SEC Charges Eleven in Stock Manipulation Ring

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The SEC announced that The Honorable Gregory M. Sleet, Chief Judge of the United States District Court for the District of Delaware, has authorized the SEC to file an amended complaint, alleging that three new defendants — Richard A. Bailey, Gary C. Heath, and Florian R. Ternes — each participated in the pump-and-dump scheme, described in the original complaint, involving GH3 International, Inc. during 2006.

The amended complaint alleges that Bailey and Ternes, who were officers of GH3 at the time, made hundreds of millions of GH3 shares available, through Heath, to Pawel Dynkowski and other defendants to liquidate in the market once they had pumped the stock through manipulative trading and false, misleading and touting press releases. Bailey and Ternes shared in the scheme's proceeds of $747,609 and, when it was nearly over, sold almost a billion shares of GH3 on their own for proceeds of $272,000.

http://www.sec.gov/litigation/litreleases/2010/lr21463.htm