SEC Charges Eleven in Stock Manipulation Ring

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Xtreme Motorsports Of California. Inc.

64. Dynkowski worked with Accomplice No. 1 ("ANI"), whom he met through InvestorsHub.com, to pump and then dump the stock of Xtreme Motorsports in January and February 2007. To artificially inflate the price ofthe stock, Dynkowski and ANI engaged in manipulative trading, including wash sales and matched orders.

65. Through this manipulative trading, Dynkowski and ANI boosted the price ofthe stock from 0.85 cents on February 2,2007, to a high of4.1 cents on February 7, 2007 (more than a 380% price increase in a few days).

66. The dump began on February 7,2007. Prior to this date, Xtreme Motorsports authorized its transfer agent to issue 120 million shares without restrictive legend to a certain private company ("the Nominee Company"). The transfer agent did not issue the shares to the Nominee Company, however, and instead issued them to ten other individuals and entities that the Nominee Company designated. This offer and sale of securities was unregistered and not subject to a valid exemption from registration.

67. Defendant Adam Rosengard received 13 million shares of Xtreme Motorsports stock as one ofthese designees, even though he had no contact with the Nominee Company. Dynkowski arranged for the shares to be issued to Rosengard, who gave Dynkowski electronic access to his brokerage account. Dynkowski sold these shares on February 7,2007, generating illicit profits of $257,646. Rosengard sent the money to his personal bank account via a series ofwire transfers between February 12 and May 7, 2007. Rosengard withdrew most of this money in small increments of cash, kept a small amount for himself, and gave the rest to Dynkowski.

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SEC Complaint
http://sec.gov/litigation/complaints/2009/comp21053.pdf