7 charged in alleged stock scheme

May 21, 2009 9:34:06 AM PDT
Federal authorities have charged seven people with manipulating penny stocks in an alleged "pump and dump" scheme. The U.S. Attorney's office in Delaware unsealed five indictments late Wednesday following a two-year investigation that resulted in five arrests in Florida and California this week.

The Securities and Exchange Commission on Thursday announced the filing of a related civil complaint in federal court in Delaware.

Authorities allege that the fraud began in September 2006 and involved fraudulently trying to inflate the prices of companies including GH3 International, Asia Global Holdings Corp., Playstar Corp. and INCA Designs Inc.

The defendants are five California men, a Florida resident, and 24-year-old Pawel Dynkowski, formerly of Newark, Del.

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