With the convenience and flexibility of online education, it’s no wonder people from all over the world are lining up for online degrees. However, those scouting for the perfect virtual university may be in for a surprise when they read the scandalous and in-depth New York Times article posted two days ago.
The Dispute
According to New York Times (NYT) reporters, Axact, a Karachi-based technology company that employs more than 2,000 people, has raked in millions from counterfeit diplomas and degrees. They claim that the company is associated with 370 different websites, some of which are supposed schools, search portals, and even a law firm.
While Axact’s website is pristine, professional, and unsuspicious, their company description is a bit vague, calling Axact a “mission-driven, fast-growing, technology-oriented organization with global operations and market leadership in associated markets-” which, in reality, could mean just about anything.
Revenue reports show legitimate software sales, which are supposed to be the company’s primary offering. However, the NYT alleges that the primary source of income is fake college degrees.
Unfortunately, that’s just the tip of the iceberg. In 2007, a man in Britain was imprisoned for posing as a criminologist. His degree was from Rochville University, one of the many universities associated with Axact.
“The customers think it’s a University, but it’s not,” the New York Times quoted a supposed former employee.
Former Axact employee, Mr. Jamshaid got a bad vibe from the company and decided to use his insider knowledge to help customers obtain refunds after he quit. While several rejected his offer, fearing it was just another scam tactic, others desperately accepted Jamshaid‘s help.
The Man Behind Axact
CEO Shoaib Ahmed Shaikh, a man who’s lack of internet and cell phone use has caused suspicion at the NYT, is painted in a much different light by his representatives. Shaikh is portrayed as an honest software entrepreneur who started from the bottom; a man who is dedicated to children’s education, and even vowed to educate millions of children in 2014. Shaikh referred to past legal incidents as “lies” that were proved erroneous in court.
Axact’s Response
While it is a far less-detailed report, you can hear Axact’s side of the story at axact.com and judge for yourself.
The company immediately posted a response to what they are calling “defamation” from the NYT and a partner company, Express Media Group. The defense piece can be read here, where the company talks about a personal grudge, claims evidence of the disreputability of NTY reporter, Declan Walshof, and promises legal action.
If legal action proceeds, it will certainly not be Axact’s first time in a sticky lawsuit situation. In 2009, a class-action lawsuit began when one disgruntled US woman sued two Axact “schools,” Belford High School and Belford University for selling her a diploma she later determined was useless. Salem Kureshi, the man supposedly behind the Belford websites, denied any connection with Axact. However, the schools’ mail was forwarded to Axact’s address. Despite the slew of past issues, Axact has miraculously managed to continue operating, unscathed by the controversy and questions. Perhaps this will be the straw that breaks the camel’s back, unless the company can somehow overcome the heaps of allegations made this week.