An executive of software company Axact was charged in a US federal court on Wednesday for his involvement in an alleged $140 million "fake-diploma mill" scheme.Umair Hamid, 30, was charged in a criminal complaint filed in federal court in Manhattan with wire fraud, conspiracy to commit wire fraud and aggravated identity theft in connection with a scam that impacted tens of thousands of consumers.Hamid, an executive at software firm Axact, was arrested on Monday, according to a statement by Preet Bharara, the United States Attorney for the Southern District of New York, Philip R Bartlett, Inspector-in-Charge of the New York Office of the US Postal Inspection Service (USPIS), and William F Sweeney Jr, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (FBI).“As alleged, Hamid and his co-conspirators made false and fraudulent representations to consumers on websites and over the phone to trick them into enrolling in purported colleges and high schools, and issued fake diplomas upon receipt of upfront fees from consumers,” the statement by Bharara read.Bharara said, “As alleged, while promising the rewards of a higher education, Umair Hamid was actually just peddling diplomas and certifications from fake schools. Hamid allegedly took hefty upfront fees from young men and women seeking an education, leaving them with little more than useless pieces of paper.”Hamid resumed selling fake diplomas, duping US consumers into paying upfront fees to enroll in fake high schools and colleges even after Pakistani authorities shut Axact down in May 2015, according to Bharara's statement.“Hamid took advantage of the aspirations and dreams of thousands wanting a college education by devising a scheme to issue college coursework, degrees and certifications not worth the paper they were printed on. Postal Inspectors and their law enforcement partners will spare no resource to bring these scammers to justice, protecting those striving for higher education and opportunities,” US Postal Inspection Service USPIS Inspector-in-Charge Philip R Bartlett said.Further, FBI Assistant Director-in-Charge William F Sweeney Jr. said: “Thousands of people’s hopes were crushed as this alleged diploma mill scheme came crashing down. Victims took at face value the lies Hamid and his co-conspirators are alleged to have sold them. Today, we’re rewriting the lesson plan.”According to the statement, Hamid using the aliases “Shah Khan” and the ‘Shah’, and others operated a massive education “diploma mill” through Axact, which has held itself out as one of the world’s leading information technology providers.Axact promoted and claimed to have an affiliation with approximately 350 fictitious high schools and universities, which Axact advertised online to consumers as genuine schools."Once a consumer paid for a school certificate or diploma that falsely reflected a completed course of study, Axact sales agents were trained to use sales techniques to convince the consumer that the consumer should also purchase additional 'accreditation' or 'certifications' for such certificates or diplomas in order to make them appear more legitimate," said the statement.Axact, through Hamid and his co-conspirators, falsely ‘accredited’ purported colleges and other educational institutions by arranging to have diplomas from these phony educational institutions affixed with fake stamps supposedly bearing the seal and signature of the US Secretary of State, as well as various states and state agencies and federal and state officials, the statement added.Hamid served as Axact’s Assistant Vice President of International Relations. While based in Pakistan, Hanid was involved in managing and operating online companies that falsely held themselves out to consumers over the Internet as educational institutions.Further, the statement pointed out that among other things, Hamid made various false and fraudulent representations to consumers in order to sell fake diplomas.“At Hamid’s direction, the websites of purported ‘schools’ (1) falsely represented that consumers who ‘enrolled’ with the schools by paying tuition fees would receive online instruction and coursework, (2) sold bogus academic ‘accreditations’ in exchange for additional fees, (3) falsely represented that the schools had been certified or accredited by various educational organisations, and (4) falsely represented that the schools’ degrees were valid and accepted by employers, including in the United States.”As a further part of the scheme, Hamid and a co-conspirator (1) opened bank accounts in the United States in the names of shell entities, effectively controlled by Hamid, which received funds transferred by consumers in exchange for fake diplomas, (2) transferred funds from those bank accounts to bank accounts associated with other entities located elsewhere in the United States, the United Arab Emirates, and Canada, at the direction of HAMID, and (3) opened and operated an account with Paypal, the online payment service provider, to collect and distribute consumer funds obtained in connection with their fraudulent scheme, it added.Hamid is charged with one count of conspiracy to commit wire fraud and two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.Bharara praised the investigative work of the FBI and Postal Inspection Service. He noted that the investigation remains ongoing.In 2015, Axact was shut down and its CEO was prosecuted in Pakistan. However, after May 2015, Hamid resumed his fraudulent business of selling fake diplomas and recently traveled to the US to open a bank account that he has used to collect money from consumers he defrauded.Pakistan had asked US authorities last year to help it investigate Axact, which had been suspected of earning millions of dollars from the sale of bogus university degrees online.