U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23348 / September 15, 2015
Securities and Exchange Commission v. Dynkowski, et al., Civil Action No. 1:09-361 (D. Del.)
Court Enters Final Default Judgment Against Defendant Pawel P. Dynkowski in Penny Stock Manipulation Case
The Securities and Exchange Commission announced today that Chief Judge Gregory M. Sleet of the United States District Court for the District of Delaware entered a final default judgment against Defendant Pawel P. Dynkowski on September 9, 2015 in SEC v. Dynkowski, et al., Civil Action No. 1:09-361, a penny stock manipulation case the SEC filed on May 20, 2009. The SEC's complaint alleged that Dynkowski engaged in market manipulation schemes involving four stocks: GH3 International, Inc., Asia Global Holdings Corp., Playstar Corp., and Xtreme Motorsports of California, Inc. The schemes generated more than $6.4 million in illicit profits.
The court entered a final default judgment against Dynkowski that permanently enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 13(d) of the Securities Exchange Act of 1934, and Rules 10b-5, 13d-1, and 13d-2 thereunder; orders disgorgement of $1,068,934, prejudgment interest of $447,803.57, and a civil penalty of $1,068,934; and bars Dynkowski from participating in any offering of a penny stock.
The SEC thanks the following agencies for their cooperation and assistance in connection with this matter: the U.S. Attorney's Office for the District of Delaware; the Delaware State Police; United States Immigration and Customs Enforcement, Department of Homeland Security, Homeland Security Investigations; and the Department of the Treasury, Internal Revenue Service, Criminal Investigation.