Case Study About Axact Fake Degree:

On May 17,2015, Declan Walsh an irish journalist published a report on fake degrees issued
by Axact (Pakistani IT company). In this report he mentioned that Axact issued online fake
degrees in dozens of disciplines even in nursing and engineering. The Times also analyzed
more than 370 websites, including school sites, but also a supporting body of search portals,
fake accreditation bodies, recruitment agencies, language schools and even a law firm that
bear Axact’s digital fingerprints.. There are 2000 employees working at headquarter in
Karachi. He narrated British court jailed Gene Morrison, a fake police criminologist  who
claimed to have degree certificates from the Axact-owned Rochville University, among other
places.

The heart of Axact’s business, however, is the sales team — young and well-educated
Pakistanis, fluent in English or Arabic, who work the phones with customers who have been
drawn in by the websites. They offer everything from high school diplomas for about $350,
to doctoral degrees for $4,000 and above. Such certificates, which help a degree to be
recognized abroad, can be lawfully purchased in the United States for less than $100. But in
Middle Eastern countries, Axact officials sell the documents some of them forged, others
secured under false pretenses for thousands of dollars each.Axact does sell some software
applications. But according to former insiders, company records and a detailed analysis of its
websites, Axact’s main business has been to take the centuries-old scam of selling fake
academic degrees and turn it into an Internet-era scheme on a global scale. [1]

The FIA launched an inquiry after the publication of the expose, and raided the Axact
office located in DHA Islamabad on May 19, 2015 and seized electronic equipment,
documents, computer, educational documents and other articles and an FIR was
registered against 26 suspects, who were arrested. Fake degrees were also recovered
during the investigation.

Shoaib Sheikh(CEO Of Axact) and others were booked by the FIA Cyber Crime wing
Islamabad on June 7, 2015, for preparing and selling fake degrees online. The scam had
surfaced after The New York Times published a report claiming the company sold fake
diplomas.[2]

They were charged with fraud, personation, forgery, money laundering as well as under
the Electronic Transactions Ordinance.Shoaib Sheikh denied allegations leveled against
his company by New York Times and said they provide back office services to the
universities.[3]

He said, they are being targeted for their patriotic intentions to launch a tv network. On
march 2016, The court order said: “Despite the passage of around one year, no proof was
found against Shoaib Shaikh and his companions.” So all were released from the charges of
money laundering. But he was arrested again on 25 September 2018 due to not following
court orders.[4]
Conclusion and recommendations:

Shoaib Sheikh and 23 accused persons are under investigation by FIA. CEO has asked to
pay 1 crore to pay the affected people. It is defamation of Pakistan on international level.
He is arrested again in September. [5]

 There will be strong internal audit to disclose certain information about the
operations including names of clients, fees and quality control procedures.

 Corporate officers and directors will be prohibited from fraudulently misleading

auditors. Established the “Fair Funds” program at the U.S. Securities and Exchange
Commission (SEC) to augment the funds available to compensate victims of
securities fraud Axact must enhanced internal auditor independence

 Prohibited audit firms from providing certain non-audit services to audited

companies.

 There will be a proper check and balance on all IT companies. Their monetary
transactions and work should be monitored.

 Judiciary system should be independent and should be able to enforce its laws.

 Government should take forceful action against Axact so that other companies
must afraid of doing such things.

LAW:

 Termination of unlawful IT solutions act,2015 has passed by Pakistani government

to avoid such cases in future.

 It is extended to whole Pakistan. .

 This act is also applicable on companies which are outside Pakistan but they are doing
thieir busniess within the boundries of Pakistan.

 All the companies which are in Pakistan doing busniess related to information and
technology does fall in this category.

 All the chief executive and the board member including manager will be held liable if
found guillty.
  Every I.T company must be registered under companies act 1984.[6]

References:
1. https://www.nytimes.com/2015/05/18/world/asia/fake-diplomas-real-cash-
pakistani-company-axact-reaps-millions-columbiana-barkley.html
2. https://dailytimes.com.pk/58795/the-axact-case/
3. https://www.dawn.com/news/1384304
4. https://propakistani.pk/2015/05/18/axact-sells-fake-online-degrees-worth-millions-
of-dollars-nyt-alleges/
5. https://www.nytimes.com/2015/05/20/opinion/a-rising-tide-of-bogus-degrees.html
6. https://tribune.com.pk/story/1750584/1-axact-ceo-shoaib-sheikh-22-others-get-7-
years-jail-term-fake-degree-case/