Investment scam shocks muslims in Chicago
Posted by jagoindia on April 2, 2009
27 Sep 2008, PTI
HOUSTON: Both Indian and Pakistani community of Chicago and its suburbs are in a state of unrest and shock due to an unbelievable investment scam worth millions-of- dollars targeting the community and sudden disappearance of Sunrise Equities’s CEO Salman Ibrahim.
State regulators are considering criminal charges against a developer named Ibrahim, who fraudulently persuaded hundreds of muslims to invest in real estate deals. Some gave Ibrahim their life savings or mortgaged their homes before he disappeared in August. Investors say they may loose more than USD 50 million.
Salman Ibrahim, CEO and President of the Chicago-based Shariah compliant financial services firm, which provided the market with competent and innovative Shariah Compliant investment products and services, duped the community.
Ibrahim founded the company in 2001 as a religious financial service in accordance with muslim law of Shariah, meaning interest free investment. He would take money from people and pay them an amount in profits every month.
People started investing larger amount of money in his business. Ibrahim along with his partners continued taking money from the community, which they invested in community business for nearly eight years and distributed profits as well.
Being well known in the muslim community in Chicago, Ibrahim was appointed as one of three Vice Presidents of the Shariah Board of America. He also became well-known among the Muslim clergy in Chicago.
Lawyers for the investors are trying to force Ibrahim’s company Sunrise Equities into bankruptcy. The state has suspended Sunrise’s rights to do business.