SEC v. Imran Husain, et al. (shell factories, 2017)

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.

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In May 2017 the SEC reported that a federal grand jury had indicted New Jersey securities lawyer Gregg Jaclin on eight counts over a scheme to create and sell public shell companies, the same conduct the SEC alleges in its civil case against Jaclin and the undisclosed control person Imran Husain. In August 2019 Jaclin consented to a final judgment, but the SEC said its litigation against Husain was ongoing.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The SEC announced this development on May 24, 2017 as litigation release LR-23839. The civil case is SEC v. Imran Husain, et al., civil action 2:16-cv-03250 in the Central District of California, filed May 12, 2016. The defendants are Imran Husain and Gregg Jaclin. The parallel criminal case is United States v. Jaclin, No. 3:17-cr-00281 in the Northern District of California.

The release reports that a San Francisco grand jury returned an eight-count indictment of Jaclin on May 18, 2017, including obstruction of two SEC investigations. It alleges that Jaclin worked with an undisclosed control person to incorporate ten companies, take them public with registration statements and opinion letters that hid that person, and sell them; eight were sold for about $2.25 million. The SEC's amended complaint of November 22, 2016 charges Husain and Jaclin with a "shell factory" scheme.

On August 6, 2019 the SEC announced that a final judgment had been entered against Jaclin. Without admitting or denying the allegations, he consented to injunctions, a penny stock bar and $40,473 in disgorgement and prejudgment interest, with no civil penalty in light of the anticipated criminal sentence, and he agreed to be permanently suspended from practicing before the SEC. The same release says the litigation against Husain was ongoing. Because the lead defendant's outcome was not found, this record stays marked filed and the Jaclin judgment is recorded in the separate August 2019 record. Checked on 2026-10-04: no outcome for Husain found on the SEC litigation-release pages.

What technique is this, and how does it work?

This action is tagged with 2 techniques 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.
• Undisclosed control blocks — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2017-05-24 Litigation release published
2. 2019-08-06 SEC announces consent final judgment against Jaclin; litigation against Husain ongoing

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, Jaclin judgment (LR-24552)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

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.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. If this matter has since resolved, been withdrawn or been dismissed, we want to know: submit a correction.