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by Mike Caswell

Imran Husain, the California man accused of running a seven-year shell factory scheme, denies that he did anything wrong. As he sees it, his actions in creating nine shell companies which allegedly had fake businesses defrauded nobody. He says that he sold the shells (including one that now has a Toronto address) to people who received exactly what they had bargained for: a tradable shell.

Mr. Husain is responding to civil charges that he faces from the U.S. Securities and Exchange for a scheme that ran from 2006 to 2013. The SEC claims that Mr. Husain and a New Jersey lawyer named Gregg Jaclin fraudulently created nine public companies. The companies each had fake business plans, allowing them to bypass the normal requirements for shells, the SEC said. The companies also had straw shareholders and puppet officers, according to the SEC. Mr. Husain and Mr. Jaclin sold the shells for hundreds of thousands of dollars each, generating $2.25-million in proceeds, the SEC claimed. (All figures are in U.S. dollars.)

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