U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 21053 / May 21, 2009
SEC Charges Eight Participants in Penny Stock Manipulation Ring
The SEC’s complaint further alleges that:
* The pump-and-dump scheme involving GH3 International, Inc. stock occurred between October and December 2006. Dynkowski orchestrated this fraud with Matthew W. Brown, who operates a penny stock website called InvestorsHub.com. Brown introduced Dynkowski to a representative of GH3 and to Jacob Canceli, a penny stock promoter who participated in the scheme. Brown acted as a liaison between Dynkowski, Canceli and the issuer. Dynkowski and his associates used wash sales, matched orders, and other manipulative trading, timed to coincide with false, misleading and touting press releases by the company, to inflate the price of GH3 stock. Canceli provided the accounts from which Dynkowski subsequently sold purportedly unrestricted shares received from the issuer. The scheme culminated in mid-December 2006, with Dynkowski dumping 312 million shares of GH3 stock for total illicit proceeds of $747,609.
[ May 22, 2009, 22:19: Message edited by: glassman ]
Posted by glassman on :
*Brown planned the Asia Global pump-and-dump scheme with Joseph Mangiapane Jr. and Marc J. Riviello, who were both registered representatives at a small broker-dealer in California. Dynkowski and Nathan M. Michaud, who met through InvestorsHub.com, pumped the price of Asia Global stock using wash sales, matched orders and other manipulative trading, coordinated with false, misleading, and touting press releases by the company. The scheme occurred in three cycles: August-September 2006, November-December 2006, and January-February 2007. After manipulating the price of stock, Dynkowski, Brown, Mangiapane and Riviello dumped more than 54 million shares that had been improperly registered on SEC Form S-8 and held in nominee accounts. The illicit proceeds from this scheme totaled at least $4,050,529.
this is more than just civil SECcharges too, DOJ is involved:
U.S. Department of Justice United States Attorney’s Office District of Delaware The five indictments were unsealed late yesterday, following arrests in Ft. Lauderdale, Florida, and Los Angeles, and Orange County, California.1 The seven defendants named in the indictments are: • Pawel Dynkowski, age 24, formerly of Newark, Delaware; • Joseph Mangiapane, Jr., age 43, of Laguna Niguel, California; • Marc Riviello, age 50, of Atherton, California; • Matthew W. Brown, age 26, of Aliso Viejo, California; • Jacob Canceli, age 50, of Mission Viejo, California; • Gerard D’Amaro, age 38, of Lighthouse Point, Florida; and • Angelo R. “Bill” Panetta, age 48, of Montebello, California. The companies whose stocks the defendants are charged with manipulating and conspiring
IHUB is dirty and in bed with pink CEOs to pump! Just like Willy Wizard is and all his miserable pump and dump time after time his followers sickly follow....he doesnt have much of a following anymore after the smart ones figured him out.
Hey Glass you know how to get ahold of Janice? Is she on allstocks?
Posted by glassman on :
go to ihub and post anywhere, "hey Janice Shell!" ,
she'll repsond eventually.
it's like she has a search bot alerting her that she's been mentioned.
go to known scams and she's usually there arguing with the pumpers...
she has a real job at an art museum or something so it's usually in the evenings that she shows up..
i don't have time to track her and ask her for an opinion on the situation right now, but my guess is that iHub may be sold or tainted so bad that it gets shut down.
Bob? you ready to get that many new posters?
Posted by Lockman on :
I-HUBs got big problems over this, although there is money to be made if you know the game.
I didn't think Matt would be dum enough to let it get this close to him. Guess money has a way of making people act stupid.
Posted by glassman on :
aparently he's only 26 and just bought the site a couple years ago.
anybody who reads the boards for awhile begins to sort out the bad players. islum is full of 'em
Posted by Lockman on :
quote:Originally posted by glassman: aparently he's only 26 and just bought the site a couple years ago.
anybody who reads the boards for awhile begins to sort out the bad players. islum is full of 'em
Well if this does bring down the I-HUB site it won't stop the formate, it's been way to successful.
Posted by cassity on :
If their guilty I hope they find a nice friend in prison that makes them feel like their bi..h.. Posted by Pagan on :
quote:Originally posted by glassman: aparently he's only 26 and just bought the site a couple years ago.
anybody who reads the boards for awhile begins to sort out the bad players. islum is full of 'em
Matt brown has been with Ihub since it's first inception, circa 2000. The website is now owned by ADVFN based out of the UK. No matter what happens to Matt Brown, it should have little impact on IHub. Since the allegations of wrongdoing occured before the new owners took over. JMO
Posted by glassman on :
quote:Originally posted by CashCowMoo: IHUB is dirty and in bed with pink CEOs to pump! Just like Willy Wizard is and all his miserable pump and dump time after time his followers sickly follow....he doesnt have much of a following anymore after the smart ones figured him out.
Hey Glass you know how to get ahold of Janice? Is she on allstocks?
Janice can be found here moderating a board about the legal situation no less.
Dynkowski orchestrated this fraud with Defendant Matthew Brown, who operates a penny stock website called InvestorsHub.com. Posted by The Bigfoot on :
I know Matt's handle. I wish they would release the different handles the other guys were posting under.
Yah, I often go there to gauge investor sentiment on potential picks, but I've followed enough threads over there while watching the trading to get a distinct smell in my nose. Another reason why I rarely want to hold stocks overnight anymore. To many dubious agendas out there and too many who think it is fun to game the system.
Posted by Bob Frey on :
quote:Originally posted by glassman: Bob? you ready to get that many new posters?
Should be no problem from here.
Posted by wallymac on :
Is something wrong with my Math? Brown was only 17 when started IHUB?
I read through quite a bit of the thread regarding this situation. Lot of BS posts to go through to get to the real discussion, I think there were over 1,500 posts within less than 24 hours of the thread starting.
Matt Brown became the site Administrator after selling out to ADVFN. He was the Owner when this happened. The handles of the players was posted on that board the ring leader went by EVO. He was still at large as off Thursday night. I haven't had the time or will to sift through the board since Thursday. Whether Matt is guilty or not who knows but it doesn't look good from what I have read.
In general, IHUB isn't policed near as well as Allstocks when it comes to pumpers. If you see a board with a lot posting and stock making a big move you are almost assured that some type of Pump and Dump is going on. Usually it doesn't have as much to do with the company being involved or a scam like this one was but more about seasoned "Traders" do what they can to feed the frenzy and get out with big profits.
Of course, no matter what the case we all are responsible for deciding to enter a stock and doing our own DD. Too many people get caught up in the excitement and throw caution to the wind, get greedy and then look to blame anyone they can for their losses. The deck is stacked against the average investor and I blame the SEC for not addressing at all or when they do address it, It's years after the fact. I mean think about it, stocks like SLJB, CSHD and others are still trading.
Posted by Peaser on :
Wally, you mentioned seasoned traders in the previous post.
I learned much of what I know from a seasoned trader.
My advise to all is, assume that all penny stocks are scams, get in and get out. Don't hold onto the pennyworld too long or you're bank account will become pennyworld.
The most I ever made on a penny trade - 30K.
I just got lucky, cause some group got wind of the same stock about the time I got in.
Posted by glassman on :
I read through quite a bit of the thread regarding this situation. Lot of BS posts to go through to get to the real discussion, I think there were over 1,500 posts within less than 24 hours of the thread starting.
and now you can only post if you are paid subscriber.
Posted by Peaser on :
...seriously glass?
IHUB only allows paying members to post now?
Don't they own theliondotcom too?
a lot has changed in 6 months...
Posted by glassman on :
just in the topic where they are allowed to discuss the SEC and criminal charges.
you know how they are about off topic discussion over there, so you can only discuss it there if you are a paid member..
i am pretty surprised ther SEC bothered..
i am glad to see DOJ going hand in hand with the SEC finally. i've been asking for that for years.
i've seen clear cases of fraud get a measly fine and the person banned from being involved in a public co for five years in the past.
somebody said that Matt faces up to 100 yrs in jail.. that's the kind of thing that cleans up the markets quick...
i'd like to see that action at the S&P 500 level too... the hedgies big trades make this case look like, well, like pennies Posted by T e x on :
wow...been so busy moving that I've missed a lot of news...
Posted by T e x on :
I can't get any page there to load--am assuming the servers are overloaded...
Posted by glassman on :
that;s the board Tex good luck trying to make any sense of the posts tho.
seem like alot are in denial and alot are angry.
most everybody "pretends" to be shocked, i dunno why.
Posted by Peaser on :
No shock and awe here bud.
Pretty much expected it all.
Anyhooo. One gets what one pays for??? Posted by The Bigfoot on :
quote:Originally posted by glassman: seem like alot are in denial and alot are angry.
most everybody "pretends" to be shocked, i dunno why.
My take on the scenario?
The ones who are in denial are the sheep, the ones who are angry are the wolves, and the ones who are 'shocked' are the traders who learned how not to be sheep. Posted by T e x on :
quote:Originally posted by glassman: somebody said that Matt faces up to 100 yrs in jail.. that's the kind of thing that cleans up the markets quick...
I doubt he will even get 10 years. They always use that "100 yrs" in the press to scare people but never happens. He will pay a big fine and probably do 5 or less.
As for the markets, it may affect it at first but as soon as things quiet down it's business as usual. Crooked business that is.
Posted by The Bigfoot on :
That is an interesting story you posted there Tex.
Get a couple more stories like that where a good chunk of money is recovered and it might become fashionable to haul in white collar criminals again. Lord knows this is the right environment for it right now.
Posted by T e x on :
quote:Originally posted by The Bigfoot: That is an interesting story you posted there Tex.
Get a couple more stories like that where a good chunk of money is recovered and it might become fashionable to haul in white collar criminals again. Lord knows this is the right environment for it right now.
oh, thanks...
ya, odd to me, the San Angelo connection. If I were doing business offa the books, I doubt I'd use San Angelo in my route. That'd be kinda like dragging honey through a fire-ant bed...
From the very little I've read, I doubt that either Matt or Bill Pannetta will get much sanction, but the apparent principal may be in deep--nick = EVO on da hub, if I'm reading correctly.
Posted by glassman on :
i wouldn't take anything i read on the hub seriously. for starters? the DOJ is now involved- this changes everything.
in the past the SEC has made civil cases against most perps on the markets.
very few cases have gone to Federal Court, a few notable exceptions were in Enron, and healthsouth, those were CEOs, not traders. i've seen pure fraud perps involved in trading get a fine and no more from the SEC, i've seen admissions of guilt and no lo contendre pleas with no penalty
the SEC doesn't put people in jail. they simply sanction people using the civil system.
the DOJ makes good cases, they tent to send 90% of people that go to court to jail.
sure 100 yrs total equals 5 yrs realtime, usually people take a plea bargain instead of facing the 100 yrs.
the SEC should be a permanent part of the DOJ, that would clean the markets up alot.
too many people are able to still make a big profit after paying fines and never see jail.
jailtime for white collar crime even in the million dollar range is rare, but a street crimnal invloved in a 1000$ theft could and often does get years.
change that and you'll see different behaviour patterns on Wall st.
i believe the general public is demanding just that.
this case has been under investigation for a couple years, these charges are not likely trumped up.
the fact that Matt is still working as Admin is telling about the ownerships attitude. they don't care. even if they know he's innocent? it is common practice to set someone aside until the indictmants are cleared up in any business.
this case should be considered a serious warning to people manipulating the markets illegally. they are interested in you. Posted by T e x on :
ya, have read some more. Matt has several charges against him. Very serious...
He should be on some sort leave, publicly notified.
And here's something I haven't seen questioned (although it may have been, early on):
Why did Matt wait so long to address it? Wouldn't he have known something in April? Wouldn't he have alerted the company weeks ago?
Posted by glassman on :
IMO? it's just business as usual over there Tex.
my take is that they see it as part of the cost of doing biz.
now th eplea agreeemnts are what i would like to see.
anybody that Matt knows was/is an "operator" over there is likely to be in the next wave, and that would be huge, and Matt will prolly be in witness protection Posted by Pagan on :
quote:Originally posted by glassman: IMO? it's just business as usual over there Tex.
my take is that they see it as part of the cost of doing biz.
now th eplea agreeemnts are what i would like to see.
anybody that Matt knows was/is an "operator" over there is likely to be in the next wave, and that would be huge, and Matt will prolly be in witness protection
Good lord Glass, you're getting carried away again. What next wave? Jeez, where do you get that from?
By your logic, if ever there is an SEC charge filed against someone running a P/D on AS, guess that makes you and Tex part of that next wave as well? Get real, wait a bit before making such assumptions, it's too early for that IMO.
Posted by glassman on :
quote:Originally posted by Pagan:
quote:Originally posted by glassman: IMO? it's just business as usual over there Tex.
my take is that they see it as part of the cost of doing biz.
now the plea agreements are what i would like to see.
anybody that Matt knows was/is an "operator" over there is likely to be in the next wave, and that would be huge, and Matt will prolly be in witness protection
Good lord Glass, you're getting carried away again. What next wave? Jeez, where do you get that from?
By your logic, if ever there is an SEC charge filed against someone running a P/D on AS, guess that makes you and Tex part of that next wave as well? Get real, wait a bit before making such assumptions, it's too early for that IMO.
huh?
if i was still playing pennies? i could pick all the p&d personas for investigation that post on the board. the only way to make money on them is to recognise who has the ability to make it work and get in out quick. ignore the ones who are clueless.
knowing it's a P&D and being "in" on it illegally are two diferent things.
i used to run specific screeners to spot the P&D'ers when they BOUGHT in and then track them when they began posting at different boards. the Feds could do that if they wanted to.
lemme tell you something else. we had posters booted for non-dislocure here.
i know this game inside out and backwards, you don't think i've been approached to participate in P&D?
rather than get involved i just refused to "know" the people.
if you don't think 90% of these pennystocks aren't being operated by P&D then you are just ignoring them.
if Matt has to become an "analyst" for the Feds or go to jail? i bet he chooses analyst. i would and could.
the Feds don't file charges they expect to lose. it's just not done.
the guy at healthsouth got off by running newspaper articles in Alabama, where he was being tried, portraying himself as a good Christian...
the evidence against him was complicated and that allowed the jury to "find" a shadow of doubt, but that is a rare case indeed.
given the mood of the country right now? i would not want to risk trial.
Posted by Pagan on :
quote:Originally posted by glassman:
quote:Originally posted by Pagan:
quote:Originally posted by glassman: IMO? it's just business as usual over there Tex.
my take is that they see it as part of the cost of doing biz.
now the plea agreeemnts are what i would like to see.
anybody that Matt knows was/is an "operator" over there is likely to be in the next wave, and that would be huge, and Matt will prolly be in witness protection
Good lord Glass, you're getting carried away again. What next wave? Jeez, where do you get that from?
By your logic, if ever there is an SEC charge filed against someone running a P/D on AS, guess that makes you and Tex part of that next wave as well? Get real, wait a bit before making such assumptions, it's too early for that IMO.
huh?
if i was still playing pennies? i could pick all the p&d personas for investigation that post on th eboard. the only way to make money on them is to recognise who has the ability to make it work and get in out quick. ignore the ones who are clueless.
knowing it's a P&D and being "in" on it illegally are two diferent things.
lemme tell you something else. we had posters booted for non-dislocure here.
i know this game inside out and backwards, you don't think i've been approached to participate in P&D?
rather than get involved i just refused to "know" the people.
if you don't think 90% of these pennystocks aren't being operated by P&D then you are just ignoring them.
LOL! I didn't say post most penny stocks were'nt scams. Jeez, re-read my post. I only play 1, and only 1, penny stock. And it has been lucrative over the years if ya play it right. The rest of my portfolio is all NAZ and NYSE. Dunno why you are jumping to conclusions on what I said. I never said have the things you claim in that post.
I simply made an observation, my opinion, and asked a question. No reason for you to get so bent. Why the hell are you so pissy lately?!? Used to be we could debate, without you going critical mass. Chill out a bit.
Posted by Machiavelli on :
quote:Originally posted by Pagan:
I simply made an observation, my opinion, and asked a question. No reason for you to get so bent. Why the hell are you so pissy lately?!? Used to be we could debate, without you going critical mass. Chill out a bit.
I ask myself that lately as well and today I gave up. I guess he will have to ignore more and more people that don't agree with him.
Posted by glassman on :
quote:Originally posted by Machiavelli:
quote:Originally posted by Pagan:
I simply made an observation, my opinion, and asked a question. No reason for you to get so bent. Why the hell are you so pissy lately?!? Used to be we could debate, without you going critical mass. Chill out a bit.
I ask myself that lately as well and today I gave up. I guess he will have to ignore more and more people that don't agree with him.
LOL..
both of you grow up.
i'll repost what i was reposnding to for you:
Good lord Glass, you're getting carried away again. What next wave? Jeez, where do you get that from?
i'm not bent. i'm responding exaclty in kind.
good lord why are you two so whiny lately?
the Feds always roll people over if they can. it's how they get promotions.
they don't get promotions for losing cases.
Matt may or may not be innocent, i don't care, all i know is that if i were him? i would be kinda worried. i'm sure he is.
and i also beleive dis-honest people should get proscetuated.to damximum exatensions of the lawbooks Posted by Machiavelli on :
quote:Originally posted by glassman: i'm not bent. i'm responding exaclty in kind.
good lord why are two so whiny? need some pamprin?
You should reread your posts if you think your not bent lately. As for whiny, if you whined as much as you have lately I would ask myself how you survived your military service.
But anyways Pagan is right, you just simply choose to ignore when people start complaining about you (me and him aren't the only ones) to let you know your getting out of line because you always have to be right.Do you ever wonder why we do not have problems with other Mods and only you?
But c'est la vie/que cerar que cerar.
Posted by glassman on :
let you know your getting out of line because you always have to be right.
LOL.. like the pot and the kettle?
how many mods d o you think there are?
or who? and you do have a problem with them cuz i was not the one who came up with the idea to end the name-calling which is why you are whining at me. and the real root of this whole peepee contest that's going on.
grow up
Posted by glassman on :
the way i see it? the Feds are already looking thru all the PM's over at ihub with special attention to whoever Matt points out. that's why he's still at work.
that's an opinion BTW. stated as such, i hope they get all of 'em. every single one that ever did anything illegal. i actaully like this i am not a crime buff. i'm a Justice buff.
Posted by Machiavelli on :
quote:Originally posted by glassman: let you know your getting out of line because you always have to be right.
LOL.. like the pot and the kettle?
how many mods d o you think there are?
or who? and you do have a problem with them cuz i was not the one who came up with the idea to end the name-calling which is why you are whining at me. and the real root of this whole peepee contest that's going on.
grow up
I have a problem with them (when i say Mods or them where do i say there are numerous. It means more then 1 person and we all know who the mods are more or less)? I guess you can read my mind and speak for me.
The real root of this c*ck fest is as far away as your own mirror Glass.We are guilty for continuing it but were not guilty for starting it. You look for trouble where there is none and then it escalates from there. 2 or more people cannot be wrong my former friend.
Posted by glassman on :
2 or more people cannot be wrong my former friend.
LOL.. more wonderful logic...
yawn... i don't back off if that's what you mean, but i can sure point out where they all started, and i will continue to do so.
Posted by Machiavelli on :
quote:Originally posted by glassman: 2 or more people cannot be wrong my former friend.
LOL.. more wonderful logic...
yawn... i don't back off if that's what you mean, but i can sure point out where they all started, and i will continue to do so.
If it makes you feel like a man or young then knock yourself out. At the end of the day nothing here means nothing to me when i sign off this computer. It's a nice day out so I am going to go see Terminator Salvation. I'll leave you to your domain where u feel important.
Have a nice Memorial day weekend, sincerely. (no need to insult me for saying that)
Posted by glassman on :
more personal insults.
yet it's all my fault?
don't let the door hitcha
Posted by Machiavelli on :
Now see. I wished you a nice Memorial Day weekend sincerely and you had to throw an insult. And you say you don't take things personal.We'll whateva.Go see Terminator Salvation thats all i have to say without getting personal. Posted by Bob Frey on :
you two miss your nap today?
Posted by glassman on :
nah Bob i'm fine, Mach doesn't like me since i became a moderator.
Posted by Machiavelli on :
nahh Bob, me ok. Glass don't like me since I stopped agreeing with him. And now I only made a movie recommendation. Posted by T e x on :
Think I'll go see Star Trek...
Posted by Machiavelli on :
quote:Originally posted by T e x: Think I'll go see Star Trek...
Seen it, it's great but Terminator is better imo...
Posted by T e x on :
quote:Originally posted by Machiavelli:
quote:Originally posted by T e x: Think I'll go see Star Trek...
Seen it, it's great but Terminator is better imo...
will catch ya on the movie thread...
Posted by Peaser on :
knowing it's a P&D and being "in" on it illegally are two diferent things.
Yup. About 99% of all "stocks" that run are P&D's, when it comes to pinks and OTCBB's. We both know that. Anyone who doesn't learn that over time is naive.
if you don't think 90% of these pennystocks aren't being operated by P&D then you are just ignoring them.
We both know when we use the term "scam" to explain a "stock," it doesn't always mean that the "company" is a scam. It means that it's a P&D as you mentioned about 90% are.
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i am not a crime buff. i'm a Justice buff.