About fake diplomas
In the Middle East, Axact has sold aeronautical degrees to airline employees, and medical degrees to hospital workers. One nurse at a large hospital in Abu Dhabi, United Arab Emirates, admitted to spending $60,000 on an Axact-issued medical degree to secure a promotion.
There’s little reason to doubt that sales of degrees have only become even more prevalent since a federal probe executed from 1989 to 1991. It was dubbed “DIPSCAM” for “Diploma Scam,” and resulted in the dismantling of 40 phony schools, 19 federal grand jury indictments, 20 convictions and the purchase of 40 diplomas and transcripts.
In his interview with The New York Times in 2013, Axact’s chief executive, Mr. Shaikh, acknowledged that the company had faced criticism in the media and on the Internet in Britain, the United States and Pakistan, and noted that Axact had frequently issued a robust legal response.
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“As long as we and other countries are in a credential-conscious society, credentials are going to matter,” said Ezell, who noted that employers unwittingly motivate workers to purchase bogus credentials by offering higher salaries for advanced degrees. In Seattle, a sheriff’s detective got a phony online college degree to get a 2 percent raise, an issue that came up when he ran for sheriff.
The sources described how employees would plant fictitious reports about Axact universities on iReport, a section of the CNN website for citizen journalism. Although CNN stresses that it has not verified the reports, Axact uses the CNN logo as a publicity tool on many of its sites.
Revenues, estimated by former employees and fraud experts at several million dollars per month, are cycled through a network of offshore companies. All the while, Axact’s role as the owner of this fake education empire remains obscured by proxy Internet services, combative legal tactics and a chronic lack of regulation in Pakistan.
But his ambition is undimmed: Last year he announced plans for Gal Axact, a futuristic headquarters building with its own monorail system and space for 20,000 employees. His philanthropic vision, meanwhile, has a populist streak that resonates with many Pakistanis’ frustrations with their government.
When Abraham Lincoln was inaugurated, a third to half of U.S. currency was counterfeit, with each state generating its own script and banks printing it. The problem was largely solved by the nationalized production of U.S. currency, said Gollin, who believes the federal government, rather than individual states, should determine the legal definition of a degree provider.
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