07:15:32 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



SEC cites California men over shell factory scheme

2016-05-13 11:32 ET - Street Wire

Also Street Wire (U-*SEC) U S Securities and Exchange Commission

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has filed a civil complaint in California against two men for an OTC Bulletin Board shell factory scheme. The SEC claims that the pair fraudulently created nine shells, including one that was a purported a Toronto-area movie portal. They sold some of the companies for hundreds of thousands of dollars each, generating $2.25-million in proceeds, the regulator says. (All figures are in U.S. dollars.)

The allegations target Imran Husain, a resident of Santa Monica, Calif., and Gregg Jaclin, a lawyer from Princeton Junction, N.J. The SEC cites the men for the fraudulent creation of nine public companies between 2006 and 2013. The companies each had fake business plans (one was a purported provider of low-cost mental health services), allowing them to bypass the normal requirements for shell companies, the SEC says. The companies also had straw shareholders and puppet officers, according to the SEC. The only purpose of the companies was to be sold to those looking for a prepackaged shell.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2024 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.


Comments for this item are closed