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Litigation Release No. 23412 / November 23, 2015

Securities and Exchange Commission v. Dynkowski, et al., Civil Action No. 1:09-361 (D. Del.)

Court Enters Final Default Judgment Against Defendant Jacob Canceli 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 Jacob Canceli on November 16, 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 Canceli engaged in a market manipulation scheme involving the stock of GH3 International, Inc., which generated approximately $747,646 in illicit profits.

The court entered a final default judgment against Canceli that permanently enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; orders disgorgement of $267,453, prejudgment interest of $117,894, and a civil penalty of $267,453; and bars Canceli 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.

For further information, see Litigation Release Nos. 21053 (May 21, 2009), 21463 (March 29, 2010), 22256 (Feb. 10, 2012), 22421 (July 25, 2012), 22626 (Feb. 27, 2013), 23348 (Sept. 15, 2015), and 23350 (Sept. 16, 2015).



Modified: 11/23/2015