ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has concluded adjudication proceedings against B4U Group and its sponsors for raising illegal deposits from the public and operating pyramid schemes, in violation of the Companies Act, 2017.
The B4U Group comprises 18 companies incorporated under the Act, as well as five unincorporated business setups. All the 18 companies were registered during the last two years. The main sponsor of B4U Group is Saif-ur-Rehman, along with his immediate family members.
SECP, after completing the due process of law, has disqualified the sponsors of B4U Group from becoming a director of any company for a period of five years and has also imposed a penalty of Rs100 million on each of its sponsors.
Furthermore, the sponsors shall not be allowed to incorporate any new company under the Act. In addition, SECP has granted sanction for winding up of all 18 companies of B4U Group and imposed a penalty of Rs200 million on each company. Aggregate penalties amounting to Rs4 billion have been imposed on B4U Group.
“SECP is fully committed to safeguarding the interest of general public against prohibited business practices such as illegal deposit raising, Ponzi and pyramid schemes etc,” the commission’s press release stated, “In addition to initiating enforcement actions, SECP has continuously been issuing necessary press releases, time and again, cautioning the general public not to invest in any such illegal and dubious investment plans, while taking strict enforcement action against companies and sponsors that violate their mandate.”
