U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23350 / September 16, 2015
Securities and Exchange Commission v. Dynkowski, et al., Civil Action No. 1:09-361 (D. Del.)
Court Enters Final Default Judgment Against Defendant James Meagher 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 James Meagher on September 14, 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 Meagher engaged in a market manipulation scheme involving the stock of Xtreme Motorsports of California, Inc., which generated approximately $257,000 in illicit profits.
The court entered a final default judgment against Meagher 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 a civil penalty of $130,000; and bars Meagher 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.