG Organic Meats (SMC-Private) Limited and MAG Builders & Developers (SMC-Private) Limited. However, funds are being gathered through the account of an unregistered entity, “Galaxy Traders,” as well as cryptocurrency wallets.

SECP’s Warning

The SECP is strongly advising the public to avoid 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 related entity, as these entities lack authorization to collect deposits or offer investment schemes.

These companies are now listed in the SECP’s List of Companies Engaged in Unauthorized Activities, available on the SECP website. The matter has been reported to relevant authorities for additional investigation.

The public is reminded that a Certificate of Incorporation only confirms a company’s registration and does not permit it to collect deposits or introduce investment schemes. Investors should always confirm the validity of any investment offering through official SECP channels prior to investing.