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SEC Busts Alleged Penny Stock Scam

Thursday, May 21, 2009 Last Update: 9:17 AM PT

WILMINGTON, Del. (CN) - Eight men ran a pump and dump scheme in penny stocks, the SEC claims in Federal Court. The "ring of penny stock manipulators" made more than $6.2 million from bogus wash trades and misleading press releases about GH3 International, Asia Global Holdings, Playstar Corp. and Xtreme Motorsports of California, the SEC says.

The SEC sued Pawel Dynkowski, a Polish citizen who lived in Newark; Matthew Brown, of Aliso Viejo, Calif., who operates the penny stock Web site InvestorsHub.com; Jacob Cancell, a stock promoter, of Mission Viejo, Calif.; Gerard D'Amaro, a Pompano Beach, Fla., stock promoter; Joseph Mangiapane Jr., of Laguna Niguel, Calif., who owned AIS Financial and was or is CEO of Rubicon Financial; Nathan Michaud, of Boston, a Web site designer; Marc Riviello, of Redwood City, Calif., a registered representative of AIS Financial; and Adam Rosengard, of Voorhees, N.J., who was a student at the University of Delaware during the alleged scam.

The SEC seeks disgorgement, penalties and injunctions, in Federal Court.

http://www.courthousenews.com/2009/05/21/SECv8Del.pdf

http://www.courthousenews.com/2009/05/21/SEC_Busts_Alleged_Penny_Stock_Scam.htm