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[Stock Lobster]

Even though I'm an old cynic, this is all still pretty unbelievable to me. Having been away from Ihub for a long time, I'm still digesting it all. Talk about the fox running the henhouse!

So many of us lost money on that GHTI POS...I know I did, as did many on our board, and now I'm getting pissed just thinking of it as I re-read this. The very people who should have been watching out for paying subscribers and traders, were the very ones plotting to make them into bagholders.

The longer one is away from pennies, the more surreal that whole marginal world becomes...from the SOBs who cynically plan to separate naive penny traders from their money, to the fools who keep buying penny junk and work overtime attempting to convince themselves and others that any of these turds are legitimate.

I guess they do deserve each other, in some twisted way. TG I don't even have pinkie or otcbb L2s any more, so I can't even watch the low-speed car wreck known as penny stock trading.

After the credit crisis of 2008, even the bluest of bluechips resorted to dilution to raise cash...we watched 'good stocks' like DRYS plummet from over $100 a share to $5...what hope is there for well meaning, but undercapitalized marginal pinks and bulletin board stocks with sketchy business plans at best? And those are the best of breed...never mind the vast majority that are the noxious lovechildren, issue from furtive groping betweeen a pipe financer and a mafia client in some 'hedge fund' back room, lol...

http://ocbiz.freedomblogging.com/files/2009/05/sec-lawsuit-5-21-2009.pdf

FACTS

GH3 InternationaL Inc.

29. GH3 is a Nevada company that purports to market anti-aging products.

The GH3 pump-and-dump scheme occurred in October-December 2006 and generated
fraudulent proceeds of $747,609. In late 2006, Brown, Dynkowski, and Canceli attended
a meeting at the offices ofAIS in California with a representative ofGH3. Another
representative ofGH3 participated in the meeting by telephone. Brown, Dynkowski,
Canceli, and the two representatives from GH3 planned the pump-and-dump scheme at
this meeting. They agreed that GH3 would issue company stock in 52 million share
increments to Canceli for $0.001 per share, with payment due after Dynkowski succeeded
in inflating the market price ofGH3 stock and selling those shares to unsuspecting
investors. Mangiapane, who managed the AIS office, agreed to allow the meeting to be
held at AIS's office in exchange for a portion ofthe proceeds from the pump-and-dump
scheme.

30. Dynkowski inflated the market price ofGH3 stock through manipulative
trading timed to coincide with misleading and touting press releases. Brown helped to
coordinate the timing ofthis manipulative trading with the press releases, by serving as a
liaison between Dynkowski and Canceli, who was in contact with representatives of
GH3. When the scheme began, GH3 traded for merely four-hundredths ofa penny
($0.0004), but the efforts ofDynkowski, Brown and others in the scheme eventually
propelled the stock's price to a high of 1.8 cents per share - a gain ofmore than 4,000
percent.

31. Representatives ofGH3 laid the groundwork for the scheme. On October
30, 2006, they arranged for GH3 to execute a 1 for 20 reverse stock split that reduced the
company's outstanding shares by 95%. This move was important because, after the split,
the millions ofshares issued by the company for Dynkowski to sell later in the scheme
represented the vast majority ofthe company's outstanding stock, and any sales by
existing shareholders would have less impact on the stock's price.

32. Between December 4 and 12,2006, GH3 transferred 312 million company
shares to accounts in Canceli's name at Spartan Securities Group and Bishop Rosen &
Co. A representative ofGH3 instructed the transfer agent to issue the shares without
restrictive legend to an individual known to GH3 representatives from previous dealings
(hereinafter ''the GH3 Nominee"). GH3 representatives asked the GH3 Nominee to act
as a conduit and he agreed to do so.

33. Under this arrangement, GH3 purportedly sold the shares to an entity
owned by the GH3 Nominee on six different occasions, and that company then re-sold
the shares to Canceli. These offers and sales of securities wereunregistered and not
subject to a valid exemption from registration. They were sham transactions intended to
evade registration requirements. Everyone involved in these transactions intended for the
shares to be sold into the public market as soon as possible (as they in fact were).

34. Starting on December 4, and continuing through December 13, 2006,
Dynkowski and others, such as Brown, engaged in manipulative trading ofGH3 stock,
including using wash sales and matched orders to inflate its price.

35. Dynkowski engaged in wash trading between his own accounts and
multiple nominee accounts held in the names ofhis father, Tetrix Financial (a company
Dynkowski owns), and Canceli. Dynkowski also traded matched orders with Brown.
These wash sales and matched orders involved hundreds ofmillions of shares ofGH3.

36. This manipulative trading artificially inflated the price ofGH3's stock and
made it appear to investors that GH3's stock was much more liquid than it really was. As
unsuspecting buyers were attracted to GH3 in increasing numbers, the stock's volume
and ultimately its price continued to increase.

37. Dynkowski timed his manipulative trading to coincide with touting press
releases from the company. At the initial meeting when the GH3 pump-and-dump was
planned, representatives ofGH3 had promised to "provide news" as part of the scheme.
Through Canceli, GH3 representatives coordinated company press releases with
Dynkowski and Brown.

38. On December 7,2006, GH3 issued a press release stating that its 2005
revenues exceeded $2.1 million. The next day, December 8, GH3 issued a second press
release stating that its revenues for 2006 exceeded $3 million. Dynkowski timed his
manipulative trading with these press releases, and the volume and price of GH3 stock
soared. On December 7, for example, the volume oftrading in GH3's stock increased
over 600% from the prior day, and the price ofthe stock jumped more than 150% (from
0.7 cents to 1.8 cents).

39. Dynkowski began dumping the shares received from the issuer on
December 7 and continued selling for the next several days. Although Dynkowski was
not listed as an authorized trader on Canceli's accounts, he placed sell orders directly
with Canceli's brokers at Bishop Rosen and Spartan Securities.

Between December 7
and December 13,2006, Dynkowski and Canceli sold all 312 million shares they
received from the issuer, generating proceeds of$747,609.

40. In order to keep the price ofthe stock up while selling these shares,
Dynkowski continued to engage in manipulative trading, and the company issued
additional press releases. Indeed, at one point, Dynkowski instructed Brown to have the
company issue a press release stating that the company had ordered a non-objecting
beneficial owners (''NOBO'') list from its transfer agent. The purpose ofthe ''NOBO
press release" was to mislead investors into believing that the massive selling of GH3
stock (for which Dynkowski was responsible) was attributable to short sellers. GH3
issued the misleading NOBO press release on December 8, 2006, just as Dynkowski was
dumping the shares from Canceli's accounts.

41. Brown, Canceli, Dynkowski, Mangiapane, Riviello, the GH3 Nominee
and GH3 (or its representatives) divided the illicit proceeds from the scheme. Brown,
Mangiapane, and Riviello laundered a substantial portion ofthe money in order to pay
Dynkowski.

42. After Dynkowski finished selling the 312 million shares that Canceli
obtained from GH3, representatives ofthe company continued making additional
unregistered offers and sales ofGH3 stock through the GH3 Nominee that were not
subject to a valid exemption from registration. GH3 representatives authorized the
transfer ofan additional 988 million shares to the GH3 Nominee, and he sold the bulk of
these securities for a few thousandths ofa penny per share, realizing approximately an
additional $272,000 in proceeds. The GH3 Nominee gave approximately $130,000 of
this money to the company and kept the rest for himself.

http://ocbiz.freedomblogging.com/files/2009/05/sec-lawsuit-5-21-2009.pdf