here's what the SEC's been busy working on...shutting down pump and dump of OTC stocks from 10c to 40c! thanks a lot.
there's two interesting sidelights to this story, at the end.
sec.gov
Washington, D.C., May 21, 2009 — The Securities and Exchange Commission has charged eight participants in a penny stock manipulation ring that allegedly pumped the market prices of at least four stocks and generated more than $6.2 million in illicit profits when they dumped shares on the market.
The SEC alleges that Pawel Dynkowski, who resided in Newark, Del., carried out the market manipulation schemes with others he met through a penny stock web site InvestorsHub.com, which is operated by Matthew Brown of Aliso Viejo, Calif. Dynkowski, Brown, and other participants in the schemes often timed the manipulative trading to coincide with false or misleading press releases issued by the companies to hype the stock. The four companies were GH3 International, Inc., Asia Global Holdings, Inc., Playstar Corp., and Xtreme Motorsports of California, Inc.
“As we allege in our complaint, Dynkowski and his accomplices around the country met through the Internet and together spun a web of deception that gave investors the false impression that there was a real demand for these stocks,” said Scott Friestad, Deputy Director of the SEC’s Division of Enforcement. “Dynkowski went so far as to himself write some of the misleading press releases that pumped these penny stocks so they could line their own pockets with millions of dollars.”
{rest snipped}
the sidebars of this is:
1) the case got interesting more than 2 years ago, when more than $150,000 in cash was intercepted from texas to delaware. at the time, police were claiming money laundering...
gosanangelo.com
2) investors hub was at one time the main competition with SI, and there were back and forth among posters here, there, admins,etc.
i'm not making any judgments on what may / may not be going on with ihub, but there's lots o' complaints about there. |
