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Shayne Heffernan is an Economist, Trader, Fund Manager and Venture Capitalist based in Asia. He also serves as Editor and contributor at, Founder of The Heffernan Group and currently building the company's financial services business in China. Major shareholder and CEO... More
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  • New Stock Fraud Scandal at Londons AFN 5 comments
    Jul 19, 2009 10:36 AM

    Mina Mar Group Inc (, a privately held Canadian company, is pleased to announce that the company was awarded a judgment and costs in its lawsuit that had commenced in Toronto Vs Investors Hub.Com chat board. This is a third favourable ruling in two separate jurisdictions (USA and Canada) where two different judges independently ruled in favour of Mina Mar.

    Mina Mar President, Miro Zecevic, noted; "Just so that our readers are clear the main action where we seek over $4,000,000.00 in damages which we intend to evenly distribute to our clients, and their shareholders has not yet commenced. The stall commenced when the Defendant, Investors Hub began a vigorous opposition of the jurisdiction issue in Canada. To further complicate matters and in an effort to create a distraction and to inject sensationalism, Investors Hub commenced a separate action in Florida as a Plaintiff. The USA judge, refused to allow his court to be used as a circus by Investors Hub, and simply ordered that the action be dismissed and all subsequent motions deemed moot. In Canada, where Investors Hub fought the jurisdiction issue vigorously, and just several days before the long awaited and anticipated court date, Investors Hub simply chose not show up to court. Instead, Investors Hub sent a letter addressed to the judge that they were "throwing in the towel".

    One has to question the motives of this Investorshub.Com and the stock basher posters. Approximately two weeks before the July 7 court date, we consulted with our clients and lobbied them to accept a make a settlement. An offer to settle called for Mina Mar and all of our clients having agreed to answer each and every allegation made against Mina Mar, the clients, and the clients officers to Investors Hub, and its critic posters. We agreed to do this notwithstanding that a USA judge ruled that neither we nor the clients are obligated to do so. We saw this as a great way to for once and for all put an end to the libellous and slanderous comments that are being made by these stock bashers. Once all the details were ironed out such as that all posts that are untrue, unfounded or unsubstantiated that all these posts be removed. Investors Hub made a claim that they cannot remove any posts without the posters approval, without a USA court order. This request notwithstanding that it is common practice of this board to delete any post they see fit and allow dark propaganda posts to flourish. Once we agreed to this additional USA court order request, Investors Hub simply walked away from settlement negotiations.

    These actions speak volumes. We repeat our position that these posters dressed up as "shareholders" post false and malicious messages and pray on novice and unsuspecting readers. By doing so, they hope to erase years of hard work of principals, and the equity of small shareholders. They do this for their selfish and self serving reasons. We again extend our invitation for a settlement and resolution that is beneficial to all shareholders.

    In the Canadian court order, Mina Mar was awarded over $13,000.00 in court costs, which must be paid immediately and/or before the courts will accept Investors Hub's defence. In the event the Investors Hub does not file a defence the law allows for Mina Mar to secure its original $4,000,000.00 in damages immediately. Enforcement actions on the existing orders are already underway."

    Both USA and Canada judgements can be viewed by visiting this direct link. (Please note that due to the high number of visits and downloads this page may not display the content immediately. Our webmasters are addressing the issue with the web hosting company.)

    About Mina Mar Group

    Mina Mar Group is a Corporate Consultancy firm that specializes in small cap or OTC market business services, including public markets in Frankfurt Germany, and UK. The company's focus is on growth companies or emerging markets such as those in South America, Eastern Europe, and Mainland China. We provide our clients with comprehensive advisory and consulting services regarding mergers and acquisitions, including reverse mergers of private companies into publically traded entities, and special purpose companies (SPC) off shore companies. Mina Mar also offers a full suite of related ancillary services subsequent to the successful completion of a reverse merger, including Private Placements, PIPE, Pink Sheets Adequate Disclosure documentation, various SEC regulatory filings and a broad range of other Corporate Governance matters. The company licenses it's brand name and back office as a white label solution which allows professionals in the industry to tap into The Mina Mar back office to deliver high quality solutions on a private label basis. The company also operates a shareholders advocacy division which seeks out publicly traded companies in distress or where the minority shareholders positions are in peril, and assists as a guardian with interim and or turn around management. Through it's wholly owned subsidiary Mina Mar Marketing Group Inc ( the company offers publically traded companies services such as Investor Relations, and Investor Awareness exclusively.

    CONTACT: For corporate matters contact:

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  • FiscalFallout
    , contributor
    Comments (15) | Send Message
    Scandal at AFN is rife. I doubt they will remain listed much longer , the lawsuits, the criminal charges are mounting up.
    19 Jul 2009, 04:48 PM Reply Like
  • FiscalFallout
    , contributor
    Comments (15) | Send Message


    SEC Charges Eight Participants in Penny Stock Manipulation Ring


    Washington, D.C., May 21, 2009 — The Securities and Exchange Commission has charged eight participants in a penny stock manipulation ring that allegedly pumped the market prices of at least four stocks and generated more than $6.2 million in illicit profits when they dumped shares on the market.
    Additional Materials


    * Litigation Release No. 21053
    * SEC Complaint


    The SEC alleges that Pawel Dynkowski, who resided in Newark, Del., carried out the market manipulation schemes with others he met through a penny stock web site, which is operated by Matthew Brown of Aliso Viejo, Calif. Dynkowski, Brown, and other participants in the schemes often timed the manipulative trading to coincide with false or misleading press releases issued by the companies to hype the stock. The four companies were GH3 International, Inc., Asia Global Holdings, Inc., Playstar Corp., and Xtreme Motorsports of California, Inc.


    “As we allege in our complaint, Dynkowski and his accomplices around the country met through the Internet and together spun a web of deception that gave investors the false impression that there was a real demand for these stocks,” said Scott Friestad, Deputy Director of the SEC’s Division of Enforcement. “Dynkowski went so far as to himself write some of the misleading press releases that pumped these penny stocks so they could line their own pockets with millions of dollars.”


    The SEC’s complaint, filed in federal district court in Delaware, charges six others in addition to Dynkowski and Brown:


    * Jacob Canceli of Mission Viejo, Calif., who is a stock promoter.


    * Gerard J. D’Amaro of Pompano Beach, Fla., who is a stock promoter.


    * Joseph Mangiapane Jr. of Laguna Niguel, Calif, who was a registered representative at AIS Financial, Inc and is currently CEO of Rubicon Financial, Inc., which owned AIS Financial, Inc. during the relevant time period.


    * Nathan M. Michaud of Boston, Mass., who is a web site designer.


    * Marc J. Riviello of Redwood City, Calif., who was a registered representative at AIS Financial, Inc.


    * Adam S. Rosengard of Voorhees, N.J., who was a student at the University of Delaware during the relevant time period.


    According to the SEC’s complaint, these fraudulent schemes generally followed the same pattern. In 2006 and 2007, Dynkowski and his accomplices received large blocks of shares to sell for the penny stock companies, and they received a portion of the proceeds from those sales. The companies put these shares in nominee accounts that Dynkowski and his accomplices controlled. The defendants pumped the market price of the stocks using wash sales, matched orders and other manipulative trading. After artificially inflating the market price of the stocks, Dynkowski and his accomplices then dumped the shares obtained from the issuers and divided the illicit proceeds.


    For example, in the scheme involving Asia Global stock, the SEC alleges that Dynkowski personally saw to it that the manipulative trading was coordinated with misleading press releases from the company, and in some instances he wrote the press releases for Asia Global himself. According to the SEC’s complaint, Dynkowski instructed Brown on Aug. 24, 2006, to have Asia Global issue a press release hyping the company’s second quarter 2006 financial results and to “make it sound ENORMOUS.” On September 1, Asia Global issued a press release claiming that its profits for July 2006 were 745 percent greater than its profits for July 2005. Meanwhile, during that same week, Dynkowski and Brown sold 7.75 million shares from nominee accounts, resulting in illicit profits of more than $1.3 million.


    Furthermore, according to the SEC’s complaint, Asia Global issued a press release on Feb. 6, 2007, claiming that its subsidiary had just received a license to produce 104 episodes of “Who Wants to Be a Millionaire” in China. The volume of trading in Asia Global increased by more than 65 percent, and Dynkowski and Brown, through orders submitted to Mangiapane and Riviello, were able to sell approximately 5.5 million shares held in nominee accounts, representing approximately 25 percent of the total volume that day. From February 2 through February 8, Dynkowski and Brown, through orders submitted to Mangiapane and Riviello, sold approximately 24.5 million shares held in nominee accounts, making illegal profits of more than $1.2 million.


    The SEC’s complaint alleges violations of the antifraud, registration, and other provisions of the federal securities laws. The complaint seeks to have the court permanently enjoin each defendant from future violations, require disgorgement of ill-gotten gains with prejudgment interest, and impose financial penalties. Additionally, the Commission seeks to have certain defendants barred from participating in penny stock offerings.


    The U.S. Attorney’s Office for the District of Delaware also today announced felony criminal charges against Dynkowski, Brown, Canceli, D’Amaro, Mangiapane, and Riviello.


    The SEC thanks the U.S. Attorney’s Office for the District of Delaware; the Department of Homeland Security, Immigration and Customs Enforcement; the Internal Revenue Service – Criminal Investigations; and the Delaware State Police for their assistance in this matter.


    The SEC’s investigation is continuing.


    # # #


    For more information, contact:


    Scott Friestad
    Deputy Director, Division of Enforcement
    (202) 551-4962


    Robert Kaplan
    Assistant Director, Division of Enforcement
    (202) 551-4969
    19 Jul 2009, 04:50 PM Reply Like
  • piccaso
    , contributor
    Comments (100) | Send Message
    SEC target Matthew Brown must pay "financial death sentence"


    2011-07-27 14:47 ET - Street Wire



    Matthew Brown, jailed operator of the Investors Hub website, has lost his bid to overturn a $4.78-million criminal penalty for a market manipulation scheme he aided. (All figures are in U.S. dollars.) Delaware Judge Sue Robinson, in an order handed down on Thursday, July 21, dismissed a motion by Mr. Brown to reduce his fine to the amount he actually made, which he calculated at $117,000.


    The decision comes as Mr. Brown, 29, is serving a four-year jail sentence for the scheme. Prosecutors claimed that he and others manipulated stocks with prearranged trades and posts on Investors Hub. One of the companies included in the investigation was an Ontario-based pink sheets listing, Playstar Corp. Mr. Brown pleaded guilty to the charges in February, 2010, and the judge sentenced him to four years in jail and entered a $4.78-million forfeiture order.


    Before he went to jail, Mr. Brown filed a motion in which he complained that the amount of his fine was excessive. As he understood it, by entering a guilty plea he was only agreeing to forfeit his personal gains from the scheme. He did not know that he would receive a "financial death sentence," he claimed.


    He also argued that the government held him liable for profits made by people who were not even charged with anything. "Instead of pursuing these individuals, [prosecutors] have sought to make Brown pay for everybody's gains, despite him having gained among the least amount of money," the motion read.


    The government, for its part, argued that the fine accurately represented Mr. Brown's plea agreement. In a response to Mr. Brown's motion filed on June 8, 2011, prosecutors said that Mr. Brown agreed to forfeit all proceeds from the scheme, not just the portion that he received. Moreover, he received notice of the forfeiture six days before his sentencing. The time to raise the dispute was then, and not days later.


    In addition, prosecutors cited the substantial harm that Mr. Brown and others inflicted on investors. In one instance, they caused a stock to rise by more than 150 per cent in hours, and sold shares worth $747,609. The government also pointed out that the judge could have ordered Mr. Brown to forfeit as much as $9.4-million, or twice the total proceeds of the scheme.


    Judge Robinson, in deciding for the prosecution, simply said that she did not have jurisdiction to alter her earlier forfeiture order. Presumably, this means that Mr. Brown's only option is to appeal the order to a higher court.


    Brown's indictment


    Federal prosecutors indicted Mr. Brown on May 21, 2009, in the District of Delaware. They claimed that he and others dumped hundreds of millions of shares in manipulated pink sheets companies in 2006 and 2007. While the overall investigation included four stocks, the specific charges against Mr. Brown were limited to two companies.


    The first was an anti-aging promotion called GH3 International Inc. In 2006, he and others received millions of GH3 shares through improper Rule 504 offerings, prosecutors claimed. In December of that year, they carried out a series of prearranged trades that coincided with misleading news. Among other things, the company claimed that its revenue would exceed $6-million in 2007.


    The stock, which was a thin trader to that point, went from 0.06 cent to 1.8 cents, before quickly falling to 0.01 cent. Its daily volume spiked to nearly 300 million shares. (The U.S. Securities and Exchange Commission eventually halted the company on Dec. 24, 2009, saying its publicly available information was questionable.)


    The other manipulation that Mr. Brown pleaded guilty to was that of Asia Global Holdings Inc., a company that purportedly had the rights to the show "Who Wants to be a Millionaire" in China. As with the GH3 manipulation, Mr. Brown and the others improperly issued millions of shares and co-ordinated manipulative trades to coincide with misleading news. The stock had a 41-cent high in 2006 (and was last at 0.38 cent).


    According to the indictment, Mr. Brown and the others planned the promotions using the America Online messaging service. Their communications, which prosecutors quoted in the indictment, included information on the timing of the news releases and on how the men were touting the companies on-line. One message, dated Nov. 1, 2006, stated, "u have all the prs [press releases] right, except the first one, which im going to work on tomorrow for sure, we need a plan on line up of events and i need to see the damn prs to see which rumor to spread and how to start the damn thing ... ."


    The indictment also described an unusual interstate money transfer, in which Mr. Brown paid a driver $10,000 to take $146,000 in cash from California to Delaware. (Documents in a related asset forfeiture case stated that the driver, who knew Mr. Brown from high school, was to deliver the cash to a Polish citizen named Pawel Dynkowski. The delivery went awry when a Texas police officer stopped the car and discovered the cash. Police had the driver deliver the money to Mr. Dynkowski's home in Delaware. They then searched the home and discovered evidence of the market manipulations.)


    Prosecutors separately indicted Mr. Dynkowski for the manipulations on April 30, 2009. Authorities have yet to arrest him and he is listed as a fugitive. Another man charged in the case was Florida resident Gerard D'Amaro, who received three years in jail and was ordered to forfeit $1.49-million. Two others, Marc Riviello and Jacob Canceli, both from California, have also pleaded guilty but have not yet been sentenced.


    SEC case


    In addition to the criminal charges, Mr. Brown and the others are facing a parallel civil suit from the SEC. The regulator claims that they made $6.2-million manipulating Playstar, GH3 International, Asia Global and Xtreme Motorsports of California Inc. That case is on hold pending completion of the criminal cases.
    29 Jul 2011, 12:31 PM Reply Like
  • FiscalFallout
    , contributor
    Comments (15) | Send Message

    19 Jul 2009, 04:55 PM Reply Like
  • FiscalFallout
    , contributor
    Comments (15) | Send Message
    They do seem to be regular Equity Issuers
    19 Jul 2009, 05:05 PM Reply Like
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