 |
| Author | Post |
|---|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: |  |
|
Posted: Fri Jun 25th, 2010 09:57 pm |
|
June 25, 2010
Dear shareholders,
I am very aware that shareholders are exhausted, frustrated and some are even angry that so much time has elapsed and nothing has come from their original investment in this Company. I understand that many of you are even under extended pressures from friends and relatives because you also talked them into investing and now they are looking to you for answers. I too have many friends and family members that are shareholders of CMKM and they are also looking for resolution.
When Mr. Casavant turned this Company over to me and resigned in March of 2007, I still believed that there were stones left unturned that would allow for a quick resolution and turnabout of the circumstances for the benefit of the shareholders. I made promises to you with full intention to keep you updated and fully aware of the current activities of the Company on a continual basis. To all of our dismay, the unturned stones that were found did not show anything that promised a quick resolution to the benefit of the shareholders. In fact, the information that we became in possession of showed anything but the promises of a quick resolution. Working daily in the atmosphere of ongoing litigation is not anything remotely close to what I had hoped was waiting for shareholders just around the corner in March of 2007.
In an April 20, 2007 press release I had the most unpleasant duty of telling shareholders what was uncovered just days before when several boxes of documents arrived at the Frizzell Law Firm. What was in those boxes foretold just the beginning of the heartbreaking story that we eventually uncovered that told us what really happened with our investments. Once this occurred, CMKM was forced into litigation mode that required extreme amounts of time to be dedicated to investigation and discovery of the facts which has led to the possession of several hundred thousand pages of documents. Because of those events, the Company was not left with many new things to report to shareholders on a daily, weekly or even monthly basis. I can no longer discuss matters that may end up being part of litigation and wish to thank Bill Frizzell for his recent update to the Company that he allowed us to post on the website last month for all of you to see.
Just one week before Mr. Casavant resigned we were advised by then corporate counsel J.T. Moran III to put the Company into bankruptcy. However, we did not take that advice and the Company is still alive today and has a fighting chance to succeed in some way. It is the belief of current management that through our diligent efforts of seeking restitution through the courts that CMKM will have its most reasonable chance to once again become a publicly trading company. Management is making every realistic effort possible to set up the foundation of the Company so that it is ready to move forward once the larger recoveries are made. Currently, there have been a few small settlements won by CMKM that have enabled the Company the ability to continue forward with litigation, budget the initial and monthly fees of hiring the new transfer agent, corporate overhead, agreed upon reduced salaries for officers, the payment of property taxes along with the upkeep on two properties obtained in one settlement (see corporate updates 4.21.2009 & 5.11.2009) and the engagement of a CPA firm that is currently and diligently working to reconstruct financial records from 2002 forward with the intention of fully audited financials.
I still believe that CMKM Diamonds, Inc. was a victim of naked shorting or at the very least had one of, if not THE, largest failure to deliver problems that ever existed in the U.S. markets. I recently visited personally with attorney Al Hodges at his office in Pasadena. Most of you are already aware that Mr. Hodges is seeking the release of funds that he believes were collected on behalf of the CMKM shareholders. I have known and remained friends with Al Hodges ever since that fateful day in March of 2007 within an hour or so after Urban Casavant turned the Company over to me. I find Al Hodges to be extremely forthright, honest and fully believe he is working only for the best possible outcome and benefit of all shareholders of this Company. I was not privileged to the evidence that he maintains; However, after my visit with him early this month it is my personal opinion that he is 100% committed to his current actions and that he firmly believes, without any room for doubt, that he has irrefutable evidence of funds being held for eventual distribution to the CMKM shareholders and that he believes that the release of those funds is imminent.
Moving forward, while the current paths of CMKM and attorney Al Hodges are not exactly the same, both can coexist independently with each one working towards an outcome that is intended to be of the best possible benefit for all shareholders. Mr. Frizzell stated in his last litigation update, “I personally think Al Hodges is a very capable and experienced attorney. I am hopeful that his litigation is successful but CMKM management does not have the luxury of waiting to see what will come of that lawsuit. Based on the recovery sought in the Hodge’s suit, if it is successful, the matters being litigated by the Company will pale in significance”.
In past updates, the Company has requested that anyone with direct knowledge of anything that may be of financial benefit to the Company and its shareholders to step forward with your information and the Company will investigate it fully. I want to once again extend this offer to everyone. A new email address has been set up specifically for this purpose: NewInformation@cmkmdiamondsinc.com. Please note that any email submissions to this address that do not have to do specifically with providing new information that can be of help to the Company will be promptly deleted. No emails will be answered or forwarded from this address. It is my sincerest hope that this new attempt to allow for usable information to come directly to the Company will not be abused and can be maintained for the sole purpose for which it is being provided.
Because the Company is not in the possession of any materials, documents or knowledge of any kind that points to a trust or any other means of monies or assets having been gathered, demanded or put aside for the Company and/or its shareholders we have had to move forward with the information that we do have available to us which is one of the reasons for our current litigation.
I want to commend Transfer Online for doing a fantastic job to get the initial onslaught of shareholders taken care of with their requests for account s to be set up. Most people will probably not ever be able to comprehend the enormous task that was undertaken by the new transfer agent to get this under control and taken care of. To add to the scope of the task, there were several problems that were reported to them by shareholders that had to be fully researched and eventually led to only a few inaccuracies from the records of our former transfer agents that had to be corrected. As per the shareholder list created with the new transfer agent on April 7, 2010 there are: 800,000,000,000 common shares authorized; 703,514,957,466 common shares issued and outstanding; zero preferred shares authorized or issued and 48,679 shareholders of record. Currently there are only 8,862 security account holders that have registered with Transfer Online for access to their accounts.
There are still a large number of shareholders that have electronic shares being held in brokerage houses both foreign and domestic. Since these shareholders do not have physical certificates, they are not included in the current number of shareholders of record listed above. Brokerage houses and clearing firms holding bulk certificates that are theoretically used to back up all electronic shares held by their firms are each counted as one shareholder but each of them may be representing tens, hundreds or even thousands of account holders (CMKM shareholders) and these are shareholders that we do not have all of the names or current addresses for. To give you an example of most but not all of the brokerage houses/clearing firms and their holdings as per the shareholder list of 4.7.2010 represented in bulk certificates: **
A.G. Edwards & Sons LLC
229+ Million shares
ADP Clearing & Outsourcing Services
486+ Million shares
Ameritrade,Inc. 21+ Billion shares
Banc of America Securities LLC
3+ Million shares
Bear Stearns Security Corp.
73+ Million shares
Brown Brothers Harriman Co.
914+ Million shares
Brownco LLC
Zero shares
CEDE & Co
17+ Million shares
Citigroup Global Markets, Inc.
2+ Billion shares
Etrade Clearing LLC
27+ Million shares
First Clearing LLC
42+ Million shares
Gerlach & Co.
131+ Million shares
Goldman Sachs & Co.
410+ Million shares
H & R Block Financial Advisors
2 Million shares
Hare & Co.
212+ Million shares
HSBS Securities
34+ Million shares
Janney Montgomery Scott LLC
49+ Million shares
Larko c/o Emmett A Larkin Co., Inc.
120,000 shares
Merrill Lynch Pierce Fenner & Smith
192+ Million shares
Morgan Keegan Co., Inc.
42+ Million shares
Morgan Stanley & Co., Inc.
416+ Million shares
National Financial Services Inc.
4+ Billion shares
NBCN Clearing, Inc.
11+ Million shares
North American Clearing, Inc.
17+ Million shares
Pension Financial Services Inc.
Zero shares
Pershing LLC
2+ Billion shares
Piper Jaffray & Co.
3 Million shares
Raymond James Associates, Inc.
700+ Thousand shares
RBC Dominion Securities
2+ Billion shares
Rush & Co. c/o Swiss American Securities, Inc.
298+ Million shares
Scotia Capital, Inc.
1+ Million shares
Scottrade, Inc.
Zero shares
Sterne Agee and Leach, Inc.
1+ Million shares
UBS Securities LLC
594+ Million shares
Vanguard Brokerage Services
104+ Thousand shares
Wells Fargo Investments LLC.
8+ Million shares
** Please note that these figures represent bulk holdings. Some of the firms represented are holding certificates for individual accounts as the custodian. These custodian accounts are generally representing IRA type accounts and the figures above do NOT include those certificates. (For example: Scottrade, Inc. has zero shares in bulk but they have several individual certificates held as custodian for IRA type accounts of individuals)
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Fri May 14th, 2010 03:33 pm |
|
Corporate Update May 13, 2010
To: CMKM Management
Re: Litigation Update
I received five phone calls yesterday from four pleasant and concerned shareholders. The fifth caller was rude and insulting but left his message after normal business hours so he did not reach anyone in my office. I have not had the chance to speak with him as of this writing but I will continue my efforts to reach him. This shareholder gave his name in such a way that his last name is not audible and he left his phone number with the last four digits trailing off to where it is indecipherable. I left messages at voice mail for two different numbers that could possibly have been the caller’s number but I have not received any return phone calls. After discussing the reasons for the influx of calls with these concerned shareholders, I have decided to issue an update on the status of the litigation for the benefit of all shareholders. These well meaning shareholders suggested that I address certain topics. I will endeavor to cover them from the legal perspective.
Desormeau Suit -- I was hired by CMKM after Kevin West became CEO in early 2007. I was in Las Vegas preparing to file a shareholder’s derivative suit against Dave Desormeau (former CFO for CMKM), John Edwards (owner of the CyberMark shell that became CMKM) and other insiders of CMKM. It was obvious that Company management prior to Mr. West’s appointment had neither desire nor inclination to bring suit against the parties I was prepared to sue. The facts uncovered since Mr. West has taken office along with indictments and other regulatory proceedings, confirm that such legal actions were appropriate on behalf of the Company. Mr. West, in one of his first decisions, asked me not to file the suit against Desormeau, et al as a derivative suit but to bring the action directly against the named Defendants on behalf of the Company. I did so. That action resulted in a $33,000,000 judgment in favor of CMKM against John Edwards. Most of you know by now that having a judgment against someone is not the same as receiving funds in that amount. Your Company and your legal team have spent significant monies to obtain judgments against certain defendants and there is hope for recovery of significant funds from these judgments.
Two pieces of real estate have been recovered on behalf of the Company in a related proceeding. Litigation was brought in North Carolina and Nevada in an attempt to attach certain pieces of real estate which were believed to have been bought with illegally obtained proceeds. A compromise was reached in the North Carolina proceeding which allowed for the transfer of these properties to CMKM while the $33,000,000 judgment against John Edwards with ongoing interest remains in full force and effect. It was agreed that John Edwards would be allowed credit for the value of these properties against the outstanding judgment. These properties were purchased with “ill gotten gains” from actions alleged in the Desormeau lawsuit and the Company has a duty and a right to collect any real estate or other assets that were acquired through such illegal activities. Collection efforts against John Edwards are ongoing to satisfy the remainder of this judgment. The Company is attempting to sell the real estate acquired through this lawsuit, but due to real estate market conditions no sales have occurred for the benefit of the Company as of the date of this writing.
I will make occasional references throughout this update to documents being filed and filing dates. You are directed to the Company website http://www.cmkmdiamondsinc.com to view the documents mentioned herein.
Recently CMKM has amended the petition in the Desormeau suit to add Wells Fargo, the STAMP Program, Stacy Ewing, Helen Bagley and First Global Stock Transfer. CMKM’s ongoing investigation headed up by Mr. West uncovered the actions described in the recent amendment which resulted in this new filing. In this amended filing CMKM alleges that the actions of Wells Fargo, its employee Stacy Ewing, along with Helen Bagley and the Company transfer agency, assisted John Edwards and others in the issuance of free trading shares which were not authorized by CMKM. The Court granted CMKM’s Motion to add Wells Fargo et al to the lawsuit in March of 2010. CMKM is awaiting a signed order from the Court so it may proceed with service on all the new parties. The investigation by CMKM shows that the CMKM stock certificates issued as a result of the negligence and wrongdoing of Wells Fargo and others totals over $50 million dollars. This amended portion of the Desormeau suit seeks damages for the losses caused to CMKM for the issuance of these shares.
Casavant/Glenn Suit -- In August of 2009 CMKM sued its former attorney Roger Glenn, his law firm Edwards Angell Palmer and Dodge, LLP, Rendal Williams, Cierra Williams, MonteVerde Holdings LLC and Patricia DeCosta by adding them to the Casavant suit filed in 2007. Roger Glenn’s attorneys filed a Motion to Dismiss aimed at certain claims in CMKM’s petition. CMKM amended its lawsuit and filed the Second Amended Complaint against Glenn, et al, on January 5, 2010. Glenn’s attorneys filed an answer on January 21, 2010. On March 2, 2010 a Joint Case Conference Report was filed which sets out certain discovery deadlines agreed to by the parties. CMKM received Glenn’s First Set of Interrogatories and a Request for Production in March. In response to Glenn’s discovery requests CMKM has provided to Glenn over a half a million pages of documents accumulated by the Company during its three years of investigation into the Company’s activities. For the specifics of what was provided to Glenn’s attorneys please view the Case Conference Report on the Company website. Glenn’s attorneys have provided in their initial disclosure to CMKM 1576 documents (which includes many duplicates) totaling less than 8,000 pages of records.
On February 17, 2010 all parties, through their respective attorneys, met by video conference call to work out the Case Conference Report and the particulars involving the initial disclosure required by the Nevada Rules. Glenn’s attorney took the deposition of Kevin West on March 23, 2010 with Kevin West being named as the Company representative most knowledgeable about the Company records. This proceeding is called a Rule 30 (b) (6) deposition. Mr. West testified for most of the day about the records of the Company and where Glenn might look to find documents of the Company. Glenn’s attorneys have issued a subpoena to Don Stoecklein, former CMKM attorney, for all of his firm’s records related to his representation of CMKM. Stoecklein forwarded these records to Glenn’s attorneys two weeks ago. Glenn’s attorneys amended their deposition after receiving the documents from Mr. Stoecklein and have now elected to depose Kristen Buck at their offices in Costa Mesa, California next week. I will attend the deposition to represent the Company. The Company is preparing their first round of discovery to Roger Glenn and intends to have it filed in the next thirty days. A trial date has not been set at this time. Due to time deadlines agreed to in the Case Conference Report, it is likely a trial could occur as early as May or June of 2011.
Share Cancellation Suits-Smith County, Texas -- After reviewing hundreds of thousands of pages of bank records, transfer agent records and other corporate documents, it became clear that billions of shares of CMKM common stock were issued to certain companies and individuals who never provided services nor paid for the receipt of those shares. In 2008, the Company began notifying those companies and shareholders that appeared to have large holdings of CMKM common stock yet the records of the Company did not show any proof that such stock had been paid for by either cash or services. The Company received responses from only a small number of the shareholders who were contacted. Most of the people who responded said they were unaware that stock was issued in their name or that any stock was currently outstanding in their name. CMKM management has a duty to cancel any and all shares that were never purchased or acquired legally. The Company has an ongoing investigation into illegally issued stock and will continue to identify those that received stock without paying for the same. Forty individuals and companies including a number of companies created by John Edwards and including a number of relatives of Urban Casavant and certain individuals known to be insiders of the Company have now been sued by CMKM. On March 25, a default was granted against some of the named Defendants. On April 20, 2010 Mr. West appeared in Court and testified about the circumstances surrounding the issuance of the shares sought to be cancelled. He also testified about the methods suggested for awarding damages for the acts of the Defendants. The Court awarded CMKM nearly $30 million dollars based on the sales price of the shares that were ultimately sold by the named Defendants. Approximately 20 billion shares have been cancelled as a result of this litigation. New Defendants in this suit will be added in the coming months.
Al Hodges’ Bivens Suit -- After discussing this issue with a couple of shareholders, I thought it necessary to explain CMKM’s legal position regarding the Hodges’ suit with more clarity. Kevin West and the all those associated with CMKM including the new COO, the Board of Directors and all the lawyers being employed by the Company are dedicated to seeing this Company succeed and become a trading entity again. The promises made to shareholders before the current management took over have left many shareholders with the hopes and expectations of fabulous wealth and windfall profits from relatively small investments. The hope for wealth from this investment lives in many of us. The claims made in the Hodges’ suit are good reason for hope to continue. CMKM management has been on a steady course for three years to rebuild this Company. Because the previous management did not file tax reports, the Company is having to reconcile each year beginning in year 2002 in order to file each period accordingly to regain reporting status. The Company plans to maintain its course while the Hodges’ litigation comes to some resolution. I make these comments in regards to the Hodges’ suit for this reason. All work being performed by Kevin, his staff and his Board is for the sole purpose of benefitting all shareholders and bringing the Company back to trading status.
When Kevin West took the job, he became duty bound to do things that are required of corporate officers. CMKM’s investigation does not reveal that any trust fund exists. The Company has stated publicly that it does not have any evidence of funds awaiting the shareholders. This does not mean there are no funds being held in trust for the shareholders. The Company simply has no evidence of the existence of these funds. This position by the Company does not mean the Company is opposed to the finding of funds belonging to the shareholders. Quite to the contrary, the Company exists for the sole reason of increasing the value of the stock to the shareholders. If it comes in the form of a windfall from a trust fund, then so be it. I personally think Al Hodges is a very capable and experienced attorney. I am hopeful that his litigation is successful but CMKM management does not have the luxury of waiting to see what will come of that lawsuit. Based on the recovery sought in the Hodge’s suit, if it is successful, the matters being litigated by the Company will pale in significance. The Company will watch the proceedings in the Hodge’s suit with great interest and hope that something of value comes of that litigation for the shareholders.
Communication to Shareholders -- I was informed that many shareholder resent the Company’s inability or refusal to communicate with shareholders. You are advised that Kevin West has been a key witness, and without a doubt the most important witness, on behalf of the Company. He has already testified in court on numerous occasions. He has been named as a witness by me and by Roger Glenn’s attorney in our formal disclosure documents. The act of naming someone as a witness has significant legal ramifications. Mr. West will be deposed at some point in the future by Roger Glenn’s attorney as may any officer or board member. He may be deposed in other lawsuits related to his work for the Company. Any remarks made by Mr. West whether written or verbal to third parties is discoverable by the opposing parties. Any information he imparts may subject him to cross examination. Statements made outside court are often used in court against a witness. Since casual conversations or general dialogues about the Company business are difficult at best to screen or scrutinize. I am forced to restrict any officer or board member in what he or she can discuss and to whom he or she can discuss matters with.
I have a legal obligation to prepare these cases for trial and I am duty bound to instruct Company witnesses on the potential harm that could come from discussing Company business for the entire world to hear and see. Additionally, the parties have entered into a Protective Order signed by the Court which directs all parties to protect as confidential any materials deemed by the parties to be confidential. I think the Order is posted on the Company web site, but if it is not, I will see if we can get it posted. If any officers or board members were to discuss or display to shareholders documents deemed confidential, he could be subjecting himself and the Company to sanctions or be exposed to a contempt of court action. It is extremely difficult in a case involving large volumes of business records and confidential documents for an attorney to police his witnesses as to what areas they can talk about and what areas they cannot discuss publicly. I have advised the officers and board members not to discuss Company business because of this litigation. Are you entitled to answers to your questions? Depending on the question, you may well be entitled to answers or certain information. But in light of the mountain of litigation being brought by this Company, you will be required to get your answers in a more controlled fashion. You are not entitled to unlimited and uncontrolled access to the corporate officers or board members when your questions involve matters that are subjects of the litigation. Any lawyer who would suggest otherwise would not be doing his job in my opinion.
Information Request -- I have been receiving a number of faxes and emails from people who are telling me they have been instructed to send me proof of their holdings. I will assume this is an honest mistake on somebody’s part. One nice individual has sent me a quote from a current message thread but the quote is five years old where John Martin was asking shareholders to send proof of their holdings by fax to my office. I have no idea why anyone would suggest there is some need to do that at the present time. The thread that was sent to me was written by Mr. Martin when I was compiling the information we gave to the SEC following the administrative hearing. This is a waste of time for the shareholders who are being told to do this and it serves no purpose whatsoever.
Sincerely,
Bill Frizzell
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Thu Apr 22nd, 2010 09:39 pm |
|
CMKM Diamonds, Inc. Update" April 22, 2010 "The Company hired James E Lowden. Mr. Lowden has accepted the role of Chief Operating Officer and Interim Secretary / Treasurer for a period of two years.
http://www.cmkmdiamondsinc.com/corp_index.html
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Sun Apr 11th, 2010 02:48 pm |
|
Good Morning,
New Transfer Agent for CMKM Diamonds.
Please update your information to your current info
Letter to shareholders..
http://www.cmkmdiamondsinc.com/documents/shareholderLetter0407.pdf
TransferOnline website:
http://www.transferonline.com
Have good day
VAROK
|
sundowner
Member
| Joined: | Thu Nov 1st, 2007 |
| Location: | |
| Posts: | 2 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Thu Oct 29th, 2009 10:46 pm |
|
Hi Varok, I ts been almost two years since I've logged on to your site and just read the last post on CMKX status. I still have my certs, but have changed my address, and was wondering do shareholder still have a valid chance to trade this stock again?, or have a chance to recover our losses?
I know I'm a long shot of asking, but still clueless of what is really going on, and was unable to go to the main web site for CMKX unless it changed again. Thanks in advance if you can drop another line on the board of your thoughts.
|
marcny
Member
|
Posted: Fri Sep 18th, 2009 09:38 am |
|
FINALLY!  So they let Helen Bagley go on bond wonder how much money she had to put up? Wonder if John Edwards is still in jail or is he out on bond?
http://www.faulkingtruth.com/Articles/Commentary/1097.html
Seven years after the saga of CMKM Diamonds, Inc (CMKX) officially began, over four years after the company was revoked by the SEC, and a year-and-a-half after the SEC filed civil charges against eleven individuals and three corporate entities, the Department of Justice unsealed criminal indictments against six individuals in the largest penny stock fraud in history.
Former CMKM CEO Urban Casavant and alleged mastermind John Edwards, along with cohort James Kinney, transfer agent Helen Bagley, attorney Brian Dvorak, and Urban’s secretary Ginger Gutierrez were charged with five counts of securities fraud in the massive and complex scam, which involved the selling of over 700 billion shares of CMKX stock to unsuspecting shareholders for an estimated $250 million.
The 40-page indictment, unsealed today in Las Vegas, included allegations of selling unregistered shares of company stock “by use of the mails, over-the-counter mediums of exchange (e.g, the Pink Sheets), and other means” in violation of federal laws. The indictment states that “JOHN M. EDWARDS, URBAN CASAVANT, HELEN BAGLEY, BRIAN DVORAK, GINGER GUTIERREZ, JAMED KINNEY, and others known and unknown, conspired to fraudulently issue and sell unregistered shares of CMKM stock for the purposes of enriching themselves.”
Casavant was also charged with income tax evasion for failing to report a “large part of the income tax due and owing by him to the United States of America for the calendar year 2004.” The charges allege that Casavant “concealed income from the stock and securities of CMKM Diamonds, Inc., by using nominees to conceal and disguise his interest in the shares and the proceeds, and by routing proceeds to accounts of nominees, corporate alter egos, and other entities” within his control.
The charges also included four “forfeiture allegations,” seeking either fines or property seizure on each count. Each forfeiture count states, “It is the intent of the United States of America to seek forfeiture of any properties of the defendants up to $60,000,000 in United States Currency.”
Timothy S. Vasquez, who was instrumental in the arrest and conviction of John Edwards’ wife Diana Lee Edwards (formerly Diana Lee Flaherty) in 2006, was brought on board to head the criminal task force investigating the CMKX scam earlier this year, helping to breathe new life into an investigation that many people (including this reporter) believed had been shelved for good. The multi-agency task force was comprised of representatives from the DOJ, FBI, IRS, and the SEC. The indictment will be available on the CMKM Diamonds website tomorrow at http://www.cmkmdiamondsinc.com
Defendants Bagley, Kinney, and Gutierrez, who were arrested in Las Vegas yesterday, and Brian Dvorak, who was apprehended in Colorado, were released on bond today. Defendant John Edwards was arrested on September 7 in England. Extradition proceedings are ongoing. Urban Casavant, believed to be in Canada, is still at large.
With over 300,000 pages of evidence scanned during the discovery process, the trials involving all six defendants could take years, but at least the criminal justice process has officially begun. After years of waiting and hoping, sometimes all but giving up hope, today’s criminal indictments will hopefully offer some degree of closure for the over 50,000 victims in the CMKX scandal.
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Sun Jul 12th, 2009 03:44 pm |
|
Hi Rudedog,
Interesting to say the least.
Here is what I gather from this ongoing saga and what a ride it has been..Glad to see that there are still folks interested in pursuing this to some closure.
For us CMKX shareholders is, what part of the new entity and mineral rights, that showed positive traces in core samples and this is probably the best news yet..So we are not totally in the dark, if this comes to some fruitation.
The area of these claims, as shown from other companies that are currently there, there are diamonds in the rough and from the last word, core samples did prove as such and now with this news, appears the new entity has these rights..
What we don't know yet, is the allotted share structure, with respect to already, the amount of shares held by previous shareholders in cert form..Meaning, what kind of reshuffle or amount of new shares distributed to old shareholders to what they held.
In the last statement of this NEW PR they are going to begin testing on existing core samples from the remaining claims..So as it stands now, this will be the determine factor on what the future has for us old shareholders.
It has been 41/2 years and to my surprise, this saga isn't over yet and there are still folks that can't seem to get their certs and this tells me that if you don't have your certs, you may be out of this new venture...We all know, that there was a major short position and probably most never covered and brokers that were caught with their hands all over this, seem to just want this to go away.
More shares were traded than the allotted share amount and that left many who are unable to secure their certs, at this point, may never get them..However, if anyone hasn't, at this point, received their certs, the bylaws of the brokerage firms must reimburse the trader any amount paid to acquire shares from the old CMKX and commission they paid..This is probably now, at this point in time, on what is the recourse for folks that bought shares, but never received them..
For you folks that didn't get your certs after numerous requests, check with your broker for proper reimbursement or "Where the hell is my CERTS!!!. Also, your certs must be registered with the legal eagles that handled this from the beginning.
So we continue to wait and see what the next event holds, so the party is still on, but necessarily, not a done deal yet.
Have a good day
Varok
http://www.stockmarketquarterly.com
Where investors build their portfolio one stock at a time.
|
rudedog
Member
| Joined: | Mon May 21st, 2007 |
| Location: | |
| Posts: | 3 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Fri Jul 10th, 2009 04:58 am |
|
Hi Varok,
This news sounds very interesting and upbeat,but would like to hear your take or scenario on this topic.
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Sat Jul 4th, 2009 03:58 pm |
|
Press Release
CMKM Diamonds, Inc. Announces New Joint Venture07.03.09, 05:26 PM EDT
BusinessWire - CMKM Diamonds, Inc. announces the completion of an agreement with 101047025 Saskatchewan Ltd. ("1010"). This agreement is part of an overall settlement of a lawsuit brought by Entourage Mining Ltd. ("Entourage") against both CMKM and 1010 under Action No. 5075800 in the [font=""]Supreme Court of [font=""]British Columbia (the "Entourage Lawsuit"). As a term of the overall settlement, Entourage will consent to a dismissal of the Entourage Lawsuit against both CMKM and 1010, as if it had been heard on its merits and dismissed.
Under the overall settlement of the Entourage Lawsuit, 1010, CMKM, and Entourage agreed to cancel and terminate the previous agreement between CMKM, 1010, and Entourage that was dated October 20, 2005 (the "2005 Agreement"), with respect to certain mineral claims in Saskatchewan that are owned by 1010. In consideration of that dismissal, CMKM will return to Entourage 3 million of the 4.5 million Entourage shares that it acquired under the original agreement, and Entourage has given up all claims or rights to the remaining mineral claims, all of which are owned by 1010. CMKM also returned the remaining 1.5 million shares back to Entourage for a payment from Entourage of $85,000.
Under their new agreement, CMKM and 1010 will form a new company ("New Corp.") to explore the remaining mineral claims that were the subject matter of the 2005 Agreement. These remaining claims have produced core samples that were drilled by 1010 in late 2005 and early 2006 and have yet to be tested. The New Corp. will, in turn, form a joint venture with 1010 to explore and develop the remaining mineral claims. 1010 will be the sole Operator of the new joint venture and will continue to be the sole owner of the remaining mineral claims. However, the New Corp. will have the right to acquire those remaining claims owned by 1010 by incurring expenditures for exploration, drilling and development on the claims in a cumulative amount that will be no less than four million dollars during the first five years. CMKM is solely responsible for raising no less than 80% of these funds for the New Corp. and 1010 is solely responsible for raising no less than the remaining 20% of these funds for the New Corp.
1010 will hold total voting control of the New Corp. The authorized capital of the New Corp. will consist of Class A voting common shares, without any right to dividends or capital, except that the said Class A common shares will, on a winding up or dissolution, be entitled to repayment of capital paid therefore, and Class B non-voting common shares, with rights to payment of dividends and capital. Eighty million Class B common shares will be allotted and issued to CMKM. Twenty million Class B common shares and ten thousand Class A common shares will be allotted and issued to 1010. CMKM will thus be entitled to 80% of profits earned by the New Corp.
CMKM Diamonds CEO Mark Faulk stated, "This joint venture agreement is another step in our ongoing efforts to return viable assets to CMKM Diamonds. Rights to the remaining claims were retained because they showed the greatest potential for diamonds. Many shareholders originally invested in CMKM because of this potential, and we believe it is in the best interest of Company and its shareholders to pursue this opportunity to benefit from any real value in the remaining claims. The New Corp. intends to begin testing on existing core samples from the remaining claims in the very near future."
Safe Harbor Statement:
Last edited on Sat Jul 4th, 2009 04:00 pm by Admin
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:52 pm |
|
Posted: Tue Apr 8th, 2008 10:59 pm
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20519 / April 7, 2008
Securities and Exchange Commission v. CMKM Diamonds, Inc., et. al, United States District Court for the District of Nevada, Civil Action No. 08- CV 0437
SEC Charges Fourteen Defendants In Scheme To Issue And Sell Unregistered CMKM Diamonds Stock
The Securities and Exchange Commission today filed a civil injunctive action against fourteen defendants involved in the alleged illegal issuance and sale of unregistered stock of CMKM Diamonds, Inc., purportedly a diamond and gold mining company located in Las Vegas. With assistance from a transfer agent and an attorney, allegedly CMKM fraudulently issued hundreds of billions of shares of purportedly unrestricted stock to John Edwards, the scheme's mastermind, and his nominees, as well as to the nominees of Urban Casavant, the company's chief executive officer. The Commission alleges that as Casavant generated demand for CMKM stock through fraudulent promotion of the company, Edwards, Casavant, and their nominees sold their shares into the public markets for at least $64.2 million in profit, much of which was paid to Casavant to support his extravagant lifestyle. Allegedly, Edwards profited by about $26.4 million from sales through a single broker-dealer, Casavant profited by about $31.5 million, and Casavant's nominees profited by about $6.3 million.
The Commission's complaint, filed in U.S. District Court for the District of Nevada, alleges that, from January 2003 to May 2005, CMKM improperly issued up to 622 billion shares of purportedly unrestricted stock. According to the complaint, these issuances were based in large part on both written authorizations and attorney opinion letters prepared by Brian Dvorak, CMKM's lawyer, which were often facially inadequate, suspect, and inconsistent. Allegedly, based on these faulty documents, CMKM's transfer agent, 1st Global Stock Transfer LLC, and its owner, Helen Bagley, issued stacks of stock certificates without restrictive legends. Edwards, his nominees, Kathleen Tomasso and Anthony Tomasso, and Casavant's nominees, James Kinney and Ginger Gutierrez, then allegedly deposited the certificates with various broker-dealers and sold the shares into the market. NevWest Securities Corporation and its employees, Anthony Santos, Sergei Rumyantsev, and Daryl Anderson, are alleged to have sold more than 259 billion shares of CMKM stock for Edwards, despite numerous red flags indicating a massive unregistered distribution. Meanwhile, Casavant allegedly generated investor interest in CMKM by using false press releases, Internet chat boards, and "funny car" race events across the country. The complaint alleges that this promotion was extremely successful, and about 40,000 investors purchased CMKM stock during the period of the fraud without knowing that Casavant ran the company from his house in Las Vegas, and that CMKM's primary activity was to issue and promote its own stock.
The Commission charged CMKM, Casavant, Edwards, Gutierrez, Kinney, the Tomassos, 1st Global, Bagley, NevWest, Anderson, Rumyantsev, Santos, and Dvorak with violating Section 5 of the Securities Act of 1933 by participating in an unregistered distribution of securities. The Commission also charged CMKM and Casavant with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. In addition, CMKM is alleged to have violated Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, and Casavant is alleged to have violated Rule 13b2-1 under the Exchange Act. Finally, the Commission charged Casavant with aiding and abetting CMKM's violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act, as well as violations of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a 13 thereunder for which CMKM was previously found liable in an administrative proceeding.
The Commission seeks a permanent injunction against all defendants. The Commission also seeks an accounting, disgorgement with prejudgment interest, and civil penalties against Casavant, Edwards, Gutierrez, Kinney, the Tomassos, 1st Global, Bagley, NevWest, Anderson, Rumyantsev, Santos, and Dvorak. In addition, the Commission seeks a penny stock bar against Casavant, Edwards, Gutierrez, Kinney, Anthony Tomasso, Kathleen Tomasso, Bagley, Anderson, Rumyantsev, Santos, and Dvorak. Finally, the Commission seeks an order prohibiting Casavant from acting as an officer or director of any public company.
The Commission acknowledges the assistance of the Financial Industry Regulatory Authority (FINRA) and the Saskatchewan Financial Services Commission.
The Commission's investigation is continuing.
 SEC Complaint in this matter
http://www.sec.gov/litigation/litreleases/2008/lr20519.htm
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:51 pm |
|
Posted: Mon May 21st, 2007 07:19 pm
CEO Updates
To all CMKM shareholders:
5-21-07
As of today, CMKM Diamonds, Inc. has engaged the accounting firm of Henry & Peters, P.C. The two accountants that will be working on the Company’s behalf are Gary D. Penkilo and William H. Bundy.
Mr. Penkilo is also a certified fraud examiner (CFE) and is in charge of the firm’s team of fraud examination department. His team of fraud examiners and accountants investigate, analyze and summarize financial data and then communicate their findings in the form of reports, exhibits and collections of documents They also provide assistance in legal proceedings, including testifying in court as expert witnesses and preparing visual aids to support trial evidence.
Mr. Bundy is also accredited in business valuation (ABV) by the AICPA and is the Vice-President of Henry & Peters, P.C. He heads the firm’s business valuation and litigation departments. In addition to the above, Mr. Bundy has performed forensic work damages calculations, asset discovery and tracing, verification with court ordered actions and other matters related to litigation.
Thank you for your continued support,
Kevin West
CEO & Chairman
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:50 pm |
|
Posted: Sat May 12th, 2007 10:03 am
CEO Updates
To all CMKM shareholders:
5-11-07
I will be in Nevada State District Court this coming Tuesday with the attorneys that the Company has hired. We are seeking rulings on our requests for a temporary restraining order and injunctive relief.
A sincere and genuine effort is underway in an attempt to recover value that our legal team and I believe was inappropriately removed from the company by former insiders. Litigation timeframes are inexact. While this litigation is proceeding, we are working with accountants to help us regain reporting status. A part of the injunctive relief involves protection against those that might want to impede our efforts to obtain all financial records of the Company.
Any cause of action that I take must contribute to the stability and long term success of the Company. The current litigation and my findings in the continuing investigation into all recoverable assets will be important as we proceed. If an Interpleader action truly distributes the sole remaining asset of the Company, such action may not be in the best interests of the Company. We are discussing other ways to identify our shareholder base without filing an Interpleader. A lot of options exist and we are examining them in great detail.
The Company has recently retained the services of Susanne Trimbath who is the CEO and Chief Economist of STP Advisors in Santa Monica, California. Ms. Trimbath has agreed to help the Company in our efforts to determine “fails to deliver” in our stock. She is currently reviewing much of the material gathered by the Company in the last two years including but not limited to: NOBO lists, shareholder certificate lists, DTC security position reports and information gathered about certain brokers during the cert pull.
For reasons unknown, there are individuals who continue to disseminate improper, inaccurate, misleading and potentially damaging information regarding CMKM, its current and future actions and corporate activities. There are still many references being passed around as to negotiated payouts, settlements, government stings, etc. There are no such activities and I must again ask that all shareholders completely dismiss any of this misinformation.
Many shareholders are requesting answers to a myriad of questions. A large portion of these questions concern matters that are involved in litigation. The attorneys have asked me not to answer privately or publicly many of these questions that I get from shareholders. We have individuals that do not want this company to succeed. It is not proper during litigation to disclose certain information that might be helpful to our opponents: matters such as arrangements with attorneys regarding legal fees and their expenses, payments for expert consultants and their expenses and payments for any other professional needs. Please be advised that the Company has made more than adequate arrangements for funding in each of these areas.
I also get regular questions from shareholders that suggest that the Company is involved in secret plans and meetings on matters not being officially disseminated to the shareholders. The current state of the Company can be determined by reading the “facts” that are set out “under oath” in our lawsuits and court pleadings.
I have been visiting with experts about the Entourage claims and the core samples which I have personally examined. I will report to you any plans regarding these assets when I have something definitive to discuss with you.
I look forward to sharing another update with you sometime next week after our hearing.
Don’t forget to tell your Mothers how much you love and care for them and please have a safe and happy Mother’s Day weekend.
Thank you for your continued support,
Kevin West
CEO
To all CMKM shareholders:
4-23-07
I want to make you aware of three documents that are now available online for you to view on the “documents” page of this website. These three documents are pertinent to the assets that were once owned by the Company.
I am presently working on information to share with you in the next press release to be made public within the next couple of days.
Thank you for your continued support,
Kevin West
CEO
The New CMKM
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:48 pm |
|
Posted: Thu May 3rd, 2007 09:27 am
CMKM Diamonds, Inc. Files Lawsuit and Wins Restraining Order Against Former Insiders
May 2nd, 2007
Tyler, TX. As mentioned in the previous press release of 4-20-07, CMKM Diamonds, Inc. has recently received several boxes of corporate records revealing evidence not previously known to new management. CEO Kevin West states, “In response to this new information, I have asked Bill Frizzell to file suit in Nevada against some former Company insiders in an effort to attach some assets that I believe belong to the Company. Our investigation suggests that there may be legal action in the future against additional parties.”
The Company filed the lawsuit and a request for a Temporary Restraining Order in Nevada state court on Wednesday, 4-25-07. The restraining order was granted on Monday, 4-30-07. The lawsuit and all attachments can now be viewed on the corporate website at http://www.cmkmdiamondsinc.com.
Mr. West addresses all CMKM shareholders: “I cannot adequately express the gratitude I have towards the entire CMKM community for their resolve and support of our collective search for the truth. Our best chance of restoring value to the shareholders, as well as achieving some measure of justice, is represented by our current legal action. CMKM is fortunate to have such a significant shareholder base with a large number of passionate and resourceful individuals supporting our course of action. We are confident and optimistic that our goals are realistic and obtainable.”
Shareholders have been inquiring how the Company can expect to maintain operations and fund legal efforts given the present shortage of assets and an outstanding share count of over 703 billion shares. These are legitimate questions. In response, at this time we present an overview of the Company’s present objectives (with more details to be outlined in future communications).
The near-term focus of management will be to take action in pursuit of the following goals:
Find lost / misappropriated Company funds, and return them to the Company;
Locate those who have wronged the shareholders, recover assets from them, and if appropriate, their insurers;
Thoroughly evaluate all pending contracts and current legal obligations to expedite the Company’s return to trading.
In the first of two CEO updates on 4/18/07, Mr. West mentioned an ongoing investigation by attorney Bill Frizzell “into the sale of bulk certs.” To this subject, Mr. West now adds, “We have evidence of the attempt by at least one specific large brokerage firm to purchase for itself, rather than simply transfer, such certificates. However, we will have an expert examining several suspect transactions.”
All attorneys hired by CMKM Diamonds, Inc. have been instructed to respond only to the Company and the Frizzell Law Firm. Responding directly to shareholder inquiries does not presently represent the productive use of their time. Please support these directions given to the Company attorneys by not making any attempts to contact them.
The Company intends to keep shareholders informed through the corporate website as events occur.
Safe Harbor Statement:
This news release contains certain "forward-looking statements" within
the meaning of Section 27a of the Securities Act of 1933 and Section
21e of the Securities Exchange Act of 1934. Although the Company
believes the expectations reflected in such forward-looking statements
are reasonable, it can provide no assurance that actual results will
meet or exceed such expectations.
Contact:
CMKM Diamonds Inc.,
615 S. Broadway
Tyler, TX 75701
Kevin West, 702-946-9497
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:45 pm |
|
Posted: Fri Apr 27th, 2007 09:02 pm
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/corpActions.aspx?lx8nvq=FLHUb1Wr8HP4FN0InjoBtg%253d%253d&CorpName=CMKM+DIAMONDS+INC.
Last edited on Mon May 12th, 2008 08:45 pm by Admin
|
Admin
Administrator
| Joined: | Tue Apr 10th, 2007 |
| Location: | |
| Posts: | 457 |
| Status: |
Offline
|
| Mana: | |
|
Posted: Mon May 12th, 2008 08:41 pm |
|
Posted April 25, 2007
Good Morning,
Here is the CMKX website and it is current, a very good sign that the CMKX saga isn't finished.Even though it is the unofficial website,at least the information is still flowing.
You have to ask yourself why a company that was suspended continuous after all this time still to attract debate from both sides of the spectrum..Surely No company has received this much and ongoing attention after a suspension.
http://www.cmkx.net/
I remember back what UC once said that he was allocating 3 million shares to be distributed to the less fortunate..Saying that just 3 million shares would give the holder a nice nest egg.Now this certainly was a generous jest and a very thoughtful gift..I would like to think there is good in all mankind,but at times we may encounter in our ranks a few that stray off the good and decency...I think that UC may have gotten in over his head and was fooled by even folks within his circle..This may be true or not,but at the time when we were trading, it was stated that UC was nothing more than an adventure and miner..In an area that became the next great diamond exploration region this doesn't surprise me.
This problem we have here with respect to the suspension and the legal saga that encompasses the company and the time now going over 3 years, really shouldn't come to any surprise on the why this is taking time..
If all the claims held and if one studies the area and the well announced total acreage that CMKX had claims, this company would become the world's largest diamond minor far surpassing DeBeers...During our time in the early 2001 when we were getting news this area in Saskatchewan, Canada was buzzing with interest and the biggest players in the diamond business were setting up shop..Many of these were well entrenched companies like DeBeers who had the resources to fight off hostiles and others that wish to claim-jump or even go to extremes to obtain this wealth that the area is and now has become the next great diamond find...Now you have a little unknown individual that the big boys were eyeing to steal his lunch money and threw the financial market, NSS our company into the ground so as to force him out.This I believe what happened.
The crux and problem with CMKX is the financial stock trading system that has become such a huge and complex issue,a financial settlement would be fought at every turn..The monies to be collected is my belief would come from almost every financial institution from Brokers, Market Makers and Hedgefunds..The latter who are the main culprits in the NSS debacle..These Institutions allowed this stock to be shorted to NO end until it became an abyss that not even deep pockets could climb out of it and the only recourse for these entities was to take it down and out..We are talking billions of dollars and the financial institutions of which many could not bear this costly remedy were in deep trouble..The problem goes all the way up to SEC and the DTCC where the board of the DTCC makes up of names of who who's in the financial community..These people allowed and are complicit in this whole saga and know damn well what is going on... It just doesn't start or end with CMKX..This problem has effected the whole financial market trading system of corporations large and small..
Why haven't we got word that this is a lost cause and the 60 thousand plus shareholders are left and have lost their investment and why the bashers are still hard at work saying and spewing crap like "we told you so"? Why have folks who requested Certs still haven't gotten them? It's strange that so many questions are still unanswered and it would have been just simple enough to at the time of the suspension, to conclude this as a complete scam..All this still after 3 years since the suspension..Why??
No, the problem is so complex and it involves billions of dollars in unsettled share balances and monies that should be owed in punitive damages that I hope whoever is in charge of the legal and getting what is rightfully owed to shareholders takes the folks down and make them pay..
I'm in the camp that we will get something in the way of a settlement,but the amount isn't what many feel we should get..If anything,I would expect a settlement in the amount of .002 range..The company never traded above this range and most shareholders bought well below this with a few that purchased shares at .0011,which was the high at the height of the companies grand announcements..This still amounts to a huge payout based on current S/O to the tune of 1.2 billion dollars..Forget what the real worth of the claims if there are any,but what is a rational and fair settlement.
So we continue to hold and wait,but some day we will get word and until silence becomes that cloud that should have closed this chapter back at the suspension, the saga is well on course for a hopeful and fair conclusion..
Of course this is just my opinion and..............
I still believe this to be "The greatest penny play of all time".
Have a good day
Varok
Last edited on Fri May 16th, 2008 01:13 pm by Admin
|
Current time is 02:42 am | Page: 1 2   |
|
|
|
|
