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.
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