Monday, September 15, 2008

The Failure of Sunrise Equities

UPDATED, OCT. 17, 2008: ALSO SEE OBAMA CONNECTED TO SUNRISE EQUITIES, PART ONE DEVELOPING: There is a major financial scandal brewing in Chicago's muslim community, as reported by Bill Morton. Sunrise Equities was a developer of mixed use and residential real estate in the Chicagoland area. It has gone under. While this is not the biggest financial story of the day, it has left hundreds of investors devastated and is likely to affect Chicago families and investors more deeply than the Bank of America Corp.’s acquisition of Merrill Lynch or the pending Lehman Brothers bankruptcy. The CEO of Sunrise Equities, Salman Ibrahim, and other officers have gone missing. Investors are panicking. Morton reports that Ibrahim donated to Alderman Joe Moore (Democrat), and The Bench finds that he also donated to Barack Obama in 2006 and in 2004, and has more recently donated at least twice to Sen. Joe Biden in 2006. Ibrahim was also a chairman of NEXTEC Engineering, Ltd., which lists its head office addres as 61A, Block-B, Main Boulevard,Johar Town in Lahore, Pakistan. Today, the web site no longer has any reference to Salman Ibrahim. This scandal has citywide ripples: A March 10, 2006 press release from Sunrise Equities bragged about a transaction in Uptown: "Sunrise Equities is pleased to announce the purchase of 4 parcels near the corner of Leland and Marine Drive. A yet unnamed project is under development and will be the largest project under the SunRise umbrella. The mixed use development plan will call for up to 150 condos and townhomes as well as community retail." (Also see More press releases can be seen on the Sunrise Equities web site, which also lists major projects that they were involved in. The Muslim Media Network (MMN) reported this on Sept. 11: "According to latest reports coming from Chicago the management of Sunrise Equities and the affiliated Sunrise Constructions have disappeared after closing their offices. Sunrise CEO Salman Ibrahim, Vice President Amjed Mahmood, and Vice President (Community Relations) Mohammad Akbar Zahid are untraceable." MMN also reports that "Sunrise Equities, a Chicago based financial services firm which claimed to be Shariah compliant, has gone under leaving many area Muslims robbed of their savings. Incorporated in 2001 the firm claimed that all its services were in compliant with Islamic laws and had the endorsement of a leading religious scholar." Following is a press release from the Shariah Board of America in an attempt to quiet down the rumor firestorm raging around this: Shariah Board of America's response to the Sunrise Equities financial crisis facing the Muslim Community Chicago, IL, September 6, 2008: It has been brought to the attention of the Board of Directors of Rahmat-e-Alam Foundation that there have been several false rumors and innuendos labeled against Shariah Board and its’ officers regarding the failure of Sunrise Equities. In particular, there are misleading emails and newspaper articles that falsely allege the involvement of the leadership of Shariah Board with Sunrise Equities. This press release is intended to set the facts straight: • If it is true that Sunrise Equities is financially insolvent and their officers are missing, then Shariah Board of America is deeply shocked and saddened by this turn of events. If the allegations leveled against Salman Ibrahim and other officers of Sunrise Equities are true, then Shariah Board expresses their deepest disappointment with these individuals. We strongly empathize with the investors of Sunrise Equities and pray for them. May Allah (swt) limit their losses, grant them Sabar and Naimal Badal. Shariah Board is making a sincere appeal to the officers of Sunrise Equities to come forward and answer questions from their investors. • It is true that Salman Ibrahim, like hundreds of other Muslims, has been a supporter of Shariah Board. He was also a member of the Board. But it is completely false that Shariah Board or its’ officers supported Sunrise Equities quid pro quo. Shariah Board categorically denies the false allegation that its’ officers received any compensation, living expenses or any other benefit for supporting Salman Ibrahim as a trustable and reliable businessman. In addition, in light of recent circumstances, the Directors of Shariah Board have unanimously agreed and removed Salman Ibrahim from the Board. Contact: Syed Mohammed Ali Farid 7045 N. Western Ave. Chicago, Illinois 60645 Phone 773 764 8274 Ext. 26 Fax 773 764 8497 • Shariah Board, in consultation with worldwide Islamic Scholars, provides Islamic guidance to companies seeking to offer Shariah compliant products. This includes banks like Devon Bank, Broadway Bank, Mutual Bank, and companies like Guidance Financial, Ijara Finance, Lariba and Sunrise Equities. This consultation is limited to providing answers to Shariah compliance questions and reviewing documents. Shariah Board or its’ officers do not participate in the Management or Operations of any company. Shariah Board is not involved in any transactions between the companies and their clients. Like other companies, Sunrise Equities also sought answers on Shariah compliance and was provided with religious guidance. The actions of the officers of Sunrise Equities were undertaken at their sole discretion. Any attempt by individuals or organizations to link Shariah Board and its’ officers with Sunrise Equities is a case of serious defamation and will be dealt with the strongest legal response possible. Shariah Board is your community service organization. But there are individuals and organizations that are perpetuating false rumors and accusations to discredit the Shariah Board. They want to impede the services of the organization so that authentic Islamic work cannot continue in this community. It is the responsibility of every community member to dispel these false rumors. It is our sincere appeal that you recognize the truth and remain steadfast in support of Shariah Board and its’ leadership. May Allah (swt) bless us with wisdom and enable us to continue this authentic work of deen. RELATED: OBAMA CONNECTED TO SUNRISE EQUITIES, PART ONE N E X T E C ::: Engineering Next Generation - Salman Ibrahim is a Chairman of Nextec. He is also a President and Chief Executive Officer of Sunrise Equities Inc, Chicago. NOTE: Salman Ibrahim's name is no longer on NEXTEC's web site. FREE IN THE USA IBF CPI Financial Sunrise Equities of Chicago was established in 2001 and is a ... projects under the supervision of its president and chief executive, Salman Ibrahim. Islamic Finance World - North America 2008 - programme Salman Ibrahim, CEO, Sunrise Equities and Development....Shariah compliant real estate opportunities in Canada... Islamic Banking and Finance in the United States ... U$D80000 and the Board rely on the generous contributions of the public. ... Brother Salman Ibrahim, a real estate agent has a great passion for Islamic ...