The Securities and Exchange Commission of Pakistan (SECP) has finished adjudication procedures against B4U Group and its sponsors for illegally soliciting public deposits and operating pyramid schemes in violation of the Pakistani Companies Act, 2017.
The B4U Group is made up of 18 incorporated companies and five unincorporated company arrangements. All 18 businesses were formed within the last two years.
Mr. Saif-ur-Rehman and his immediate family members are the primary sponsors of B4U Group.
SECP, following proper process, has barred the sponsors of B4U Group from becoming directors of any company for a period of five years and assessed a Rs. 100 million penalty on each of them. Additionally, the sponsors shall be prohibited from incorporating any new corporation under the Act.
Additionally, SECP sanctioned the winding up of all 18 B4U Group entities and assessed a Rs. 200 million penalty on each. B4U Group has been fined an aggregate of Rs. 4 billion.
SECP is fully devoted to protecting the public interest against illicit business operations such as illegal deposit raising, Ponzi and pyramid schemes, and so on.
Along with starting enforcement actions, SECP has consistently issued relevant news statements cautioning the general public not to engage in any such illegal or doubtful investment plans, while enforcing strict compliance with their mission against organisations and sponsors.