Seema Hakhu Kachru

Houston, Sep 27 (PTI) 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 C.E.O. 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, C.E.O. 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.

The disappearance of the C.E.O. and President of the firm
has left many in West Ridge's Indo-Pak community wary.

Concern about the firm rose in August when profit checks
from Sunrise Equities stopped coming.

No one has seen or heard from the firm's C.E.O. He has
not returned investors' phone calls. Phone calls to the firm's
office at 6355 N. Claremont and its downtown affiliates,
Sunrise Development Inc., have gone unanswered.

The Shariah Board of America's approval of investing in
Sunrise Equities led dozens of other Muslims in Chicago —
mostly Indians and some Pakistanis — to invest and lose
hundreds of thousands of dollars in the company, which has
developed multi-unit residential buildings in Chicago,
investors said.

The investors added that they do not know if the company
suffered losses because of the declining real estate market or
for other reasons.

Salman Azam, an attorney hired by investors, said
Ibrahim has not been seen since August. Sunrise's offices are
closed... Last week, 150 investors filed an involuntary
bankruptcy petition in US Bankruptcy Court, hoping to freeze
Sunrise's assets, but they stand to recoup little more than
USD 50 million in losses, Azam added.

Sunrise's Web site says the company developed close to
100 residential units in Chicago and was working on an
additional 250 units. The Shariah Board said it approved
Sunrise because Ibrahim was not giving interest on people's
investments, but rather a profit over time. Islamic law bans
muslims from collecting interest on money.

Many invested more when they saw profit-sharing checks
come in the mail every month. Others joined after seeing
friends profit.

Sunrise Equities had recruited hundreds of investors,
many of whom were from the South Asian Muslim community, over
the past five years to invest over 50 million dollars in
real estate developments in Chicago.

"Many of these investors were encouraged to put their
life savings and home equity at risk, and were promised a
monthly income stream," said Salman Azam, Managing Partner in
Lakeshore Law Group LLP.

Over the past few months, it became apparent to investors
that Sunrise was unable to make good on its obligations to pay
back investors.

By filing involuntary bankruptcy petition, Lakeshore Law
Group LLP intends to halt any attempt by Sunrise Equities
insiders to improperly transfer the company's assets, prevent
any further fraud upon the victims, and initiate an
investigative process that will open up the company's books.

This is just the first step in the process. Whether the
company's assets will be sufficient to compensate the
investors remains to be seen.

The Illinois secretary of state's office has filed an
order to stop a troubled Chicago-based real estate development
company and its officers from receiving any more investments.

"There are signs of fraud," said Tanya Solov, Director of
the Securities Department at the secretary of state's office.

"They have essentially abandoned their offices and
stopped communication with investors," Solov said. Sunrise has
not paid investors the rates of return it had promised and
failed to notify investors of the risks involved in the
venture, Solov added.

The company also had not properly registered with the
secretary of state's office, she said, adding, "You have to be
registered under securities laws to go and solicit money,"
Solov said.

The order also lists the other officers, Amjed Mahmood,
Mohammad Akbar Zahid and Saqib Anwar, prohibiting them from
soliciting money on behalf of Sunrise. Solov is working with
prosecutors, and the investigation is ongoing.

"[Ibrahim] stopped paying the monthly installments," said
Moosa Lathada, owner of a West Ridge realty firm who turned
over money to be invested by Sunrise Equities.

"I am calling the office, but no one is answering the
phone." Lathada said, adding the last time he spoke to Sunrise
was around August 6 or 7.

After that, he said, he left town on August 8. When he
returned earlier this month, he tried contacting Sunrise's
West Ridge office again. "In September, I tried to contact
them, several times, no one is answering," Lathada said.

"I am worried about my investment. We just want to know
the whereabouts of my money and where he is," he said.

Sunrise's client base is around 300 and collectively they
have entrusted millions of dollars to Sunrise, Khawaj told
News-Star. PRI SHK
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