Chief Executive Officer (CEO) of Axact, Shoaib Ahmed Shaikh, and the company’s Chief Operating Officer, Waqas Atiq, were took into custody in Pakistan by the Federal Investigation Agency (FIA) on Tuesday night over accusations of selling fake university degrees online.
Shaikh and Atiq were arrested following an overnight raid by the FIA in Axact’s Karachi office. Officials from the FIA said they seized thousand of student cards, empty degree forms and documents.
According to FIA director Shahid Hayat, a great deal of evidence was found enabling the police to charge Shaikh of fraud, forgery, and money laundering.
Following the detention, Axact’s CEO was questioned for almost nine hours about his company’s business and the fake degrees by both FIA’s Cyber Crime circle and corporate circles.
Axact said the claims are "baseless."
Ten days ago, the New York Times claimed that Axact made millions of dollars selling fake degrees
Following the story, Pakistani authorities moved against the company rapidly.
Last week the company also claimed that "All 10 business units of Axact are completely legitimate, legal and committed to enhancing the quality of IT services across the world," on its website.