Court Enters Final Judgment Ordering Richard A. Bailey to Pay Disgorgement and Penalties

Litigation Release No. 24167 / June 18, 2018

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

On June 6, 2018, the U.S. District Court for the District of Delaware entered a final judgment against Richard A. Bailey, a former officer of GH3 International, Inc., for his role in a scheme to manipulate the company's stock. The judgment orders Bailey to pay disgorgement of $108,000, prejudgment interest of $63,445.91, and a civil penalty of $108,000.

The SEC's complaint alleged that Bailey and several co-defendants participated in a pump-and-dump scheme involving GH3's common stock that generated more than $700,000 of illicit profits. Without admitting or denying the SEC's allegations, Bailey previously consented to a judgment entered on January 23, 2018 that permanently enjoined him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act of 1933; barred him from participating in any offering of a penny stock; barred him from serving as an officer or a director of a public company; and reserved issues relating to monetary relief for subsequent determination. The final judgment concludes the SEC's litigation as to Bailey.

The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Delaware; the Delaware State Police; U.S. Immigration and Customs Enforcement; and the Internal Revenue Service.

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), 23350 (Sept. 16, 2015), 23412 (Nov. 23, 2015), 23563 (June 9, 2016), and 24036 (January 30, 2018).