The National Accountability Bureau (NAB) held a ceremony to return funds recovered from the B4U fraud to its victims, to reverse the financial damage caused by one of Pakistan’s largest scams. According to reports, the B4U fraud was an online Ponzi scheme run by Saif-ur-Rehman and his accomplices.

 

The scheme operated via shell companies and reports indicate that the conspirators managed to siphon off billions of rupees from the public. As per the details, investors were lured in with a promise of an attractive seven percent rate of return every month.

 

This translates to a 125 percent annual rate of return if investors did not draw upon monthly proceeds from the scheme. This raises alarms, as B4U’s promised returns stand in stark contrast to the 11 percent interest rate offered by banks, which should have served as a warning that it was a highly risky scheme.

 

Reports reveal that NAB started looking into the matter in early February 2021, after the bureau received complaints from the Securities and Exchange Commission of Pakistan (SECP) and hundreds of victims. During the investigation, authorities froze assets belonging to the conspirators. The assets in question were 56 commercial bank accounts and a multitude of properties.

 

Officials from NAB gathered online data to verify the claims and damage that had been caused to affectees. Data from reports suggests that the NAB initiated a recovery process to claw back Rs7.3 billion from the masterminds behind the ponzi scheme.

 

It is worth noting that the compensation will be distributed in phases. In the first phase, Rs3.7 billion will be paid out, with 10,000 victims receiving their full amount, while the remaining 7,500 will receive only 40 percent of their investment.

 

Reports have revealed that those currently receiving only 40 percent of their investment will receive the remaining amount within six months after the liquidation of the masterminds’ properties. Addressing the attendees at the ceremony, the NAB’s chairman advised the public to remain cautious when considering investing their funds into schemes.

 

As per reports, he also urged those present to invest their funds after conducting detailed inquiries into the schemes. Victims are not expected to visit NAB’s offices again to recover their remaining amount, as the bureau intends to transfer the remaining amount directly into their bank accounts.