Replies to post #14700 on SEC Charges Eleven in Stock Manipulation Ring

[MorningLightMountain]

the myth of the yellow lambo speeding through Texas is born!!!

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.

[scion]

As to the AAGH.

The AAGH market manipulation resulted in millions in illegal proceeds. Were this matter to go to trial, the government would be prepared to prove that the conspiracy began with an agreement between defendant Matthew Brown, Michael Mak, Joseph Mangiapane, Jr, Pawel Dynkowski and others to generate cash for the co-conspirators through the sale of S-8 shares of AAGH registered with the SEC. This conspiracy would be proven via communications between the co-conspirators, including instant messages and emails, as well as brokerage, banking and press documents, SEC filings, internal records and owe/profit sheets kept by Brown, Dynkowski and others.

Michael Mak was the CEO and Director of Asia Global, a company purported to be involved in building businesses in emerging markets in Asia. Of particular interest to the charged scheme, Asia Global's press releases claimed that the company had contracted for the rights to produce, distribute and broadcast in China the TV game show, Who Wants To Be A Millionaire.

In early August 2006, Brown sought Dynkowski to trade AAGH. Brown explained that the AAGH stock to be sold would consists of free-trading shares issued through what turned out to be three Non-qualified Incentive Stock Compensation Plans, registered with the SEC through a Form S-8. When properly used, the purpose of a company issuing S-8 shares is to offer common stock in lieu of direct monetary compensation to individuals who work for on behalf of the company. Shares so issued are freely tradeable, with the notable exception that S-8 shares issued to company affiliates, typically those with a certain ownership interest in the company, are subject to additional trading restrictions, including restrictive legends. By design, S-8s are to be used for compensation and employee retention; they are not to be used to raise capital for the company issuing the shares. In this case, the S-8 shares themselves were issued by Mak/AAGH into nominee brokerage accounts at Advantage Investment Strategies, AIS in the names of various individuals residing in Hong Kong.