Costello's shares are restricted - plus he and the other insiders who he purchased shares for at $0.002 per share can and are selling their free trading shares.
Costello is headed for a crash and burn and being a conman he thinks he can talk himself out of trouble - this is the Feds not Wisconsin - they will hand his A$$ to him.
The SEC don't think Costello is just joking around when he lies in a 8-K about being a graduate of Harvard Business School to attract novice investors because they believe he is a Harvard graduate.
And going back 3 months later doesn't undo his sins.