Doctor agrees to return money after Rs4.5b fraud

Islamabad
The doctor, who allegedly defrauded hundreds of his fellows of Pakistani origin and later established a gigantic private hospital with that money, has agreed before a NAB team to return the billions of rupees back to the American doctors.
The NAB is holding an inquiry into the fraud involving Rs 4.5 billion as the accused lured the victims through bogus investment incentives.
Well-placed sources told The News that the owner of a private hospital was summoned by NAB two week ago and interrogated for more than six hours after which he agreed to return the money back to the hundreds of complainants (all doctors of Pakistani origin settled in the US). Earlier, he always refused to repay the amount.
According to the sources, complaints started pouring in from the US that around 207 doctors had been deprived of Rs 4.5 billion by another doctor who is a dual national (of US and Pakistan). It was further said neither the investors had been given any profit since 2007-08 nor any ownership in the hospital built using their money. Instead, they were threatened by the accused as threatening emails have also been provided to the NAB.
Although the total number of fraud victims is 207, the bureau has so far received complaints from just over a 100 doctors; however, their numbers are growing. The claims have so far reached over $30 million against the total defrauded amount of around Rs 4.5 billion.
The sources disclosed that the accused doctor had confessed to most of the allegations against him and requested the NAB to drop the probe by showing willingness to return the money.
Initially, it is said, the NAB verified the complaints followed by authorisation given by NAB Chairman Qamar Zaman Chaudhry to hold an inquiry. But the NAB officials in Rawalpindi have recommended converting the inquiry into an investigation (a step further) so that the money could be recovered.
The sources say the case would be placed before NAB Executive Board Meeting for its upgradation from inquiry to investigation. It is important to note that reference is filed after completion of investigation.
Details reveal that a company Global Health Services (GHSL) was registered with an authorised capital of Rs 20 million while the paid up capital stood at Rs 5,633,150.
The accused started collecting money for 'partnership' in a project of GHSL. He collected over Rs 30 million in US dollars from each of the 207 persons through pay orders and cheques in the name of GHSL as well as in his own name, promising attractive returns.
Since 2007, over Rs 4.5 billion are in unauthorised use of the accused and his colleagues who issued share certificates of less value at a higher rate. In this way, the paid up capital of the company jumped from Rs 5.6 million in 2009 to Rs 3 billion in 2011.
As per law, no company is incorporated under the Companies Ordinance 1984 by the name of the hospital. Therefore, no question arises for formation of the hospital board. So far as the GHSL is concerned, there are seven Board of Directors members and it is being used as a shield to cover up the culprits.
The accused extorted money on different pretexts and even violated the US security rules in soliciting investment. The accused visited the US regularly and rented a booth at the summer meeting of APPNA (Association of Physicians of Pakistani decent of North America) and solicited investors by selling partnership and shares of QIH/GHS to them.
The NAB spokesman, Nawazish Ali Asim, when contacted, confirmed that they were investigating the matter which was at the inquiry stage. He said the NAB so far had not received a formal written Voluntary Return (VR) application from the owner of GHS/QIH.
He, however, said the bureau would not comment on any verbal offer from any accused as that might hamper the investigation. The NAB only considered written VRs, he added.
Sources in NAB say the said doctor has offered the bureau to compensate the genuine complainants while he expressed reservations over some people who, according to him, are politicising the issue.