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
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