Jahangir Siddiqui buys into companies using money made via stealing from the public through illegal stock market manipulation and insider trading. Once he has a stake in a company, he blackmails and bribes company owners and management to undertake illegal activities with him and join him in extracting money out out these companies and trading in the company’s shares. In this way he manages to make huge amounts of money illegally.

If the company is not corrupt, Mr. Jahangir Siddiqui will blackmail the company and put up court cases them while bribing judges in order to pressure the company. This has been happening for over 20 years, and many good companies providing employment and economic growth for Pakistan have been destroyed from within due to his activities.

Below article sums up a recent Jahangir Siddiqui fraud case:

**Cover-up Attempt Scandal Exposed:

SECP Uncovers Manipulative and Illegal Share Trading by Jahangir Siddiqui Group**

A new report by the Securities & Exchange Commission of Pakistan (SECP) has found that the Jahangir Siddiqui Group (JS Group) is guilty of illegal stock market manipulation and insider trading.

Although under pressure to be suppressed, the report has been leaked to the press.

Insider trading is a criminal offence, and the SECP’s report contains evidence that one of the country’s largest brokerages has achieved its wealth by market manipulation and delusion of the Pakistani masses tha invested in the stock market.

On 8th December 2008 , the SECP completed an investigative report on a public limited company called Azgard Nine Limited ( ANL ) which found the company guilty of serious criminal offences. The document is titled: Investigation Report on The Manipulative and Other Prohibitive Activities into Azgard Nine Limited ( ANL ), Period under review April 2, 2007 to July 13, 2007 & November 29, 2007 to April 22, 2008 , Securities & Exchange Commission of Pakistan, Securities Market Division. December 8, 2008 . It was published only 6 months after the State Bank of Pakistan permitted ANL to remit 23.758 million Euros outside Pakistan in order to purchase Montebello , an Italian company.

These illegal acts were carried out by various JS Group companies and funds, which collectively form the 2nd largest shareholder of ANL, or over a third of the shares.

SECP found that by acquiring unusually large positions in ANL, manipulative trading of shares by the clients of JS Global Capital Limited was carried out, and the price of the shares were artificially hiked up.

The artificial increases in price were executed with a view to induce the public to buy Azgard Nine shares.

Between April 02 2007 to July 13 2007 , Jahangir Siddiqui and his collaborators bought 40% of the total market trade of ANL , and then sold 33% of the total market trade to unsuspecting investors. The market increased 132% (Rs 22.85 to Rs 53) in this period.

Similarly, from November 29 2007 to April 22 2008 , the price increased 174% (Rs. 35 to Rs. 96) which was brought about by the buying of 27% and the selling of 27% of the total market by the same parties.

These increases were achieved without any significant change in the fundamentals of the company or any market dynamics and simply achieved through illegal and manipulative insider trading, according to the SECP report.

It was uncovered that the top buyers and sellers are all clients of JS Global, JS Group companies, JS Group mutual funds being managed by JS investments, sponsors/directors of Azgard Nine Limited, Live Securities, and Aziz Fidahussein brokerage house and his family members.

SECP traces this market manipulation directly to JS Global Capital, which was the major Financier or the shares, while JS Global clients were the major Financees.

In addition to the 11 different JS Group Companies and Funds which manipulated the shares, 4 individuals with personal/professional relationships to Mr. Jahangir Siddiqui and 8 Clients/Associates of the JS Group were involved in the insider trading. Furthermore, Mr. Jahangir Siddiqui’s son, Mr. Ali Jahangir Siddiqui is a common director in both Jahangir Siddiqui and Company Limited and Azgard Nine Limited, and his vested interests directly resulted in numerous illegal related party transactions.

SECP is clear on who carried out the manipulation and also on exactly how it was done, which they have found consisted of:

- Pumping and Dumping: Large quantities of shares bought and sold by the group to artificially inflate the price.
- Price Ramping: General public induced to purchase shares at increasingly higher prices by giving them an impression of increased trading activity/liquidity.

A new report by the Securities & Exchange Commission of Pakistan (SECP) has found that the Jahangir Siddiqui Group (JS Group) is guilty of illegal stock market manipulation and insider trading.

Although under pressure to be suppressed, the report has been leaked to the press.

Insider trading is a criminal offence, and the SECP’s report contains evidence that one of the country’s largest brokerages has achieved its wealth by market manipulation and delusion of the Pakistani masses tha invested in the stock market.

On 8th December 2008 , the SECP completed an investigative report on a public limited company called Azgard Nine Limited ( ANL ) which found the company guilty of serious criminal offences. The document is titled: Investigation Report on The Manipulative and Other Prohibitive Activities into Azgard Nine Limited ( ANL ), Period under review April 2, 2007 to July 13, 2007 & November 29, 2007 to April 22, 2008 , Securities & Exchange Commission of Pakistan, Securities Market Division. December 8, 2008 . It was published only 6 months after the State Bank of Pakistan permitted ANL to remit 23.758 million Euros outside Pakistan in order to purchase Montebello , an Italian company.

These illegal acts were carried out by various JS Group companies and funds, which collectively form the 2nd largest shareholder of ANL, or over a third of the shares.

SECP found that by acquiring unusually large positions in ANL, manipulative trading of shares by the clients of JS Global Capital Limited was carried out, and the price of the shares were artificially hiked up.

The artificial increases in price were executed with a view to induce the public to buy Azgard Nine shares.

Between April 02 2007 to July 13 2007 , Jahangir Siddiqui and his collaborators bought 40% of the total market trade of ANL , and then sold 33% of the total market trade to unsuspecting investors. The market increased 132% (Rs 22.85 to Rs 53) in this period.

Similarly, from November 29 2007 to April 22 2008 , the price increased 174% (Rs. 35 to Rs. 96) which was brought about by the buying of 27% and the selling of 27% of the total market by the same parties.

These increases were achieved without any significant change in the fundamentals of the company or any market dynamics and simply achieved through illegal and manipulative insider trading, according to the SECP report.

It was uncovered that the top buyers and sellers are all clients of JS Global, JS Group companies, JS Group mutual funds being managed by JS investments, sponsors/directors of Azgard Nine Limited, Live Securities, and Aziz Fidahussein brokerage house and his family members.

SECP traces this market manipulation directly to JS Global Capital, which was the major Financier or the shares, while JS Global clients were the major Financees.

In addition to the 11 different JS Group Companies and Funds which manipulated the shares, 4 individuals with personal/professional relationships to Mr. Jahangir Siddiqui and 8 Clients/Associates of the JS Group were involved in the insider trading. Furthermore, Mr. Jahangir Siddiqui’s son, Mr. Ali Jahangir Siddiqui is a common director in both Jahangir Siddiqui and Company Limited and Azgard Nine Limited, and his vested interests directly resulted in numerous illegal related party transactions.

SECP is clear on who carried out the manipulation and also on exactly how it was done, which they have found consisted of:

- Pumping and Dumping: Large quantities of shares bought and sold by the group to artificially inflate the price.
- Price Ramping: General public induced to purchase shares at increasingly higher prices by giving them an impression of increased trading activity/liquidity.
- Cross Trading: Large volumes of shares traded within the group.
- Wash Trades: Where free deliveries of shares among family members were made without any underlying transaction, or where the buyer and seller is the same client, in order to mislead the general public.
- Order matching: Where orders were buying and selling orders were placed with a fractional difference of time, e.g. less than one minute and with the same quantity and rate for buying and selling the shares.
- Cross movement of shares in CDC accounts of the group: Where substantial quantities of shares are transferred between different group members to facilitate each other with price manipulation of ANL.

SECP establishes that the role of JS Global Capital was to act as the major player in the above mentioned violations, especially in buying and selling of Azgard Nine shares, as it provided a platform for the involved parties to trade. JS Global Capital’s illegal involvement is further evidenced as it was the major Financer and Financee for the illegal trading activities.

It has been 5 months since this document was prepared, and according to an article in the Jang Newspaper in May 2009, the report has been suppressed because the SECP has faced pressure to cover up the story.

As a result SECP has not yet been able to take action to bring about justice for the many people who had their money stolen by ANL .

Golden Arrow, a large brokerage house recently published stated that the stock market crashed because of the manipulation in the stock prices of JSCL (Jahangir Siddiqui Capital Limited), ANL (Azgard Nine Limited) that created a crisis of confidence amongst investors.

Apart from SECP’s report, numerous other investigations have already been started and questions are being raised. Some factions of the media are beginning to take interest in what promises to be Pakistan’s largest corporate and financial scandal.