Guilty Plea in Multimillion Dollar Global Degree Scam Underscores Need for Verification Vigilance
Umair Hamid, a senior executive of the Pakistan-based Axact company, recently pled guilty in a U.S. court to one count of conspiracy to commit wire fraud perpetrated as part of a global diploma mill scheme. Thousands of customers are believed to have been bilked out of an estimated $140 million, after enrolling in fake high schools, colleges and other educational institutions.¹
According to Joon Kim, the Acting US Attorney in the Southern District of New York, which charged Hamid: “Operating from Pakistan, Hamid helped fraudulently rake in millions of dollars from unwitting American consumers who paid to enroll in, and get degrees from, high schools and colleges that did not exist. As a result of his fraud, people who thought they were investing in an education received nothing more than worthless diplomas and a harsh lesson in the worldwide reach of deceit.”¹
The scheme was first uncovered in May 2015 by the New York Times.² At the time, it reported that Axact was operating more than 370 websites purporting to be high schools, colleges, universities, and even accrediting bodies.³ The deception was far-reaching with branded promotional videos and social media profiles, along with realistic looking diplomas and certificates, used to make the diploma mill’s many institutions appear legitimate.²
Hamid now faces up to 20 years in prison.¹ Employers worldwide face the potential of being presented with realistic-looking credentials from Axact or other scammers. The best diploma mill defense? Make education verification a regular part of the background screening process.
“As a result of his fraud, people who thought they were investing in an education received nothing more than worthless diplomas and a harsh lesson in the worldwide reach of deceit.”¹
Acting US Attorney
¹“Pakistani man pleads guilty in $140m fake degree scam in US.” Gulf News USA, April 11, 2017
²“Fake Diplomas, Real Cash: Pakistani Company Axact Reaps Millions.” The New York Times, May 17, 2015
³“Tracking Axact’s Websites.” The New York Times, May 17, 2015
Additional Resources:
