May 12, 2016

The SEC announced fraud charges against California stock promoter Imran Husain and New Jersey lawyer Gregg Evan Jaclin for creating sham companies and selling them until the SEC issued stop orders and suspended the registration statements of the last two companies they created.  The SEC alleges that Husain and Jaclin created nine shell companies and sold seven by creating a sham business plan for each company, installing puppet CEOs, preparing bogus legal documents purporting to sell each company’s shares to straw shareholders who were actually given cash to pay for the stock they purchased plus a commission, and then filing misleading quarterly and annual reports once the companies were registered.  Husain obtained about $2.25 million in total proceeds when the empty shell companies were sold.  Jaclin and his firm received nearly $225,000 for their legal services.  SEC

Tagged in: Financial and Investment Fraud,