SEC v. Imran Husain, et al. (shell factories, 2016)
Alleged — pending
These are allegations. SEC has filed an action; nothing in it has been proven, and the respondents have not been found liable. Everything described on this page is what the regulator alleges, not what a court has found. See our editorial policy.
Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In May 2016 the SEC charged Imran Husain and attorney Gregg Jaclin with running a scheme to create and sell shell companies. Jaclin consented to a final judgment in 2019; the SEC said in August 2019 that the case against Husain was ongoing, and no later outcome was found.
The record
| Agency | SEC |
|---|---|
| Release number | LR-23537 |
| Date filed | 2016-05-12 |
| Status | filed |
| Asset class | equities |
| Criminal parallel | No |
| Bars imposed | penny stock bar |
| Defendants | Imran Husain, et al. |
| Cited as charged or alleged | Exchange Act s.10(b) and Rule 10b-5 ; Securities Act s.17(a) ; Securities Act s.5 |
| Techniques | Shell factories |
What was ordered
- Civil penalty
- —
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- —
- Alleged gain
- —
What is alleged to have happened
the Securities and Exchange Commission announced this matter on May 12, 2016 as release LR-23537. The respondents named are Imran Husain, et al. (1 individual, 0 entities).
The complaint alleges that a promoter and a lawyer ran a shell factory, filing registration statements for start-ups they intended to sell as empty shells. No paid-promotion charge is made, so that tag has been removed.
This library tags the matter as shell factories, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.
The conduct is recorded against equities.
Non-monetary relief recorded: a penny stock bar, imposed on Jaclin only.
The release references a parallel criminal proceeding. Where a criminal case exists, the civil and criminal outcomes are recorded separately, because they resolve on different standards of proof.
For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.
SEC litigation release 24552 (August 6, 2019) reports that Jaclin consented, without admitting or denying the allegations, to a final judgment enjoining him, ordering $40,473 in disgorgement and prejudgment interest and imposing a penny-stock bar, with no civil penalty in light of his anticipated sentence in a parallel criminal case; he was also suspended from practicing before the SEC as an attorney. The release says the litigation against Husain, the alleged undisclosed control person, was ongoing. A May 2017 release (23839) reports a criminal indictment of Jaclin. No outcome for Husain was found in the SEC releases checked, so the record stays at filed and the outcome covers only Jaclin. Checked on 2026-10-04: no outcome for Husain found on SEC pages.
What technique is this, and how does it work?
This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.
- Shell factories — see how it works, what statute it engages, and every other action tagged the same way.
Timeline
- 2016-05-12 Litigation release published
- 2019-08-06 Jaclin consents to final judgment; litigation against Husain ongoing (SEC LR-24552)
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.
- SEC litigation release
- SEC litigation release 24552 (Jaclin judgment)
- SEC litigation release 23839 (Jaclin indictment)
Same matter
The library links these 3 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.
| Date filed | Agency | Record | Status |
|---|---|---|---|
| 2016-05-12 | SEC | SEC v. Imran Husain, et al. (shell factories, 2016) | Alleged — pending |
| 2017-05-24 | SEC | SEC v. Imran Husain, et al. (shell factories, 2017) | Alleged — pending |
| 2019-08-06 | SEC | SEC v. Imran Husain, et al. (shell factories, 2019) | Judgment entered |
Related actions
Other actions in the library sharing at least one technique tag with this one.
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Imran Husain, et al. (shell factories, 2019) | SEC | 2019-08-06 | Shell Factories | — | judgment |
| SEC v. Tiber Creek Corp. and James M. Cassidy (shell factories, 2019) | SEC | 2019-03-26 | Shell Factories | $75k | judgment |
| SEC v. Delaney Equity Group LLC, David C. Delaney and Ian C. Kass (reverse merger schemes, 2018) | SEC | 2018-08-29 | Reverse Merger Schemes , Shell Factories +1 | — | settled |
| SEC v. Diane J. Harrison, Michael J. Daniels and Catherine A. Bradaick-Zolla (shell factories, 2018) | SEC | 2018-04-30 | Shell Factories , Undisclosed Control Blocks | — | judgment |
| SEC v. Imran Husain, et al. (shell factories, 2017) | SEC | 2017-05-24 | Shell Factories , Undisclosed Control Blocks | — | filed |
| SEC v. Edward F. Panos, et al. (shell factories, 2016) | SEC | 2016-12-20 | Shell Factories , Undisclosed Control Blocks | $1.4m | judgment |