NEW Al Hodges Update!!!
« Thread Started Today at 4:07pm »
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
Subscribe to:
Posts (Atom)
