to ourselves first that we had a working concept with proven success and to
chart a track record for applying this new brand of banking and finance. We
knew that this approach would require a lot of hard work to raise capital; to
put systems in place; to locate, identify, recruit, and train human resources;
to clearly understand how conventional riba-based banking works; and to
develop models and products that are easy to understand by the RF bankers
and customers and that comply with Shari’aa while at the same time
upholding the laws of the land. Most importantly, we wanted to develop an
investment (loan) portfolio that proved that we have a small but viable and
proven alternative. We firmly believed that American Muslims as a minor-
ity—and, for that matter, the minority of all minorities in America—must
be humble, respectful, and understanding in this effort to develop RF bank-
ing and finance without violating Shari’aa but while also upholding the laws
of the land.
An important aspect of the RF banking business is its faith-based creden-
tials. History has shown us time and again that religious fervor, when insti-
gated, can be very strong; it can be the source of great emotional energy,
which can be used for marketing products and services. It has happened in
the United States, when religious groups (including some Muslims) raised
capital from innocent and trusting members of their communities, promising
them great returns in this life and God’s acceptance in the hereafter, only to
see the trusting customers lose everything when the promoters disappear.
One recent episode was the Madoff hedge fund, which attracted money from
many Jewish nonprofit organizations as well as many wealthy investors and
banks all over the world. It turned out, apparently, to be a type of Ponzi
scheme that lost its investors billions of dollars.^14 Another episode was that
of Sunrise Equities, a Chicago, Illinois company that not only offered ‘‘Is-
lamic’’ investments but also had its own ‘‘Shari’aa Board,’’ which the com-
pany had imported from India to add legitimacy to its operations. In one of
the financing applications we received from a customer, we noticed an invest-
ment certificate from Sunrise Equities that promised the investor 15 and 20
percent annual returns on investment. We met the representatives of the com-
pany during a New York conference in October 2007, took them to the side,
and told them that what they were doing was wrong, illegal, and damaging—
not only to themselves and their victims but to all of us in the new and emerg-
ing RF banking and finance industry. They shrugged their shoulders and
walked away smiling. Earlier that year, a delegation from LARIBA had flown
to Chicago to discuss the matter with their ‘‘scholar’’ and his team and to
alert them to what was being done in the name of religion. We were dis-
counted. It was saddening to learn that in September 2008 the Indian Muslim
community—mostly from Hyderabad—lost all of its investments, and the
‘‘bearded’’ and ‘‘turban-dressed’’ religious business ‘‘leader’’ disappeared
248 THE ART OF ISLAMIC BANKING AND FINANCE