Specifically, and by way of example, Dynkowski told Brown to have GH3 issue a press release stating that the company had ordered a non-objecting beneficial owners, NOBO list from its transfer agent to deal with unexplained short positions in the stock. The instant messages of Brown and Dynkowski show that they hoped to make investors think that Dynkowski's massive selling of GH3 stock was aberrational. GH3 formally issued the NOBO press release with Dynkowski's suggested language on December 8, 2006.
On December 7, 2006, the coordinated market activity of Dynkowski and his associated combined with the company's press release regarding its 2005 revenues increased GH3's stock price from 0.7 cents to 1.8 cents, an increase of more than 150% in a few hours. Dynkowski then began selling the Rule 504 shares from Canceli's accounts. Canceli's brokers at Rosen and Spartan took sell orders directly from Dynkowski, although he was not authorized to trade either of Canceli's accounts. By December 13, 2006, Dynkowski had sold 312,000,900 shares from Canceli's accounts for total proceeds of approximately $747,609 before commissions. Between on or about December 13 and December 19, Canceli authorized the transfer of the proceeds from these GH3 securities sales from his brokerage accounts at Bishop Rosen and Spartan into his bank account at Wells Fargo.
On or about December 15, 18 and 19, 2006, approximately $253,000 was sent via wire transfer and check from defendant Canceli's Wells Fargo Bank account, to a Bank of America account in the name of Westmark Capital Group, Inc. Most of the proceeds in the Westmark account were withdrawn in cash by separately indicted co-defendant Mark Riviello, on or about December 21, 2006, $60,000, January 8, 2007, $80,000 and January 19, 2007 $80,000.
During January 2007, this $220,000 in cash was delivered by Riviello to con-conspirator Mangiapane. Notes from both Dynkowski and Brown indicated that GH3 received approximately $l85,000 in fraud proceeds. Dynkowski's share was approximately $146,700.
To get this cash to Delaware, where Dynkowski lived in January 2007, Brown hired a friend and paid him $10,000 of the fraud proceeds to drive the approximately $146,000 in cash proceeds from the GH3 deal from California to Dynkowski in Newark, Delaware. When the hired driver was stopped in Texas for a traffic violation, the scheme was discovered and a controlled delivery of the cash to Dynkowski was executed.
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