ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has been receiving an increasing number of complaints, particularly from senior citizens, who have lost their life savings to fraudulent real estate investment schemes.
As per details these deceptive schemes lure the public by promising high returns on investments, often misusing official credentials such as Federal Board of Revenue (FBR) national tax numbers and SECP incorporation certificates to appear legitimate. The perpetrators raise massive deposits from unsuspecting investors, presenting them as contributions to real estate projects. They entice investors with unrealistic monthly returns, collecting funds in bank accounts of unincorporated entities while using registered companies as a façade.
Operating as Ponzi schemes, these scams initially pay early investors from new deposits to maintain credibility. However, as the cycle collapses, later investors are left empty-handed with no legal recourse to recover their funds.
SECP has reiterated that registering a company does not authorize it to collect public deposits or offer guaranteed returns under the pretense of real estate investment. The general public is strongly urged to exercise caution and avoid falling for such fraudulent schemes based on promises of high profits. SECP also clarified that it does not regulate real estate investment schemes except for Real Estate Investment Trusts (REITs).
Citizens are encouraged to report any suspicious real estate investment activities to law enforcement agencies immediately to prevent further financial losses.
