2017-08-28 DOJ SDNY press_release 119 KB 4,330 chars

Pakistani Man Sentenced To 21 Months In Prison In Axact Diploma Mill Scam

Caption: United States v. Umair Hamid

summary

Umair Hamid, a Pakistani national and former Assistant Vice President at Axact, was sentenced to 21 months in prison for conspiring to commit wire fraud by operating a global diploma mill that sold fake degrees to consumers worldwide, including in the U.S., and was ordered to forfeit over $5.3 million in illicit proceeds.

paragraph

Umair Hamid pled guilty to conspiracy to commit wire fraud for his role in Axact’s international diploma mill scheme, which deceived consumers into paying upfront fees for fake degrees without providing any legitimate education. He served as Axact’s Assistant Vice President of International Relations and helped acquire fraudulent university websites, while personally traveling to the U.S. in 2016 to open a bank account for collecting illicit funds. Hamid was sentenced to 21 months in prison and ordered to forfeit $5,303,020, with the case investigated by the FBI and U.S. Postal Inspection Service and prosecuted by the Southern District of New York’s Complex Frauds and Cybercrime Unit.

narrative

Umair Hamid, a Pakistani national and former Assistant Vice President of International Relations at Axact, was sentenced to 21 months in prison for conspiring to commit wire fraud in connection with a global diploma mill scheme. Axact falsely presented itself as a legitimate IT company while selling worthless diplomas to consumers worldwide, including in the United States, who paid upfront tuition fees for non-existent educational programs. Hamid played a central role in the fraud, including negotiating the acquisition of fake university websites on Axact’s behalf and continuing operations even after Pakistani authorities shut down the company in May 2015. In 2016, he traveled to the U.S. to open a bank account used to collect proceeds from defrauded victims, demonstrating his ongoing involvement despite the company’s public shutdown. Hamid pled guilty on April 6, 2017, before U.S. District Judge Ronnie Abrams, and was ordered to forfeit $5,303,020 in ill-gotten gains. The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and prosecuted by the Southern District of New York’s Complex Frauds and Cybercrime Unit. Authorities emphasized that defendants like Hamid who profit from fake educational schemes face serious criminal consequences, including prison and asset forfeiture.

Enriched metadata

Scheme: advance-fee (90%)
Court: Southern District of New York
Outcome: pleaded · 2017-04-06

Classified advance-fee(confidence 90%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 1

$5.30M $5,303,020 $1M–$10M

Entities 3

person pakistani authorities
scheme_term to conspiracy to commit wire fraud
person umair hamid

Triples 9

Umair Hamid was sentenced to 21 months in prison
Umair Hamid pled guilty to conspiracy to commit wire fraud
Umair Hamid operated an international diploma mill scheme
Axact operated an international diploma mill scheme
Umair Hamid deceived individuals across the world
Umair Hamid served as Axact’s Assistant Vice President of International Relations
Pakistani authorities shut down Axact
Pakistani authorities arrested multiple individuals associated with Axact
Umair Hamid was ordered to forfeit $5,303,020

View original DOJ press releasejustice.gov

Extracted body text (4,330c)

Press Release Pakistani Man Sentenced To 21 Months In Prison In Axact Diploma Mill Scam Monday, August 28, 2017 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that UMAIR HAMID was sentenced today to 21 months in prison for his role in an international diploma mill scheme operated through the Pakistani company Axact. HAMID pled guilty on April 6, 2017, to conspiracy to commit wire fraud. HAMID entered the guilty plea before U.S. District Judge Ronnie Abrams, who imposed today’s sentence. Acting U.S. Attorney Joon H. Kim said: “Umair Hamid and Axact operated a massive diploma mill that preyed on consumers who thought their tuition would pay for a college education. Instead, Hamid provided victims with worthless fake diplomas. Defendants like Hamid who profit from fake schools face very real penalties, including prison time.” According to documents filed in this case and statements made in related court proceedings: HAMID helped run a massive diploma mill through his employer, Axact, which has held itself out as one of the world’s leading information technology providers. HAMID and his co-conspirators deceived individuals across the world, including throughout the United States, into enrolling in supposed high schools, colleges, and universities. Consumers paid upfront fees, believing that in return they would be enrolled in real educational courses and, eventually, receive legitimate degrees. Instead, consumers received no instruction and worthless diplomas. HAMID, who served most recently as Axact’s Assistant Vice President of International Relations, helped Axact conduct the fraud in the United States, among other locations. On Axact’s behalf, he served as the primary contact during negotiations with a former competitor for Axact’s acquisition of websites for fake educational institutions. Under Axact’s control, those websites then continued to deceive consumers into paying upfront enrollment fees for non-existent educational programs. In May 2015, Pakistani authorities shut down Axact and arrested multiple individuals associated with the company for participating in the diploma mill operation. But HAMID, who was not arrested at that time, continued to work in furtherance of the fraudulent business, even personally traveling to the United States in 2016 to open a bank account used to collect money from defrauded consumers. * * * In addition to the prison term, HAMID, 31, of Karachi, Pakistan, was ordered to forfeit $5,303,020. Mr. Kim praised and thanked the Federal Bureau of Investigation and U.S. Postal Inspection Service for their outstanding investigative work. If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.htmlLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link.. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward A. Imperatore, Noah D. Solowiejczyk, Katherine Reilly, Patrick Egan, and David Abramowicz are in charge of the prosecution. Updated August 28, 2017 Component USAO - New York, Southern Press Release Number: 17-275

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