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Nope..................Our Fed's investigated that and screwed it up completely. I can't recall one criminal charge being filed.
Our securities commission even lost their case.
"I wonder if my marriage will survive?
« Thread Started on Yesterday at 10:50pm »
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This has been a tough few years.
At this point I consider my investment in CMKX all but lost. It was a very large investment. I told my wife that the situation with CMKX was unique, and that justice would prevail. We don't speak much about it anymore. After all I assured her that there are good companies out there to invest in.
So I have slowly been saving up to reenter the market, assuring my wife all the way. So back in I go. Trying to due my DD as a wise investor.
This month alone, I lost a lot of money in CSHD, and the last of my three years of savings again today in SLJB.
If it is not the naked shorters, it is CEO's outright deception to steal from the investing public. I mean If you can't invest in a company like SLJB that has been in business for 25 years, what help is there with any company.
You would think that with CEO's going to prison for years, that these directors of these companies would show a little restraint in their scams. Apparently not.
Well, I really should not be writing this on this board, I should be telling it to my wife. However, I don't have the courage to tell her that I have lost our life savings again."
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=14910541
I think it should remain a crime and I think the criminals should be prosecuted. But I'm not saying how "terrible" of a person Matt is and how he should be hung by his ears.
And that leads to government regulation, which hurts the intelligent investors at the expense of the uneducated ones.
A prime example is the requirement to be a "accredited investor," to invest in hedge funds. The end result is that average people get cut out of the best performing investments and are stuck with under performing mutual funds and only the rich can grow their money and significantly outpace inflation.
Let's just get to the brass tacks. Do you involve yourself knowingly in pump and dumps? It's ok, you said there's nothing wrong with them.
Your logic is, just let everyone commit crimes and let the buyer beware. Perhaps we can all wear sidearms again and carry out our own form of justice.
How can you not understand the difference between a legitimate casino and one with a crooked wheel?
Sure some pissant scams remain here: .0001 stuff that goes to .0005. A very few do much better but I'm guessing it takes a lot more cash and effort to pump them to the sky. Insiders have everyone they know pumping and sharing in the profits. "Penny" ante, by and large, compared with the dot com days.
Compare current IHUB hot stocks with Bre-X that was just mentioned: It peaked at $286 a share in 1996. (it was pumped on Yahoo)
Why do you think MMs are quitting business right and left? There's little profit in pennies.
Legal loopholes have been closed. CPAs are generally honest now except the Chinese ones. The PCAOB is auditing auditors... a huge and very effective change from pre-Enron. No one wants to be the next Arthur Andersen.
Most of the players have gotten smarter, and the dummies have been killed in real estate. Anyone who plays crap stocks was likely financing his addiction with home equity.
Don't you get that everyone else here sees your defense of criminal acts to be vulgar?
If your argument is true, then you, I, and everyone on iHub could literally spend the rest of our lives defending all sorts of crooked set ups.
From cigarettes, casinos, and even more legitimate investments like mutual funds or bonds, are all poorly thought out and rigged investments.
In a world full of lies, why the soft spot for penny stocks?
Yes, at the time, Rosa Parks was a criminal. Were slave owners criminals?
I guess what you are saying pretty clearly is, you don't believe pump and dumps should be a crime and inside trading is just a pretty smart investment strategy.
I investigated 2 in the summer of 1997 that were the result of the Bre-x fraud. Both were jumpers.
I hope one of them wasn't that poor Bre-X geologist who 'fell' out of the helicopter over the jungle. . .
Newly
In this poker game, does Matt deal from the bottom and get to see everyone else's hole card?
No, I think the government should shut down all non reporting companies, and prevent people from doing any further damage to themselves, just as suicide isn't legal, even though those people should well realize there's pavement at the end of that fall.
Really? So all those mullets in stocks like CMKX that swear years later that their money is sitting in a trust and they're gonna be wealthy anyday, those people understand the play?
How about the wife of the guy who doesn't tell his wife he's trading her IRA rollover on penny stocks? Does she know? What about the kids hoping to go to college?
You logic that it's alright to rip people off because they should know better is outrageous. I guess those people who worked for Enron should have known their stock options and retirement money was at risk?
I don't have a dog in this fight, nor an argument to defend, I just don't understand people like you who appear think it is ok to hurt other people in the pursuit of one's own goals.
Newly
You are being ridiculous and obviously cannot defend your arguments.
Don't respond to my posts if you're going to make vulgar accusations.
You probably believe it is ok for employees to rape helpless institutionalized retards, too, since 'they were likely emotionally unbalanced in the first place.'
Your arguments smack of the defendant accused of rape who says "Well, she asked for it.".
The guilty have a way of justifying their crimes by placing the blame on their victims so they, themselves, remain always on the correct side of the line between right and wrong. Seems Matt has you to do that for him. . .
Newly
"Everyone knows how the game is played."..........Yep, until some criminal changes the rules for his own personal gain.
I think they consider that a crime down there.
We do here.
People who are ethical don't steal. I'll leave it up to you to defend the fraud.
Have a nice evening.
Was Rosa Parks a "crook" too?
The government is not the moderator of ethics or morality.
If Matt had won that money at a poker table from intoxicated gamblers, would he still be a crook?
Or would the gamblers have have some responsibility for their own actions and Matt was simply play his part in a very crooked game?
It's a game, like a poker game.
Some win, some lose. Everyone knows how the game is played.
Do you think someone who buys into a pink sheet stock, knowing full well this company is not required to report profit, shares outstanding, or any other financial statistic, do you think they should have a reasonable expectation that this is at all a safe investment?
I'm not saying the pumpers are not unethical, the entire game is unethical.
But as silly as silly as it sounds, a famous rapper once said, "Don't hate the player, hate the game."
That rings unusually true in this case.
No one is duping anyone.
It's a game that every one plays. It's literally just the same as musical chairs. The penny traders know these stocks are running up, they buy in momentum, not caring whether or not the news or reason for the momentum is legit. Their goal is to sell before everyone else. The greediest trader who holds out he longest gets held holding the bag.
Rinse and repeat. Some win, some lose. It's a game and everyone knows how it's played.
LOL!
You are absolutely ridiculous, and that's coming from a person who really likes Matt.
You do understand that we're talking about at least $4.3 million, right?
So, Matt had regard for others and their money, in your opinion? Perhaps you figure he planned to build a church with the gains?
I don't think there is any longer such a thing as a "rock solid" stock. AIG was one of only 6 AAA rated companies left at the time of their failure.
So, in a nutshell, some people come to places like this, with the sole purpose of tricking others into buying a stock, so they can then dump and leave their fellow posters holding the bag.....and with this, you are alright. In fact, you don't even seem that opposed to people running scams that entrap these people. Then you call them "non average" criminals and not really all that guilty of any crime.
Would you say this is a fair assessment of your stance?
If not, please correct the discrepancy.
The Pandora Box
is now open and no one playing in
the Micro Cap Stocks will be safe.
Matt Brown did a Plea Bargain only
time will tell what bargain he made.
What difference does it make if we're discussing ethics
The government is not the moderator of what is and isn't ethical.
Are you nuts? There is a sucker born every day. Look at the hot stocks on the iHub home page. there is a scam a minute still going on.
Ah Bre-x! Cost the life of their head geologist after he "jumped" out of a helicopter into the Indonesian jungle. At least they thought it was the geologist. Wild pigs had eaten most of his face when his body was found!
Bre-X wasn't a penny and had some real pros following it. Still the mineral audits were very questionable. A precursor of the dot com collapse to come.
Bre-x, a Canadian mining scam with operations in Indonesia, would have been hard to spot. That's why one should never put much money in a single investment.
Almost 100% of the hot otcbb/pink pennies pushed on IHUB and RB are scams. A few graduated to the NASDAQ or ASE around 1999 and almost all were back on the junk exchanges or OOB within a year or two. Matt was mayor of a very wicked town.
IHUB has a huge problem now. There's zero fresh meat. Almost no one's playing pennies anymore. So IHUB is desperately trying to widen the board's appeal... to real stocks, sports, politics etc.
It's illegal. You do understand that don't you?
Pump and Dump Schemes
"Pump and dump" schemes, also known as "hype and dump manipulation," involve the touting of a company's stock (typically microcap companies) through false and misleading statements to the marketplace. After pumping the stock, fraudsters make huge profits by selling their cheap stock into the market.
Pump and dump schemes often occur on the Internet where it is common to see messages posted that urge readers to buy a stock quickly or to sell before the price goes down, or a telemarketer will call using the same sort of pitch. Often the promoters will claim to have "inside" information about an impending development or to use an "infallible" combination of economic and stock market data to pick stocks. In reality, they may be company insiders or paid promoters who stand to gain by selling their shares after the stock price is "pumped" up by the buying frenzy they create. Once these fraudsters "dump" their shares and stop hyping the stock, the price typically falls, and investors lose their money.
For more information about microcap fraud, please read our publication, Microcap Stock: A Guide for Investors.
http://www.sec.gov/answers/pumpdump.htm
That's pretty funny isn't it. No one was really scammed. I guess the $4.8M the government is requesting at sentencing can be paid back in Monopoly money.
Mega..................In most peoples eyes.
If you want to worship and defend a fraudster, that is your choice.
I find nothing here to make me think Matt is a hero.
I don't put enough money in these pigs to get burned.
In who's eyes? One man's hero is another man's tyrant.
Your assessment of Matt is completely unreasonable.
He can't look worse than he is. He commited fraud.
Penny stock or blue chips, it doesn't matter.
Matt wasn't some 16 year old playing a game. He knew the rules, broke them and got caught.
I don't think it was admitted anywhere that Matt used iHub as a tool to pump stocks.
You're being completely unreasonable and seem to be just grasping for excuses to make Matt look worse than he is.
Bar1080..................
I investigated 2 in the summer of 1997 that were the result of the Bre-x fraud. Both were jumpers. The notes they left, showed why.
What was done here is no different than scamming a Granny out of her retirement nest egg. Offenders should forfeit all assets and do serious time.
Some say that 90%+ of these penny pigs are scams. I can point out a number of CEO's who make a good living just selling shares on false pr's.
Put those SOB's in jail and that 90% figure will drop.
One poster said this...."You are putting Matt in the same category as some criminal on the street."
I'd say he's worse. He scammed the very people he took money from to provide a service. Those people had faith in him.
The average criminal is someone with an ill intent and disregard for others.
Matt, in my opinion, was simply playing the players, scamming the scammers. He was playing the penny game and everyone knows how the penny game works.
If you don't, you'll learn quickly.
You're being ridiculous.
Far more people are emotionally harmed by other things (casinos, alcohol, job loss) than the minuscule amount of people who may have harmed themselves based on a loss from a penny stock. Anyone in that category has more problems than a penny stock, they were likely emotionally unbalanced in the first place.
Madoff's scam has taken 3 lives including his own son, Mark. The actual number may be greater and will surely grow.
We're all worse off when investors/savers can't trust institutions. My money is in rock solid stuff, but I know I'm worse off for all the scammers undermining our economy. I believed that long before the current real estate/banking/debt/market collapse.
Heck, I felt that way during that dot com bubble and often worked with the SEC to bring down scam stocks.
Good riddance to Matt!
Mostly penny stock traders, who are in for the momo play. It's a game of musical chairs. Penny players buy stock they think it's coming out with news (or already has) and try to ride the momo play. The pumpers sell on momentum and whoever is greediest and holds the pump the longest gets caught holding the bag.
It's how 90% of active penny stocks trade.
I've studied stock market suicides. After the '29 crash just every radio comic told jokes about "brokers out on the ledge." There were even a few stories in the New York papers about investors jumping. Such stories about former fat cats tended to make the unemployed public feel better. One famous (but spurious) newspaper story reported 11 suicides in one day!
But a study commissioned by the city of New York in 1930 only linked a couple of suicides to stock losses, and I don't believe they involved jumping. There were more suicides later in the Depression but blaming them on failed investments is difficult.
There have been some murders in pennyland, probably not as many as there should be!
I'm really intrigued by you, so I've got to ask.....where do you think the money made from penny stock plays comes from?
What the heck is an "average criminal"?
Oh, so the guy who robs a 7-11 of a couple hundred bucks should go to jail, but the guy who steals millions should be allowed to do it again?
You have a very odd perspective of the legal system.
He wasn't stealing their nest egg? Isn't that exactly what he was doing?
No one was really scammed??????????
Tell that to the families of a few jumpers I've had the joy of scraping off the sidewalk. People have been known to commit suicide after losing it all in the market. It may or may not of happened here, but scamming is not a game.
You are putting Matt in the same category as some criminal on the street.
Firstly, the average criminal usually has a consistent ill intent to their behavior and a reckless disregard for others.
I don't think Matt has such an intent. I think he was just playing the penny game, where everyone knows the rules. He wasn't digging into George and Martha's 401k, stealing their nest egg.
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http://www.sec.gov/litigation/litreleases/2009/lr21053.htm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21053 / May 21, 2009
Securities and Exchange Commission v. Pawel P. Dynkowski, Matthew W. Brown, Jacob Canceli, Gerard J. D’Amaro, Joseph Mangiapane Jr., Nathan M. Michaud, Marc J. Riviello and Adam S. Rosengard, Civil Action No. 09-361 (D. Del.) (May 20, 2009)
SEC Charges Eight Participants in Penny Stock Manipulation Ring
The Securities and Exchange Commission (“Commission”) announced today that it filed a complaint in the United States District Court for the District of Delaware against Pawel P. Dynkowski, Matthew W. Brown, Jacob Canceli, Gerard J. D’Amaro, Joseph Mangiapane Jr., Nathan M. Michaud, Marc J. Riviello and Adam S. Rosengard. The complaint alleges that in 2006 and 2007, Dynkowski, a Polish citizen who resided in the U.S., engaged in market manipulation schemes with at least four separate stocks: GH3 International, Inc., Asia Global Holdings, Inc., Playstar Corp., and Xtreme Motorsports of California, Inc. As alleged in the complaint, Dynkowski’s co-defendants each participated in one or more of these schemes, which together generated more than $6.2 million in illicit profits.
The SEC’s complaint alleges that these fraudulent schemes generally followed the same pattern: Dynkowski and his accomplices agreed to sell large blocks of shares for penny stock companies in exchange for a portion of the proceeds. The companies put these shares in nominee accounts that Dynkowski and his accomplices controlled. The defendants pumped the market price of the stocks using wash sales, matched orders and other manipulative trading, often timed to coincide with false or touting press releases by the companies, to give the market the false impression that there was real demand for these stocks. After artificially inflating the market price of the stocks, Dynkowski and his accomplices then dumped the shares obtained from the issuers and divided the illicit proceeds.
The SEC’s complaint further alleges that:
The pump-and-dump scheme involving GH3 International, Inc. stock occurred between October and December 2006. Dynkowski orchestrated this fraud with Matthew W. Brown, who operates a penny stock website called InvestorsHub.com. Brown introduced Dynkowski to a representative of GH3 and to Jacob Canceli, a penny stock promoter who participated in the scheme. Brown acted as a liaison between Dynkowski, Canceli and the issuer. Dynkowski and his associates used wash sales, matched orders, and other manipulative trading, timed to coincide with false, misleading and touting press releases by the company, to inflate the price of GH3 stock. Canceli provided the accounts from which Dynkowski subsequently sold purportedly unrestricted shares received from the issuer. The scheme culminated in mid-December 2006, with Dynkowski dumping 312 million shares of GH3 stock for total illicit proceeds of $747,609.
Brown planned the Asia Global pump-and-dump scheme with Joseph Mangiapane Jr. and Marc J. Riviello, who were both registered representatives at a small broker-dealer in California. Dynkowski and Nathan M. Michaud, who met through InvestorsHub.com, pumped the price of Asia Global stock using wash sales, matched orders and other manipulative trading, coordinated with false, misleading, and touting press releases by the company. The scheme occurred in three cycles: August-September 2006, November-December 2006, and January-February 2007. After manipulating the price of stock, Dynkowski, Brown, Mangiapane and Riviello dumped more than 54 million shares that had been improperly registered on SEC Form S-8 and held in nominee accounts. The illicit proceeds from this scheme totaled at least $4,050,529.
Dynkowski and Gerard J. D’Amaro carried out the Playstar pump-and-dump scheme. The two of them met through InvestorsHub.com. D’Amaro acted as the liaison with the issuer as well as the nominee account holder for the purportedly unrestricted shares received from the company. In this scheme, which occurred during October and November 2006, Dynkowski pumped Playstar’s stock through wash sales, matched orders and other manipulative trading. Dynkowski and D’Amaro sold 11.5 million shares for total illicit proceeds of $1,180,294.
Dynkowski and an accomplice carried out the Xtreme Motorsports pump-and-dump scheme. The two of them, who met through InvestorsHub.com, pumped Xtreme Motorsports stock through wash sales, matched orders and other manipulative trading during January and February 2007. Dynkowski’s friend, Adam S. Rosengard, served as the nominee account holder who facilitated the dump of 13 million purportedly unrestricted shares of Xtreme Motorsports stock. After pumping the stock, Dynkowski sold the shares from Rosengard’s account generating illicit proceeds of $257,646.
The SEC’s complaint alleges that Dynkowski and Brown violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 (“Securities Act”), Sections 10(b) and 13(d) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rules 10b-5, 13d-1 and 13d-2 thereunder; that Canceli, D’Amaro, Mangiapane, and Riviello violated Sections 5(a), 5(c), and 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5; that Michaud violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5; and that Rosengard violated Sections 5(a) and 5(c) of the Securities Act. The complaint seeks against each defendant a permanent injunction against future violations, disgorgement of ill-gotten gains with prejudgment interest, and civil monetary penalties, and, as to certain defendants, orders barring them from participating in penny stock offerings.
The U.S. Attorney’s Office for the District of Delaware also announced today felony criminal charges against Dynkowski, Brown, Canceli, D’Amaro, Mangiapane, and Riviello.
The SEC thanks the U.S. Attorney’s Office for the District of Delaware; the Department of Homeland Security, Immigration and Customs Enforcement; the Internal Revenue Service – Criminal Investigations; and the Delaware State Police for their assistance in this matter.
The SEC’s investigation is continuing.
Documents & Articles
The Full SEC Complaint:
http://sec.gov/litigation/complaints/2009/comp21053.pdf
The US DOJ Press Release:
http://www.usdoj.gov/usao/de/press/2009/Pump%20&%20Dump%20Stock%20Schemes%20Indictments.pdf
Troopers aid in scam case:
http://www.gosanangelo.com/news/2007/feb/17/troopers-aid-scam-case/
UD student, Newark man named in
'pump and dump' civil suit:
7 charged in alleged stock scheme:
http://www.businessweek.com/ap/financialnews/D98AQDQG0.htm
SEC Sues Eight in Three States in Penny Stock Ring:
http://www.bloomberg.com/apps/news?pid=20601087&sid=an0vTmWDEj_Y&refer=home
Pompano Beach man charged in stock manipulation:
http://www.bizjournals.com/southflorida/stories/2009/05/18/daily63.html
O.C. stock board founder, broker indicted for fraud:
http://ocbiz.freedomblogging.com/2009/05/21/oc-stock-board-founder-broker-indicted-for-fraud/12005/
Former Newark man among those indicted in stock fraud scheme:
http://www.ledgerdelaware.com/articles/2009/05/21/news/doc4a156b9de488d415326660.txt
http://dealbreaker.com/2009/05/the-sec-to-the-rescue.php
Las Vegas company's stock manipulated for profits:
http://m.lasvegassun.com/news/2009/may/21/sec-las-vegas-companys-stock-manipulated-profits/
Felony Criminal Charges For InvestorsHub.com Operator, Matthew Brown, In Penny Stock Scheme:
04/16/2009 3 REDACTED VERSION of 2 Indictment by USA as to Defendant Sealed. (rpg) (rpg). (Entered: 04/22/2009)
http://tinyurl.com/n9t6nz
- Note: This link will not post as a live link. Copy and paste it to any browser and the Pacer Document PDF file can be opened.
Companies Involved
GH3 International, Inc. (stock ticker: GHTI)
http://investorshub.advfn.com/boards/board.aspx?board_id=5091
Asia Global Holdings Corp. (stock ticker: AAGH)
http://investorshub.advfn.com/boards/board.aspx?board_id=5623
Playstar Corporation (stock ticker: PLYCF)
http://investorshub.advfn.com/boards/board.aspx?board_id=3011
INCA Designs, Inc. (stock ticker:IDGI)
http://investorshub.advfn.com/boards/board.aspx?board_id=8819
Participants Charged by the SEC
The SEC's complaint, filed in federal district court in Delaware, charges:
Matthew W. Brown, age 26, of Aliso Viejo, California:
Pawel Dynkowski of Newark, Del.
Jacob Canceli of Mission Viejo, Calif., who is a stock promoter.
Gerard J. D'Amaro of Pompano Beach, Fla., who is a stock promoter.
Joseph Mangiapane Jr. of Laguna Niguel, Calif, who was a registered representative at AIS Financial, Inc and is currently CEO of Rubicon Financial, Inc., which owned AIS Financial, Inc. during the relevant time period.
Nathan M. Michaud of Boston, Mass., who is a web site designer.
Marc J. Riviello of Redwood City, Calif., who was a registered representative at AIS Financial, Inc.
Adam S. Rosengard of Voorhees, N.J., who was a student at the University of Delaware during the relevant time period.
Persons Indicted by DOJ
The seven defendants named in the DOJ indictments are:
• Pawel Dynkowski, age 24, formerly of Newark, Delaware;
• Joseph Mangiapane, Jr., age 43, of Laguna Niguel, California;
• Marc Riviello, age 50, of Atherton, California;
• Matthew W. Brown, age 26, of Aliso Viejo, California;
• Jacob Canceli, age 50, of Mission Viejo, California;
• Gerard D’Amaro, age 38, of Lighthouse Point, Florida; and
• Angelo R. “Bill” Panetta, age 48, of Montebello, California.
FYI From MATT >>>>>
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38023743
Posted by: IH Admin [Matt] Date: Thursday, May 21, 2009 1:03:12 PM
In reply to: None Post # of 127421
Re: SEC complaint/etc
Hi guys,
I'm aware of the SEC complaint/Delaware situation that was released today. You guys know the deal - I can't say much without my legal counsel ripping my head off (certainly the way I tend to write).
If/when I'm cleared to update everyone, I will.
ADVFN is aware of the situation and they consider it a personal matter.
Just so rumors aren't circulating -- iHub isn't going anywhere. The community and the incredible Admin team are what make this place. The site has been absolutely rocking lately and there's no reason that will change. We're doing some upgrades next week to the hardware infrastructure and the Nerds are working on some very groovy cutting edge stuff that we've dreamed up the last few weeks that I'm pretty excited to release.
I appreciate all the concern/messages you guys have sent.
FOR THOSE WHO SUPPORT MATT, HERE IS A LINK: investorshub.advfn.com/boards/board.aspx
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