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by Mike Caswell

New York penny stock lawyer Gregg Jaclin, 47, has pleaded not guilty to fraud charges stemming from a shell scheme that he is accused of aiding. He entered the plea in an appearance on June 8, 2017, before San Francisco Judge Joseph Spero. The judge allowed Mr. Jaclin to go free on a $300,000 bond. (All figures are in U.S. dollars.)

Prosecutors claim that Mr. Jaclin was part of a scheme to create 10 shell companies, including a listing that became Broadcast Live Digital Corp. of Toronto. Mr. Jaclin and another man set up the companies using nominee shareholders and directors, and then sold them as vehicles ripe for manipulation, the government claims. In support of the scheme Mr. Jaclin prepared fraudulent legal opinions and regulatory filings, according to prosecutors.

Mr. Jaclin is one of two people charged for the scheme, with the other being a California man named Imran Husain. In a related civil proceeding, the U.S. Securities and Exchange Commission claimed that after the pair created the shells they sold them for hundreds of thousands of dollars each. In all, the scheme generated $2.25-million in proceeds, according to the SEC.

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