SAMAA Money answers all your questions about its business model
B4U Global Investment scheme by Saif Ur Rehman Khan Niazi has grown 4.5 times in less than a year with its investor base rising from 100,000 in June to 450,000.
The Malaysia-returned Pakistani uses a controversial multi-level marketing business model to offer people unrealistic and guaranteed profits. The promise ranges from 7% to 20% a month (or 2.4 times a year), depending on one’s network size.
It was only a matter of time before the authorities would have caught wind of it.
So in December, the Securities and Exchange Commission of Pakistan warned people against investing in any fraudulent schemes that promise hefty profits and unrealistic incentives. B4U was on its list.
“This entity is raising unauthorised deposits from the general public in the name of different investment plans,” the SECP said. It added B4U is working with different companies registered with the SECP, and that the watchdog has already initiated legal proceedings against these companies and their directors.
There are reports that B4U is also being investigated by the FIA.
SAMAA Money has received hundreds of questions over the past few months from people who want to know if B4U is a legitimate business or not. Editor Farooq Baloch breaks down its business model to answer them.