Court okays NAB decision to freeze accounts of Chinese firms

KARACHI: An accountability court has endorsed the National Accountability Bureau’s (NAB) decision to freeze bank accounts of two Chinese companies allegedly involved in fraudulent investment schemes.

An inquiry carried out by the corruption watchdog on the complaint of the Securities & Exchange Commission of Pakistan (SECP) had found the firms to be allegedly involved in cheating the public at large through Ponzi, pyramid, multi-level marketing (MLM) and other online schemes.

On March 17, the NAB Karachi director general had issued directives for freezing nine bank accounts used to receive the proceeds from the commission of the offences.

Subsequently, the bureau filed an application with the court under Section 12(c) of the National Accountability Ordinance, 1999, requesting it to ratify the decision regarding the attachment of accounts.

As the matter came up for hearing before Accountability Judge-IV Mukesh Kumar, he noted that no objections to NAB’s request were filed. Therefore, he allowed the application, confirming the order.

Three accounts are under the title of Gold Transmit Network Technology (Pvt) Ltd and Green Apple Super Market (Pvt) Ltd, while six are owned by Chinese nationals, said to be the owners of the firms.

Earlier, investigating officer Ghulam Abbas had submitted a report informing the judge that the notices issued to the accused persons by the court on May 17 were forwarded to the Ministry of Foreign Affairs’ DG (China) so they can be served on them at their addresses in the neighbouring country to file objections.

However, he said, he had not yet received a compliance report from the ministry. He added that the notices had already been served to the account holders’ addresses in Pakistan. The IO, therefore, requested the court to confirm the order passed by the NAB Karachi DG.

According to NAB, the SECP had filed a complaint that two firms - Gold Transmit Network Technology (Pvt) Ltd and Green Apple Super Market (Pvt) Ltd - are allegedly involved in illegal activities of raising unauthorised deposits from the public by launching fraudulent schemes, including referral marketing, MLM, and pyramid and Ponzi schemes.

The corruption watchdog said that the two Chinese companies had deprived people of their hard-earned money by offering lucrative incentives and hefty amounts.

In the application, the bureau had said that the modus operandi of the accused persons or firms was that they would ask the public to register with their companies, following which they were required to deposit the amount either in the bank accounts of the companies or in cash at their offices.

Once the amount was received from the customers, the companies would provide them a specific ID number that could be used to login and manage an individual profile on the company’s websites, it added.

The application said that virtual points were given to the customers against each rupee deposited, and these points would increase or decrease as per the changes in the investments.

The websites were the prime forum where customers could manage their investments. Monthly profits were given to customers that would also reflect on their profile on the companies’ online portal.

“The websites were already closed before the inquiry was authorised. The companies mainly operated through marketing strategies like luring through agents (mostly current customers were given extra benefits or points to bring in new customers), or through social media, publicity stunts, websites, etc.,” it claimed. NAB said that over Rs1.1 billion was transferred to these accounts.