Preet Bharara, US attorney has charged a Pakistani executive for his role in a $140-million “fake diploma mill” scam which has defrauded thousands of people around the world, reportedly including Indians.
Umair Hamid, 30 years old, had served as “assistant vice president of international relations” of Pakistan-based Axact. He had been charged for conspiracy to commit wire fraud and aggravated identity theft in connection with the scam that has collected “at least approximately $140 million from tens of thousands of consumers”.
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The fake diploma scam operated by Axact had been exposed by The New York Times in May 2015, triggering the investigations in the US and Pakistan. American authorities had arrested Hamid, who used the aliases Shah Khan and Shah, on December 19 and presented him in federal court.
Bharara said, “As alleged, while promising the rewards of a higher education, Umair Hamid was actually just peddling diplomas and certifications from fake schools. Hamid allegedly took hefty upfront fees from young men and women seeking an education, leaving them with little more than useless pieces of paper,”
William Sweeney Jr , FBI assistant director said “Thousands of people’s hopes were crushed as this alleged diploma mill scheme came crashing down. Victims took at face value the lies Hamid and his co-conspirators are alleged to have sold them. Today, we’re rewriting the lesson plan.”
Hamid, who belonged to Karachi, might face up to 20 years in jail for charges of conspiracy to commit wire fraud. The investigation into the scam in the US has been conducted jointly by the FBI, the US Postal Inspection Service and the justice department.
