CMKM Diamonds Corporate Update
Corporate Updates
9-25-08
Update on Questionable Brokerage and Clearing Firm Activity
CMKM Diamonds, Inc. has received letters from a broker requesting that larger CMKX certificates (held in the same broker's name) be broken down into several smaller certs. The written request contained the notation "FOR FAILS PHY". The broker confirmed that the request was to cover a fails to deliver in the stock.
In a separate incident, one major brokerage firm requested the transfer of a bulk certificate from another major brokerage firm. This request was dated June 29, 2008, over two and a half years after the Company was delisted and no longer trading.
The Company also has in its possession a letter where a clearing firm discusses the cost effectiveness of obtaining stock so that they could issue certificates to their clients, saying "Given the price of the stock, it may be more reasonable for us to go out and buy the shares to cover the short." This letter is dated almost two years after the Company was delisted and its shares no longer trading.
In a CMKM Diamonds press release dated April 20, 2007, it was confirmed that the Company "halted the transfer of a large bulk certificate to a major brokerage from a third party". The Company is continuing its investigation of this and other questionable brokerage activity.
Mark Faulk,
CEO
CMKM Diamonds Shareholders' Corner
Shareholders' Corner
9-26-08
A quick note to answer a couple of concerns from shareholders. In reference to information sent out by Bud Burrell, Bud was a middleman to put that info into the hands of certain officials in the hope that the CMKX situation will continue to receive the attention it deserves. In light of the national events of the last couple of weeks, it is crucial that our story be heard by the right people. Any official documents were sent directly to the person who requested them, but the information should never have been leaked publicly. Bud nor anyone else not directly involved in investigations has knowledge of any individual's or companies' names that are a focus of our investigations.
It would be beyond detrimental to our investigation to release any detailed information to anyone not directly involved in either researching or investigating potential claims that CMKM might take against those who defrauded the Company and its shareholders. There are two choices here, either release ALL information to shareholders to be publicly reposted on message boards and compromise our legal position, or do what is best for the Company. Given those choices, I will always take the course of action that is best for CMKM Diamonds, Inc., which in turn is ultimately what will best benefit the Company's shareholders.
On a separate note, I am currently in New York, and will be available only on a limited basis for the next few days. I have received numerous phone calls about recent events, and I apologize if I haven't had time to return some calls. Things are very hectic, and the Company is making excellent progress in its efforts, but this is a marathon, not a sprint. Please be patient with us as we concentrate our efforts on the task at hand.
The CEO Chat is still scheduled for 9-10 AM CST on Friday, October 3, 2008. Please send your comments and questions to questions@cmkmdiamondsinc.com and I will address them as best I can at that time.
Mark Faulk,
CEO
Editor's Note - I requested more information from the SEC about brokers being forced to cover their old positions, especially on a revoked stock like CMKX. I will post any additional information I get from the SEC.
Friday, September 26, 2008
Thursday, September 25, 2008
CMKX - Petition Against Naked Shorting...!!
PLEASE Go To This Site And SIGN The PETITION Against Naked Short Selling...!!
Main Street Americans
STOP NAKED SHORT SELLING NOW!
To: Our Elected Leaders
From: Patrick Byrne & Concerned Americans
America’s capital markets used to be the envy of the world. Now they are in turmoil — turmoil caused by manipulative and abusive naked short sellers! It is time for it to stop — and now.
You are charged with overseeing and policing our capital markets. As long as naked short selling continues, our markets will suffer and you are not doing your job. That is shameful. Start doing your job — and now.
Half-measures don’t work. We are in a deep enough financial crisis that you can’t waste any more time. Do the following — and do it now:
1. Put in place a market-wide mandatory pre-borrow requirement (like the SEC did in the 30-day July 15 emergency order that protected 19 financial institutions).
2. Create the obligation that if a naked short seller fails to deliver a share, the purchaser must force a mandatory buy-in (this is the rule in Canada where it works).
3. Track trades cradle-to-grave (rather than net blocks of trades against each other), so that it is obvious who the naked short sellers are and the total amounts they are stealing.
4. Provide regular and timely disclosure by naked short sellers of when and how many shares they are failing to deliver.
5. Then enforce these rules (which should include significant monetary penalties and jail time).
Our capital markets are too important to let greedy manipulators ruin them. Get these laws in place, police them, and help restore the economy you are charged with protecting.
Sincerely,
Patrick Byrne
& Concerned Americans
After you have added your name to this petition an e-mail will be sent to the given address to confirm your signature. Please make sure that your e-mail address is correct or you will not receive this e-mail and your name will not be counted.
Main Street Americans
STOP NAKED SHORT SELLING NOW!
To: Our Elected Leaders
From: Patrick Byrne & Concerned Americans
America’s capital markets used to be the envy of the world. Now they are in turmoil — turmoil caused by manipulative and abusive naked short sellers! It is time for it to stop — and now.
You are charged with overseeing and policing our capital markets. As long as naked short selling continues, our markets will suffer and you are not doing your job. That is shameful. Start doing your job — and now.
Half-measures don’t work. We are in a deep enough financial crisis that you can’t waste any more time. Do the following — and do it now:
1. Put in place a market-wide mandatory pre-borrow requirement (like the SEC did in the 30-day July 15 emergency order that protected 19 financial institutions).
2. Create the obligation that if a naked short seller fails to deliver a share, the purchaser must force a mandatory buy-in (this is the rule in Canada where it works).
3. Track trades cradle-to-grave (rather than net blocks of trades against each other), so that it is obvious who the naked short sellers are and the total amounts they are stealing.
4. Provide regular and timely disclosure by naked short sellers of when and how many shares they are failing to deliver.
5. Then enforce these rules (which should include significant monetary penalties and jail time).
Our capital markets are too important to let greedy manipulators ruin them. Get these laws in place, police them, and help restore the economy you are charged with protecting.
Sincerely,
Patrick Byrne
& Concerned Americans
After you have added your name to this petition an e-mail will be sent to the given address to confirm your signature. Please make sure that your e-mail address is correct or you will not receive this e-mail and your name will not be counted.
Wednesday, September 24, 2008
CMKX ---- New Financial Bailout Plan ---- CMKX Style...!!
*** ATTENTION ***
President Bush... Secretary Paulson...
Chairman Bernanke... Chairman Cox
* Please Just Pay 40,000 - 60,000 CMKX Shareholders NOW...!! *
40,000 - 60,000 Mortgages Paid Off...!!
40,000 - 60,000 New Homes Purchased With CASH...!!
40,000 - 60,000 Vacation Homes Purchased With CASH...!!
50,000 - 100,000 Car Loans Paid Off...!!
50,000 - 100,000 New Cars Purchased With CASH...!!
80,000 - 120,000 College Loans And Tuition Paid Off...!!
40,000 - 60,000 Families Paying More Taxes...!!
40,000 - 60,000 Families Spending A TON OF MONEY...!!
So PLEASE Put An End To This Financial Turmoil...
* Please Just Pay 40,000 - 60,000 CMKX Shareholders NOW...!! *
President Bush... Secretary Paulson...
Chairman Bernanke... Chairman Cox
* Please Just Pay 40,000 - 60,000 CMKX Shareholders NOW...!! *
40,000 - 60,000 Mortgages Paid Off...!!
40,000 - 60,000 New Homes Purchased With CASH...!!
40,000 - 60,000 Vacation Homes Purchased With CASH...!!
50,000 - 100,000 Car Loans Paid Off...!!
50,000 - 100,000 New Cars Purchased With CASH...!!
80,000 - 120,000 College Loans And Tuition Paid Off...!!
40,000 - 60,000 Families Paying More Taxes...!!
40,000 - 60,000 Families Spending A TON OF MONEY...!!
So PLEASE Put An End To This Financial Turmoil...
* Please Just Pay 40,000 - 60,000 CMKX Shareholders NOW...!! *
Sunday, September 21, 2008
Friday, September 19, 2008
CMKX - This Just In... All Is Well...
What, Me Worry...??
Bloomberg.com
Breaking News
•Stocks Jump in U.S., Worldwide on Bank-Bailout Measures, Short-Sale Curbs
•Paulson, Bernanke Seek to Rid Firms of Toxic Assets, Expanding U.S. Powers
•Money-Market Mutual Funds Will Be Insured by U.S. in $50 Billion Backstop
•Morgan Stanley Said to Pursue Merger Talks After U.S. Rescue, Stock Rally
•Dollar Rises Most Since April Against Yen on U.S. Steps to Underpin Banks
•Fed Historian Meltzer Calls Paulson Plan `Social Democracy at Its Worst'
•Short Sellers Come Under Fire in U.S., U.K. After Collapse of Lehman, AIG
•Bush Says Rescue Plan Will Ease Pressure on Banks, More Action Is Needed
•Frank Accuses McCain of Using SEC's Cox as `Scapegoat' for Market Turmoil
Editor's Note - This Is All Very Exciting...
What Was The Question...??
Oh Yeah, Where's Our MONEY...??
PLEASE Just Pay Us NOW...!!
Bloomberg.com
Breaking News
•Stocks Jump in U.S., Worldwide on Bank-Bailout Measures, Short-Sale Curbs
•Paulson, Bernanke Seek to Rid Firms of Toxic Assets, Expanding U.S. Powers
•Money-Market Mutual Funds Will Be Insured by U.S. in $50 Billion Backstop
•Morgan Stanley Said to Pursue Merger Talks After U.S. Rescue, Stock Rally
•Dollar Rises Most Since April Against Yen on U.S. Steps to Underpin Banks
•Fed Historian Meltzer Calls Paulson Plan `Social Democracy at Its Worst'
•Short Sellers Come Under Fire in U.S., U.K. After Collapse of Lehman, AIG
•Bush Says Rescue Plan Will Ease Pressure on Banks, More Action Is Needed
•Frank Accuses McCain of Using SEC's Cox as `Scapegoat' for Market Turmoil
Editor's Note - This Is All Very Exciting...
What Was The Question...??
Oh Yeah, Where's Our MONEY...??
PLEASE Just Pay Us NOW...!!
Thursday, September 18, 2008
CMKX - Attention: SEC Commissioners...
SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling.
“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox.
“The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.”
For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Now that the SEC seems to recognize, and promises to do something about Naked Shorting, what about the shareholders of all the companies that were shorted into oblivion, using this illegal, abusive, manipulative practice...??
A practice which was IGNORED for years, and whose existence was DENIED by the regulatory agencies responsible for protecting shareholders.
NOTE: Please send a copy of the Press Release to Annette Nazareth...!!
----------------------------------------------------------------------------------
This Just In...
"Goldman Sachs Group Inc. and Morgan Stanley, the remaining independent securities firms on Wall Street, plunged by the most ever, prompting Morgan Stanley Chief Executive Officer John Mack to say short sellers are using abusive tactics to attack companies."
Editors Note - I think they just want their stocks to go up...!!
-----------------------------------------------------------------------------------
SEC Contact Info...
coxc@sec.gov,
chairmanoffice@sec.gov,
tradingandmarkets@sec.gov,
oig@sec.gov,
newyork@sec.gov,
losangeles@sec.gov,
enforcement@sec.gov,
oiea@sec.gov,
publicinfo@sec.gov,
help@sec.gov,
mccoyj@sec.gov,
whitem@sec.gov,
hakalal@sec.gov,
tysonr@sec.gov,
thomsenl@sec.gov
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling.
“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox.
“The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.”
For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Now that the SEC seems to recognize, and promises to do something about Naked Shorting, what about the shareholders of all the companies that were shorted into oblivion, using this illegal, abusive, manipulative practice...??
A practice which was IGNORED for years, and whose existence was DENIED by the regulatory agencies responsible for protecting shareholders.
NOTE: Please send a copy of the Press Release to Annette Nazareth...!!
----------------------------------------------------------------------------------
This Just In...
"Goldman Sachs Group Inc. and Morgan Stanley, the remaining independent securities firms on Wall Street, plunged by the most ever, prompting Morgan Stanley Chief Executive Officer John Mack to say short sellers are using abusive tactics to attack companies."
Editors Note - I think they just want their stocks to go up...!!
-----------------------------------------------------------------------------------
SEC Contact Info...
coxc@sec.gov,
chairmanoffice@sec.gov,
tradingandmarkets@sec.gov,
oig@sec.gov,
newyork@sec.gov,
losangeles@sec.gov,
enforcement@sec.gov,
oiea@sec.gov,
publicinfo@sec.gov,
help@sec.gov,
mccoyj@sec.gov,
whitem@sec.gov,
hakalal@sec.gov,
tysonr@sec.gov,
thomsenl@sec.gov
Wednesday, September 17, 2008
CMKX - SEC Chairman - Zero Tolerance For Naked Shorting...
SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling. The Commission’s actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox. “The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.”
In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Today’s Commission actions, which are the result of formal rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve’s Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008.
The Commission’s actions were as follows:
Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so.
If a short sale violates this close out requirement, then any broker-dealer acting on the short seller’s behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer’s activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer.
Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period.
Exception for Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed
The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective five days after publication in the Federal Register.
As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling.
Rule 10b-21 Short Selling Anti-Fraud Rule
The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This new rule is effective immediately.
# # #
http://www.sec.gov/news/press/2008/2008-204.htm
Bloomberg.com
SEC Stiffens Rules Limiting Short-Selling Amid Market Turmoil
By Jesse Westbrook and Edgar Ortega
Sept. 17 (Bloomberg) -- The U.S. Securities and Exchange Commission stiffened rules against manipulative short-selling after a market rout pushed American International Group Inc. to the brink of collapse and triggered Lehman Brothers Holdings Inc.'s bankruptcy.
The SEC adopted two regulations today forcing traders and brokers to close out short sales, amid concern investors are driving down share prices by flooding markets with sell orders. A third rule makes it a securities fraud when short sellers deceive brokers about delivering borrowed shares to buyers.
``These several actions today make it crystal clear that the SEC has zero tolerance for abusive'' short-selling, SEC Chairman Christopher Cox said in a statement.
Lawmakers and regulators are questioning whether short sellers have contributed to a crisis by spreading false information and using abusive tactics to attack companies. Hedge funds and other investors argue that poor business strategies are to blame, not short sellers.
In traditional short sales, traders borrow shares that they then sell. If the price drops, they profit by buying back the stock, repaying the loan and pocketing the difference.
The SEC rules approved today target so-called naked short- selling, in which traders never borrow shares from their brokers. The agency is concerned that such a strategy can free investors to manipulate prices by placing unlimited sell orders.
One SEC regulation eliminates an exemption for options market-makers to deliver shares of companies placed on so-called threshold lists. Companies are listed when they have a high number of borrowed shares that haven't been delivered.
Market-Makers
The rule will make it harder for options market-makers to hedge trades when they sell put contracts, said Stephen J. Nelson, a securities lawyer in White Plains, New York.
``If you want to short the stock you're going to have to deliver it, and the only way to really do that is to pre- borrow,'' Nelson said. `Professional traders are not in the business of taking that kind of risk. They would be very reluctant to face the five-day window because buy-in can be very expensive.''
The SEC also approved a rule drafted in March that would make it a fraud for investors to lie to their broker about locating shares to sell short. Currently, brokers are able to rely on their customers' assurance that they had located shares that could be used to cover a short sale.
The SEC rules don't reinstitute an ``emergency'' order that expired last month, which placed restrictions on short-selling in Lehman, Fannie Mae, Freddie Mac and 16 securities firms. The order required investors betting on a decline in stock prices to arrange to borrow the shares before completing a sale.
The SEC also declined to bring back the so-called uptick rule, which allowed short sales only if a preceding trade boosted a company's stock price. Lawmakers such as U.S. Senator Charles Schumer, a New York Democrat, have questioned the agency's June 2007 decision to remove the rule.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; Edgar Ortega in New York at ebarrales@bloomberg.net.
Last Updated: September 17, 2008 09:52 EDT
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling. The Commission’s actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said SEC Chairman Christopher Cox. “The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation.”
In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Today’s Commission actions, which are the result of formal rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve’s Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008.
The Commission’s actions were as follows:
Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so.
If a short sale violates this close out requirement, then any broker-dealer acting on the short seller’s behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer’s activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer.
Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period.
Exception for Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed
The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective five days after publication in the Federal Register.
As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling.
Rule 10b-21 Short Selling Anti-Fraud Rule
The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This new rule is effective immediately.
# # #
http://www.sec.gov/news/press/2008/2008-204.htm
Bloomberg.com
SEC Stiffens Rules Limiting Short-Selling Amid Market Turmoil
By Jesse Westbrook and Edgar Ortega
Sept. 17 (Bloomberg) -- The U.S. Securities and Exchange Commission stiffened rules against manipulative short-selling after a market rout pushed American International Group Inc. to the brink of collapse and triggered Lehman Brothers Holdings Inc.'s bankruptcy.
The SEC adopted two regulations today forcing traders and brokers to close out short sales, amid concern investors are driving down share prices by flooding markets with sell orders. A third rule makes it a securities fraud when short sellers deceive brokers about delivering borrowed shares to buyers.
``These several actions today make it crystal clear that the SEC has zero tolerance for abusive'' short-selling, SEC Chairman Christopher Cox said in a statement.
Lawmakers and regulators are questioning whether short sellers have contributed to a crisis by spreading false information and using abusive tactics to attack companies. Hedge funds and other investors argue that poor business strategies are to blame, not short sellers.
In traditional short sales, traders borrow shares that they then sell. If the price drops, they profit by buying back the stock, repaying the loan and pocketing the difference.
The SEC rules approved today target so-called naked short- selling, in which traders never borrow shares from their brokers. The agency is concerned that such a strategy can free investors to manipulate prices by placing unlimited sell orders.
One SEC regulation eliminates an exemption for options market-makers to deliver shares of companies placed on so-called threshold lists. Companies are listed when they have a high number of borrowed shares that haven't been delivered.
Market-Makers
The rule will make it harder for options market-makers to hedge trades when they sell put contracts, said Stephen J. Nelson, a securities lawyer in White Plains, New York.
``If you want to short the stock you're going to have to deliver it, and the only way to really do that is to pre- borrow,'' Nelson said. `Professional traders are not in the business of taking that kind of risk. They would be very reluctant to face the five-day window because buy-in can be very expensive.''
The SEC also approved a rule drafted in March that would make it a fraud for investors to lie to their broker about locating shares to sell short. Currently, brokers are able to rely on their customers' assurance that they had located shares that could be used to cover a short sale.
The SEC rules don't reinstitute an ``emergency'' order that expired last month, which placed restrictions on short-selling in Lehman, Fannie Mae, Freddie Mac and 16 securities firms. The order required investors betting on a decline in stock prices to arrange to borrow the shares before completing a sale.
The SEC also declined to bring back the so-called uptick rule, which allowed short sales only if a preceding trade boosted a company's stock price. Lawmakers such as U.S. Senator Charles Schumer, a New York Democrat, have questioned the agency's June 2007 decision to remove the rule.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; Edgar Ortega in New York at ebarrales@bloomberg.net.
Last Updated: September 17, 2008 09:52 EDT
Tuesday, September 16, 2008
CMKX - UCAD/USCN SEC Filing...
SEC FORM 10-KSB/A
US Canadian Minerals Inc. (the “Company”) received a letter dated September 2, 2008 from the Securities and Exchange Commission (”SEC”) notifying the Company that the staff of the SEC had completed its investigation of the Company and does not intend to recommend any enforcement action against the Company.
US Canadian Minerals Inc. at AOL Finance
US Canadian Minerals Inc. (the “Company”) received a letter dated September 2, 2008 from the Securities and Exchange Commission (”SEC”) notifying the Company that the staff of the SEC had completed its investigation of the Company and does not intend to recommend any enforcement action against the Company.
US Canadian Minerals Inc. at AOL Finance
Monday, September 15, 2008
CMKX - Perfect Timing For CMKM Diamonds Settlement...
Who Would Notice...??
Just One More Financial Calamity...!!
CMKM Diamonds... PLEASE Just Pay Us NOW...!!
Bloomberg.com
Breaking News
•Lehman Files for Record Bankruptcy, Victim of Meltdown Firm Helped Create
•Stocks in U.S. Drop as Lehman Bankruptcy Deepens Turmoil in Credit Markets
•AIG Slumps After Insurer Rejects Buyout Offers, Seeks $40 Billion Fed Loan
•Bank of America Will Buy Merrill for $50 Billion as Credit Crisis Broadens
•Oil, Gasoline Tumble as Lehman Fails, Hurricane Ike Spares U.S. Refineries
•Pimco, Vanguard, Franklin Are Biggest Bond Fund Losers in Lehman Collapse
•Credit-Default Swaps Surge Most Ever as Lehman Threatens to Unravel Market
Just One More Financial Calamity...!!
CMKM Diamonds... PLEASE Just Pay Us NOW...!!
Bloomberg.com
Breaking News
•Lehman Files for Record Bankruptcy, Victim of Meltdown Firm Helped Create
•Stocks in U.S. Drop as Lehman Bankruptcy Deepens Turmoil in Credit Markets
•AIG Slumps After Insurer Rejects Buyout Offers, Seeks $40 Billion Fed Loan
•Bank of America Will Buy Merrill for $50 Billion as Credit Crisis Broadens
•Oil, Gasoline Tumble as Lehman Fails, Hurricane Ike Spares U.S. Refineries
•Pimco, Vanguard, Franklin Are Biggest Bond Fund Losers in Lehman Collapse
•Credit-Default Swaps Surge Most Ever as Lehman Threatens to Unravel Market
Sunday, September 14, 2008
CMKX - SEC May Reinstate Emergency Naked Shorting Rules...
SEC to act on abusive short selling: source
Yahoo News
Banks Fear Next Move by Shorts...
The New York Times - Business
By LOUISE STORY
Published: September 14, 2008
In May, David Einhorn, one of the most vocal short sellers on Wall Street, made no secret he was betting against Lehman Brothers. Now, some investors are afraid that fund managers like him will take advantage of the climate of fear stirred up by the troubles of Lehman to single out other weak financial firms whose declining share prices would bring them rich rewards.
At emergency meetings over the weekend, the heads of major financial institutions urged Timothy F. Geithner, the president of the New York Fed, and Treasury Secretary Henry M. Paulson Jr., to consider having the Securities and Exchange Commission reinstate a temporary rule to limit the risky but potentially lucrative practice of betting on a firm’s falling share price, according to two people who were briefed on, but did not attend, the meetings.
They are concerned that short sellers might fix their gaze on other big financial institutions. But Wall Street may be breathing easier after one company frequently mentioned, Merrill Lynch, began advanced talks on Sunday to sell itself, and another, the insurance giant American International Group, moved toward a restructuring in an effort to strengthen its financial position.
In July, the S.E.C. briefly halted a practice known as naked short selling after speculators placed large bets that shares of Fannie Mae and Freddie Mac, the troubled mortgage giants, would decline. That also made it harder, though not impossible, to short the stocks of 19 financial institutions, including brokerage firms like Lehman Brothers and Morgan Stanley.
The investment tactic of betting a stock will slide is not new, of course. But it has become particularly controversial in the last year, when Wall Street firms started to be singled out as the credit crisis turned the financial sector upside down.
Short sellers and their free market supporters say they have done nothing wrong. If anything, they say, they have merely spotted problems at financial institutions ahead of everyone else, making them a useful early warning system for the rest of the market. Critics believe they have contributed to the speed of the decline of any number of financial shares.
Short-selling against financial institutions has proved particularly lucrative for hedge funds. Mr. Einhorn’s accusations included a complaint that Lehman had been failing to properly account for its marks on troublesome holdings.
Lehman’s shares were already under pressure when he took the microphone at a large industry gathering in May to lay out his case against the investment bank. The firm, he told the crowd, had used “accounting ingenuity” to avoid large write-downs and remained tainted by bad commercial real estate investments.
Mr. Einhorn stood to profit by convincing people of his view: He had been betting against Lehman’s stock — it stood at around $40 when he spoke — since July 2007, when it traded for around $70.
While Lehman’s shares have declined as investors lost confidence in its ability to repair its balance sheet, in the four months after Mr. Einhorn’s remarks, short-selling played a role in the erosion. A rapid plunge in the shares to below $4 last week created the conditions that brought the 158-year old firm to its knees on Sunday.
For all his boldness, Mr. Einhorn is aware of the havoc that bank failures can create. “We would not win if Lehman went down and took the whole financial system with it,” Mr. Einhorn said in an interview in June. “An actual collapse of Lehman — that would not be a good thing.”
Other hedge fund managers recognize the dangers and the harm that is befalling bank employees who have been paid in their companies’ stocks. “My children, their playmates’ fathers work at Lehman,” said one manager who is short Lehman and asked to remain anonymous, citing the fragility of the situation. “Obviously I had nothing to do with what happened, and the idea that I profited, and they got clobbered, and I’ve got to see them on Monday is awkward. I feel badly for them.”
Mr. Einhorn was never shy with his criticism of Lehman. He pointed to the bank’s investments in two real estate companies, Archstone and Sun Cal, and said Lehman had not marked its mortgage assets down enough. “Lehman is one of the deniers,” he said in the June interview.
To many, Mr. Einhorn simply saw the writing on the wall early. And, hedge fund managers say, Lehman executives failed to realize how much credibility Mr. Einhorn has in the investor community. Lehman might have fared better if it had raised capital or taken write-offs far earlier, as Mr. Einhorn suggested.
But to some in the world of finance, Mr. Einhorn and investors like him are dangerous.
“It is really like taking a baseball bat to someone who is down,” said Jim Hardesty, president of Hardesty Capital Management in Baltimore. “A bunch of these guys with very large bats are circling around certain companies and banging them over and over again. It is unsportsmanlike conduct.”
“My worst nightmare would be waking up one day and listening to David Einhorn talk about our company and wanting to short myself,” said Larry Robbins, chief executive of the hedge fund Glenview Capital, as he started his own speech at the May conference, the third event that included Mr. Einhorn’s criticisms of Lehman.
Hedge fund managers who focus on shorting companies stand out in the industry in an otherwise terrible trading year. Hedge funds are down more than 4 percent but short-focused hedge funds are up 9.76 percent, said Hedge Fund Research.
By coincidence, Mr. Einhorn’s fund, Greenlight Capital, is down 4.3 percent this year through Aug. 22, according to HSBC (he also invests in stocks, as well as shorting them).
His is a so-called long-short fund, which means he invests $2 buying shares in companies for every $1 he places shorting other companies. One company he took a positive view on was New Century, one of the first mortgage lenders to file for bankruptcy.
Mr. Einhorn said in June that he receives far more criticism for his short positions than he does for the positive bets he makes, which he also sometimes discusses publicly. And, he said, executives at companies are biased in the views they provide because they own so many shares of their companies’ stocks.
Mr. Einhorn declined to comment for this article and a spokesman would not say if he was still short Lehman’s stock or on what day he sold his position.
Eric Dash contributed reporting.
A version of this article appeared in print on September 15, 2008, on page C1 of the New York edition.
Yahoo News
Banks Fear Next Move by Shorts...
The New York Times - Business
By LOUISE STORY
Published: September 14, 2008
In May, David Einhorn, one of the most vocal short sellers on Wall Street, made no secret he was betting against Lehman Brothers. Now, some investors are afraid that fund managers like him will take advantage of the climate of fear stirred up by the troubles of Lehman to single out other weak financial firms whose declining share prices would bring them rich rewards.
At emergency meetings over the weekend, the heads of major financial institutions urged Timothy F. Geithner, the president of the New York Fed, and Treasury Secretary Henry M. Paulson Jr., to consider having the Securities and Exchange Commission reinstate a temporary rule to limit the risky but potentially lucrative practice of betting on a firm’s falling share price, according to two people who were briefed on, but did not attend, the meetings.
They are concerned that short sellers might fix their gaze on other big financial institutions. But Wall Street may be breathing easier after one company frequently mentioned, Merrill Lynch, began advanced talks on Sunday to sell itself, and another, the insurance giant American International Group, moved toward a restructuring in an effort to strengthen its financial position.
In July, the S.E.C. briefly halted a practice known as naked short selling after speculators placed large bets that shares of Fannie Mae and Freddie Mac, the troubled mortgage giants, would decline. That also made it harder, though not impossible, to short the stocks of 19 financial institutions, including brokerage firms like Lehman Brothers and Morgan Stanley.
The investment tactic of betting a stock will slide is not new, of course. But it has become particularly controversial in the last year, when Wall Street firms started to be singled out as the credit crisis turned the financial sector upside down.
Short sellers and their free market supporters say they have done nothing wrong. If anything, they say, they have merely spotted problems at financial institutions ahead of everyone else, making them a useful early warning system for the rest of the market. Critics believe they have contributed to the speed of the decline of any number of financial shares.
Short-selling against financial institutions has proved particularly lucrative for hedge funds. Mr. Einhorn’s accusations included a complaint that Lehman had been failing to properly account for its marks on troublesome holdings.
Lehman’s shares were already under pressure when he took the microphone at a large industry gathering in May to lay out his case against the investment bank. The firm, he told the crowd, had used “accounting ingenuity” to avoid large write-downs and remained tainted by bad commercial real estate investments.
Mr. Einhorn stood to profit by convincing people of his view: He had been betting against Lehman’s stock — it stood at around $40 when he spoke — since July 2007, when it traded for around $70.
While Lehman’s shares have declined as investors lost confidence in its ability to repair its balance sheet, in the four months after Mr. Einhorn’s remarks, short-selling played a role in the erosion. A rapid plunge in the shares to below $4 last week created the conditions that brought the 158-year old firm to its knees on Sunday.
For all his boldness, Mr. Einhorn is aware of the havoc that bank failures can create. “We would not win if Lehman went down and took the whole financial system with it,” Mr. Einhorn said in an interview in June. “An actual collapse of Lehman — that would not be a good thing.”
Other hedge fund managers recognize the dangers and the harm that is befalling bank employees who have been paid in their companies’ stocks. “My children, their playmates’ fathers work at Lehman,” said one manager who is short Lehman and asked to remain anonymous, citing the fragility of the situation. “Obviously I had nothing to do with what happened, and the idea that I profited, and they got clobbered, and I’ve got to see them on Monday is awkward. I feel badly for them.”
Mr. Einhorn was never shy with his criticism of Lehman. He pointed to the bank’s investments in two real estate companies, Archstone and Sun Cal, and said Lehman had not marked its mortgage assets down enough. “Lehman is one of the deniers,” he said in the June interview.
To many, Mr. Einhorn simply saw the writing on the wall early. And, hedge fund managers say, Lehman executives failed to realize how much credibility Mr. Einhorn has in the investor community. Lehman might have fared better if it had raised capital or taken write-offs far earlier, as Mr. Einhorn suggested.
But to some in the world of finance, Mr. Einhorn and investors like him are dangerous.
“It is really like taking a baseball bat to someone who is down,” said Jim Hardesty, president of Hardesty Capital Management in Baltimore. “A bunch of these guys with very large bats are circling around certain companies and banging them over and over again. It is unsportsmanlike conduct.”
“My worst nightmare would be waking up one day and listening to David Einhorn talk about our company and wanting to short myself,” said Larry Robbins, chief executive of the hedge fund Glenview Capital, as he started his own speech at the May conference, the third event that included Mr. Einhorn’s criticisms of Lehman.
Hedge fund managers who focus on shorting companies stand out in the industry in an otherwise terrible trading year. Hedge funds are down more than 4 percent but short-focused hedge funds are up 9.76 percent, said Hedge Fund Research.
By coincidence, Mr. Einhorn’s fund, Greenlight Capital, is down 4.3 percent this year through Aug. 22, according to HSBC (he also invests in stocks, as well as shorting them).
His is a so-called long-short fund, which means he invests $2 buying shares in companies for every $1 he places shorting other companies. One company he took a positive view on was New Century, one of the first mortgage lenders to file for bankruptcy.
Mr. Einhorn said in June that he receives far more criticism for his short positions than he does for the positive bets he makes, which he also sometimes discusses publicly. And, he said, executives at companies are biased in the views they provide because they own so many shares of their companies’ stocks.
Mr. Einhorn declined to comment for this article and a spokesman would not say if he was still short Lehman’s stock or on what day he sold his position.
Eric Dash contributed reporting.
A version of this article appeared in print on September 15, 2008, on page C1 of the New York edition.
Saturday, September 13, 2008
CMKX - Urban Casavant's Family Sued By CMKM Diamonds Inc.
The Prince Albert Daily Herald
Kin of former P.A. man in diamond fraud case hit with lawsuits...
SASKATOON -
DAVID HUTTON
Canwest News Service
Several family members of a man from Prince Albert who faces charges in a diamond mine scam are being sued in Texas.
The lawsuit is the latest twist in what is being called the largest penny-stock fraud in history. Urban Casavant, the 51-year-old former CEO of CMKM Diamonds Inc., was charged by the United States Securities and Exchange Commission (SEC) in April.
Casavant, according to sources, is now back in Saskatoon, staying with family while being investigated by the Federal Bureau of Investigation, the Internal Revenue Service and the U.S. Department of Justice.
CMKM's lawyer Bill Frizzell alleges in court documents that Carolyn Casavant, Urban's wife, was issued more than $4.8 million in company payments. Victor Casavant reportedly gained more than $740,000 while Ron Casavant, who was active peddling the penny stock at car races, was issued cheques for $290,000, the documents state.
Carolyn Casavant remains in their Saskatoon home that overlooks the Willows Golf and Country Club. The house, on the market for 18 months, is listed at $1.2 million.
After being shown a picture of Urban Casavant, a neighbour confirmed that he was seen coming and going from the house recently. Named in the court documents are Corinne Ward, Eric Reid, Margaret Reid, Dale Casavant and Max Casavant, all relatives of Urban.
Casavant - a former prison guard and U-Haul franchise owner in Prince Albert - and several American cohorts, allegedly conspired to illegally sell billions of shares of unregistered CMKM stock, raising at least $64 million from 40,000 investors around the world between 2003 and 2005.
They claimed to hold mineral rights near Prince Albert. To add to the hype, Casavant started the CMKXtreme team of drag racers that travelled to events across the U.S., their cars emblazoned with the CMKM stock symbol.
None of the allegations have been proven and none of those accused have filed statements of defence. If found liable, those named in the case will not face prison time because the case is civil.
Link to the lawsuit is:
cmkmdiamondsinc.com/documents/texas_lawsuit_09_05_08.pdf
Kin of former P.A. man in diamond fraud case hit with lawsuits...
SASKATOON -
DAVID HUTTON
Canwest News Service
Several family members of a man from Prince Albert who faces charges in a diamond mine scam are being sued in Texas.
The lawsuit is the latest twist in what is being called the largest penny-stock fraud in history. Urban Casavant, the 51-year-old former CEO of CMKM Diamonds Inc., was charged by the United States Securities and Exchange Commission (SEC) in April.
Casavant, according to sources, is now back in Saskatoon, staying with family while being investigated by the Federal Bureau of Investigation, the Internal Revenue Service and the U.S. Department of Justice.
CMKM's lawyer Bill Frizzell alleges in court documents that Carolyn Casavant, Urban's wife, was issued more than $4.8 million in company payments. Victor Casavant reportedly gained more than $740,000 while Ron Casavant, who was active peddling the penny stock at car races, was issued cheques for $290,000, the documents state.
Carolyn Casavant remains in their Saskatoon home that overlooks the Willows Golf and Country Club. The house, on the market for 18 months, is listed at $1.2 million.
After being shown a picture of Urban Casavant, a neighbour confirmed that he was seen coming and going from the house recently. Named in the court documents are Corinne Ward, Eric Reid, Margaret Reid, Dale Casavant and Max Casavant, all relatives of Urban.
Casavant - a former prison guard and U-Haul franchise owner in Prince Albert - and several American cohorts, allegedly conspired to illegally sell billions of shares of unregistered CMKM stock, raising at least $64 million from 40,000 investors around the world between 2003 and 2005.
They claimed to hold mineral rights near Prince Albert. To add to the hype, Casavant started the CMKXtreme team of drag racers that travelled to events across the U.S., their cars emblazoned with the CMKM stock symbol.
None of the allegations have been proven and none of those accused have filed statements of defence. If found liable, those named in the case will not face prison time because the case is civil.
Link to the lawsuit is:
cmkmdiamondsinc.com/documents/texas_lawsuit_09_05_08.pdf
Thursday, September 11, 2008
CMKX - CMKM Diamonds Appoints Mark Faulk as New CEO
TYLER, Texas--(BUSINESS WIRE)
September 11, 2008 06:14 PM Eastern Daylight Time
CMKM Diamonds Appoints Mark Faulk as New CEO
TYLER, Texas--(BUSINESS WIRE)--CMKM Diamonds, Inc. CEO and Chairman of the Board Kevin West announced today that Mark Faulk has been named as the new CEO and President of CMKM Diamonds, Inc., effectively immediately. Faulk is a nationally recognized advocate for stock market reform, and has performed extensive research on CMKM Diamonds in the process of writing “The Naked Truth: Investing in the Stock Play of a Lifetime.” Kevin West will remain with the Company as Chairman of the Board, and will continue to assist in all aspects of Company business.
Mr. Faulk stated: “I am honored to have been chosen to lead the Company as we move forward to return assets and value to CMKM Diamonds. I have spent the past five years advocating reform in our financial system, and this new challenge will allow me to put that knowledge to work in a practical way that will benefit CMKM and its loyal shareholders. Kevin West and general counsel Bill Frizzell have worked tirelessly on behalf of the Company, and their efforts should be applauded by all CMKM shareholders.
“This is not a passing of the baton, it is instead simply reinforcing the troops,” Faulk continued. “With the newly appointed Advisory Committee and Board of Directors, the Company has laid a strong foundation that is capable of meeting any challenges that CMKM may face. My immediate goal is to continue to add to that base, which will allow the Company to become even more aggressive in their legal battles and widen the scope of their efforts.”
Faulk also said, “In the very near future, we plan to announce the expansion of our legal team to maximize our efforts to return real value to CMKM Diamonds. We are also in the process of filling positions for a Research Committee to aid the Company in its efforts. I intend to continue West’s plans to utilize CMKM’s greatest asset, which is its extensive and knowledgeable shareholder base. There is truly strength in numbers. While we intend to keep the door open for those who wish to negotiate settlements to atone for their actions against the Company, we will move forward aggressively in our legal efforts.”
Chairman Kevin West states, “I want to thank the newly appointed Board of Directors and the Advisory Committee for their help, recommendations, and unanimous decision to select Mark Faulk as the new leader of this Company. I believe this is a high point in this Company’s history and Mr. Faulk is the most qualified person to take over the leadership role and move CMKM to the next level. I look forward to working with our new team as we continue to grow in strength and numbers.”
Faulk also announced his resignation as CEO of Togi Entertainment, Inc., and wants to thank those who he has worked so closely with over the past two years. In order to avoid any conflicts of interest, The Faulking Truth Show on Toginet.com will no longer be aired. Co-hosts DeWayne Reeves and Mark Faulk will do one final show this Friday from 8:30-10 AM CDT on www.toginet.com to discuss Faulk’s hiring, and will take calls from shareholders for the last half of the show. The toll free caller number is 1-877-864-4869.
Faulk also intends to conduct a monthly CEO radio chat in order to keep shareholders informed about current developments, and to answer questions that shareholders may have about the Company’s activities. Also, a new Company phone line will be set up in the very near future, and will be posted on the company website. The Company requests that all phone calls be directed to the new company phone line so that legal counsel can maximize their time and efforts on the task at hand.
CMKM also announced that, in addition to the new CEO and Research Committee, they are currently in negotiations to add several attorneys to the legal team to assist General Counsel Bill Frizzell in his actions on behalf of the Company.
CMKM Diamonds Inc., Tyler
Kevin West, 903-262-8397
www.cmkmdiamondsinc.com
September 11, 2008 06:14 PM Eastern Daylight Time
CMKM Diamonds Appoints Mark Faulk as New CEO
TYLER, Texas--(BUSINESS WIRE)--CMKM Diamonds, Inc. CEO and Chairman of the Board Kevin West announced today that Mark Faulk has been named as the new CEO and President of CMKM Diamonds, Inc., effectively immediately. Faulk is a nationally recognized advocate for stock market reform, and has performed extensive research on CMKM Diamonds in the process of writing “The Naked Truth: Investing in the Stock Play of a Lifetime.” Kevin West will remain with the Company as Chairman of the Board, and will continue to assist in all aspects of Company business.
Mr. Faulk stated: “I am honored to have been chosen to lead the Company as we move forward to return assets and value to CMKM Diamonds. I have spent the past five years advocating reform in our financial system, and this new challenge will allow me to put that knowledge to work in a practical way that will benefit CMKM and its loyal shareholders. Kevin West and general counsel Bill Frizzell have worked tirelessly on behalf of the Company, and their efforts should be applauded by all CMKM shareholders.
“This is not a passing of the baton, it is instead simply reinforcing the troops,” Faulk continued. “With the newly appointed Advisory Committee and Board of Directors, the Company has laid a strong foundation that is capable of meeting any challenges that CMKM may face. My immediate goal is to continue to add to that base, which will allow the Company to become even more aggressive in their legal battles and widen the scope of their efforts.”
Faulk also said, “In the very near future, we plan to announce the expansion of our legal team to maximize our efforts to return real value to CMKM Diamonds. We are also in the process of filling positions for a Research Committee to aid the Company in its efforts. I intend to continue West’s plans to utilize CMKM’s greatest asset, which is its extensive and knowledgeable shareholder base. There is truly strength in numbers. While we intend to keep the door open for those who wish to negotiate settlements to atone for their actions against the Company, we will move forward aggressively in our legal efforts.”
Chairman Kevin West states, “I want to thank the newly appointed Board of Directors and the Advisory Committee for their help, recommendations, and unanimous decision to select Mark Faulk as the new leader of this Company. I believe this is a high point in this Company’s history and Mr. Faulk is the most qualified person to take over the leadership role and move CMKM to the next level. I look forward to working with our new team as we continue to grow in strength and numbers.”
Faulk also announced his resignation as CEO of Togi Entertainment, Inc., and wants to thank those who he has worked so closely with over the past two years. In order to avoid any conflicts of interest, The Faulking Truth Show on Toginet.com will no longer be aired. Co-hosts DeWayne Reeves and Mark Faulk will do one final show this Friday from 8:30-10 AM CDT on www.toginet.com to discuss Faulk’s hiring, and will take calls from shareholders for the last half of the show. The toll free caller number is 1-877-864-4869.
Faulk also intends to conduct a monthly CEO radio chat in order to keep shareholders informed about current developments, and to answer questions that shareholders may have about the Company’s activities. Also, a new Company phone line will be set up in the very near future, and will be posted on the company website. The Company requests that all phone calls be directed to the new company phone line so that legal counsel can maximize their time and efforts on the task at hand.
CMKM also announced that, in addition to the new CEO and Research Committee, they are currently in negotiations to add several attorneys to the legal team to assist General Counsel Bill Frizzell in his actions on behalf of the Company.
CMKM Diamonds Inc., Tyler
Kevin West, 903-262-8397
www.cmkmdiamondsinc.com
Wednesday, September 10, 2008
CMKX - SEC Email Response...
This Just In...
I sent an email requesting info about CMKX - CMKM Diamonds to many SEC email addresses on August 28th, 2008.
This reply came today, September 10th, 2008.
(help@sec.gov).
Thank you for contacting the SEC.
You ask about the current status of CMKM Diamonds. As you may know, since the SEC filed its civil complaint against CMKM Diamonds and 13 other defendants on April 7, 2008, the SEC has settled with the company, John Edwards, Anthony and Kathleen Tomasso.
Disgorgement has been ordered against all of the defendants who have settled except CMKM Diamonds. To date, the Court has not entered any orders regarding the amounts to be disgorged nor has payment been made.
If and when money ordered disgorged has been paid, the SEC may establish an investors claims fund. Typically, these funds are not established until the conclusion of a case.
The Fair Funds provisions of SOX may come into play because of penalties also ordered against John Edwards and possibly others.
The Tomassos have filed for bankruptcy in Florida. The docket sheet shows that they filed a Suggestion of Bankruptcy and that there are hearings scheduled relating to this. On August 5th, the SEC filed a proposed judgment against another defendant, Daryl Anderson.
The SEC litigation is ongoing. Investors can monitor the case themselves through PACER at https://ecf.nvd.uscourts.gov/cgi-bin/ShowIndex.pl. You may want to go to Pacer's general website as a password has to be requested -- see http://pacer.psc.uscourts.gov. Please be aware that the SEC conducts its investigations on a confidential basis and will not comment on its investigations other than posting litigation releases on our website.
Sincerely,
ROBERT T GREENE
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
100 F St, NE
Washington, DC 20549-0213
I sent an email requesting info about CMKX - CMKM Diamonds to many SEC email addresses on August 28th, 2008.
This reply came today, September 10th, 2008.
(help@sec.gov).
Thank you for contacting the SEC.
You ask about the current status of CMKM Diamonds. As you may know, since the SEC filed its civil complaint against CMKM Diamonds and 13 other defendants on April 7, 2008, the SEC has settled with the company, John Edwards, Anthony and Kathleen Tomasso.
Disgorgement has been ordered against all of the defendants who have settled except CMKM Diamonds. To date, the Court has not entered any orders regarding the amounts to be disgorged nor has payment been made.
If and when money ordered disgorged has been paid, the SEC may establish an investors claims fund. Typically, these funds are not established until the conclusion of a case.
The Fair Funds provisions of SOX may come into play because of penalties also ordered against John Edwards and possibly others.
The Tomassos have filed for bankruptcy in Florida. The docket sheet shows that they filed a Suggestion of Bankruptcy and that there are hearings scheduled relating to this. On August 5th, the SEC filed a proposed judgment against another defendant, Daryl Anderson.
The SEC litigation is ongoing. Investors can monitor the case themselves through PACER at https://ecf.nvd.uscourts.gov/cgi-bin/ShowIndex.pl. You may want to go to Pacer's general website as a password has to be requested -- see http://pacer.psc.uscourts.gov. Please be aware that the SEC conducts its investigations on a confidential basis and will not comment on its investigations other than posting litigation releases on our website.
Sincerely,
ROBERT T GREENE
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
100 F St, NE
Washington, DC 20549-0213
Tuesday, September 9, 2008
CMKX - CMKM Diamonds - An Open Letter To Urban Casavant...
Mr. Casavant,
I am one of the 40,000 or more CMKX shareholders.
I started buying shares on November 26th, 2002, the day after CyberMark officially became a Casavant company.
I continued buying shares until June 14th, 2005, shortly before trading was suspended & CMKX was eventually revoked.
Soon, CMKX will be revoked for longer than it was trading.
I have all my shares in certificate form, as requested by the company. I also have certificates for my CIM spinout shares.
I met your brother Ron at the NHRA races in Englishtown, NJ. I was hoping to meet you, but you were not there.
There are many rumors & theories about you and CMKX... Some good, some bad. I'd like to believe the good ones.
However, the 'new' team that you turned the reins over to, does not appear to have any concern whatsoever for the shareholders. I would like to believe there is some hidden method to this apparent madness.
Some shareholders are still hoping to hear from you and the 'old' team again, if there still is one.
The repeated failure of the information from supposedly connected gurus & sources, continues to erode shareholder confidence.
The SEC activities, and other legal action concerning CMKX has been interesting, but it is not clear if that activity will ever directly benefit shareholders.
I have chosen to believe in CMKX, and I continue to hope for a good outcome for all shareholders.
Unfortunately, shareholders don't really have any other choice but to wait.
Many people have said what a good person you are, and how much you care about the shareholders.
I would like to believe that also.
The continued lack of credible, factual information supporting a positive outcome for the shareholders, only serves to reinforce the negative assertions of the naysayers.
Hearing from someone who may still be concerned about the best interests of the shareholders, would silence many of the critics and naysayers, and bring a renewed hope to shareholders.
Good or bad, I believe the shareholders have a right to know.
I am one of the 40,000 or more CMKX shareholders.
I started buying shares on November 26th, 2002, the day after CyberMark officially became a Casavant company.
I continued buying shares until June 14th, 2005, shortly before trading was suspended & CMKX was eventually revoked.
Soon, CMKX will be revoked for longer than it was trading.
I have all my shares in certificate form, as requested by the company. I also have certificates for my CIM spinout shares.
I met your brother Ron at the NHRA races in Englishtown, NJ. I was hoping to meet you, but you were not there.
There are many rumors & theories about you and CMKX... Some good, some bad. I'd like to believe the good ones.
However, the 'new' team that you turned the reins over to, does not appear to have any concern whatsoever for the shareholders. I would like to believe there is some hidden method to this apparent madness.
Some shareholders are still hoping to hear from you and the 'old' team again, if there still is one.
The repeated failure of the information from supposedly connected gurus & sources, continues to erode shareholder confidence.
The SEC activities, and other legal action concerning CMKX has been interesting, but it is not clear if that activity will ever directly benefit shareholders.
I have chosen to believe in CMKX, and I continue to hope for a good outcome for all shareholders.
Unfortunately, shareholders don't really have any other choice but to wait.
Many people have said what a good person you are, and how much you care about the shareholders.
I would like to believe that also.
The continued lack of credible, factual information supporting a positive outcome for the shareholders, only serves to reinforce the negative assertions of the naysayers.
Hearing from someone who may still be concerned about the best interests of the shareholders, would silence many of the critics and naysayers, and bring a renewed hope to shareholders.
Good or bad, I believe the shareholders have a right to know.
Friday, September 5, 2008
CMKX - Latest Update For CMKM Diamonds Payout...
November 26, 2002 To September 5, 2008...
5 Years, 9 Months, and 9 Days...!!
2,110 Days...
50,640 Hours...
3,038,400 Minutes...
182,304,000 Seconds...!!
ANY QUESTIONS...??
5 Years, 9 Months, and 9 Days...!!
2,110 Days...
50,640 Hours...
3,038,400 Minutes...
182,304,000 Seconds...!!
ANY QUESTIONS...??
Monday, September 1, 2008
CMKX - Guru Perfomance Evaluation...
November 26, 2002 To September 1, 2008...
5 Years, 9 Months, and 5 Days...!!
2,106 Days... 50,544 Hours... 3,032,640 Minutes...
181,958,400 Seconds...!!
Labor Day Is Here... Another Month Has Ended...
Another 'Sure Thing - Can't Miss' Prediction
For CMKX Goes Down In Flames...!!
Seems Like A Fitting Time For...
Guru Performance Evaluation Top Ten List...!!
(10) "This guru is really not so much of a 'has-been',
but more of a definite 'wanna-be', 'never-will-be'."
(9) "This guru sets low personal standards,
and then consistently fails to achieve them."
(8) "He certainly takes a long time to be so pointless."
(7) "When he opens his mouth, it seems that it is only to change feet."
(6) "This guru has delusions of adequacy."
(5) "He shows great loyalty...
Probably can't get a job anywhere else."
(4) "This guru should go far...
And the sooner he starts, the better."
(3) "I would not allow this guru to breed."
(2) "This guru is depriving a village somewhere of an idiot."
(1) "Considering his latest prediction,
this guru has reached rock bottom...
And has started digging."
5 Years, 9 Months, and 5 Days...!!
2,106 Days... 50,544 Hours... 3,032,640 Minutes...
181,958,400 Seconds...!!
Labor Day Is Here... Another Month Has Ended...
Another 'Sure Thing - Can't Miss' Prediction
For CMKX Goes Down In Flames...!!
Seems Like A Fitting Time For...
Guru Performance Evaluation Top Ten List...!!
(10) "This guru is really not so much of a 'has-been',
but more of a definite 'wanna-be', 'never-will-be'."
(9) "This guru sets low personal standards,
and then consistently fails to achieve them."
(8) "He certainly takes a long time to be so pointless."
(7) "When he opens his mouth, it seems that it is only to change feet."
(6) "This guru has delusions of adequacy."
(5) "He shows great loyalty...
Probably can't get a job anywhere else."
(4) "This guru should go far...
And the sooner he starts, the better."
(3) "I would not allow this guru to breed."
(2) "This guru is depriving a village somewhere of an idiot."
(1) "Considering his latest prediction,
this guru has reached rock bottom...
And has started digging."
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