NEW Al Hodges Update!!!
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Hodges Update
Dear CMKX Plaintiffs:
I know that many of you are anxious to have an opportunity to share what I have requested you to keep confidential, for the purpose of discussion with others and as a means of helping to solidify the shareholder base. I have prepared an update, which follows, that I am now prepared to have released to the various shareholder discussion forums, should one or more of you so desire. If you do decide to post this, please include the entire ‘Update.’
CMKX Litigation Update
This office represents seven of CMKX’s larger shareholders who collectively hold more than 3.5 Billion shares. We have prepared a Bivens based class action lawsuit seeking release of all the funds that have been collected for the benefit of CMKX shareholders, or for damages in an amount in excess of $3,780,000,000,000. This suit alleges that the SEC commissioners have violated the Fifth Amendment Constitutional property rights of the shareholders by withholding consent to the release of such funds, for years, which amounts to a taking without due process of law. Some of the specific allegations made in the complaint include:
From March 17, 2005 through April 29, 2005 CMKM traded publicly, in the US under the trading symbol “CMKX,” a total of 551,756,751,833 shares, an average share volume of more than 17 billion shares per day, reaching a maximum on April 21, 2005 of 94,654,588,201 shares. These figures do not include foreign trades nor trades made on an ex-clearing basis such as those disclosed by Jefferies & Company , Inc. on May 6, 2005: between March 25, 2004 and September 21, 2004 Jefferies traded 111,780,681,204 shares of CMKX stock on an ex-clearing basis.
During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “phantom” shares of CMKM Diamonds Inc, was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.
At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. The Securities and Exchange Commission and the Department of Justice, with assistance from the Department of Homeland Security, believed and developed evidence that said short sellers were utilizing their activities to illegally launder moneys, wrongfully export moneys, avoid payment of taxes, and to support foreign terrorist operations. To fulfill the plan to criminally trap such wrongdoers, the Securities and Exchange Commission, with assistance from the Departments of Justice and Homeland Security:
a) Assisted in and approved the retention of Roger Glenn, an ex-SEC trial attorney and drafter of Sarbanes-Oxley, to join CMKM Diamonds Inc. for the purpose of verifying claims value, increasing authorized shares of stock to 800,000,000,000, and supervising from the inside of the company;
b) Encouraged the company to expand its promotional activities, assisted in the set up of the “racing activities” of the company, and underwrote a substantial portion of the cost of such activities;
c) Consented to, facilitated, and supported the sale of certain company claims to several foreign corporations;
d) Consented to, facilitated, and supported the conferences between Robert A. Maheu and his associate/assistant Royal Canadian Mounted Police Inspector William Majcher on the one hand, and the wrongdoing short sellers on the other, all for the purpose of settling the potential liability of said wrongdoers with consent of the U. S. Government and a representation of no criminal prosecution for such illegal sales;
e) Consented to, facilitated, and supported the declaration of dividends payable by the company to each common shareholder of CMKM Diamonds, Inc.
f) Consented to, facilitated, and supported the distribution of shares of CIM, a private company owned by Urban Casavant, as a stock dividend, including consent and approval of distribution of said shares to holders of more than 1.4 Trillion shares of CMKM Diamonds, Inc. common stock.
g) During the period from November, 2004 through April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada mineral claims to three Chinese domiciled corporations with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the consummation of such sales were placed into a frozen trust for disbursal at a later time.
During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A.. Maheu, with assistance from Royal Canadian Mounted Police Inspector William Majcher, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U. S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.
Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government, and from the sale of additional assets including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs herein are further informed and believe, and based thereon allege, that said moneys, collected for the benefit of shareholders have also been placed in a trust or are otherwise now held in trust by the Depository Trust & Clearing Corporation and the United States Treasury.
Plaintiffs herein are informed and believe, and based thereon allege, that at all times mentioned, the Securities and Exchange Commission reserved unto itself the sole and absolute discretion to determine when moneys collected pursuant to the scheme set forth above would and could be released for distribution.
Demand for release of said moneys has been repeatedly presented to the Securities and Exchange Commission without result. Agents and employees of the Securities and Exchange Commission and the Department of Justice have represented repeatedly that the release of moneys for distribution was imminent, and/or would occur within several weeks, and/or would occur within less than a month. Each of said representations have been made knowing them to be false, and at the specific direction of the named Defendants. These actions of withholding distribution of said moneys, without compensation and without due process of law, amount to a taking of the property of the individual Plaintiffs and of all similarly situated.
In an attempt to avoid protracted litigation we have seen to it that several attorneys at the SEC Office of General Counsel have a copy of the draft; we are further advised that the current SEC Commissioners are also aware [at least] of the pending filing. Our expectation was [and still partially remains] that the individually named Commissioners will not want to answer our lawsuit, thus leaving themselves open to the discovery process. The draft has been in SEC hands for approximately two weeks, and so far we have not received any response, meaningful or otherwise. They could well continue to stonewall, and force us to initiate the litigation. If nothing of significance occurs in the next two weeks the complaint will be filed on January 4, 2010.
HODGES AND ASSOCIATES
Please be kind enough not to discuss other matters which must remain confidential for the time being.
Thanks,
Al
Wednesday, December 16, 2009
Monday, December 14, 2009
***** Is This What The SEC Considers Injured Investors...?? *****
NewAlliance Bancshares, Inc.
http://www.sec.gov/litigation/litreleases/2009/lr21334-order.pdf
SEC
v.
ROBERT R. ROSS, GEORGE 1. KUNDRAT, CHANCE M. VOUGHT, JOHN M. LUCARELLI, and FREDERICK J. RAILA
"Each Eligible Claimant (as defined in the Distribution Plan) who filed a Claim Form with the Commission prior to November 15,2007, shall receive the fixed amount of $4.19 per Eligible Share (as defined in the Declaration). "
"Because the offering was oversubscribed, approximately 2100 depositors did not receive all the shares they requested. "
"As a result, none of the approximately 2100 depositors actually lost any money; rather, they lost the opportunity to purchase additional shares of NewAlliance stock in the IPO and to earn a potential profit on the sale of such shares. "
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
These 'injured investors' did not lose any money, but they are being paid for potential profits on the shares they didn't get...??!!
Thousands of shareholders of CMKM Diamonds DID get all the shares they wanted because it was a stock printing press, not a diamond mining company.
Thousands of shareholders LOST millions of dollars... THAT is the definition of an 'INJURED INVESTOR', not people who didn't make as much profit as they expected...!!
When will CMKM Diamonds shareholders see a Distribution Plan that compensates them for the money that was ROBBED from them...??
Editor's Note - I sent this email to about 80 SEC, DOJ, News & Network email addresses...
http://www.sec.gov/litigation/litreleases/2009/lr21334-order.pdf
SEC
v.
ROBERT R. ROSS, GEORGE 1. KUNDRAT, CHANCE M. VOUGHT, JOHN M. LUCARELLI, and FREDERICK J. RAILA
"Each Eligible Claimant (as defined in the Distribution Plan) who filed a Claim Form with the Commission prior to November 15,2007, shall receive the fixed amount of $4.19 per Eligible Share (as defined in the Declaration). "
"Because the offering was oversubscribed, approximately 2100 depositors did not receive all the shares they requested. "
"As a result, none of the approximately 2100 depositors actually lost any money; rather, they lost the opportunity to purchase additional shares of NewAlliance stock in the IPO and to earn a potential profit on the sale of such shares. "
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
These 'injured investors' did not lose any money, but they are being paid for potential profits on the shares they didn't get...??!!
Thousands of shareholders of CMKM Diamonds DID get all the shares they wanted because it was a stock printing press, not a diamond mining company.
Thousands of shareholders LOST millions of dollars... THAT is the definition of an 'INJURED INVESTOR', not people who didn't make as much profit as they expected...!!
When will CMKM Diamonds shareholders see a Distribution Plan that compensates them for the money that was ROBBED from them...??
Editor's Note - I sent this email to about 80 SEC, DOJ, News & Network email addresses...
Thursday, November 26, 2009
******** Happy Thanksgiving ********* *** And Happy 7th CMKX Anniversary ***
.
CyberMark(CMKI) started trading as a Casavant related 'mining' company 7 YEARS AGO...!!
This Just In... SEC PR...
SEC Surpasses $2 Billion in Fair Fund Distributions in 2009...
http://www.sec.gov/news/press/2009/2009-254.htm
Editor's Note - Yesterday, I sent this email to about 80 SEC, DOJ, News & Network email addresses...
Tomorrow, Thanksgiving Day, will be 7 YEARS since CEO Urban Casavant & CMKM Diamonds started robbing shareholders with their fraudulant PR's and deceptive promotion of a diamond mining company, which turned out to be a stock printing press.
You brag about giving out $2 BILLION to 'injured investors' this year...
When will CMKX shareholders be added to that list, and be compensated for the web of fraud & deception which convinced investors that CMKM Diamonds was a real mining company, and not just another Pink Sheet SCAM...??
CyberMark(CMKI) started trading as a Casavant related 'mining' company 7 YEARS AGO...!!
This Just In... SEC PR...
SEC Surpasses $2 Billion in Fair Fund Distributions in 2009...
http://www.sec.gov/news/press/2009/2009-254.htm
Editor's Note - Yesterday, I sent this email to about 80 SEC, DOJ, News & Network email addresses...
Tomorrow, Thanksgiving Day, will be 7 YEARS since CEO Urban Casavant & CMKM Diamonds started robbing shareholders with their fraudulant PR's and deceptive promotion of a diamond mining company, which turned out to be a stock printing press.
You brag about giving out $2 BILLION to 'injured investors' this year...
When will CMKX shareholders be added to that list, and be compensated for the web of fraud & deception which convinced investors that CMKM Diamonds was a real mining company, and not just another Pink Sheet SCAM...??
Thursday, November 5, 2009
***** MISSION 27 ACCOMPLISHED *****
.
******** YANKEES 2009 WORLD SERIES CHAMPIONS ********
*** CORE 4 *** ONE FOR THE THUMB **** MATSUI WS MVP ***
******** YANKEES 2009 WORLD SERIES CHAMPIONS ********
*** CORE 4 *** ONE FOR THE THUMB **** MATSUI WS MVP ***
Thursday, October 22, 2009
*** CMKX SHAREHOLDER COALITION *** FILES LEGAL ACTION AGAINST THE SEC
CMKX SHAREHOLDER COALITION
FOR FURTHER INFORMATION:
cmkxshareholderscoalition@hotmail.com
Press Release
FOR IMMEDIATE RELEASE October 22, 2009
THE CMKX SHAREHOLDERS COALITION FOR JUSTICE ANNOUNCES THE COMMENCEMENT OF LEGAL ACTION AGAINST THE US SECURITIES AND EXCHANGE COMMISSION (SEC) IN BOTH CANADA AND THE UNITED STATES.
The CMKX Shareholders Coalition for Justice announces the commencement of legal action against the US Securities and Exchange Commission (SEC) in both Canada and the United States. The action follows complaints filed with the Federal Bureau of Investigation in Nevada and the Royal Canadian Mounted Police in British Columbia, Canada. These complaints and the accompanying evidence allege that the SEC facilitated the counterfeiting of multi-millions of publicly traded stock shares by brokerage firms, many of which were implicated in Racketeer Influenced and Corrupt Organizations Act (RICO) felony crimes including counterfeiting and money laundering with organized crime.
More specifically, the evidence submitted to the authorities in the case of CMKM Diamonds (ticker CMKX), believed to be the largest counterfeited stock in United States history, indicates that the SEC colluded with insiders of CMKX to sell hundreds of billions (and possibly trillions) of counterfeit shares, and aided and abetted in the cover-up of brokerage firms who allegedly sold over three hundred billion counterfeit shares of CMKX. With the addition of RICO penalties to investor losses the Coalition is seeking restitution of seven hundred and fifty million dollars ($750,000,000) from the SEC and those they colluded with, along with a freeze on all CMKX assets including land rights past and present currently under regulatory control.
The Coalition is encouraging other victims of this crime to join our cause and form a coalition of companies to pursue a multi-trillion dollar class action in the near future.
We have introduced evidence from the SEC themselves that prove they manipulated the market overall, and CMKX in particular, by not allowing short squeezes in these stocks, thus preventing the victim companies from recovering. The complaint alleges that the SEC attempted to conceal the crime by creating an illegal regulation referred to as the “Grandfather Clause” allowing the perpetrators the right to not deliver these phantom shares as required under the Securities and Exchange Acts of 1933 and subsequent amendments.
The complaint alleges that the Grandfather Clause was developed in concert with the perpetrators in a closed door meeting in June 2004, and is also in violation of the shareholders‟ 5th Amendment Constitutional property rights. This view is shared by Mr. Rod Young, CEO of EagleTech Communications, who has stated “Every shareholder of any Company in America who purchased shares and cannot get them delivered has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights.”
EagleTech is just one of thousands of victim companies systematically manipulated and cellar-boxed by the brokerages under the supervision of the SEC and were then delisted / put out of business by the SEC when financially unable to meet their reporting and other business obligations, eliminating any obligation of the brokerage firms to deliver real shares or value to those they sold counterfeit stock to. Mr. Young goes on to claim ”The government‟s successful defense using the discretionary exemption from Tort Claims in most cases since the 1947 case „Elizabeth Dalehite, et al. v. United States‟ does not apply here. The SEC does not have discretion to suspend the settlement process (Grandfathering), even temporarily as they claim.”
The SEC themselves have admitted in a Securities Industry and Financial Markets Association (SIFMA) meeting the true size and scope of the fraud committed, a fraud they facilitated and covered-up, and continue to cover up to this day. Significantly, the above comments relate directly to the Over the Counter (OTC) market alone.
In a speech delivered by SEC Commissioner Paul S. Atkins, before the 34th Annual SIFMA Operations Conference, he states: http://www.sec.gov/news/speech/2007/spch043007psa.htm
“I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear.
From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street.”
To conclude, we have the evidence that shows massive collusion to defraud the public by the systematic counterfeiting of financial instruments including stocks. We believe this collusion will be found to be the largest RICO (racketeering) crime in history, and that CMKM Diamonds, in particular, is the largest example of this fraud. It is, however, only one company among thousands that were victims.
We demand that an independent special prosecutor be named to investigate this crime and the Securities and Exchange Commission in particular, as they were regulators with the duty to protect the public. They not only did not perform that duty, we allege they were complicit in the crime which has cost the public trillions of dollars. We also demand a Pecora style commission to oversee the clean-up of the market and to restore its integrity. Further updates on legal action will be forth coming.
FOR FURTHER INFORMATION:
cmkxshareholderscoalition@hotmail.com
Press Release
FOR IMMEDIATE RELEASE October 22, 2009
THE CMKX SHAREHOLDERS COALITION FOR JUSTICE ANNOUNCES THE COMMENCEMENT OF LEGAL ACTION AGAINST THE US SECURITIES AND EXCHANGE COMMISSION (SEC) IN BOTH CANADA AND THE UNITED STATES.
The CMKX Shareholders Coalition for Justice announces the commencement of legal action against the US Securities and Exchange Commission (SEC) in both Canada and the United States. The action follows complaints filed with the Federal Bureau of Investigation in Nevada and the Royal Canadian Mounted Police in British Columbia, Canada. These complaints and the accompanying evidence allege that the SEC facilitated the counterfeiting of multi-millions of publicly traded stock shares by brokerage firms, many of which were implicated in Racketeer Influenced and Corrupt Organizations Act (RICO) felony crimes including counterfeiting and money laundering with organized crime.
More specifically, the evidence submitted to the authorities in the case of CMKM Diamonds (ticker CMKX), believed to be the largest counterfeited stock in United States history, indicates that the SEC colluded with insiders of CMKX to sell hundreds of billions (and possibly trillions) of counterfeit shares, and aided and abetted in the cover-up of brokerage firms who allegedly sold over three hundred billion counterfeit shares of CMKX. With the addition of RICO penalties to investor losses the Coalition is seeking restitution of seven hundred and fifty million dollars ($750,000,000) from the SEC and those they colluded with, along with a freeze on all CMKX assets including land rights past and present currently under regulatory control.
The Coalition is encouraging other victims of this crime to join our cause and form a coalition of companies to pursue a multi-trillion dollar class action in the near future.
We have introduced evidence from the SEC themselves that prove they manipulated the market overall, and CMKX in particular, by not allowing short squeezes in these stocks, thus preventing the victim companies from recovering. The complaint alleges that the SEC attempted to conceal the crime by creating an illegal regulation referred to as the “Grandfather Clause” allowing the perpetrators the right to not deliver these phantom shares as required under the Securities and Exchange Acts of 1933 and subsequent amendments.
The complaint alleges that the Grandfather Clause was developed in concert with the perpetrators in a closed door meeting in June 2004, and is also in violation of the shareholders‟ 5th Amendment Constitutional property rights. This view is shared by Mr. Rod Young, CEO of EagleTech Communications, who has stated “Every shareholder of any Company in America who purchased shares and cannot get them delivered has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights.”
EagleTech is just one of thousands of victim companies systematically manipulated and cellar-boxed by the brokerages under the supervision of the SEC and were then delisted / put out of business by the SEC when financially unable to meet their reporting and other business obligations, eliminating any obligation of the brokerage firms to deliver real shares or value to those they sold counterfeit stock to. Mr. Young goes on to claim ”The government‟s successful defense using the discretionary exemption from Tort Claims in most cases since the 1947 case „Elizabeth Dalehite, et al. v. United States‟ does not apply here. The SEC does not have discretion to suspend the settlement process (Grandfathering), even temporarily as they claim.”
The SEC themselves have admitted in a Securities Industry and Financial Markets Association (SIFMA) meeting the true size and scope of the fraud committed, a fraud they facilitated and covered-up, and continue to cover up to this day. Significantly, the above comments relate directly to the Over the Counter (OTC) market alone.
In a speech delivered by SEC Commissioner Paul S. Atkins, before the 34th Annual SIFMA Operations Conference, he states: http://www.sec.gov/news/speech/2007/spch043007psa.htm
“I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear.
From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street.”
To conclude, we have the evidence that shows massive collusion to defraud the public by the systematic counterfeiting of financial instruments including stocks. We believe this collusion will be found to be the largest RICO (racketeering) crime in history, and that CMKM Diamonds, in particular, is the largest example of this fraud. It is, however, only one company among thousands that were victims.
We demand that an independent special prosecutor be named to investigate this crime and the Securities and Exchange Commission in particular, as they were regulators with the duty to protect the public. They not only did not perform that duty, we allege they were complicit in the crime which has cost the public trillions of dollars. We also demand a Pecora style commission to oversee the clean-up of the market and to restore its integrity. Further updates on legal action will be forth coming.
Tuesday, September 22, 2009
***** CMKX - CMKM Diamonds Inc. ***** U.S. Department of Justice Makes Arrests
####
http://www.usdoj.gov/usao/nv/press/september2009/cmkm09212009.htm
####
U.S. Department of Justice
United States Attorney
District of Nevada
Gregory A. Brower United States Attorney
333 Las Vegas Blvd. SouthSuite 5000
Las Vegas, NV 89101
(702) 388-6336
FAX (702) 388-6296
NEWS RELEASE MONDAY, SEPTEMBER 21, 2009
PRESS CONTACTS: Natalie Collins, Public Affairs Specialist
(702) 388-6508
FIVE PERSONS ARRESTED IN SECURITIES FRAUD CASE
Investors Lost Over $60 Million in Stock Scheme
LAS VEGAS - - Five persons, including three Las Vegans and a lawyer licensed to practice in Nevada, have been arrested and charged with federal conspiracy and securities fraud crimes for issuing and selling hundreds of billions of shares of unregistered stock, announced Greg Brower, United States Attorney for the District of Nevada.
Helen Bagley, 62; Ginger Gutierrez, 37; and James Kinney, 39, all of Las Vegas; and Brian Dvorak, 54, of Boulder City, Colorado, were arrested on September 16 and September 17 in their respective cities of residence. Another defendant was arrested in England earlier this month and the U.S. Department of Justice has requested his extradition. A sixth defendant remains at large. Defendants Bagley, Gutierrez, and Kinney made initial appearances on Thursday, September 17, 2009, before U.S. Magistrate Judge George W. Foley, Jr. and were released pending trial. Defendant Dvorak appeared on September 17, 2009, before a U.S. Magistrate Judge in Denver, Colorado, and was released pending trial.
The defendants are charged in a Superseding Indictment, which was returned by the Federal Grand Jury in Las Vegas on May 27, 2009, but remained sealed until Thursday, September 17, 2009. All of the defendants are charged with one count of Conspiracy to Sell Unregistered Securities, to Make False Statements to the Security and Exchange Commission (SEC), to Desist From Filing Periodic Reports, and to Commit Securities Fraud; two counts of Securities Fraud; and one count of Conspiracy to Commit Securities Fraud. Defendants Gutierrez, Kinney, and two others are also charged with Conspiracy to Commit Money Laundering.
The Superseding Indictment alleges that from about September 2001 to March 2009, the defendants conspired to sell unregistered stock and stock certificates of CMKM Diamonds, Inc.(CMKM) by using the mails, wire services, over the counter stock exchanges, and other means of interstate commerce. The defendants also are alleged to have used manipulative and deceptive devices to sell CMKM stock and stock certificates.
The scheme allegedly began in September 2001 when one of the conspirators gained control of a publicly traded corporate shell, then known as Cyber Mark. Incorporated in Delaware, Cyber Mark had at one time been a software company. However, by 2001 the business was defunct and had no appreciable assets or revenue. This corporate shell nonetheless remained registered with the U.S. Securities and Exchange Commission (“SEC”) and eligible to publicly trade its stock. In April 2002, Cyber Mark reorganized as a Nevada corporation and filed Articles of Conversion with the Secretary of State of Nevada absorbing the earlier Delaware corporation. At the time of its incorporation in Nevada, this corporate shell was authorized to issue up to five hundred million shares of common stock of which over three hundred million had been issued and were outstanding.
In November 2002, Cyber Mark entered into an agreement to purchase mining claims or interests held by five companies owned or controlled by Casavant and his family, ostensibly in exchange for two million dollars and approximately three billion shares of Cyber Mark restricted common stock notwithstanding that this corporate shell had no appreciable assets, revenue or value. Cyber Mark contemporaneously filed an Amendment to its Articles of Incorporation increasing its authorized common shares to ten billion four hundred ninety-seven million. Although Cyber Mark did not merge with Casavant's companies, Casavant became director, president and chief executive officer of Cyber Mark. On December 3, 2002, Cyber Mark changed its corporate name to Casavant Mining Kimberlite International. In February 2004, the company took the name CMKM Diamonds, Inc.
As a publicly traded corporation, CMKM was required to file quarterly and annual reports with the SEC. These reporting requirements are intended to provide the investing public with current and accurate information to enable investors to make informed decisions. However, CMKM did not file quarterly reports between October 2002 and June 2005, nor did it file annual reports for calendar years 2002, 2003 and 2004. By evading statutory and regulatory reporting requirements in this manner, the conspirators concealed information regarding CMKM's assets, liabilities, operations, revenues, and shares from both government regulators and the investing public. Having effectively cast a cloak of secrecy over the corporation, the conspirators increased CMKM's authorized shares from ten billion four hundred ninety-seven million to an estimated eight hundred billion shares through a series of amendments to CMKM’s Articles of Incorporation between December 2002 and August 2004.
Bagley, doing business as 1st Global Stock Transfer LLC, thereafter issued hundreds of billions of shares of CMKM stock to the conspirators’ nominees, alter-egos associates and straw-purchasers. Most of these shares of CMKM stock were not registered with the SEC and the share certificates should have borne restrictive legends declaring that the shares were un registered and could not be sold to the public. However, as part of the conspiracy, Dvorak issued opinion letters falsely and fraudulently invoking an exemption from the rules and regulations that restricting the sale of unregistered stock. Specifically, the conspirators invoked SEC Rule 144(k) by falsely representing that the nominees and straw-purchasers had purchased or earned billions of shares of CMKM stock more than two years earlier and that those shares had mistakenly not been issued at that time. In this manner, the conspirators fraudulently issued hundreds of billions of unregistered shares of CMKM stock without restrictive legends. Bagley issued sheaves of unlegended stock certificates representing hundreds of billions of shares of CMKM stock to nominees, alter-egos, associates and straw-purchasers.
Despite issuing approximately eight hundred billion (800,000,000,000) shares of stock, CMKM remained a hollow shell.
Although purporting to be an international diamond exploration and mining company, CMKM did not conduct substantive mining operations and did not produce any diamonds.
Although CMKM was not engaged in any productive mining activities or business of any kind (other than issuing its own stock), the conspirators created a market and stoked demand for CMKM stock.
To create the appearance of an active and established market for CMKM stock, and to disguise the fact that they were the primary sellers of CMKM stock, the conspirators surreptitiously traded in CMKM stock through multiple nominees, alter-egos, associates and straw-purchasers. The volume of the trading activity generated by the conspirators sparked investor interest in CMKM. The conspirators spurred interest in CMKM's stock by sponsoring motor sports racing teams and Internet promotions. Further, in the void created by CMKM's failure to file periodic reports, the conspirators sowed misinformation regarding CMKM's activities and spurred speculation regarding the company’s prospects and value through false and misleading press releases and market manipulation.
Fueled by the fraudulent promotions and a seemingly endless supply of CMKM stock, the conspirators sold hundreds of billions of CMKM stock to the investing public. Although CMKM shares usually traded at less than a penny per share, the sub-penny price was offset by the astounding volume of shares traded. Indeed, records reflect that during the course of the fraudulent scheme approximately 40,000 investors purchased CMKM stock in market transactions and that trading volume frequently exceeded one billion shares—and sometimes two billion shares—per day. In March 2005, the SEC suspended CMKM's trading status, and in October 2005, the SEC ordered CMKM deregistered. The indictment alleges that before the scheme was brought to an end, the defendants realized more than sixty million dollars through the fraudulent sale of CMKM stock. Kinney, Gutierrez and two others are charged with conspiracy to launder the proceeds of the criminal scheme.
If convicted, the defendants face up to 5 years in prison for conspiracy to commit securities offenses as charged in Count One; up to 10 years in prison for securities fraud in violation of 15 U.S.C. § 78j, as charged in Count Two; up to 25 years in prison for committing, or for conspiring to commit, securities fraud in violation of 18 U.S.C. § 1348, as charged in Counts Three and Four; and up to 20 years in prison for conspiracy to commit money laundering, as charged in Count Five. Defendants are also subject to potential fines and the indictment seeks the forfeiture of up to $60 million from the defendants if they are convicted.
This case is being investigated by the FBI and IRS Criminal Investigation. The SEC also previously brought civil enforcement actions in this matter. The criminal case is being prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Michael Chu.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
# # # #
http://www.usdoj.gov/usao/nv/press/september2009/cmkm09212009.htm
####
U.S. Department of Justice
United States Attorney
District of Nevada
Gregory A. Brower United States Attorney
333 Las Vegas Blvd. SouthSuite 5000
Las Vegas, NV 89101
(702) 388-6336
FAX (702) 388-6296
NEWS RELEASE MONDAY, SEPTEMBER 21, 2009
PRESS CONTACTS: Natalie Collins, Public Affairs Specialist
(702) 388-6508
FIVE PERSONS ARRESTED IN SECURITIES FRAUD CASE
Investors Lost Over $60 Million in Stock Scheme
LAS VEGAS - - Five persons, including three Las Vegans and a lawyer licensed to practice in Nevada, have been arrested and charged with federal conspiracy and securities fraud crimes for issuing and selling hundreds of billions of shares of unregistered stock, announced Greg Brower, United States Attorney for the District of Nevada.
Helen Bagley, 62; Ginger Gutierrez, 37; and James Kinney, 39, all of Las Vegas; and Brian Dvorak, 54, of Boulder City, Colorado, were arrested on September 16 and September 17 in their respective cities of residence. Another defendant was arrested in England earlier this month and the U.S. Department of Justice has requested his extradition. A sixth defendant remains at large. Defendants Bagley, Gutierrez, and Kinney made initial appearances on Thursday, September 17, 2009, before U.S. Magistrate Judge George W. Foley, Jr. and were released pending trial. Defendant Dvorak appeared on September 17, 2009, before a U.S. Magistrate Judge in Denver, Colorado, and was released pending trial.
The defendants are charged in a Superseding Indictment, which was returned by the Federal Grand Jury in Las Vegas on May 27, 2009, but remained sealed until Thursday, September 17, 2009. All of the defendants are charged with one count of Conspiracy to Sell Unregistered Securities, to Make False Statements to the Security and Exchange Commission (SEC), to Desist From Filing Periodic Reports, and to Commit Securities Fraud; two counts of Securities Fraud; and one count of Conspiracy to Commit Securities Fraud. Defendants Gutierrez, Kinney, and two others are also charged with Conspiracy to Commit Money Laundering.
The Superseding Indictment alleges that from about September 2001 to March 2009, the defendants conspired to sell unregistered stock and stock certificates of CMKM Diamonds, Inc.(CMKM) by using the mails, wire services, over the counter stock exchanges, and other means of interstate commerce. The defendants also are alleged to have used manipulative and deceptive devices to sell CMKM stock and stock certificates.
The scheme allegedly began in September 2001 when one of the conspirators gained control of a publicly traded corporate shell, then known as Cyber Mark. Incorporated in Delaware, Cyber Mark had at one time been a software company. However, by 2001 the business was defunct and had no appreciable assets or revenue. This corporate shell nonetheless remained registered with the U.S. Securities and Exchange Commission (“SEC”) and eligible to publicly trade its stock. In April 2002, Cyber Mark reorganized as a Nevada corporation and filed Articles of Conversion with the Secretary of State of Nevada absorbing the earlier Delaware corporation. At the time of its incorporation in Nevada, this corporate shell was authorized to issue up to five hundred million shares of common stock of which over three hundred million had been issued and were outstanding.
In November 2002, Cyber Mark entered into an agreement to purchase mining claims or interests held by five companies owned or controlled by Casavant and his family, ostensibly in exchange for two million dollars and approximately three billion shares of Cyber Mark restricted common stock notwithstanding that this corporate shell had no appreciable assets, revenue or value. Cyber Mark contemporaneously filed an Amendment to its Articles of Incorporation increasing its authorized common shares to ten billion four hundred ninety-seven million. Although Cyber Mark did not merge with Casavant's companies, Casavant became director, president and chief executive officer of Cyber Mark. On December 3, 2002, Cyber Mark changed its corporate name to Casavant Mining Kimberlite International. In February 2004, the company took the name CMKM Diamonds, Inc.
As a publicly traded corporation, CMKM was required to file quarterly and annual reports with the SEC. These reporting requirements are intended to provide the investing public with current and accurate information to enable investors to make informed decisions. However, CMKM did not file quarterly reports between October 2002 and June 2005, nor did it file annual reports for calendar years 2002, 2003 and 2004. By evading statutory and regulatory reporting requirements in this manner, the conspirators concealed information regarding CMKM's assets, liabilities, operations, revenues, and shares from both government regulators and the investing public. Having effectively cast a cloak of secrecy over the corporation, the conspirators increased CMKM's authorized shares from ten billion four hundred ninety-seven million to an estimated eight hundred billion shares through a series of amendments to CMKM’s Articles of Incorporation between December 2002 and August 2004.
Bagley, doing business as 1st Global Stock Transfer LLC, thereafter issued hundreds of billions of shares of CMKM stock to the conspirators’ nominees, alter-egos associates and straw-purchasers. Most of these shares of CMKM stock were not registered with the SEC and the share certificates should have borne restrictive legends declaring that the shares were un registered and could not be sold to the public. However, as part of the conspiracy, Dvorak issued opinion letters falsely and fraudulently invoking an exemption from the rules and regulations that restricting the sale of unregistered stock. Specifically, the conspirators invoked SEC Rule 144(k) by falsely representing that the nominees and straw-purchasers had purchased or earned billions of shares of CMKM stock more than two years earlier and that those shares had mistakenly not been issued at that time. In this manner, the conspirators fraudulently issued hundreds of billions of unregistered shares of CMKM stock without restrictive legends. Bagley issued sheaves of unlegended stock certificates representing hundreds of billions of shares of CMKM stock to nominees, alter-egos, associates and straw-purchasers.
Despite issuing approximately eight hundred billion (800,000,000,000) shares of stock, CMKM remained a hollow shell.
Although purporting to be an international diamond exploration and mining company, CMKM did not conduct substantive mining operations and did not produce any diamonds.
Although CMKM was not engaged in any productive mining activities or business of any kind (other than issuing its own stock), the conspirators created a market and stoked demand for CMKM stock.
To create the appearance of an active and established market for CMKM stock, and to disguise the fact that they were the primary sellers of CMKM stock, the conspirators surreptitiously traded in CMKM stock through multiple nominees, alter-egos, associates and straw-purchasers. The volume of the trading activity generated by the conspirators sparked investor interest in CMKM. The conspirators spurred interest in CMKM's stock by sponsoring motor sports racing teams and Internet promotions. Further, in the void created by CMKM's failure to file periodic reports, the conspirators sowed misinformation regarding CMKM's activities and spurred speculation regarding the company’s prospects and value through false and misleading press releases and market manipulation.
Fueled by the fraudulent promotions and a seemingly endless supply of CMKM stock, the conspirators sold hundreds of billions of CMKM stock to the investing public. Although CMKM shares usually traded at less than a penny per share, the sub-penny price was offset by the astounding volume of shares traded. Indeed, records reflect that during the course of the fraudulent scheme approximately 40,000 investors purchased CMKM stock in market transactions and that trading volume frequently exceeded one billion shares—and sometimes two billion shares—per day. In March 2005, the SEC suspended CMKM's trading status, and in October 2005, the SEC ordered CMKM deregistered. The indictment alleges that before the scheme was brought to an end, the defendants realized more than sixty million dollars through the fraudulent sale of CMKM stock. Kinney, Gutierrez and two others are charged with conspiracy to launder the proceeds of the criminal scheme.
If convicted, the defendants face up to 5 years in prison for conspiracy to commit securities offenses as charged in Count One; up to 10 years in prison for securities fraud in violation of 15 U.S.C. § 78j, as charged in Count Two; up to 25 years in prison for committing, or for conspiring to commit, securities fraud in violation of 18 U.S.C. § 1348, as charged in Counts Three and Four; and up to 20 years in prison for conspiracy to commit money laundering, as charged in Count Five. Defendants are also subject to potential fines and the indictment seeks the forfeiture of up to $60 million from the defendants if they are convicted.
This case is being investigated by the FBI and IRS Criminal Investigation. The SEC also previously brought civil enforcement actions in this matter. The criminal case is being prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Michael Chu.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
# # # #
Thursday, September 17, 2009
***** CMKX - CMKM Diamonds Inc. ***** DOJ Issues Six Criminal Indictments in CMKM Diamonds Case
***
DOJ Issues Six Criminal Indictments in CMKM Diamonds Case
http://www.faulkingtruth.com/Articles/Commentary/1097.html
The indictment will be available on the CMKM Diamonds website tomorrow at
www.cmkmdiamondsinc.com
Stay Tuned...
***
Sealed Grand Jury Indictments From May/2009 are UNSEALED...!!
http://www.cmkmdiamondsinc.com/documents/cmkm_indictments_5-27-09.pdf
***
CEO Mark Faulk OUT...
Former CEO Kevin West Back IN...!!
The Saga Continues...
***
DOJ Issues Six Criminal Indictments in CMKM Diamonds Case
http://www.faulkingtruth.com/Articles/Commentary/1097.html
The indictment will be available on the CMKM Diamonds website tomorrow at
www.cmkmdiamondsinc.com
Stay Tuned...
***
Sealed Grand Jury Indictments From May/2009 are UNSEALED...!!
http://www.cmkmdiamondsinc.com/documents/cmkm_indictments_5-27-09.pdf
***
CEO Mark Faulk OUT...
Former CEO Kevin West Back IN...!!
The Saga Continues...
***
Wednesday, September 9, 2009
CMKX - CMKM Diamonds Inc. *** SEC... Where In The World Is Urban Casavant...??
FINAL JUDGMENT OF PERMANENT INJUNCTION AND
OTHER RELIEF AGAINST DEFENDANT URBAN CASAVANT
Case 2:08-cv-00437-LRH-RJJ Document 129 Filed 09/03/2009
http://www.sec.gov/divisions/enforce/claims/casavantjudgment090209.pdf
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that...
Casavant is liable for disgorgement of $31,500,000, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $2,689,433.62, and a civil penalty in the amount of $31,500,000 pursuant to Section 20(d) of the Securities Act, 15 U.S.C. Section 77t(d), and Section 21(d)(3) of the Exchange Act, 15 U.S.C. 78u(d)(3).
Casavant shall satisfy this obligation by paying $65,689,433.62 within ten business days to the Clerk of this Court, together with a cover letter identifying Casavant as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Final Judgment.
Casavant shall simultaneously transmit photocopies of such payment and letter to the Commission's counsel in this action. By making this payment, Casavant relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Casavant. Casavant shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
The Clerk shall deposit the funds into an interest bearing account with the Court Registry Investment System ("CRIS") or any other type of interest bearing account that is utilized by the Court.
These funds, together with any interest and income earned thereon (collectively, the "Fund"), shall be held in the interest bearing account until further order of the Court. In accordance with 28 U.S.C. § 1914 and the guidelines set by the Director of the Administrative Office of the United States Courts, the Clerk is directed, without further order of this Court, to deduct from the income earned on the money in the Fund a fee equal to ten percent of the income earned on the Fund. Such fee shall not exceed that authorized by the Judicial Conference of the United States.
The Commission may by motion propose a plan to distribute the Fund subject to the Court's approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes Oxley Act of2002.
OTHER RELIEF AGAINST DEFENDANT URBAN CASAVANT
Case 2:08-cv-00437-LRH-RJJ Document 129 Filed 09/03/2009
http://www.sec.gov/divisions/enforce/claims/casavantjudgment090209.pdf
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that...
Casavant is liable for disgorgement of $31,500,000, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $2,689,433.62, and a civil penalty in the amount of $31,500,000 pursuant to Section 20(d) of the Securities Act, 15 U.S.C. Section 77t(d), and Section 21(d)(3) of the Exchange Act, 15 U.S.C. 78u(d)(3).
Casavant shall satisfy this obligation by paying $65,689,433.62 within ten business days to the Clerk of this Court, together with a cover letter identifying Casavant as a defendant in this action; setting forth the title and civil action number of this action and the name of this Court; and specifying that payment is made pursuant to this Final Judgment.
Casavant shall simultaneously transmit photocopies of such payment and letter to the Commission's counsel in this action. By making this payment, Casavant relinquishes all legal and equitable right, title, and interest in such funds, and no part of the funds shall be returned to Casavant. Casavant shall pay post-judgment interest on any delinquent amounts pursuant to 28 U.S.C. § 1961.
The Clerk shall deposit the funds into an interest bearing account with the Court Registry Investment System ("CRIS") or any other type of interest bearing account that is utilized by the Court.
These funds, together with any interest and income earned thereon (collectively, the "Fund"), shall be held in the interest bearing account until further order of the Court. In accordance with 28 U.S.C. § 1914 and the guidelines set by the Director of the Administrative Office of the United States Courts, the Clerk is directed, without further order of this Court, to deduct from the income earned on the money in the Fund a fee equal to ten percent of the income earned on the Fund. Such fee shall not exceed that authorized by the Judicial Conference of the United States.
The Commission may by motion propose a plan to distribute the Fund subject to the Court's approval. Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes Oxley Act of2002.
Monday, June 29, 2009
SEC INFORMATION FOR CMKM DIAMONDS INVESTORS
SEC Obtains Summary Judgment Against Four Defendants in CMKM Diamonds Case
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062309.htm
INFORMATION FOR CMKM DIAMONDS INVESTORS
CIVIL ACTION AGAINST CMKM DIAMONDS, INC.
URBAN CASAVANT, et al.
RECENT DEVELOPMENTS
On June 23, 2009, the federal district court in the District of Nevada granted the SEC’s motion for summary judgment against defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso.
The court ordered:
Edwards to pay $28,583,288.98 in disgorgement and prejudgment interest and a civil penalty of $26,400,000;
Anderson to pay $2,490,211.04 in disgorgement and prejudgment interest and a civil penalty of $2,300,000; and
The Tomassos to pay $702,131.22 in disgorgement and prejudgment interest and a civil penalty of $648,500.
The court ordered the defendants to pay these amounts to the Clerk of the Court for the District of Nevada within ten business days. Any amounts paid to the Clerk will be deposited into an interest-bearing account with the Court Registry Investment System.
In cases where the SEC obtains a judgment to recover money from the defendants, and the defendants do not comply with the judgment by paying the money, the SEC will seek to enforce the judgment.
It is not yet known how much money, if any, will be recovered in this case. If the assets ultimately collected are sufficient for a practical and economically feasible distribution of funds to investors, the SEC may by motion to the court propose a plan to distribute the funds. No funds can be distributed to investors unless and until the court approves a distribution plan.
Order Granting SEC’s Motion for Summary Judgment Against Defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso (June 23, 2009)
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062409.pdf
BACKGROUND
On April 7, 2008, the SEC filed a civil injunctive action against CMKM Diamonds, Inc., its former Chairman and CEO, Urban Casavant, and 12 other 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, Nevada. The SEC charged all of the defendants with violating the registration provisions of the federal securities laws. In addition, the Commission charged CMKM and Casavant with violating the antifraud and various reporting, record keeping, and internal controls provisions.
Litigation Release No. 20519: 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 (April 7, 2008)
http://www.sec.gov/litigation/litreleases/2008/lr20519.htm
Complaint
http://www.sec.gov/litigation/complaints/2008/comp20519.pdf
SELECTED COURT ORDERS
Final Judgment of Permanent Injunction Against Defendant CMKM Diamonds, Inc. (April 21, 2008)
http://www.sec.gov/divisions/enforce/claims/cmkmfinaljudgment.pdf
On April 21, 2008, the court entered a final judgment against CMKM Diamonds, Inc. enjoining it from future violations of the federal securities laws.
Order Granting SEC’s Motion for Summary Judgment Against Defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso (June 23, 2009)
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062409.pdf
OTHER SEC ACTIONS CONCERNING CMKM DIAMONDS
Litigation Release No. 20855: Securities and Exchange Commission v. Marco Glisson, Civil Action No. 2:09-cv-00104 (D. Nevada) (January 15, 2009)
http://www.sec.gov/litigation/litreleases/2009/lr20855.htm
Complaint
http://www.sec.gov/litigation/complaints/2009/comp20855.pdf
In the Matter of Daryl Anderson, Admin. Proc. File No. 3-13156 (September 2, 2008) (Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing)
http://www.sec.gov/litigation/admin/2008/34-58449-o.pdf
Securities Exchange Act Release No. 58958 (November 14, 2008) (Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934)
http://www.sec.gov/litigation/admin/2008/34-58958.pdf
In the Matter of CMKM Diamonds, Inc, Initial Decision Release No. 291, Administrative Proceeding File No. 3-11858 (July 12, 2005)
http://www.sec.gov/litigation/aljdec/id291bpm.htm
Securities Exchange Act of 1934 Release No. 52694 (October 28, 2005) (Order Dismissing Review Proceedings and Notice of Finality)
http://www.sec.gov/litigation/aljdec/34-52694.pdf
Release No. 34-51305 (March 3, 2005) (Trading Suspension: CMKM Diamonds, Inc., aka Casavant Mining Kimberlite International, Inc.)
http://www.sec.gov/litigation/suspensions/34-51305.htm
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062309.htm
--------------------------------------------------------------------------------
Home Previous Page Modified: 06/26/2009
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062309.htm
INFORMATION FOR CMKM DIAMONDS INVESTORS
CIVIL ACTION AGAINST CMKM DIAMONDS, INC.
URBAN CASAVANT, et al.
RECENT DEVELOPMENTS
On June 23, 2009, the federal district court in the District of Nevada granted the SEC’s motion for summary judgment against defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso.
The court ordered:
Edwards to pay $28,583,288.98 in disgorgement and prejudgment interest and a civil penalty of $26,400,000;
Anderson to pay $2,490,211.04 in disgorgement and prejudgment interest and a civil penalty of $2,300,000; and
The Tomassos to pay $702,131.22 in disgorgement and prejudgment interest and a civil penalty of $648,500.
The court ordered the defendants to pay these amounts to the Clerk of the Court for the District of Nevada within ten business days. Any amounts paid to the Clerk will be deposited into an interest-bearing account with the Court Registry Investment System.
In cases where the SEC obtains a judgment to recover money from the defendants, and the defendants do not comply with the judgment by paying the money, the SEC will seek to enforce the judgment.
It is not yet known how much money, if any, will be recovered in this case. If the assets ultimately collected are sufficient for a practical and economically feasible distribution of funds to investors, the SEC may by motion to the court propose a plan to distribute the funds. No funds can be distributed to investors unless and until the court approves a distribution plan.
Order Granting SEC’s Motion for Summary Judgment Against Defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso (June 23, 2009)
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062409.pdf
BACKGROUND
On April 7, 2008, the SEC filed a civil injunctive action against CMKM Diamonds, Inc., its former Chairman and CEO, Urban Casavant, and 12 other 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, Nevada. The SEC charged all of the defendants with violating the registration provisions of the federal securities laws. In addition, the Commission charged CMKM and Casavant with violating the antifraud and various reporting, record keeping, and internal controls provisions.
Litigation Release No. 20519: 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 (April 7, 2008)
http://www.sec.gov/litigation/litreleases/2008/lr20519.htm
Complaint
http://www.sec.gov/litigation/complaints/2008/comp20519.pdf
SELECTED COURT ORDERS
Final Judgment of Permanent Injunction Against Defendant CMKM Diamonds, Inc. (April 21, 2008)
http://www.sec.gov/divisions/enforce/claims/cmkmfinaljudgment.pdf
On April 21, 2008, the court entered a final judgment against CMKM Diamonds, Inc. enjoining it from future violations of the federal securities laws.
Order Granting SEC’s Motion for Summary Judgment Against Defendants John Edwards, Daryl Anderson, and Kathleen and Anthony Tomasso (June 23, 2009)
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062409.pdf
OTHER SEC ACTIONS CONCERNING CMKM DIAMONDS
Litigation Release No. 20855: Securities and Exchange Commission v. Marco Glisson, Civil Action No. 2:09-cv-00104 (D. Nevada) (January 15, 2009)
http://www.sec.gov/litigation/litreleases/2009/lr20855.htm
Complaint
http://www.sec.gov/litigation/complaints/2009/comp20855.pdf
In the Matter of Daryl Anderson, Admin. Proc. File No. 3-13156 (September 2, 2008) (Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Notice of Hearing)
http://www.sec.gov/litigation/admin/2008/34-58449-o.pdf
Securities Exchange Act Release No. 58958 (November 14, 2008) (Order Making Findings and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934)
http://www.sec.gov/litigation/admin/2008/34-58958.pdf
In the Matter of CMKM Diamonds, Inc, Initial Decision Release No. 291, Administrative Proceeding File No. 3-11858 (July 12, 2005)
http://www.sec.gov/litigation/aljdec/id291bpm.htm
Securities Exchange Act of 1934 Release No. 52694 (October 28, 2005) (Order Dismissing Review Proceedings and Notice of Finality)
http://www.sec.gov/litigation/aljdec/34-52694.pdf
Release No. 34-51305 (March 3, 2005) (Trading Suspension: CMKM Diamonds, Inc., aka Casavant Mining Kimberlite International, Inc.)
http://www.sec.gov/litigation/suspensions/34-51305.htm
http://www.sec.gov/divisions/enforce/claims/cmkmopinion062309.htm
--------------------------------------------------------------------------------
Home Previous Page Modified: 06/26/2009
Wednesday, June 3, 2009
OT - Venice Street Scene by F. Ferruzza
Venice Street Scene by F. Ferruzza...
Privately owned for approximately 50 years.
Owner seeking biographical information on artist F. Ferruzza,
and historical information on this Venice Street Scene painting.
Please contact owner with any information at tbo452@aol.com
Editor's Note - Painting size...
Approximately 40 inches W x 30 inches H
Monday, April 20, 2009
CMKX - CMKM Diamonds Inc. - ***Shareholder Theme Song***
West Side Story - SOMETHING'S COMING
(TONY)
Could be!
Who knows?
There's something due any day;
I will know right away,
Soon as it shows.
It may come cannonballing down through the sky,
Gleam in its eye,
Bright as a rose!
Who knows?
It's only just out of reach,
Down the block, on a beach,
Under a tree.
I got a feeling there's a miracle due,
Gonna come true,
Coming to me!
Could it be? Yes, it could.
Something's coming, something good,
If I can wait!
Something's coming, I don't know what it is,
But it is
Gonna be great!
With a click, with a shock,
Phone'll jingle, door'll knock,
Open the latch!
Something's coming, don't know when, but it's soon;
Catch the moon,
One-handed catch!
Around the corner,
Or whistling down the river,
Come on, deliver
To me!
Will it be? Yes, it will.
Maybe just by holding still,
It'll be there!
Come on, something, come on in, don't be shy,
Meet a guy,
Pull up a chair!
The air is humming,
And something great is coming!
Who knows?
It's only just out of reach,
Down the block, on a beach,
Maybe tonight . . .
Music By Leonard Bernstein, Lyrics By Stephen Sondheim.
Editor's Note - Finishing the race in a very close 2nd Place was... Annie's 'Tomorrow'...!!
Annie - TOMORROW
(ANNIE)
The sun'll come out
Tomorrow
Bet your bottom dollar
That tomorrow
There'll be sun!
Just thinkin' about
Tomorrow
Clears away the cobwebs,
And the sorrow
'Til there's none!
When I'm stuck with a day
That's gray,
And lonely,
I just stick out my chin
And Grin,
And Say,
Oh!
The sun'll come out
Tomorrow
So ya gotta hang on
'Til tomorrow
Come what may
Tomorrow! Tomorrow!
I love ya Tomorrow!
You're always
A day
A way!
Music By Charles Strouse, Lyrics By Martin Charnin.
(TONY)
Could be!
Who knows?
There's something due any day;
I will know right away,
Soon as it shows.
It may come cannonballing down through the sky,
Gleam in its eye,
Bright as a rose!
Who knows?
It's only just out of reach,
Down the block, on a beach,
Under a tree.
I got a feeling there's a miracle due,
Gonna come true,
Coming to me!
Could it be? Yes, it could.
Something's coming, something good,
If I can wait!
Something's coming, I don't know what it is,
But it is
Gonna be great!
With a click, with a shock,
Phone'll jingle, door'll knock,
Open the latch!
Something's coming, don't know when, but it's soon;
Catch the moon,
One-handed catch!
Around the corner,
Or whistling down the river,
Come on, deliver
To me!
Will it be? Yes, it will.
Maybe just by holding still,
It'll be there!
Come on, something, come on in, don't be shy,
Meet a guy,
Pull up a chair!
The air is humming,
And something great is coming!
Who knows?
It's only just out of reach,
Down the block, on a beach,
Maybe tonight . . .
Music By Leonard Bernstein, Lyrics By Stephen Sondheim.
Editor's Note - Finishing the race in a very close 2nd Place was... Annie's 'Tomorrow'...!!
Annie - TOMORROW
(ANNIE)
The sun'll come out
Tomorrow
Bet your bottom dollar
That tomorrow
There'll be sun!
Just thinkin' about
Tomorrow
Clears away the cobwebs,
And the sorrow
'Til there's none!
When I'm stuck with a day
That's gray,
And lonely,
I just stick out my chin
And Grin,
And Say,
Oh!
The sun'll come out
Tomorrow
So ya gotta hang on
'Til tomorrow
Come what may
Tomorrow! Tomorrow!
I love ya Tomorrow!
You're always
A day
A way!
Music By Charles Strouse, Lyrics By Martin Charnin.
Saturday, April 18, 2009
CMKX - CMKM Diamonds Inc. ***Update*** - Spring 2009 Recap
November 26, 2002 to April 18, 2009...
6 Years, 4 Months, and 22 Days...!!
2,335 Days...
56,040 Hours...
3,362,400 Minutes...
201,744,000 Seconds...!!
CMKX Shareholders Still Have NOTHING...!!
Gurus Have All Been WRONG...!!
Sources Have All Been WRONG...!!
Shareholder Rumors Have ALL Been WRONG...!!
CMKX Shareholders STILL Have NOTHING...!!
Any Questions...??
6 Years, 4 Months, and 22 Days...!!
2,335 Days...
56,040 Hours...
3,362,400 Minutes...
201,744,000 Seconds...!!
CMKX Shareholders Still Have NOTHING...!!
Gurus Have All Been WRONG...!!
Sources Have All Been WRONG...!!
Shareholder Rumors Have ALL Been WRONG...!!
CMKX Shareholders STILL Have NOTHING...!!
Any Questions...??
Tuesday, April 7, 2009
CMKX - CMKM Diamonds Inc. - Smoking Guns
(Thanks sweettime...!!)
Topic: CMKX Smoking Guns...
CMKX / Entourage Unofficial Message Board
CMKX Smoking Guns
« Thread Started Today at 9:20am »
sweettime
Diamond Hunter
Joined: Apr 2009
Posts: 5
--------------------------------------------------------------------------------
I urge everyone to add to this list. I am going to email it to Molly White, Leslie Hakala, Mark Faulk and the SEC's OIG daily to remind them that we know something else went down and we expect to get paid from more than just crooked insiders and their chump change settlements. I urge all other CMKX shareholders to do the same.
SOME CMKX SMOKING GUNS
1. WHO SUBPONEA'ED CMKM DIAMONDS SILVER STATE BANK ACCOUNTS IN SEPTEMBER 2004?
2. WHY DID THEY SUBPONEA THE BANK RECORDS?
3. WHY WAS THE MONEY NOT FOLLOWED AFTER THE SUBPONEA?
4. WHY WAS THE MONEY ALLOWED TO DISAPPEAR?
5. THE SEC CHARGES THAT $64 MILLION WAS STOLEN FROM INVESTORS, TYLER TEXAS CHARGES THAT $250 MILLION WAS STOLEN. WHO STOLE THE OTHER $186 MILLION
6. WHY WHEN OFFERED URBAN CASAVANT'S CURRENT PHYSICAL LOCATION, DID BILL FRIZZELL NOT WANT TO KNOW?
7. WHY WAS THE SEC INVESTIGATING CMKM DIAMONDS TRADING RECORDS AND SPECIFICALLY THOSE OF JAMES KINNEY IN MAY OF 2003 OR MAY OF 2004? AS EVIDENCED BY THIS FAX http://www.cmkmdiamondsinc.com/justice/sec_ltr_bagley_5-26-04.pdf
8. WHY DID IT TAKE 4 YEARS TO CHARGE INSIDERS (INCLUDING JAMES KINNEY) AFTER ALL OF THE DAMAGE WAS DONE WHILE THEY SAT BACK AND DID NOTHING ABOUT IT DESPITE CONTACTING CMKM DIAMONDS TRANSFER AGENT REQUESTING TRADING HISTORIES AND STOCK ISSUANCE CONTROL LOG.
9. HOW DID THE SECURITIES DIVISION OF THE SASKATCHEWAN FINANCIAL SERVICES COMMISSION ISSUE A CEASE TRADE ORDER ON October 28, 2004 AND THE SEC NOT KNOW ABOUT IT? OR DID THEY KNOW ABOUT IT YET DECIDED THEY HAD BETTER THINGS TO DO?
10. WHY DID ROBERT MAHEU TAKE ON CMKM DIAMONDS AFTER IT WAS ALREADY PUBLIC KNOWLEDGE THAT URBAN WAS BANNED BY THE SECURITIES DIV OF THE SASK FINANCIAL SERVICES FOR DUMPING UNREGISTERED SHARES IN NOV OF 2004.
11. WHY DID ROBERT MAHEU TAKE ON CMKM DIAMONDS AFTER IT WAS ALREADY PUBLIC KNOWLEDGE THAT SOME AGENCY SUBPONEA'ED CMKM DIAMONDS SILVER STATE BANK ACCOUNTS IN SEPT OF 2004?
12. WHY HAS ONLY NEVWEST BEEN CHARGED? DESPITE THIS d*mnING ADMISSION FROM JEFFERIES
http://www.cmkmdiamondsinc.com/justice/jeffries_letter.pdf
13. WHY HAS ONLY NEVWEST BEEN CHARGED WHEN ANTHONY SANTO'S FROM NEVWEST HAS STATED THAT ONLY JOHN EDWARDS USED NEVWEST TO DUMP UNREGISTERED CMKM DIAMONDS STOCK AND THE OTHER INSIDERS USED OTHER BROKER DEALERS?
14. WHY WAS NEVWEST CHARGED WHEN THEY SEEKED AND GOT SEC APPROVAL TO DUMP THE UNREGISTERED CMKM DIAMOND SHARES IN ADVANCE
15. WHY HAS ROGER GLENN NOT BEEN CHARGED DESPITE IS ROLE IN THE DUMPING OF BILLIONS OF UNREGISTERED SHARES OF CMKM DIAMONDS?
16. WHY DID URBAN CASAVANT DO A CERTIFICIATE PULL? TO HELP CONVICT HIMSELF?
17. WHAT HAPPENED TO THE INTERPLEADER?
18. WHY IS ENTOURAGE CLAIMING THAT CMKM DIAMONDS IS GOING TO SELL BACK THE ENTOURAGE CERTIFICATE WHEN THAT CERTIFICATE IS OUR KEY TO EXPOSING THE HUGE FTD SITUATION IN CMKM DIAMONDS?
19. WHY DID BILL FRIZZELL HAVE INCRIMINATING EVIDENCE AGAINST URBAN AND OTHER INSIDERS SINCE 2005 YET DID ABSOLUTELY NOTHING MEANINGFUL WITH THE INFORMATION BUT RATHER DECIDED TO STICK BY URBAN'S SIDE UNTIL APRIL OF 2007?
20. WHY HAS IT BEEN 1 FRIGGEN YEAR TODAY THAT URBAN CASAVANT WAS CHARGED YET THERE HAS BEEN NO JUDGEMENT ON HIM DESPITE NOT RESPONDING TO THE CHARGES?
LIST OF PEOPLE I WILL EMAIL THIS TO DAILY:
whitem@sec.gov, hakalal@sec.gov, oig@sec.gov, faulkingtruth@gmail.com, 4justice@cmkmdiamondsinc.com, bfrizzell@tyler.net
The Following Link show that James Kinney was using TDAmeritrade to dump his CMKX Shares...yet TDAmeritrade has not been charged......ONLY NEVWEST
http://www.cmkmdiamondsinc.com/documents/kinney-may-2004-amtd-sample.pdf
The Following Links shows that Basic was also used to dump shares yet nobody from Basic or Fiserv has been charged ONLY NEVWEST
http://www.cmkmdiamondsinc.com/documents/vicom-oct-2004-fiserv-acct.pdf
http://www.cmkmdiamondsinc.com/documents....fiserv-acct.pdf
--------------------------------------------------------------------------------
Editor's Note - I have also sent this info to the following SEC & CNBC email addresses...
cmkmdiamonds@sec.gov, help@sec.gov, kotzd@sec.gov, schapirom@sec.gov, coxc@sec.gov, chairmanoffice@sec.gov, tradingandmarkets@sec.gov, newyork@sec.gov, losangeles@sec.gov, richardsl@sec.gov, enforcement@sec.gov, oiea@sec.gov, publicinfo@sec.gov, mccoyj@sec.gov, whitem@sec.gov, hakalal@sec.gov, murrayb@sec.gov, tysonr@sec.gov, thomsenl@sec.gov, greener@sec.gov, howellc@sec.gov, starkj@sec.gov, mckreeryj@sec.gov, kaeppleink@sec.gov, oig@sec.gov, bressmanb@sec.gov, powersd@sec.gov, schonfeldm@sec.gov, bergersd@sec.gov, hawked@sec.gov, nelsond@sec.gov, addlemank@sec.gov, gillettem@sec.gov, hoerld@sec.gov, romeror@sec.gov, israelk@sec.gov, fagelm@sec.gov
gettingreal@cnbc.com, investforsuccess@cnbc.com, headhoncho@cnbc.com, moneymakingmonday@cnbc.com, sectorwatch@cnbc.com, stockstowatch@cnbc.com, newinvestor@cnbc.com, behindthewheel@cnbc.com, wakeupcall@cnbc.com, squawk@cnbc.com, morningcall@cnbc.com, powerlunch@cnbc.com, powerguest@cnbc.com, streetsigns@cnbc.com, closingbell@cnbc.com, kudlow@cnbc.com, madmoney@cnbc.com, dennismillershow@nbc.com, donny@cnbc.com, maria@wsjreport.com, afterhours@cnbc.com
faulkingtruth@gmail.com, 4justice@cmkmdiamondsinc.com, bfrizzell@tyler.net
Topic: CMKX Smoking Guns...
CMKX / Entourage Unofficial Message Board
CMKX Smoking Guns
« Thread Started Today at 9:20am »
sweettime
Diamond Hunter
Joined: Apr 2009
Posts: 5
--------------------------------------------------------------------------------
I urge everyone to add to this list. I am going to email it to Molly White, Leslie Hakala, Mark Faulk and the SEC's OIG daily to remind them that we know something else went down and we expect to get paid from more than just crooked insiders and their chump change settlements. I urge all other CMKX shareholders to do the same.
SOME CMKX SMOKING GUNS
1. WHO SUBPONEA'ED CMKM DIAMONDS SILVER STATE BANK ACCOUNTS IN SEPTEMBER 2004?
2. WHY DID THEY SUBPONEA THE BANK RECORDS?
3. WHY WAS THE MONEY NOT FOLLOWED AFTER THE SUBPONEA?
4. WHY WAS THE MONEY ALLOWED TO DISAPPEAR?
5. THE SEC CHARGES THAT $64 MILLION WAS STOLEN FROM INVESTORS, TYLER TEXAS CHARGES THAT $250 MILLION WAS STOLEN. WHO STOLE THE OTHER $186 MILLION
6. WHY WHEN OFFERED URBAN CASAVANT'S CURRENT PHYSICAL LOCATION, DID BILL FRIZZELL NOT WANT TO KNOW?
7. WHY WAS THE SEC INVESTIGATING CMKM DIAMONDS TRADING RECORDS AND SPECIFICALLY THOSE OF JAMES KINNEY IN MAY OF 2003 OR MAY OF 2004? AS EVIDENCED BY THIS FAX http://www.cmkmdiamondsinc.com/justice/sec_ltr_bagley_5-26-04.pdf
8. WHY DID IT TAKE 4 YEARS TO CHARGE INSIDERS (INCLUDING JAMES KINNEY) AFTER ALL OF THE DAMAGE WAS DONE WHILE THEY SAT BACK AND DID NOTHING ABOUT IT DESPITE CONTACTING CMKM DIAMONDS TRANSFER AGENT REQUESTING TRADING HISTORIES AND STOCK ISSUANCE CONTROL LOG.
9. HOW DID THE SECURITIES DIVISION OF THE SASKATCHEWAN FINANCIAL SERVICES COMMISSION ISSUE A CEASE TRADE ORDER ON October 28, 2004 AND THE SEC NOT KNOW ABOUT IT? OR DID THEY KNOW ABOUT IT YET DECIDED THEY HAD BETTER THINGS TO DO?
10. WHY DID ROBERT MAHEU TAKE ON CMKM DIAMONDS AFTER IT WAS ALREADY PUBLIC KNOWLEDGE THAT URBAN WAS BANNED BY THE SECURITIES DIV OF THE SASK FINANCIAL SERVICES FOR DUMPING UNREGISTERED SHARES IN NOV OF 2004.
11. WHY DID ROBERT MAHEU TAKE ON CMKM DIAMONDS AFTER IT WAS ALREADY PUBLIC KNOWLEDGE THAT SOME AGENCY SUBPONEA'ED CMKM DIAMONDS SILVER STATE BANK ACCOUNTS IN SEPT OF 2004?
12. WHY HAS ONLY NEVWEST BEEN CHARGED? DESPITE THIS d*mnING ADMISSION FROM JEFFERIES
http://www.cmkmdiamondsinc.com/justice/jeffries_letter.pdf
13. WHY HAS ONLY NEVWEST BEEN CHARGED WHEN ANTHONY SANTO'S FROM NEVWEST HAS STATED THAT ONLY JOHN EDWARDS USED NEVWEST TO DUMP UNREGISTERED CMKM DIAMONDS STOCK AND THE OTHER INSIDERS USED OTHER BROKER DEALERS?
14. WHY WAS NEVWEST CHARGED WHEN THEY SEEKED AND GOT SEC APPROVAL TO DUMP THE UNREGISTERED CMKM DIAMOND SHARES IN ADVANCE
15. WHY HAS ROGER GLENN NOT BEEN CHARGED DESPITE IS ROLE IN THE DUMPING OF BILLIONS OF UNREGISTERED SHARES OF CMKM DIAMONDS?
16. WHY DID URBAN CASAVANT DO A CERTIFICIATE PULL? TO HELP CONVICT HIMSELF?
17. WHAT HAPPENED TO THE INTERPLEADER?
18. WHY IS ENTOURAGE CLAIMING THAT CMKM DIAMONDS IS GOING TO SELL BACK THE ENTOURAGE CERTIFICATE WHEN THAT CERTIFICATE IS OUR KEY TO EXPOSING THE HUGE FTD SITUATION IN CMKM DIAMONDS?
19. WHY DID BILL FRIZZELL HAVE INCRIMINATING EVIDENCE AGAINST URBAN AND OTHER INSIDERS SINCE 2005 YET DID ABSOLUTELY NOTHING MEANINGFUL WITH THE INFORMATION BUT RATHER DECIDED TO STICK BY URBAN'S SIDE UNTIL APRIL OF 2007?
20. WHY HAS IT BEEN 1 FRIGGEN YEAR TODAY THAT URBAN CASAVANT WAS CHARGED YET THERE HAS BEEN NO JUDGEMENT ON HIM DESPITE NOT RESPONDING TO THE CHARGES?
LIST OF PEOPLE I WILL EMAIL THIS TO DAILY:
whitem@sec.gov, hakalal@sec.gov, oig@sec.gov, faulkingtruth@gmail.com, 4justice@cmkmdiamondsinc.com, bfrizzell@tyler.net
The Following Link show that James Kinney was using TDAmeritrade to dump his CMKX Shares...yet TDAmeritrade has not been charged......ONLY NEVWEST
http://www.cmkmdiamondsinc.com/documents/kinney-may-2004-amtd-sample.pdf
The Following Links shows that Basic was also used to dump shares yet nobody from Basic or Fiserv has been charged ONLY NEVWEST
http://www.cmkmdiamondsinc.com/documents/vicom-oct-2004-fiserv-acct.pdf
http://www.cmkmdiamondsinc.com/documents....fiserv-acct.pdf
--------------------------------------------------------------------------------
Editor's Note - I have also sent this info to the following SEC & CNBC email addresses...
cmkmdiamonds@sec.gov, help@sec.gov, kotzd@sec.gov, schapirom@sec.gov, coxc@sec.gov, chairmanoffice@sec.gov, tradingandmarkets@sec.gov, newyork@sec.gov, losangeles@sec.gov, richardsl@sec.gov, enforcement@sec.gov, oiea@sec.gov, publicinfo@sec.gov, mccoyj@sec.gov, whitem@sec.gov, hakalal@sec.gov, murrayb@sec.gov, tysonr@sec.gov, thomsenl@sec.gov, greener@sec.gov, howellc@sec.gov, starkj@sec.gov, mckreeryj@sec.gov, kaeppleink@sec.gov, oig@sec.gov, bressmanb@sec.gov, powersd@sec.gov, schonfeldm@sec.gov, bergersd@sec.gov, hawked@sec.gov, nelsond@sec.gov, addlemank@sec.gov, gillettem@sec.gov, hoerld@sec.gov, romeror@sec.gov, israelk@sec.gov, fagelm@sec.gov
gettingreal@cnbc.com, investforsuccess@cnbc.com, headhoncho@cnbc.com, moneymakingmonday@cnbc.com, sectorwatch@cnbc.com, stockstowatch@cnbc.com, newinvestor@cnbc.com, behindthewheel@cnbc.com, wakeupcall@cnbc.com, squawk@cnbc.com, morningcall@cnbc.com, powerlunch@cnbc.com, powerguest@cnbc.com, streetsigns@cnbc.com, closingbell@cnbc.com, kudlow@cnbc.com, madmoney@cnbc.com, dennismillershow@nbc.com, donny@cnbc.com, maria@wsjreport.com, afterhours@cnbc.com
faulkingtruth@gmail.com, 4justice@cmkmdiamondsinc.com, bfrizzell@tyler.net
Thursday, March 26, 2009
CMKX - CMKM Diamonds Inc. - CEO Faulk - Company Website Update
***
"The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares." - Leslie Hakala, SEC
***
CMKM Diamonds, Inc. Shareholders' Corner
3-25-09
The Company has had numerous inquiries from shareholders about the status of certain CMKM Diamonds, Inc. stock. The Company's viewpoint on this issue was addressed in the 9-2-08 Shareholders' Corner update:
There has been a lot of speculation and concern about whether certain shareholders are bonafide. With over 50,000 shareholders, it is impossible to say at this time with any degree of certainty whether or not individual certs are bonafide. Determining who are our actual shareholders are and who holds bonafide shares is a process that unfortunately will take considerable time, and could ultimately involve regulators and/or a legal process. However, as the Company has stated many times, we will do everything within our power to assure that anyone who purchased shares in good faith is bonafide. If you have bought shares in good faith from your broker, and have received a certificate for those shares from our transfer agent, then most likely your shares are bonafide.
Because of ongoing concern about this issue, I sent an email to the SEC detailing questions about shares of CMKM Diamonds, Inc. stock held by our shareholders. Both my email and their response is reposted below. I'll keep everyone updated on any further information and/or clarification we receive from the SEC. As always, all shareholders should be aware of their right to seek legal advice from their own attorney on any issue pertaining to their CMKM Diamonds, Inc. stock:
The company has been receiving numerous inquiries from our shareholders about the status of their shares of CMKM Diamonds stock. Some of the answers to these questions might seem obvious, but I do not feel comfortable in making assumptions when it comes to the SEC's position on issues pertaining to stock. We would greatly appreciate some guidance from the SEC on this matter. I guess the best way to address this is to simply lay out the questions that shareholders have submitted (condensed and paraphrased for the sake of expediency), and ask you to address them as best you can:
In the case of CMKM Diamonds, Inc., company officers and insiders, according to the SEC, approved the issuance of hundreds of billions of unrestricted shares "based on obviously incomplete and suspicious, and in some cases, forged documentation" (Item 35). In general, are shares issued and sold into the market through allegedly fraudulent means such as those cited in the CMKM example considered to be unrestricted and/or registered shares once they are purchased in good faith by shareholders from brokers, especially those who have applied for and received stock certificates through their brokers from the transfer agent?
Are shares originally issued through fraudulent means (as referenced in the prior question) subsequently purchased by shareholders in good faith and held in electronic form at their brokers considered to be unrestricted and/or registered shares?
At what point do said affected shares become registered and/or unrestricted shares?
Are the "up to 622 billion shares of purportedly unrestricted stock" (Item 4) issued by former company insiders in an "unregistered distribution" (Item 4), as cited by the SEC in Case 2:08-cv-00437, part of the 703 billion issued and outstanding shares, or are they above and beyond that number?
Again, I would appreciate any guidance on this issue from the SEC, so that we can respond properly to shareholders' inquiries.
Feel free to call me if you have any questions, or if we can assist you in your ongoing efforts to help us find justice in the ongoing CMKM Diamonds, Inc. investigations. As always, we are willing to cooperate in any way possible.
Sincerely,
Mark Faulk
CEO, CMKM Diamonds, Inc.
This is the response I received today from SEC attorney Leslie Hakala:
Thanks for your email. Answering your last question: The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares.
Unfortunately, we can’t give legal advice to investors, so we are not comfortable responding to the other questions. I have, however, passed the questions on to others in our Washington headquarters, and will let you know if they can provide any guidance.
Regards,
Leslie
"The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares." - Leslie Hakala, SEC
***
CMKM Diamonds, Inc. Shareholders' Corner
3-25-09
The Company has had numerous inquiries from shareholders about the status of certain CMKM Diamonds, Inc. stock. The Company's viewpoint on this issue was addressed in the 9-2-08 Shareholders' Corner update:
There has been a lot of speculation and concern about whether certain shareholders are bonafide. With over 50,000 shareholders, it is impossible to say at this time with any degree of certainty whether or not individual certs are bonafide. Determining who are our actual shareholders are and who holds bonafide shares is a process that unfortunately will take considerable time, and could ultimately involve regulators and/or a legal process. However, as the Company has stated many times, we will do everything within our power to assure that anyone who purchased shares in good faith is bonafide. If you have bought shares in good faith from your broker, and have received a certificate for those shares from our transfer agent, then most likely your shares are bonafide.
Because of ongoing concern about this issue, I sent an email to the SEC detailing questions about shares of CMKM Diamonds, Inc. stock held by our shareholders. Both my email and their response is reposted below. I'll keep everyone updated on any further information and/or clarification we receive from the SEC. As always, all shareholders should be aware of their right to seek legal advice from their own attorney on any issue pertaining to their CMKM Diamonds, Inc. stock:
The company has been receiving numerous inquiries from our shareholders about the status of their shares of CMKM Diamonds stock. Some of the answers to these questions might seem obvious, but I do not feel comfortable in making assumptions when it comes to the SEC's position on issues pertaining to stock. We would greatly appreciate some guidance from the SEC on this matter. I guess the best way to address this is to simply lay out the questions that shareholders have submitted (condensed and paraphrased for the sake of expediency), and ask you to address them as best you can:
In the case of CMKM Diamonds, Inc., company officers and insiders, according to the SEC, approved the issuance of hundreds of billions of unrestricted shares "based on obviously incomplete and suspicious, and in some cases, forged documentation" (Item 35). In general, are shares issued and sold into the market through allegedly fraudulent means such as those cited in the CMKM example considered to be unrestricted and/or registered shares once they are purchased in good faith by shareholders from brokers, especially those who have applied for and received stock certificates through their brokers from the transfer agent?
Are shares originally issued through fraudulent means (as referenced in the prior question) subsequently purchased by shareholders in good faith and held in electronic form at their brokers considered to be unrestricted and/or registered shares?
At what point do said affected shares become registered and/or unrestricted shares?
Are the "up to 622 billion shares of purportedly unrestricted stock" (Item 4) issued by former company insiders in an "unregistered distribution" (Item 4), as cited by the SEC in Case 2:08-cv-00437, part of the 703 billion issued and outstanding shares, or are they above and beyond that number?
Again, I would appreciate any guidance on this issue from the SEC, so that we can respond properly to shareholders' inquiries.
Feel free to call me if you have any questions, or if we can assist you in your ongoing efforts to help us find justice in the ongoing CMKM Diamonds, Inc. investigations. As always, we are willing to cooperate in any way possible.
Sincerely,
Mark Faulk
CEO, CMKM Diamonds, Inc.
This is the response I received today from SEC attorney Leslie Hakala:
Thanks for your email. Answering your last question: The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares.
Unfortunately, we can’t give legal advice to investors, so we are not comfortable responding to the other questions. I have, however, passed the questions on to others in our Washington headquarters, and will let you know if they can provide any guidance.
Regards,
Leslie
Friday, March 20, 2009
CMKX - CMKM Diamonds - SEC Enforcement Blows Off Inspector General's Recommendations
Business As Usual At The 'New' SEC...
SEC Enforcement Division Ignores Recommendations From Inspector General On Stopping Naked Short Selling.
"We have recently alleged such behavior in the widely-discussed CMKM Diamonds litigation."
Practices Related to Naked Short Selling Complaints and Referrals
March 18, 2009
Report No. 450
Appendix VI
OIG Response to Management Comments
We are disappointed that the Division of Enforcement (Enforcement) only concurred with one of the 11 recommendations in this audit report. We are particularly concerned that Enforcement did not concur with the report’s first three recommendations that it develop written in-depth triage analysis steps for naked short selling complaints, as it has for other complaints; that it revise its written guidance to the Enforcement Complaint Center staff to ensure that naked short selling complaints are given a proper level of scrutiny and referred for further investigation; and that it add naked short selling to the list of categories of complaints on the Commission’s public webpage and develop an online complaint form specifically tailored to naked short selling complaints.
As we discussed in our report, the SEC has repeatedly recognized that naked short selling can depress stock prices and have harmful effects on the market. In adopting a naked short selling antifraud rule, Rule 10b-21, in October 2008, the Commission stated, “We have been concerned about ‘naked’ short selling and, in particular, abusive ‘naked’ short selling, for some time.” In this report, we determined that Enforcement’s current policies and procedures appear to limit significantly the referral of naked short selling complaints, and that its written policies and procedures result in naked short selling complaints being treated differently from other types of complaints of securities law violations. Notwithstanding the Commission’s previous statement and our findings, Enforcement responded to our report by stating that “there is hardly unanimity in the investment community or the financial media on either the prevalence, or the dangers, of ‘naked’ short selling,” and references the view held by some that “the threat posed by ‘naked’ short selling is wildly exaggerated . . . .” Accordingly, Enforcement concludes that the report’s recommendations, which are intended to allow for more thorough investigations of naked short selling complaints, are not optimal uses of Commission resources. We would hope that Enforcement reconsiders this position in light of the Commission’s stated concerns about the effect of naked short selling on the market.
We are also disappointed that Enforcement does not intend to implement immediately our specific recommendations (Nos. 5-11) designed to improve its complaints, tips and referral process. We understand that the SEC’s new Chairman has announced the enlisting of a contractor to conduct a comprehensive review of internal procedures used to evaluate tips, complaints, and referrals for the entire agency, and we will certainly work closely with the contractor to assist with this review. Nonetheless, we believe that implementation of our recommended improvements should begin now, in coordination with the contractor’s review, to ensure that the implementation of necessary improvements to Enforcement’s complaint system is not unduly delayed.
Practices Related to Naked Short Selling Complaints and Referrals March 18, 2009
Report No. 450 - Page 44
Audit Requests and Ideas
The Office of Inspector General welcomes your input. If you would like to request an audit in the future or have an audit idea, please contact us at:
U.S. Securities and Exchange Commission
Office of Inspector General
Attn: Assistant Inspector General, Audits (Audit Request/Ideas)
100 F Street, N.E.
Washington D.C. 20549-2736
Tel. #: 202-551-6061
Fax #: 202-772-9265
Email: oig@sec.gov
Hotline
To report fraud, waste, abuse, and mismanagement at SEC, contact the Office of Inspector General at:
Phone: 877.442.0854
Web-Based Hotline Complaint Form:
www.reportlineweb.com/sec_oig
SEC Enforcement Division Ignores Recommendations From Inspector General On Stopping Naked Short Selling.
"We have recently alleged such behavior in the widely-discussed CMKM Diamonds litigation."
Practices Related to Naked Short Selling Complaints and Referrals
March 18, 2009
Report No. 450
Appendix VI
OIG Response to Management Comments
We are disappointed that the Division of Enforcement (Enforcement) only concurred with one of the 11 recommendations in this audit report. We are particularly concerned that Enforcement did not concur with the report’s first three recommendations that it develop written in-depth triage analysis steps for naked short selling complaints, as it has for other complaints; that it revise its written guidance to the Enforcement Complaint Center staff to ensure that naked short selling complaints are given a proper level of scrutiny and referred for further investigation; and that it add naked short selling to the list of categories of complaints on the Commission’s public webpage and develop an online complaint form specifically tailored to naked short selling complaints.
As we discussed in our report, the SEC has repeatedly recognized that naked short selling can depress stock prices and have harmful effects on the market. In adopting a naked short selling antifraud rule, Rule 10b-21, in October 2008, the Commission stated, “We have been concerned about ‘naked’ short selling and, in particular, abusive ‘naked’ short selling, for some time.” In this report, we determined that Enforcement’s current policies and procedures appear to limit significantly the referral of naked short selling complaints, and that its written policies and procedures result in naked short selling complaints being treated differently from other types of complaints of securities law violations. Notwithstanding the Commission’s previous statement and our findings, Enforcement responded to our report by stating that “there is hardly unanimity in the investment community or the financial media on either the prevalence, or the dangers, of ‘naked’ short selling,” and references the view held by some that “the threat posed by ‘naked’ short selling is wildly exaggerated . . . .” Accordingly, Enforcement concludes that the report’s recommendations, which are intended to allow for more thorough investigations of naked short selling complaints, are not optimal uses of Commission resources. We would hope that Enforcement reconsiders this position in light of the Commission’s stated concerns about the effect of naked short selling on the market.
We are also disappointed that Enforcement does not intend to implement immediately our specific recommendations (Nos. 5-11) designed to improve its complaints, tips and referral process. We understand that the SEC’s new Chairman has announced the enlisting of a contractor to conduct a comprehensive review of internal procedures used to evaluate tips, complaints, and referrals for the entire agency, and we will certainly work closely with the contractor to assist with this review. Nonetheless, we believe that implementation of our recommended improvements should begin now, in coordination with the contractor’s review, to ensure that the implementation of necessary improvements to Enforcement’s complaint system is not unduly delayed.
Practices Related to Naked Short Selling Complaints and Referrals March 18, 2009
Report No. 450 - Page 44
Audit Requests and Ideas
The Office of Inspector General welcomes your input. If you would like to request an audit in the future or have an audit idea, please contact us at:
U.S. Securities and Exchange Commission
Office of Inspector General
Attn: Assistant Inspector General, Audits (Audit Request/Ideas)
100 F Street, N.E.
Washington D.C. 20549-2736
Tel. #: 202-551-6061
Fax #: 202-772-9265
Email: oig@sec.gov
Hotline
To report fraud, waste, abuse, and mismanagement at SEC, contact the Office of Inspector General at:
Phone: 877.442.0854
Web-Based Hotline Complaint Form:
www.reportlineweb.com/sec_oig
Saturday, February 21, 2009
CMKX - CMKM Diamonds Inc. - Possible CMKX / FFGO Connection Uncovered...??
Same Pink Sheet PR Strategy...??
(Editor's Note - Please accept my apology in advance for this ridiculously long post, but FFGO has issued a large number of PR's which change, delay, or reschedule the Extraordinary Dividend, which was originally announced on July 24, 2008.)
Extraordinary Dividend
Thursday July 24, 2008 10:58 am ET
Company to Distribute US$400 Million in Gold Assets to Its Stockholders as an Extraordinary Dividend
Alan Santini, the CEO of Fortress Financial Group, Inc., commented, that he hoped that "This Extraordinary Dividend will go a long way to rewarding long standing stockholders who have watched their stock decrease in value over time."
Clarification on Extraordinary Dividend
Thursday July 24, 2008 11:57 am ET
Company Clarifies Its "Record Date" in Respect of the Extraordinary Dividend
The "Record Date" for this Extraordinary Dividend cannot be before late August in 2008 and will therefore apply to stockholders on or around that date. Stockholders will be advised well in advance as to the "Record Date" and the "Pay Date." It will take at least three weeks to co-ordinate and prepare for this Extraordinary Dividend in order to ensure that all stockholders on the "Record Date" receive the Dividend.
Further Clarification
Friday July 25, 2008 10:38 am ET
Company Clarifies a Number of Issues Raised by Its Stockholders
24. WHAT IS THE LIKELY DATE FOR THE "RECORD DATE" FOR THIS EXTRORDINARY DIVIDEND:
The process of naming the "Record Date" is likely to take as long as
three weeks, given the number of parties involved in the co-ordination
of the distribution and payment of this Extraordinary Dividend.
Extraordinary Dividend Update
Tuesday July 29, 2008 8:30 am ET
Company Confirms Negotiations With Goldco to Issue "Free Trading Stock"
Goldco, as a "Reporting Company" with SEC, is required to file a Registration Statement in respect of these shares being issued to the Company.
However, Goldco is exploring avenues with your Company to ensure that stockholders do not receive Goldco shares that are untradeable and restricted for any substantial period of time.
Potential Change of Control
Thursday July 31, 2008 11:31 am ET
Company Confirms It Has Been Advised That a Private Equity Group Intends to Acquire 51% of the Company's Outstanding Stock
The CEO and controlling stockholder of the Private Equity Group has confirmed that Alan Santini will remain as CEO of Fortress Financial Group, Inc. and that the Extraordinary Stock Dividend will proceed as announced.
Additional Clarification
Friday August 1, 2008 10:03 am ET
Company Clarifies a Number of Issues Raised by Its Stockholders
6. WILL THE COMPANY STILL BE PAYING THE EXTRAORDINARY DIVIDEND AFTER THE ASSUMPTION OF A CONTROLLING INTEREST BY THE PRIVATE EQUITY GROUP:
Absolutely yes. They invested primarily as they saw our Company as a
"value play." They are 100% behind the payment of this Dividend. It is of huge benefit and profit to themselves.
Brief Update
Friday August 8, 1:55 pm ET
Company Provides a Brief Update to Its Stockholders
2. The Extraordinary Dividend remains unchanged and we are working on the "Record Date" with all parties.
Statement by CEO
Monday August 11, 10:20 am ET
Company CEO Makes a Formal Statement to His Stockholders
It would appear that the primary concerns of our stockholders are:
1) When will the Company declare the "Record Date" of the Extraordinary Dividend?
The "Record Date" for the Extraordinary Dividend will be announced in late August of 2008 as promised.
Statement
Monday August 18, 1:59 pm ET
Company Issues Statement on Its Future Direction and Disposal of Its Assets
The Company confirms that a number of substantial and extraordinary changes within the Company are be enacted and with immediate effect.
-- Company to distribute all of its Gold assets (through the Goldco
shares) to its stockholders in the form on an Enlarged Extraordinary
Dividend.
-- Company attempting to pay a further Dividend to its stockholders in
cash.
11. The Company will now focus on setting a "Record Date" and "Pay Date" for this enlarged Extraordinary Dividend. Stockholders will be advised as to these dates ahead of time; in order to be eligible for the receipt this enlarged Extraordinary Dividend; and all other Stock Dividends.
Schedule of Stock Dividends
Thursday August 21, 1:01 pm ET
Company Clarifies the Stock Dividend Distribution
1. ENLARGED EXTRAORDINARY DIVIDEND OF GOLDCO SHARES OF COMMON STOCK
Company to distribute all of its Gold assets (through the Goldco shares) to its stockholders in the form of an Enlarged Extraordinary Dividend.
The "Record Date" and the "Pay Date" will be announced at such time as the Company is in possession of its shares of Goldco.
Goldco has indicated completion on August 29, 2008.
The Company will not delay in setting this "Record Date"; of that, stockholders may rest assured.
2. SECOND DIVIDEND; THAT BEING STOCK IN ALAN SANTINI'S NEW COMPANY:
3. THIRD CASH DIVIDEND IN RESPECT OF THIS COMPANY'S STOCK HOLDING IN HUNT GOLD CORPORATION:
Alan Santini added "that he was not in the business of giving a free ride to those who wish to purchase stock solely for these Dividends, as his loyalties lay with his long term stockholders and warned that very little notice will be given in respect of the 'Record Dates' of these stock dividends.
30% Increase in Dividend Value
Monday August 25, 9:53 am ET
Company Confirms Sale of Gold Assets for Substantially Higher Price and a 30% Increase in Value of Extraordinary Dividend
This will not delay the payments of the Extraordinary Dividend; which has now been increased by 30% in value. The Company expects to be in a position to confirm the "Record Date" of this Extraordinary Dividend, within days.
Valuation of Extraordinary Dividend
Monday August 25, 1:40 pm ET
Company Confirms the Valuation of the Extraordinary Stock Dividend
The Company is working with professional advisors whom will be coordinating the payment of these this Extraordinary Dividend. The Company in conjunction with its Advisors, will be announcing both the "Record Date" and the "Payment Date" of this Extraordinary Dividend, very shortly.
Hurasu Resource Corporation is purchasing all of the remaining stock in both the "Bouse" and "South Copperstone" companies.
This will be an unrelated transaction to the Extraordinary Dividend and will not serve to delay the payment of this Extraordinary Dividend in any way whatsoever.
Record Date of Extraordinary Dividend
Wednesday August 27, 3:26 pm ET
Company Confirms That the "Record Date" of the Extraordinary Dividend Is Being Expedited
Fortress Financial Group, Inc. confirms that it is in a position to proceed with the setting of the "Record Date" of the Extraordinary Dividend.
The Company will not be waiting for Hurasu to complete their own reorganization, prior to our setting the distribution dates and it has now been agreed with the Management of Hurasu that this Company can now proceed with the setting of the "Record Date" without any delay.The Company will (a) announce the "Record Date" and the "Pay Date" and (b) file a Form 8-K to this effect; within minutes of the "Record Date" and the "Pay Date" being confirmed and published by the NASD.
There will no longer be any delay whatsoever in the setting of these dates as the Company is now extremely anxious to distribute these shares of Hurasu Common Stock and to remove all of the prevailing uncertainty that currently exists with our stockholders.
Statement
Tuesday September 16, 2:34 pm ET
Company Deals With the Key Issues Concerning Its Stockholders
2. The sale of the Company's holdings in both "Bouse" and in "South Copperstone" are a "done deal." The Stock Dividend will be declared upon the Company's receipt of the stock received in respect of this sale; and as previously announced.
This is expected to complete this week.
Stock Dividend Valuation
Wednesday September 17, 11:04 am ET
Company Confirms the Final Valuation of Its Extraordinary Stock Dividend
The Company can confirm that this Dividend is valued at US$0.0239 for every 1 (one) share of this Company's Common Stock.
It is expected that the Company will be in a position to confirm both the "Record Date" and the "Pay Date" in respect of this Stock Dividend, within days now.
Company to Attempt Further Stock Repurchases
Wednesday October 1, 11:32 am ET
Company in Discussions With Lenders in an Attempt to Secure Funding to Repurchase Additional Shares of Its Common Stock
The Company's CEO will be issuing a full statement on Friday October 3, 2008 to clarify the situation and to deal with investor concerns. The Company's Management wishes to stress that the Extraordinary Dividend is being paid to its stockholders as promised and that the Company's situation remains unchanged.
Statement
Friday October 3, 1:48 pm ET
Company Confirms Ongoing Discussions to Effect a Reverse Merger
The Company stresses that should this proposed Reverse Merger be agreed upon, this will not affect the payments of the Stock Dividends.
Update on Reverse Merger
Monday October 6, 12:40 pm ET
Company Clarifies the Details of the Reverse Merger Under Consideration
The Company will state for the last time that the Extraordinary Dividend is unaffected by these discussions and that this Dividend will be paid regardless and as announced.
The Company will announce the "Record" and "Pay" dates in respect of this Stock Dividend as and when it is in a position to do so.
Extraordinary Dividend Payout
Thursday January 15, 11:26 am ET
Company Updates Its Stockholders on the Extraordinary Dividend Payout
The Company is pleased to announce that all terms, pricing per share and conditions of the Extraordinary Dividend remain unchanged and that we are now very positive that this process will be completed within the next six weeks;
the "Record Date" and the "Pay Date" of this Extraordinary Dividend will be announced this month.
Hurasu Dividend Payout
Friday January 16, 12:57 pm ET
Company Files a Form 8-K Clarifying the Distribution of Hurasu Resource Corporation Shares of Common Stock
This Form 8-K deals with the forthcoming Extraordinary Dividend as well as the payment of the remaining outstanding Stock Dividends.
The Extraordinary Dividend "Record Date" and "Pay Date" will be announced in a very short time frame.
Update on Hurasu Dividend Payout
Wednesday January 21, 11:57 am ET
Company Confirms the Imminent "Record Date" and "Pay Date" Declarations of the Extraordinary Dividend
This Form 8-K dealt with the forthcoming Extraordinary Dividend as well as the payment of the remaining outstanding Stock Dividends.
The Company is now in a position to confirm that the Extraordinary Dividend "Record Date" and "Pay Date" will be announced shortly; the Company is awaiting completion of the final statutory details from Hurasu Resource Corporation.
Update
Friday January 30, 9:38 am ET
Company to Set Out Extraordinary Dividend Dates on Wednesday, February 4, 2009
Fortress Financial Group, Inc. will be announcing its Extraordinary Stock Dividend dates on Wednesday, February 4, 2009 prior to the market open on that day.
Stock Dividend Payment
Wednesday February 4, 9:54 am ET
Company Sets Out the Process and Proposed Dates for the Payment of the Extraordinary Stock Dividend
-- "Record Date" for Extraordinary Stock Dividend to be in February of 2009
5. Fortress Financial Group, Inc. will obtain a "Record Date" and a "Pay Date" for this Stock Distribution and once these dates are approved by FINRA; announce these dates.
The Company does not intend to wait for the delivery of the Hurasu stock certificate; before setting its "Record Date" and its "Pay Date."
The Company anticipates a "Record Date" on or around Friday, February 27, 2009 with a "Pay Date" being two weeks thereafter.
8. Hurasu will be trading at a price of US$12.50 per share of Common Stock at the Company's "Record Date"; valuing this Extraordinary Dividend in the amount of US$807,012,988.
This is equal to a price of US$0.029 for every 1 (one) share of Fortress Financial Group, Inc. Common Stock.
At the "Pay Date," Fortress Financial Group, Inc. stockholders will receive an amount of 0.234 shares of Hurasu Resource Corporation Common Shares for every 100 (one hundred) shares held in Fortress Financial Group, Inc.
Clarification on Record Date
Wednesday February 4, 11:19 am ET
Company Clarifies "Record Date" on Its Payment of the Extraordinary Stock Dividend
Fortress Financial Group, Inc. wishes to clarify that it intends to immediately set its "Record Date" and once approved by FINRA, announce that date to its stockholders.
The "Record Date" will be announced early next week and very possibly sooner than that, and not at the end of February of 2009.
Update on Stock Dividend
Friday February 13, 9:44 am ET
Company Updates Stockholders on Extraordinary Dividend Payments
Hurasu Resource Corporation is completing its restructuring and has announced this morning confirmation of these actions.
Upon their completion of their Corporate Actions, we will be in a position to complete the Extraordinary Stock Dividend payment process.
Acquisitions
Friday February 20, 9:33 am ET
Company Confirms Agreements to Acquire the "Bouse" and "South Copperstone" Gold Mining Properties
These shares of Hurasu Resource Corporation in the amount of 64,561,039 are to be distributed in full to Fortress Financial Group, Inc.'s stockholders as an Extraordinary Dividend at a date to be set by Fortress Financial Group, Inc.
Hurasu Resource Corporation and its Transfer Agent will work alongside Fortress Financial Group, Inc. and its Transfer Agent; to facilitate the accurate and orderly payment of Fortress Financial Group, Inc.'s Extraordinary Stock Dividend of Hurasu Resource Corporation's restricted shares of Common Stock to eligible Fortress Financial Group, Inc. stockholders.
(Editor's Note - Please accept my apology in advance for this ridiculously long post, but FFGO has issued a large number of PR's which change, delay, or reschedule the Extraordinary Dividend, which was originally announced on July 24, 2008.)
Extraordinary Dividend
Thursday July 24, 2008 10:58 am ET
Company to Distribute US$400 Million in Gold Assets to Its Stockholders as an Extraordinary Dividend
Alan Santini, the CEO of Fortress Financial Group, Inc., commented, that he hoped that "This Extraordinary Dividend will go a long way to rewarding long standing stockholders who have watched their stock decrease in value over time."
Clarification on Extraordinary Dividend
Thursday July 24, 2008 11:57 am ET
Company Clarifies Its "Record Date" in Respect of the Extraordinary Dividend
The "Record Date" for this Extraordinary Dividend cannot be before late August in 2008 and will therefore apply to stockholders on or around that date. Stockholders will be advised well in advance as to the "Record Date" and the "Pay Date." It will take at least three weeks to co-ordinate and prepare for this Extraordinary Dividend in order to ensure that all stockholders on the "Record Date" receive the Dividend.
Further Clarification
Friday July 25, 2008 10:38 am ET
Company Clarifies a Number of Issues Raised by Its Stockholders
24. WHAT IS THE LIKELY DATE FOR THE "RECORD DATE" FOR THIS EXTRORDINARY DIVIDEND:
The process of naming the "Record Date" is likely to take as long as
three weeks, given the number of parties involved in the co-ordination
of the distribution and payment of this Extraordinary Dividend.
Extraordinary Dividend Update
Tuesday July 29, 2008 8:30 am ET
Company Confirms Negotiations With Goldco to Issue "Free Trading Stock"
Goldco, as a "Reporting Company" with SEC, is required to file a Registration Statement in respect of these shares being issued to the Company.
However, Goldco is exploring avenues with your Company to ensure that stockholders do not receive Goldco shares that are untradeable and restricted for any substantial period of time.
Potential Change of Control
Thursday July 31, 2008 11:31 am ET
Company Confirms It Has Been Advised That a Private Equity Group Intends to Acquire 51% of the Company's Outstanding Stock
The CEO and controlling stockholder of the Private Equity Group has confirmed that Alan Santini will remain as CEO of Fortress Financial Group, Inc. and that the Extraordinary Stock Dividend will proceed as announced.
Additional Clarification
Friday August 1, 2008 10:03 am ET
Company Clarifies a Number of Issues Raised by Its Stockholders
6. WILL THE COMPANY STILL BE PAYING THE EXTRAORDINARY DIVIDEND AFTER THE ASSUMPTION OF A CONTROLLING INTEREST BY THE PRIVATE EQUITY GROUP:
Absolutely yes. They invested primarily as they saw our Company as a
"value play." They are 100% behind the payment of this Dividend. It is of huge benefit and profit to themselves.
Brief Update
Friday August 8, 1:55 pm ET
Company Provides a Brief Update to Its Stockholders
2. The Extraordinary Dividend remains unchanged and we are working on the "Record Date" with all parties.
Statement by CEO
Monday August 11, 10:20 am ET
Company CEO Makes a Formal Statement to His Stockholders
It would appear that the primary concerns of our stockholders are:
1) When will the Company declare the "Record Date" of the Extraordinary Dividend?
The "Record Date" for the Extraordinary Dividend will be announced in late August of 2008 as promised.
Statement
Monday August 18, 1:59 pm ET
Company Issues Statement on Its Future Direction and Disposal of Its Assets
The Company confirms that a number of substantial and extraordinary changes within the Company are be enacted and with immediate effect.
-- Company to distribute all of its Gold assets (through the Goldco
shares) to its stockholders in the form on an Enlarged Extraordinary
Dividend.
-- Company attempting to pay a further Dividend to its stockholders in
cash.
11. The Company will now focus on setting a "Record Date" and "Pay Date" for this enlarged Extraordinary Dividend. Stockholders will be advised as to these dates ahead of time; in order to be eligible for the receipt this enlarged Extraordinary Dividend; and all other Stock Dividends.
Schedule of Stock Dividends
Thursday August 21, 1:01 pm ET
Company Clarifies the Stock Dividend Distribution
1. ENLARGED EXTRAORDINARY DIVIDEND OF GOLDCO SHARES OF COMMON STOCK
Company to distribute all of its Gold assets (through the Goldco shares) to its stockholders in the form of an Enlarged Extraordinary Dividend.
The "Record Date" and the "Pay Date" will be announced at such time as the Company is in possession of its shares of Goldco.
Goldco has indicated completion on August 29, 2008.
The Company will not delay in setting this "Record Date"; of that, stockholders may rest assured.
2. SECOND DIVIDEND; THAT BEING STOCK IN ALAN SANTINI'S NEW COMPANY:
3. THIRD CASH DIVIDEND IN RESPECT OF THIS COMPANY'S STOCK HOLDING IN HUNT GOLD CORPORATION:
Alan Santini added "that he was not in the business of giving a free ride to those who wish to purchase stock solely for these Dividends, as his loyalties lay with his long term stockholders and warned that very little notice will be given in respect of the 'Record Dates' of these stock dividends.
30% Increase in Dividend Value
Monday August 25, 9:53 am ET
Company Confirms Sale of Gold Assets for Substantially Higher Price and a 30% Increase in Value of Extraordinary Dividend
This will not delay the payments of the Extraordinary Dividend; which has now been increased by 30% in value. The Company expects to be in a position to confirm the "Record Date" of this Extraordinary Dividend, within days.
Valuation of Extraordinary Dividend
Monday August 25, 1:40 pm ET
Company Confirms the Valuation of the Extraordinary Stock Dividend
The Company is working with professional advisors whom will be coordinating the payment of these this Extraordinary Dividend. The Company in conjunction with its Advisors, will be announcing both the "Record Date" and the "Payment Date" of this Extraordinary Dividend, very shortly.
Hurasu Resource Corporation is purchasing all of the remaining stock in both the "Bouse" and "South Copperstone" companies.
This will be an unrelated transaction to the Extraordinary Dividend and will not serve to delay the payment of this Extraordinary Dividend in any way whatsoever.
Record Date of Extraordinary Dividend
Wednesday August 27, 3:26 pm ET
Company Confirms That the "Record Date" of the Extraordinary Dividend Is Being Expedited
Fortress Financial Group, Inc. confirms that it is in a position to proceed with the setting of the "Record Date" of the Extraordinary Dividend.
The Company will not be waiting for Hurasu to complete their own reorganization, prior to our setting the distribution dates and it has now been agreed with the Management of Hurasu that this Company can now proceed with the setting of the "Record Date" without any delay.The Company will (a) announce the "Record Date" and the "Pay Date" and (b) file a Form 8-K to this effect; within minutes of the "Record Date" and the "Pay Date" being confirmed and published by the NASD.
There will no longer be any delay whatsoever in the setting of these dates as the Company is now extremely anxious to distribute these shares of Hurasu Common Stock and to remove all of the prevailing uncertainty that currently exists with our stockholders.
Statement
Tuesday September 16, 2:34 pm ET
Company Deals With the Key Issues Concerning Its Stockholders
2. The sale of the Company's holdings in both "Bouse" and in "South Copperstone" are a "done deal." The Stock Dividend will be declared upon the Company's receipt of the stock received in respect of this sale; and as previously announced.
This is expected to complete this week.
Stock Dividend Valuation
Wednesday September 17, 11:04 am ET
Company Confirms the Final Valuation of Its Extraordinary Stock Dividend
The Company can confirm that this Dividend is valued at US$0.0239 for every 1 (one) share of this Company's Common Stock.
It is expected that the Company will be in a position to confirm both the "Record Date" and the "Pay Date" in respect of this Stock Dividend, within days now.
Company to Attempt Further Stock Repurchases
Wednesday October 1, 11:32 am ET
Company in Discussions With Lenders in an Attempt to Secure Funding to Repurchase Additional Shares of Its Common Stock
The Company's CEO will be issuing a full statement on Friday October 3, 2008 to clarify the situation and to deal with investor concerns. The Company's Management wishes to stress that the Extraordinary Dividend is being paid to its stockholders as promised and that the Company's situation remains unchanged.
Statement
Friday October 3, 1:48 pm ET
Company Confirms Ongoing Discussions to Effect a Reverse Merger
The Company stresses that should this proposed Reverse Merger be agreed upon, this will not affect the payments of the Stock Dividends.
Update on Reverse Merger
Monday October 6, 12:40 pm ET
Company Clarifies the Details of the Reverse Merger Under Consideration
The Company will state for the last time that the Extraordinary Dividend is unaffected by these discussions and that this Dividend will be paid regardless and as announced.
The Company will announce the "Record" and "Pay" dates in respect of this Stock Dividend as and when it is in a position to do so.
Extraordinary Dividend Payout
Thursday January 15, 11:26 am ET
Company Updates Its Stockholders on the Extraordinary Dividend Payout
The Company is pleased to announce that all terms, pricing per share and conditions of the Extraordinary Dividend remain unchanged and that we are now very positive that this process will be completed within the next six weeks;
the "Record Date" and the "Pay Date" of this Extraordinary Dividend will be announced this month.
Hurasu Dividend Payout
Friday January 16, 12:57 pm ET
Company Files a Form 8-K Clarifying the Distribution of Hurasu Resource Corporation Shares of Common Stock
This Form 8-K deals with the forthcoming Extraordinary Dividend as well as the payment of the remaining outstanding Stock Dividends.
The Extraordinary Dividend "Record Date" and "Pay Date" will be announced in a very short time frame.
Update on Hurasu Dividend Payout
Wednesday January 21, 11:57 am ET
Company Confirms the Imminent "Record Date" and "Pay Date" Declarations of the Extraordinary Dividend
This Form 8-K dealt with the forthcoming Extraordinary Dividend as well as the payment of the remaining outstanding Stock Dividends.
The Company is now in a position to confirm that the Extraordinary Dividend "Record Date" and "Pay Date" will be announced shortly; the Company is awaiting completion of the final statutory details from Hurasu Resource Corporation.
Update
Friday January 30, 9:38 am ET
Company to Set Out Extraordinary Dividend Dates on Wednesday, February 4, 2009
Fortress Financial Group, Inc. will be announcing its Extraordinary Stock Dividend dates on Wednesday, February 4, 2009 prior to the market open on that day.
Stock Dividend Payment
Wednesday February 4, 9:54 am ET
Company Sets Out the Process and Proposed Dates for the Payment of the Extraordinary Stock Dividend
-- "Record Date" for Extraordinary Stock Dividend to be in February of 2009
5. Fortress Financial Group, Inc. will obtain a "Record Date" and a "Pay Date" for this Stock Distribution and once these dates are approved by FINRA; announce these dates.
The Company does not intend to wait for the delivery of the Hurasu stock certificate; before setting its "Record Date" and its "Pay Date."
The Company anticipates a "Record Date" on or around Friday, February 27, 2009 with a "Pay Date" being two weeks thereafter.
8. Hurasu will be trading at a price of US$12.50 per share of Common Stock at the Company's "Record Date"; valuing this Extraordinary Dividend in the amount of US$807,012,988.
This is equal to a price of US$0.029 for every 1 (one) share of Fortress Financial Group, Inc. Common Stock.
At the "Pay Date," Fortress Financial Group, Inc. stockholders will receive an amount of 0.234 shares of Hurasu Resource Corporation Common Shares for every 100 (one hundred) shares held in Fortress Financial Group, Inc.
Clarification on Record Date
Wednesday February 4, 11:19 am ET
Company Clarifies "Record Date" on Its Payment of the Extraordinary Stock Dividend
Fortress Financial Group, Inc. wishes to clarify that it intends to immediately set its "Record Date" and once approved by FINRA, announce that date to its stockholders.
The "Record Date" will be announced early next week and very possibly sooner than that, and not at the end of February of 2009.
Update on Stock Dividend
Friday February 13, 9:44 am ET
Company Updates Stockholders on Extraordinary Dividend Payments
Hurasu Resource Corporation is completing its restructuring and has announced this morning confirmation of these actions.
Upon their completion of their Corporate Actions, we will be in a position to complete the Extraordinary Stock Dividend payment process.
Acquisitions
Friday February 20, 9:33 am ET
Company Confirms Agreements to Acquire the "Bouse" and "South Copperstone" Gold Mining Properties
These shares of Hurasu Resource Corporation in the amount of 64,561,039 are to be distributed in full to Fortress Financial Group, Inc.'s stockholders as an Extraordinary Dividend at a date to be set by Fortress Financial Group, Inc.
Hurasu Resource Corporation and its Transfer Agent will work alongside Fortress Financial Group, Inc. and its Transfer Agent; to facilitate the accurate and orderly payment of Fortress Financial Group, Inc.'s Extraordinary Stock Dividend of Hurasu Resource Corporation's restricted shares of Common Stock to eligible Fortress Financial Group, Inc. stockholders.
Sunday, February 8, 2009
CMKX - CMKM Diamonds Inc. - An Open Letter To ALL Government Officials
This update was published on the official CMKM Diamonds web site today, Sunday, Feb.8th, 2009, by the current CEO, Mark Faulk.
Can you verify that this information is true...??
- That there actually IS a Task Force working on this...??
- That the company IS actually working with the government on this investigation...??
- That CMKM shareholders are being added to the Victim Notification System (VNS)...??
- That CMKM shareholders have a snowball's chance in Hell of ever getting paid as a result of this massive fraud...??
--------------------------------------------------------------------------------
Shareholders' Corner...
2-8-09
CMKM Diamonds, Inc. has recently taken a number of steps to encourage the Department of Justice, Federal Bureau of Investigation, and the Internal Revenue Service to finally issue indictments and commence criminal proceedings against former CEO Urban Casavant and insider John Edwards and their cohorts, who blatantly stole $250 million from the Company and its shareholders.
Over the last two weeks, CMKM and its shareholders have contacted hundreds of public officials, including congressmen, federal regulators, criminal agencies, and people within President Obama’s administration. Although our letter was addressed to President Obama, our hope was that anyone in a position of authority would hear our plea for justice. One CMKX shareholder, a United States Air Force pilot who was just one of dozens of soldiers who were ruthlessly targeted in this massive fraud, worded it this way in his email to public officials: “The SEC, DOJ, FBI, etc. have dragged out this case for years and have no sense of urgency”.
While the Company cannot say for certain whether or not there was any “sense of urgency” in the past, we can confirm that the Company and its shareholders’ efforts have not fallen on deaf ears. Of particular significance was a single email directed to 20 people within the DOJ, FBI, IRS, SEC, and FINRA, containing the CMKM Plea for Justice, along with an introductory email, which said, in part:
I am aware of a joint Task Force consisting of the DOJ, FBI, and the IRS, assisted by the SEC, that has been investigating this massive fraud for the past few years. I know that our criminal agencies are overworked and underfunded, but this fraud is a travesty. These shareholders have been waiting for years to see criminal charges filed against those who blatantly stole hundreds of millions of dollars from them. Current management at CMKM Diamonds has in the past assisted the various agencies in their efforts, but I would like to extend that offer once again, We have hundreds of thousands of pages of bank account records, transfer agent records, and trading records, as well as other evidence that might be helpful to your efforts. Please contact me if I can be of assistance, and I would appreciate a reply so that I can at least be assured that this investigation has not been abandoned.
And please......PUT THESE CRIMINALS IN PRISON!!
When that email was sent out, the Company received a phone call from a member of the Task Force less than two hours later, asking us to assist them in their investigation. We are doing everything within our power to help them expedite their investigation, and will continue to do so. It is my belief that they are continuing their efforts with a renewed sense of urgency.
While we provide assistance to the Task Force, we believe it is in the best interest of CMKM Diamonds and its shareholders to continue to encourage a swift conclusion to the investigation, while at the same time being careful not to impede their progress. This is why we have followed up our letter by posting a petition to the DOJ, FBI, and IRS Task Force investigating CMKM Diamonds. Inc (CMKX). We intend to send them a preliminary copy as soon as we reach a thousand signatures, but we hope to have many more in the near future. We encourage all shareholders and other advocates for justice in our financial system to sign the petition and help us distribute it to others who might join our fight.
The Company has also mailed a Letter of Request to the Task Force asking that all CMKM Diamonds, Inc. (CMKX) shareholders be added to a victims’ list under the Victim Notification System (VNS). All recognized victims on the list have certain rights as specified in the “Help for Victims of Crime” brochure published by the Department of Justice, including “The right to proceedings free from unreasonable delay”. We have included a list of all shareholders who we have been able to identify through the cert pull conducted in late 2005 and 2006. Although this list is incomplete, it will give the FBI (during the investigation phase) and the DOJ (once charges have been filed) a starting point in contacting victims in the CMKM Diamonds, Inc. fraud case.
As we move forward with our civil lawsuits and other company business, CMKM Diamonds, Inc. will also continue to work with all federal agencies to ensure that all those who conspired to steal an estimated $250 million are punished to the fullest extent of the law. I would like to thank our Advisory Committee, Board of Directors, Corporate Counsel, and our dedicated shareholders for their untiring efforts in this cause.
Mark Faulk, CEO
--------------------------------------------------------------------------------
Editor's Note - I have emailed this information to 'my pals' at the SEC...
cmkmdiamonds@sec.gov, help@sec.gov, kotzd@sec.gov, coxc@sec.gov, chairmanoffice@sec.gov, tradingandmarkets@sec.gov, newyork@sec.gov, losangeles@sec.gov, enforcement@sec.gov, oiea@sec.gov, publicinfo@sec.gov, mccoyj@sec.gov, whitem@sec.gov, hakalal@sec.gov, tysonr@sec.gov, thomsenl@sec.gov, greener@sec.gov, howellc@sec.gov, starkj@sec.gov, mckreeryj@sec.gov, kaeppleink@sec.gov, oig@sec.gov, powersd@sec.gov, schonfeldm@sec.gov, bergersd@sec.gov, hawked@sec.gov, nelsond@sec.gov, addlemank@sec.gov, gillettem@sec.gov, hoerld@sec.gov, romeror@sec.gov, israelk@sec.gov, fagelm@sec.gov
Can you verify that this information is true...??
- That there actually IS a Task Force working on this...??
- That the company IS actually working with the government on this investigation...??
- That CMKM shareholders are being added to the Victim Notification System (VNS)...??
- That CMKM shareholders have a snowball's chance in Hell of ever getting paid as a result of this massive fraud...??
--------------------------------------------------------------------------------
Shareholders' Corner...
2-8-09
CMKM Diamonds, Inc. has recently taken a number of steps to encourage the Department of Justice, Federal Bureau of Investigation, and the Internal Revenue Service to finally issue indictments and commence criminal proceedings against former CEO Urban Casavant and insider John Edwards and their cohorts, who blatantly stole $250 million from the Company and its shareholders.
Over the last two weeks, CMKM and its shareholders have contacted hundreds of public officials, including congressmen, federal regulators, criminal agencies, and people within President Obama’s administration. Although our letter was addressed to President Obama, our hope was that anyone in a position of authority would hear our plea for justice. One CMKX shareholder, a United States Air Force pilot who was just one of dozens of soldiers who were ruthlessly targeted in this massive fraud, worded it this way in his email to public officials: “The SEC, DOJ, FBI, etc. have dragged out this case for years and have no sense of urgency”.
While the Company cannot say for certain whether or not there was any “sense of urgency” in the past, we can confirm that the Company and its shareholders’ efforts have not fallen on deaf ears. Of particular significance was a single email directed to 20 people within the DOJ, FBI, IRS, SEC, and FINRA, containing the CMKM Plea for Justice, along with an introductory email, which said, in part:
I am aware of a joint Task Force consisting of the DOJ, FBI, and the IRS, assisted by the SEC, that has been investigating this massive fraud for the past few years. I know that our criminal agencies are overworked and underfunded, but this fraud is a travesty. These shareholders have been waiting for years to see criminal charges filed against those who blatantly stole hundreds of millions of dollars from them. Current management at CMKM Diamonds has in the past assisted the various agencies in their efforts, but I would like to extend that offer once again, We have hundreds of thousands of pages of bank account records, transfer agent records, and trading records, as well as other evidence that might be helpful to your efforts. Please contact me if I can be of assistance, and I would appreciate a reply so that I can at least be assured that this investigation has not been abandoned.
And please......PUT THESE CRIMINALS IN PRISON!!
When that email was sent out, the Company received a phone call from a member of the Task Force less than two hours later, asking us to assist them in their investigation. We are doing everything within our power to help them expedite their investigation, and will continue to do so. It is my belief that they are continuing their efforts with a renewed sense of urgency.
While we provide assistance to the Task Force, we believe it is in the best interest of CMKM Diamonds and its shareholders to continue to encourage a swift conclusion to the investigation, while at the same time being careful not to impede their progress. This is why we have followed up our letter by posting a petition to the DOJ, FBI, and IRS Task Force investigating CMKM Diamonds. Inc (CMKX). We intend to send them a preliminary copy as soon as we reach a thousand signatures, but we hope to have many more in the near future. We encourage all shareholders and other advocates for justice in our financial system to sign the petition and help us distribute it to others who might join our fight.
The Company has also mailed a Letter of Request to the Task Force asking that all CMKM Diamonds, Inc. (CMKX) shareholders be added to a victims’ list under the Victim Notification System (VNS). All recognized victims on the list have certain rights as specified in the “Help for Victims of Crime” brochure published by the Department of Justice, including “The right to proceedings free from unreasonable delay”. We have included a list of all shareholders who we have been able to identify through the cert pull conducted in late 2005 and 2006. Although this list is incomplete, it will give the FBI (during the investigation phase) and the DOJ (once charges have been filed) a starting point in contacting victims in the CMKM Diamonds, Inc. fraud case.
As we move forward with our civil lawsuits and other company business, CMKM Diamonds, Inc. will also continue to work with all federal agencies to ensure that all those who conspired to steal an estimated $250 million are punished to the fullest extent of the law. I would like to thank our Advisory Committee, Board of Directors, Corporate Counsel, and our dedicated shareholders for their untiring efforts in this cause.
Mark Faulk, CEO
--------------------------------------------------------------------------------
Editor's Note - I have emailed this information to 'my pals' at the SEC...
cmkmdiamonds@sec.gov, help@sec.gov, kotzd@sec.gov, coxc@sec.gov, chairmanoffice@sec.gov, tradingandmarkets@sec.gov, newyork@sec.gov, losangeles@sec.gov, enforcement@sec.gov, oiea@sec.gov, publicinfo@sec.gov, mccoyj@sec.gov, whitem@sec.gov, hakalal@sec.gov, tysonr@sec.gov, thomsenl@sec.gov, greener@sec.gov, howellc@sec.gov, starkj@sec.gov, mckreeryj@sec.gov, kaeppleink@sec.gov, oig@sec.gov, powersd@sec.gov, schonfeldm@sec.gov, bergersd@sec.gov, hawked@sec.gov, nelsond@sec.gov, addlemank@sec.gov, gillettem@sec.gov, hoerld@sec.gov, romeror@sec.gov, israelk@sec.gov, fagelm@sec.gov
Thursday, February 5, 2009
CMKX - CMKM Diamonds Inc. - Officers Petition Criminal Agencies - DOJ, FBI, and IRS Task Force
CMKM Diamonds Corporate Updates
February 4th, 2009
CMKM Petitions Criminal Agencies to File Charges in Major Stock Market Scandal
At CMKM Diamonds, we are fighting a war on multiple fronts. While we move forward with our own corporate lawsuits in an effort to return value to the Company, we are also urging our government to enact justice against those who have wronged our shareholders. In order to keep pressure on the DOJ, FBI, and IRS Task Force that has been investigating the fraud committed by those criminals who stole an estimated $250 million dollars from innocent CMKX investors, we have posted a petition seeking justice “in one of the largest and most blatant singular frauds ever perpetrated in our financial markets”. When enough signatures are accumulated to present a united front, we will present the petition to those who are in charge of the investigation and their superiors.
We have always believed that properly motivated, our shareholders are our greatest asset. This is a perfect opportunity to, in the words of Company Chairmen Kevin West, “unite this group of wonderful people, our shareholders, for a common cause.”
PLEASE go to http://www.petitiononline.com/CMKX/petition.html
to sign the petition. Let the government Task Force know that WE WILL NOT GO AWAY QUIETLY. Let your voices be heard. Post it on message boards, discuss it in chat rooms, and send it to everyone you know. You do not have to be a shareholder to sign the petition, just a citizen who believes that justice still counts for something in our country. Let CMKM Diamonds be the first step in cleaning up the rampant corruption that plagues our financial system. United we can change the world.
--------------------------------------------------------------------------------
To: DOJ, FBI, and IRS Task Force investigating CMKM Diamonds, Inc. (CMKX):
PETITION:
CMKM Diamonds and its shareholders respectfully ask that our government seek justice in one of the largest and most blatant singular frauds ever perpetrated in our financial markets. The company's stock (trading as CMKX) was revoked over three years ago, but its shareholders still await the filing of criminal charges against the numerous individuals who defrauded over 50,000 shareholders of an estimated $250 million.
From 2003 until late 2005, criminals in control of CMKM Diamonds, Inc. sold over 703 billion shares of stock to unsuspecting shareholders, including blue collar workers, the elderly, disabled, and even soldiers fighting for our country in Iraq and Afghanistan. Mastermind John Edwards and CEO Urban Casavant were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms.
On April 8, 2008, the SEC charged 11 individuals and 3 corporate entities with civil violations, but despite a mountain of evidence clearly showing massive criminal fraud, a multi-year investigation by the DOJ, FBI, and IRS has yet to produce a single criminal indictment. Many of the criminals have already fled the country, while others are involved in new scams with the intent of robbing other investors.
To view a Letter to the President and supporting evidence sent out by current CMKM Diamonds, Inc. management, go to: www.cmkmdiamondsinc.com/letter_index.html
We the undersigned ask that the DOJ, FBI, and IRS to act immediately to issue criminal indictments against all of those individuals who conspired to defraud 50,000 CMKX shareholders of over $250 million.
http://www.petitiononline.com/CMKX/petition.html
February 4th, 2009
CMKM Petitions Criminal Agencies to File Charges in Major Stock Market Scandal
At CMKM Diamonds, we are fighting a war on multiple fronts. While we move forward with our own corporate lawsuits in an effort to return value to the Company, we are also urging our government to enact justice against those who have wronged our shareholders. In order to keep pressure on the DOJ, FBI, and IRS Task Force that has been investigating the fraud committed by those criminals who stole an estimated $250 million dollars from innocent CMKX investors, we have posted a petition seeking justice “in one of the largest and most blatant singular frauds ever perpetrated in our financial markets”. When enough signatures are accumulated to present a united front, we will present the petition to those who are in charge of the investigation and their superiors.
We have always believed that properly motivated, our shareholders are our greatest asset. This is a perfect opportunity to, in the words of Company Chairmen Kevin West, “unite this group of wonderful people, our shareholders, for a common cause.”
PLEASE go to http://www.petitiononline.com/CMKX/petition.html
to sign the petition. Let the government Task Force know that WE WILL NOT GO AWAY QUIETLY. Let your voices be heard. Post it on message boards, discuss it in chat rooms, and send it to everyone you know. You do not have to be a shareholder to sign the petition, just a citizen who believes that justice still counts for something in our country. Let CMKM Diamonds be the first step in cleaning up the rampant corruption that plagues our financial system. United we can change the world.
--------------------------------------------------------------------------------
To: DOJ, FBI, and IRS Task Force investigating CMKM Diamonds, Inc. (CMKX):
PETITION:
CMKM Diamonds and its shareholders respectfully ask that our government seek justice in one of the largest and most blatant singular frauds ever perpetrated in our financial markets. The company's stock (trading as CMKX) was revoked over three years ago, but its shareholders still await the filing of criminal charges against the numerous individuals who defrauded over 50,000 shareholders of an estimated $250 million.
From 2003 until late 2005, criminals in control of CMKM Diamonds, Inc. sold over 703 billion shares of stock to unsuspecting shareholders, including blue collar workers, the elderly, disabled, and even soldiers fighting for our country in Iraq and Afghanistan. Mastermind John Edwards and CEO Urban Casavant were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms.
On April 8, 2008, the SEC charged 11 individuals and 3 corporate entities with civil violations, but despite a mountain of evidence clearly showing massive criminal fraud, a multi-year investigation by the DOJ, FBI, and IRS has yet to produce a single criminal indictment. Many of the criminals have already fled the country, while others are involved in new scams with the intent of robbing other investors.
To view a Letter to the President and supporting evidence sent out by current CMKM Diamonds, Inc. management, go to: www.cmkmdiamondsinc.com/letter_index.html
We the undersigned ask that the DOJ, FBI, and IRS to act immediately to issue criminal indictments against all of those individuals who conspired to defraud 50,000 CMKX shareholders of over $250 million.
http://www.petitiononline.com/CMKX/petition.html
Tuesday, January 27, 2009
CMKX - CMKM Diamonds - Open Letter To President Obama On CMKX
Return To The Rule Of Law... Fix CMKX...!!
free-press-release.com
For_Immediate_Release:
United States of America (Press Release) January 27, 2009 -- A real letter to President Obama,
Dear President Obama,
An initial statement of congratulations. Not only have you made history, but you have actually given Americans hope, especially with your immediate executive orders and your promise to return to the rule of law to America.
I humbly suggest that the first place that you start with returning the rule of law to America is with the matter of CMKX Diamonds. We are a penny stock that was used as a sting operation to catch the MASSIVE naked short sellers on Wall Street. The company had literally trillions of shares electronically counterfeited, via the illegal practice known as Naked Short Selling, a practice that has been perpetrated by the enemies of this nation through offshore hedge funds with the assistance of non-enforcement of the law by our regulators.
According to Orrin Hatch, while member of the Senate Judiciary Committee, in 2005 he stated that a minimum of $6 billion per day was “naked shorted” which amounts to $6 billion per day being stolen out of the American economy by those who can only be deemed as the very worst of financial terrorists. The figure has risen since that time.
The intelligence agencies addressed this matter in 2004-2005 by bringing in top intelligence operative Robert Maheu, who helped facilitate the company taking a “non trading status” to lock in the naked short position, and thereafter, have a certificate pull and share count to expose the naked short position. Unfortunately for the shareholders, the management who took over for Mr. Maheu seemed to have another agenda as they counted the certificates and stopped just short of exposing the true naked short position, which of course, protected the naked short sellers. When the company stopped counting shares in 2006, there were trillions of uncounted naked shorted shares left so that the public share count reflected a reality that the company was never naked shorted at all. The question remains why stop the share count?
Very recently, former CEO and current Chairman of the Board Kevin West stated that the company “ran out of money to complete the share count,” the entire time the company was paying salaries, attorney fees, funding lawsuits and the like. This is a completely inconsistent position with the very nature of the certificate pull due to the fact it was used to prove the crux of the company’s claims – the naked short itself! Incidentally, the company and the related industry agents, spent several millions of dollars to fund the certificate pull and related newspaper publications, etc. Why would they stop just before exposing the facts that would blow the case wide open?
The concern that the shareholders have is that a separate group of people, which includes current management and according to some, former political figures, have hijacked the CMKX claims by transferring them from the Nevada Corporate entity known as CMKX to a separate CMKX company formed in Texas, a company in which the shareholders of the Nevada Corporation were not included. Did they cut a secret deal behind the shareholders’ backs? As you may note, you recently received a letter from our current CEO Mark Faulk which misdirected you from the facts I have stated above and towards a former CEO, Urban Casavant. Notice how Faulk focused upon justice against the former CEO and not the entities who have caused the financial terrorism with unrelenting naked short selling and counterfeiting? Such misdirection and a failure to identify the real criminals is completely consistent with terms of a confidentiality agreement. Was a secreted deal with the broker, dealers and the DTCC made and the shareholders excluded? Huge claims should still exist against the financial institutions; yet the company is refusing to pursue them, another fact consistent with the position that a deal was already made.
For that matter, current CEO Mark Faulk wrote a book about this stock in particular entitled “The Naked Truth,” and addressed naked shorting in the market as a whole, but conveniently would not commit to the fact CMKX was naked shorted and a sting operation was carried out. Then he somehow found the funds to purchase an existing radio station that was dedicated to exposing the facts of naked shorting with CMKX, started a campaign of disinformation against the possibility of a sting operation, and went so far as to state that the shareholders were a “cult” for believing that there was a sting operation. In the end, after all of this criticism, this serious critic of the shareholders and their beliefs mysteriously became the new CEO with out a single shareholder vote. Now, he has written you a letter as what many deem to be a serious misdirection at a time that you are promising to return to the rule of law. Very interesting timing indeed.
Mr. President, I write this letter to you for the shareholders, not a tightly knit special interest group within the company. The shareholders know that Robert Maheu was sent in to this situation to fix the problem and do as he promised, “extract maximum value for the shareholders.” The shareholders’ great concern is that Mr. Maheu was very successful in his task, but as his health failed and he passed away in 2008, the operation was hijacked by the insiders. There may even have been a settlement with the DTCC and CMKX - THE TEXAS CMKX - and again, the real shareholders from the Nevada Corporation were not included.
Sir, you have stated that America will return to the rule of law. I must say that those words are both powerful and a true deliverance of hope for all Americans at a time of despair. Will you please look into this situation and help bring justice to the approximately 50,000 shareholders who have been literally on pins and needles for over five years?
Many thanks and God Bless,
free-press-release.com
For_Immediate_Release:
United States of America (Press Release) January 27, 2009 -- A real letter to President Obama,
Dear President Obama,
An initial statement of congratulations. Not only have you made history, but you have actually given Americans hope, especially with your immediate executive orders and your promise to return to the rule of law to America.
I humbly suggest that the first place that you start with returning the rule of law to America is with the matter of CMKX Diamonds. We are a penny stock that was used as a sting operation to catch the MASSIVE naked short sellers on Wall Street. The company had literally trillions of shares electronically counterfeited, via the illegal practice known as Naked Short Selling, a practice that has been perpetrated by the enemies of this nation through offshore hedge funds with the assistance of non-enforcement of the law by our regulators.
According to Orrin Hatch, while member of the Senate Judiciary Committee, in 2005 he stated that a minimum of $6 billion per day was “naked shorted” which amounts to $6 billion per day being stolen out of the American economy by those who can only be deemed as the very worst of financial terrorists. The figure has risen since that time.
The intelligence agencies addressed this matter in 2004-2005 by bringing in top intelligence operative Robert Maheu, who helped facilitate the company taking a “non trading status” to lock in the naked short position, and thereafter, have a certificate pull and share count to expose the naked short position. Unfortunately for the shareholders, the management who took over for Mr. Maheu seemed to have another agenda as they counted the certificates and stopped just short of exposing the true naked short position, which of course, protected the naked short sellers. When the company stopped counting shares in 2006, there were trillions of uncounted naked shorted shares left so that the public share count reflected a reality that the company was never naked shorted at all. The question remains why stop the share count?
Very recently, former CEO and current Chairman of the Board Kevin West stated that the company “ran out of money to complete the share count,” the entire time the company was paying salaries, attorney fees, funding lawsuits and the like. This is a completely inconsistent position with the very nature of the certificate pull due to the fact it was used to prove the crux of the company’s claims – the naked short itself! Incidentally, the company and the related industry agents, spent several millions of dollars to fund the certificate pull and related newspaper publications, etc. Why would they stop just before exposing the facts that would blow the case wide open?
The concern that the shareholders have is that a separate group of people, which includes current management and according to some, former political figures, have hijacked the CMKX claims by transferring them from the Nevada Corporate entity known as CMKX to a separate CMKX company formed in Texas, a company in which the shareholders of the Nevada Corporation were not included. Did they cut a secret deal behind the shareholders’ backs? As you may note, you recently received a letter from our current CEO Mark Faulk which misdirected you from the facts I have stated above and towards a former CEO, Urban Casavant. Notice how Faulk focused upon justice against the former CEO and not the entities who have caused the financial terrorism with unrelenting naked short selling and counterfeiting? Such misdirection and a failure to identify the real criminals is completely consistent with terms of a confidentiality agreement. Was a secreted deal with the broker, dealers and the DTCC made and the shareholders excluded? Huge claims should still exist against the financial institutions; yet the company is refusing to pursue them, another fact consistent with the position that a deal was already made.
For that matter, current CEO Mark Faulk wrote a book about this stock in particular entitled “The Naked Truth,” and addressed naked shorting in the market as a whole, but conveniently would not commit to the fact CMKX was naked shorted and a sting operation was carried out. Then he somehow found the funds to purchase an existing radio station that was dedicated to exposing the facts of naked shorting with CMKX, started a campaign of disinformation against the possibility of a sting operation, and went so far as to state that the shareholders were a “cult” for believing that there was a sting operation. In the end, after all of this criticism, this serious critic of the shareholders and their beliefs mysteriously became the new CEO with out a single shareholder vote. Now, he has written you a letter as what many deem to be a serious misdirection at a time that you are promising to return to the rule of law. Very interesting timing indeed.
Mr. President, I write this letter to you for the shareholders, not a tightly knit special interest group within the company. The shareholders know that Robert Maheu was sent in to this situation to fix the problem and do as he promised, “extract maximum value for the shareholders.” The shareholders’ great concern is that Mr. Maheu was very successful in his task, but as his health failed and he passed away in 2008, the operation was hijacked by the insiders. There may even have been a settlement with the DTCC and CMKX - THE TEXAS CMKX - and again, the real shareholders from the Nevada Corporation were not included.
Sir, you have stated that America will return to the rule of law. I must say that those words are both powerful and a true deliverance of hope for all Americans at a time of despair. Will you please look into this situation and help bring justice to the approximately 50,000 shareholders who have been literally on pins and needles for over five years?
Many thanks and God Bless,
Thursday, January 22, 2009
CMKX - CMKM Diamonds - SEC Probe In Madoff Scam...??
SEC Self-Probe? Ha!
SAN DIEGO READER
By Don Bauder | Published Wednesday, Jan. 21, 2009
The Securities and Exchange Commission, the federal agency that is supposed to protect investors from Wall Street predators, says it is going to investigate how it missed the Bernie Madoff scam. San Diego’s Gary Aguirre, speaking from personal experience, knows that’s impossible. Any securities agency probe will be a cover-up.
New York’s Madoff ran a $50 billion Ponzi scheme. The securities commission admits that allegations about Madoff’s scheme had been repeatedly brought to the agency’s attention since 1999. “I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations,” proclaimed the agency’s Bush-era chairman, Christopher Cox, last month, announcing the supposed self-probe.
Balderdash. The only thing Cox is “gravely concerned” about is that the American public might finally understand the agency’s actual mission. For as Aguirre, a former attorney for the agency, points out, the Securities and Exchange Commission (SEC) does not exist to protect investors from Wall Street predators. It exists to protect powerful Wall Street predators from investors.
The notion that the agency can probe its own officials is hilarious — a real knee-slapper. In late December, Senator Arlen Specter (R-PA) heaped scorn on the securities agency’s ability to investigate itself in the Gary Aguirre case. Now the agency says it will open that probe again. “Reopening the investigation marks a new embarrassment for the beleaguered S.E.C., suggesting that, as in the Bernard Madoff case, it may have failed earlier to follow up adequately on strong indications of possible wrongdoing,” says Portfolio.com.
Aguirre puts it more strongly: the securities agency “cannot be trusted with an investigation of itself, especially when the investigation [involves] the highest levels of the SEC.”
Aguirre’s case lays bare everything that the securities agency is: a whorehouse catering to Wall Street’s elite. After a long and successful career practicing law in San Diego, Aguirre, brother of former City Attorney Mike Aguirre, decided to try public service. He joined the agency and began looking into a possible insider-trading case. A hedge fund, Pequot Capital Management, had made a bundle buying up stock in a firm just before the announcement that the firm would be acquired by another company. Pequot had also made money betting that the stock of the acquiring company would go down, as is normal. Before Pequot made those bets, John Mack, the hedge fund’s former chairman and a current investor, had talked with both the investment banking firm handling the acquisition and with Pequot’s current chairman, a close personal friend.
Aguirre wanted to interview Mack. But his boss said Mack had big Washington connections — specifically, to President George W. Bush. Aguirre protested. Just weeks after he had been given a strongly positive job review, Aguirre was fired. The Senate’s Committee on Finance and Committee on the Judiciary did a 108-page study on the matter.
There were some hair-raising findings. While Aguirre was trying to get the Mack interview, an attorney at the Debevoise and Plimpton law firm sent Paul Berger, Aguirre’s boss, an email with the opening words “Yowza!” It described how an ex-SEC lawyer could make $2 million a year with the firm. One of the top attorneys at the Debevoise firm contacted a senior official of the securities agency on behalf of Mack and behind Aguirre’s back. After he fired Aguirre, Berger took a job with Debevoise. Similar quid pro quos are called the “revolving door” phenomenon — agency officials do dirty work while at the commission and then go with a big law firm representing the crooks who got off. Mack wiggled off the hook and went on to become chief executive of Wall Street’s Morgan Stanley.
The two Senate committees vindicated Aguirre, denouncing his firing and concluding it was logical that he interview Mack. Then the agency’s inspector general, H. David Kotz, authored a 191-page study of the case. Kotz basically agreed with the two Senate committees. He recommended that the agency discipline its enforcement director and one other official. Kotz, too, blasted the ease by which the Wall Street law firm got special access to securities agency officials. He questioned the “impartiality and fairness” of the agency’s handling of the Mack investigation and firing of Aguirre.
Then the agency’s cover-your-ass team went into action. An administrative law judge, one Brenda Murray, was assigned to second-guess Kotz’s report. Just a few weeks later, her 15-page paper exonerated the two officials who Kotz said should be disciplined. Kotz was shocked and said so publicly.
Now we get to the heart of the agency’s double-dealing. As Senator Specter stated, Brenda Murray “was described in press accounts as an administrative law judge, and it was not until further inquiry that the SEC admitted she was not acting in a judicial capacity in issuing her decision.” In short, the agency picked a loyal staffer who happened to have the title “administrative law judge” and had her exonerate the officials who had been sharply criticized by the Senate committees and by the inspector general. But she was not acting as a judge at all — just a soldier taking orders.
Murray’s quickie report “was completely irregular in every detail,” says Aguirre. “It was outside the jurisdiction of an administrative law judge. The SEC pulled a scam.”
Senator Charles Grassley (R-Iowa), who spearheaded the investigation with Specter, said, “[I]t looked like the lawyers for the wrongdoers wrote the decision.”
Columnist Bruce Carton of Compliance Week wrote that agency staffers were stunned at the whitewash; Murray did not use the standard procedures for reviewing an internal-discipline recommendation. “Murray made her decision that discipline was not appropriate based almost exclusively on the one-sided information she received from counsel for the various subjects,” wrote Carton. “This information was not subject to any cross-examination or any follow-up by the [inspector general’s] office or other parties involved, and additionally was not provided under oath.”
One prominent attorney said that in Murray’s whitewash, the securities agency had merged “the functions of prosecutor, judge, jury, and appellate tribunal” under the same roof.
It gets even worse. One reason the Pequot case is being reopened is that a divorce suit has revealed that the hedge fund agreed to pay $2.1 million to a former Microsoft employee who was apparently feeding information on his former employer. “Pequot made a boatload of money” betting on Microsoft securities, based on such information, says Aguirre, but the agency found a way to drop the Microsoft angle of the investigation. But Aguirre has come up with new facts that have forced the agency to reopen the probe.
There’s more: In the same report in which she cleared Aguirre’s nemeses, Brenda Murray vindicated an agency official who closed an investigation into the derivatives dealings of Wall Street’s Bear Stearns in 2007. Early the next year, the Wall Street firm was rescued from bankruptcy when it was forced into J.P. Morgan, backed by $29 billion of federal money. Bear’s derivatives gambling was to blame. The agency missed it and then exonerated itself.
And the agency is going to look into whether it did its job properly in the Madoff case? Come now.
SAN DIEGO READER
By Don Bauder | Published Wednesday, Jan. 21, 2009
The Securities and Exchange Commission, the federal agency that is supposed to protect investors from Wall Street predators, says it is going to investigate how it missed the Bernie Madoff scam. San Diego’s Gary Aguirre, speaking from personal experience, knows that’s impossible. Any securities agency probe will be a cover-up.
New York’s Madoff ran a $50 billion Ponzi scheme. The securities commission admits that allegations about Madoff’s scheme had been repeatedly brought to the agency’s attention since 1999. “I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations,” proclaimed the agency’s Bush-era chairman, Christopher Cox, last month, announcing the supposed self-probe.
Balderdash. The only thing Cox is “gravely concerned” about is that the American public might finally understand the agency’s actual mission. For as Aguirre, a former attorney for the agency, points out, the Securities and Exchange Commission (SEC) does not exist to protect investors from Wall Street predators. It exists to protect powerful Wall Street predators from investors.
The notion that the agency can probe its own officials is hilarious — a real knee-slapper. In late December, Senator Arlen Specter (R-PA) heaped scorn on the securities agency’s ability to investigate itself in the Gary Aguirre case. Now the agency says it will open that probe again. “Reopening the investigation marks a new embarrassment for the beleaguered S.E.C., suggesting that, as in the Bernard Madoff case, it may have failed earlier to follow up adequately on strong indications of possible wrongdoing,” says Portfolio.com.
Aguirre puts it more strongly: the securities agency “cannot be trusted with an investigation of itself, especially when the investigation [involves] the highest levels of the SEC.”
Aguirre’s case lays bare everything that the securities agency is: a whorehouse catering to Wall Street’s elite. After a long and successful career practicing law in San Diego, Aguirre, brother of former City Attorney Mike Aguirre, decided to try public service. He joined the agency and began looking into a possible insider-trading case. A hedge fund, Pequot Capital Management, had made a bundle buying up stock in a firm just before the announcement that the firm would be acquired by another company. Pequot had also made money betting that the stock of the acquiring company would go down, as is normal. Before Pequot made those bets, John Mack, the hedge fund’s former chairman and a current investor, had talked with both the investment banking firm handling the acquisition and with Pequot’s current chairman, a close personal friend.
Aguirre wanted to interview Mack. But his boss said Mack had big Washington connections — specifically, to President George W. Bush. Aguirre protested. Just weeks after he had been given a strongly positive job review, Aguirre was fired. The Senate’s Committee on Finance and Committee on the Judiciary did a 108-page study on the matter.
There were some hair-raising findings. While Aguirre was trying to get the Mack interview, an attorney at the Debevoise and Plimpton law firm sent Paul Berger, Aguirre’s boss, an email with the opening words “Yowza!” It described how an ex-SEC lawyer could make $2 million a year with the firm. One of the top attorneys at the Debevoise firm contacted a senior official of the securities agency on behalf of Mack and behind Aguirre’s back. After he fired Aguirre, Berger took a job with Debevoise. Similar quid pro quos are called the “revolving door” phenomenon — agency officials do dirty work while at the commission and then go with a big law firm representing the crooks who got off. Mack wiggled off the hook and went on to become chief executive of Wall Street’s Morgan Stanley.
The two Senate committees vindicated Aguirre, denouncing his firing and concluding it was logical that he interview Mack. Then the agency’s inspector general, H. David Kotz, authored a 191-page study of the case. Kotz basically agreed with the two Senate committees. He recommended that the agency discipline its enforcement director and one other official. Kotz, too, blasted the ease by which the Wall Street law firm got special access to securities agency officials. He questioned the “impartiality and fairness” of the agency’s handling of the Mack investigation and firing of Aguirre.
Then the agency’s cover-your-ass team went into action. An administrative law judge, one Brenda Murray, was assigned to second-guess Kotz’s report. Just a few weeks later, her 15-page paper exonerated the two officials who Kotz said should be disciplined. Kotz was shocked and said so publicly.
Now we get to the heart of the agency’s double-dealing. As Senator Specter stated, Brenda Murray “was described in press accounts as an administrative law judge, and it was not until further inquiry that the SEC admitted she was not acting in a judicial capacity in issuing her decision.” In short, the agency picked a loyal staffer who happened to have the title “administrative law judge” and had her exonerate the officials who had been sharply criticized by the Senate committees and by the inspector general. But she was not acting as a judge at all — just a soldier taking orders.
Murray’s quickie report “was completely irregular in every detail,” says Aguirre. “It was outside the jurisdiction of an administrative law judge. The SEC pulled a scam.”
Senator Charles Grassley (R-Iowa), who spearheaded the investigation with Specter, said, “[I]t looked like the lawyers for the wrongdoers wrote the decision.”
Columnist Bruce Carton of Compliance Week wrote that agency staffers were stunned at the whitewash; Murray did not use the standard procedures for reviewing an internal-discipline recommendation. “Murray made her decision that discipline was not appropriate based almost exclusively on the one-sided information she received from counsel for the various subjects,” wrote Carton. “This information was not subject to any cross-examination or any follow-up by the [inspector general’s] office or other parties involved, and additionally was not provided under oath.”
One prominent attorney said that in Murray’s whitewash, the securities agency had merged “the functions of prosecutor, judge, jury, and appellate tribunal” under the same roof.
It gets even worse. One reason the Pequot case is being reopened is that a divorce suit has revealed that the hedge fund agreed to pay $2.1 million to a former Microsoft employee who was apparently feeding information on his former employer. “Pequot made a boatload of money” betting on Microsoft securities, based on such information, says Aguirre, but the agency found a way to drop the Microsoft angle of the investigation. But Aguirre has come up with new facts that have forced the agency to reopen the probe.
There’s more: In the same report in which she cleared Aguirre’s nemeses, Brenda Murray vindicated an agency official who closed an investigation into the derivatives dealings of Wall Street’s Bear Stearns in 2007. Early the next year, the Wall Street firm was rescued from bankruptcy when it was forced into J.P. Morgan, backed by $29 billion of federal money. Bear’s derivatives gambling was to blame. The agency missed it and then exonerated itself.
And the agency is going to look into whether it did its job properly in the Madoff case? Come now.
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