quote:Originally posted by will: It's dated : April 7, 2003
Didn't notice that, will. That means the brillance came from UC and may/may not be accurate according to the hearings.
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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bill: "UC gave an old man the song & dance & $40K a month made him look away. wanna bet Mahoo is gone now? just like glenn once he got into the company's real problems and past UC's mouth running." ----------------
And don't forget UC hadn't paid Maheu for 2 mos already. Probably 3 by now....maybe 4. As for Glenn, I think he's in almost as much trouble as UC and cohorts. He had to have known the situation and did not bring it up to authorities.
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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What I think was funny is even Willy lizzard said last night that after reading the SEC response that he believes if it goes till July without a settlement that we will be revoked. One of the biggest CMKX pumpers can actually read sometimes. He still says there will be a settlement from the shorts which is funny if you really think about it. Its not like one person or company shorts a stock. They never have settled before so why are they going to settle with a company that more then likely be revoked in a month. Everyone sing "Dream a little dream with me". Of course this won't be over once revoked. Someone posted a link to a SRCI board on RB. They are still posting one year later that they believe the company will get reinstated, lol. How long will the cult hold on to the lost dream after this one is revoked.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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Ric: "They never have settled before so why are they going to settle with a company that more then likely be revoked in a month." ---------------
No way would the SEC settle. They have them cold. Their case is solid and they made it clear they were not playing games. The SEC also stressed the part where they stated UC/CMKX et all have neither learned the needed lesson nor even heeded it. Furthermore, remember all crap about how CMKX was going to fight the SEC? What reaction do you think that created at the SEC? FOOLS!!!!
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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I have a better one then that Wallace. What about the letters to the Judge by the so called concerned shareholders. They basically called the person that holds there future in her hands and idiot. That would surely make me fell sorry for them if I was the judge, lol.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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So, even the la la land pumpers are sobering up. Well, almost, with the caveat that there is going to be a settlement.
I'll say it again, these people have never been forthright and forthcoming.
There will be no seetlement, no buyout, no nothing, just revocation. Plus, there isn't a large NSS position either.
naoh will have to find anohter cause. Can you see those guys in DC, getting tossed for whining about companies being shorted that are setting records for dilution. LOL
703B O/S LOL. Someone in authority will listen to that, RIGHT! These people are an embarrassment to .......,you fill in the blank. They may as well be going to DC to get John Wayne Gacy or Ted Bundy named citizen of the century awards.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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Just wait until anyone in Washington asks where the previous designated official office (a body shop) and the current office (in UC's home) were. And, just remember, they filed with the SEC and UC signed the doc. stating that the office was at a particular location....which turned out to be a Body Shop!!! AND THEY (UC LAWYERS AND ALL) SURE AS HELL KNEW IT!
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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Don't you think a sitting Senator will overlook all those little "indiscretions" by CMKX, and throw their full support behind, naoh and his friends? I'm sure they will. Heck, they might even get the White House on the phone and let noah talk to President Bush.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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Better yet, a private audience! I am sure Bush (aka the Shrub) will appreciate noahltl's naked shorts sh:t. He does enjoy a good laugh. His response: heh heh
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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Maybe someone should write those 5 sentors and let them know what companies they are actually representing. lol. Of course this may be another Dateline. Where a so called news report from a offbeat site claims there is a dateline airing of stockgate yet the Dateline Website never once mentioned it ever being aired. Even before the so called airing. I almost beat there will be a cancellation of this too right before it suppose to happen so the cults can call for another coverup.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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I would love to have a count of all the theories, deadlines, dates the faithful posted. We already know the results of the accuracy 0 for 100+ ???. Whatever the number is.
LOL! "It's on sale at .0005, I'm buying as much as I can", remember one of them saying that nonsense, .0007, .0005 .. bragging they had 77M shares, and intended to buy more. WTF!
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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Thanks for info on Wee Willy Wanker and the Whackos, Ric.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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Heres a letter that the cult can send to the Judge,
We have been told this was a scam. Then the SEC confirmed it was a scam. The owner UC want even speak up to try and change our minds.
So saying that, we had 2 months now since the SEC warned everyone what this company is and what is going to happen. But we have refused to sell our shares because since the company refuses to tell us something then we have made up our own theories of settlements and buyout. Of course there is no foundation to prove this but we believe if you don't revoke this stock that this made up theory will come true.
This has nothing to do with the fact the company lied and will continue to lie. Its about our conspiracies and how we are getting rich off a .0001 scam. Why worry about future shareholder when we have shareholders now that refuse to sell when we had the chance and continue to believe in our made up stories.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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I took the liberty of posting Stockpatrol's report identified by Bigrod40, just in case some do not bother to check it out or may be considering (and who knows why) purchasing CMKX stock. It is as follows:
Update: CMKM Diamonds, Inc. - Sounds of Silence Investigative Reports June 5 2005 The saga of CMKM Diamonds, Inc. (Pink Sheets: CMKX) continues – giving new meaning to the word chutzpah. The Company has been battling the SEC, hoping to forestall the Commission's effort to revoke the registration of CMKM's common stock. See SEC Suit Against CMKM Diamonds, Inc. Could Sink Company. It also has been attempting to rally support among a cult-like troop of supporters who seem determined to ignore the Company's shortcomings. Their blind loyalty is puzzling. After all, even assuming the Company can provide a reasonable explanation for its prolonged failure to file required public reports, CMKM has yet to indicate that it has any assets with even marginal value.
Last month the Company declared that it was "diligently preparing" for a May 10th administrative hearing in the SEC case – but at the same time seemed to be diverting attention from its own conduct by insisting that the court should focus on allegations of illegal naked short selling in CMKM stock. That argument certainly appeals to a segment of CMKM fans, who have formed CMKX Owners Group and purportedly have retained a lawyer to investigate these short-selling allegations – evidently all with the Company's blessing.
As they pursue those efforts, they may wish to review the SEC's brief, filed after the May 10th hearing, to gain further insight into the Company to which they are committing their time, effort, and additional dollars. The revelations are illuminating, and might be considered amusing, if not for the devastating losses already suffered by CMKM investors.
The SEC argues, quite reasonably, that the investing public cannot possibly make informed decisions about CMKM stock because of the Company's failure to file periodic reports since 2002 – despite its clear obligation to do so. As StockPatrol.com readers will recall, CMKM attempted to terminate its filing obligations in July 2003, claiming that the Company had fewer than 300 shareholders at the time. See CMKM Diamonds, Inc. - The Spin We're In. That claim, as regulators subsequently discovered, was false. The Company actually had 698 shareholders at the time.
The SEC says that CMKM has acted in bad faith, delaying, deferring, and ultimately failing to file public reports. The first evidence of that conduct surfaced in March 2003, just months after CMKM (then known as Casavant Mining Kimberlite International, Inc.) gained control of a public shell called Cyber Mark, International, Inc. On March 31, 2003, the Company requested a fifteen day extension for filing its Form 10-K for the year ended December 31, 2002, because auditors needed additional time to prepare the financial statements. That Form 10-K never was filed.
Three months later, the Company took the same tack. On May 16, 2003, CMKM claimed that it would need an additional five days to file its Form 10-Q report for the first quarter of 2003, stating that it needed the additional time to prepare financial statements. The Form 10-Q never was filed.
The Company's failure to file reports since that time is undisputed – and its obligation to do so appears to be indisputable. The Company's lawyers have argued – as one might expect – that CMKM acted in good faith or on the advice of counsel when it filed a Form 15 in July 2003 declaring that there were fewer than 300 shareholders. The facts suggest otherwise. As the SEC points out, on January 12, 2003, the Company issued over 994 million shares to 360 individuals for "field work," and that same month CMKM conducted an "official shareholder audit" to identify every shareholder of record.
And, as if that were not enough to demonstrate that CMKM should have been aware that shares had been issued to more than 300 shareholders, there is this – as of July 22, 2003, CMKM's Master Shareholder List showed that there were 698 shareholders of record. Yet, according to the SEC, the Company did not seek that information from its Transfer Agent before filing the Form 15 and attempting to curtail its reporting obligations.
Any argument that the Company believed it was not required to file also seems to be contradicted by CMKM's statements during 2004. Time and again, the Company offered assurances that it was preparing to file and that filing was imminent. Those promises proved hollow. As the SEC points out, the Company did not even hire an auditor until January 2005, after the Commission had initiated its inquiry into the delinquent filings.
How does the Company respond to these charges? Its CEO chose silence, and its newest Director demonstrated his lack of familiarity with the Company.
Urban Casavant, the Company's CEO, who has been outspoken in the past, making bold but unsupported statements about the Company's plans and prospects, asserted his Fifth Amendment privilege at the May 10th hearing. The Fifth Amendment to the U.S. Constitution allows a witness to decline to answer questions on the grounds that his answers might tend to incriminate him. The privilege against self-incrimination is a fundamental right and protects an individual from testifying against himself in a criminal proceeding. In a civil proceeding such as this, however, a court may draw an adverse inference from the exercise of that privilege.
Robert Maheu, the former Howard Hughes operative whose appointment to the Board of Directors was supposed to signal a new era of disclosure and compliance by CMKM, demonstrated that he may be little more than fancy window dressing, as he indicated that he knew little about the Company's inner workings. Mr. Maheu admitted candidly that he did not know whether CMKM had any offices or employees, was not aware of the Company's assets and liabilities, had no background in mining, and had not disagreed with any of Casavant's decisions on behalf of the Company.
Mr. Maheu, who is being paid $40,000 a month by CMKM (according to the SEC's brief), apparently was out of another loop as well. He apparently testified that he believed an audit had commenced – which it had not - and was unaware that CMKM had not yet provided critical documents to its auditors. Perhaps once he learns the current state of the audit he will be more disturbed – and even disagree with Casavant on a point or two.
The Company's financial picture remains a blur. The auditor retained by the Company in January 2005, Bagell, Josephs & Company LLC, already has resigned, indicating that CMKM is not a business it wishes to represent. CMKM's bookkeeper testified at the hearing that a draft general ledger for the Company is based upon incomplete information, including $24.6 million of stock issued based upon an "unknown agreement," and approximately $56 million for a jade collection transaction that may or may not have been reversed.
This comedy of errors and omissions would seem laughable, if not for its profound impact on CMKM shareholders who have no way of determining whether their Company has any assets or value. The Company apparently cannot account for money it purportedly received in 2004 in exchange for mineral rights - $3 million from U.S. Canadian Minerals and $10 million from St. George Metals, Inc. Meanwhile, no one appears able to explain what happened to that $56 million jade collection.
Did those millions of dollars exist, and if so, where have they gone? Unfortunately, if the SEC wins this fight, shareholders may never learn the truth. Once the registration of CMKM shares is revoked, the Company will effectively cease to exist as a public entity and its public reporting obligations will disappear. Other proceedings may follow, seeking to hold the Company and its principals accountable for their actions, but with the pressure off, the inner workings of CMKM can fade even further from view. That will leave shareholders on their own, chasing the CMKM ghost in search of answers and assets - and waiting, perhaps in vain, for Casavant to speak candidly.
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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well i see the bashers have been busy tonight...lol. i've done a bunch of stupid chit in my life & later after realizing just how stupid it was had a hard time looking in the mirror but can you imagine the feeling some of the cult will have when reality sinks in? some will never except the truth & as 1 put it, will go to their grave believing they own stock in the richest diamond land in the world. at least a few of the cult will wake up 1 day after a yr or more of praising UC & vilifying the NSS parties, debeers, the SEC, the DTC, us bashers & anyone else they could blame for not being rich yet will have the facts sink in. they have had ppl posting the truth from bashers to stockpatrol to just plain reading the company prs. i've said it before & i'll say it again...i hope some of them never have kids...the human gene pool doesn't need such stupidity.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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Stockpatrol's post is worth 50 of legal's. Clear, concise, and not one IMO in the whole thing. FACTS !!!! Still, the cult will find a way to twist it and deny the facts.
ho hum.....July is on the way.
Wonder how many will be arrested in Washington today....LOL
-------------------- If I give you bad information, please feel free to sue me. I have nothing left anyway. Ed Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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Bill, I agree with you. I did my DD on this in the beginning and it all looked great. So I plunked a little bit down on it (nothing to sneaze at). It all came clear to me when Urban started spending our money on race cars and not drilling. Then we hear he sold the only site that he drilled at (Carolyn). If he was a CEO of a reporting company like Enron or Adelphi then he would be spending time in jail and not the the track. There should be laws governing the use of Pink sheet investors money just like any other stock. I just wish the faithfull would bring the pps up to buck so I could get out. Cowboy.
Posts: 105 | From: "Western", NY USA | Registered: Aug 2004
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I'd sell the whole kit and kaboodle for .01 and be damned glad to be rid of it.
-------------------- If I give you bad information, please feel free to sue me. I have nothing left anyway. Ed Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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quote:Originally posted by ed19363: I'd sell the whole kit and kaboodle for .01 and be damned glad to be rid of it.
I did mean to put .0001, and I would be glad to walk away even (minus trade fee).
Posts: 105 | From: "Western", NY USA | Registered: Aug 2004
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I sold some last week, but thinking of getting a little closer to the deadline. Dont want to jump the gun, little to lose at this point. Also thinking maybe certs for the long run, just in case something positive happens.....I know, guys, what you're thinking, but I never did like Koolaid.
-------------------- If I give you bad information, please feel free to sue me. I have nothing left anyway. Ed Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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I want 1 cert and will pay top $1.00...meaning $1.00 for one share, not for each share. Also, will pay that same $1.00 for a single cert with any designated number of shares of CMKX. Just $1.00 folks!!! Make a bundle now!!!!
Posts: 3607 | From: NJ - Outside Phila. | Registered: Mar 2004
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Dont know if anyone posted Mr webbs article on CMKX -I know he was a favorite of the cult-- CMKM tagged as an egregious violator by SEC lawyers
2005-06-06 21:00 ET - Street Wire
by Lee M. Webb
CMKM Diamonds Inc., a pink sheet play headed by Saskatchewan native Urban Casavant, is an egregious, repeat securities violator that will likely continue to breach its reporting obligations, according to lawyers for the U.S. Securities and Exchange Commission (SEC) enforcement division.
The U.S. regulator's rather unflattering assessment of CMKM is served up in a June 2 brief filed in the wake of a May 10 administrative hearing. According to the SEC's posthearing brief, the public interest would be best served by revoking the registration of CMKM's common stock.
As previously reported by Stockwatch, the SEC suspended trading in CMKM on March 3. Just as the 10-day trading suspension was set to expire, the SEC launched an administrative proceeding against CMKM.
According to the allegations in the March 16 SEC order instituting proceedings (OIP) against CMKM, the company was in breach of its reporting obligations for not filing required annual reports since May 9, 2002, and quarterly reports since Nov. 18, 2002.
On April 11, CMKM filed its response to the OIP. Represented by Donald Stoecklein, CMKM set out nine affirmative defences.
Among other things, the company claimed that the SEC lacked authority to conduct the proceedings; the allegations failed to state a claim upon which sanctions could be rendered; the proposed sanctions were "punitive remedies against individual and indispensable parties who have not had an opportunity for appearance"; and that a proceeding to revoke or suspend CMKM's securities was premature.
According to the SEC's posthearing brief, all nine of CMKM's affirmative defences were "rightly rejected" by the administrative law judge during a prehearing conference call on April 13.
During the April 13 conference call, Mr. Stoecklein argued that the company had no reporting obligations from July of 2003 when it filed a Form 15 to February of 2005 when it filed an amended Form 15.
According to the SEC, while the court suspected that the original Form 15 may have been "fraudulent," Mr. Stoecklein suggested that it had been filed "in good faith and/or on the advice of counsel."
"At the May 10, 2005, hearing, however, CMKM Diamonds offered no evidence regarding the circumstances surrounding the filing of the Form 15 in July 2003 and offered no evidence supporting an advice-of-counsel defense," the SEC states in its June 2 brief.
"To the contrary, substantial evidence developed at the hearing confirms that at the time CMKM Diamonds filed the Form 15, it knew or should have known that the company had more than 300 shareholders of record and thus that the filing was false," the SEC claims.
The U.S. regulator reports that CMKM authorized the issuance of more than 994 million shares to 360 individuals and entities for "field work in Canada" on Jan. 12, 2003. Therefore, the company knew that it had at least 360 shareholders of record as of January of 2003, the regulator claims.
As of July 22, 2003, the day CMKM filed the original Form 15, the company's master shareholder list showed that it had 698 shareholders of record.
According to the SEC, CMKM's transfer agent could not find any record of the company requesting the number of shareholders of record in July of 2003 "and no one affiliated with the transfer agent could recall such an inquiry from the company." Thus, says the regulator, it appears that CMKM took no steps to confirm or verify the number of shareholders before filing the Form 15.
"Compellingly, during the hearing in this matter, CMKM Diamonds' Chief Executive Officer Urban Casavant asserted his Fifth Amendment privilege and declined to answer all questions regarding these specific points on the grounds that truthful answers might incriminate him," the SEC claims in its June 2 filing.
"Because Mr. Casavant asserted his Fifth Amendment privilege in this civil proceeding, this Court may draw the adverse inference that his answers would have been damaging to him and thus to CMKM Diamonds," the SEC continues.
The U.S. regulator goes on to argue that throughout 2004, "at the same time that the company now claims it thought it did not have to file periodic reports," Mr. Casavant repeatedly assured his investors and business partner that the company was close to being reporting, that reporting efforts were "a little ahead of schedule" and that the company would be fully reporting "very shortly." Similar claims were made in a series of news releases.
"CMKM Diamonds' recent assertions that the company believed it had no reporting obligations are difficult, if not impossible, to square with its statements throughout 2004 that it was working towards compliance and reporting," the SEC states.
According to the SEC, the relevant Steadman factors counsel in favour of revoking the registration of CMKM's stock.
The so-called Steadman factors are the egregiousness of CMKM's actions; the isolated or recurrent nature of the infraction; the degree of scienter involved; the sincerity of CMKM's assurances against future violations; the company's recognition of the wrongful nature of its conduct; and the likelihood of future violations. The SEC argues that each militates in favour of revocation.
The U.S. regulator claims that CMKM's actions were egregious. The company was clearly aware of its reporting requirements early in 2003 because it filed two forms seeking extensions of time to file its periodic reports, the SEC notes.
"Moreover, in the May 2003 Form 12b-25, the company flatly misrepresented that it was current in its reporting when in fact it had not filed its Form 10-K for the preceding year," the SEC states.
"After repeatedly missing periodic reporting deadlines using Form 12b-25, CMKM Diamonds switched to a new strategy to avoid filing periodic reports: terminate its reporting obligations entirely by filing a fraudulent Form 15," the U.S. regulator claims.
According to the SEC, CMKM "began taking its reporting obligations quasi-seriously" only after it was contacted by the enforcement division in December of 2004.
"CMKM Diamonds' failures to file required reports are recurring, indeed, endemic," the SEC argues, turning to a consideration of the second Steadman factor.
Since Mr. Casavant assumed control of the company in November of 2002, CMKM has not filed a single periodic report. The SEC notes that CMKM is delinquent in filing three annual reports and seven quarterly reports.
"Thus, CMKM Diamonds has violated the federal securities laws on at least ten separate occasions," the SEC claims.
According to the SEC, the evidence indicates that CMKM "clearly acted with scienter in filing a fraudulent Form 15 to avoid its reporting obligations."
"Moreover, the company's repeated statements during 2004 about working towards 'compliance' and efforts to become fully reporting indicate that CMKM Diamonds was keenly aware of its failure to file periodic reports," the SEC argues.
Turning to the fourth Steadman factor, the SEC claims that CMKM's assurances against future violations cannot be trusted.
"Ever since assuming control of CMKM Diamonds, Urban Casavant has been making hollow assurances to the investing public and others that the company was working on preparing financial statements and would be filing shortly," the SEC states.
"All of these statements appear to have been empty promises, as the evidence indicates that during 2003 and 2004, CMKM Diamonds took absolutely no steps to compile auditable financial statements or retain independent auditors," the regulator continues.
According to the SEC, CMKM tried to persuade the court that it has turned over a new leaf and is now dedicated to becoming compliant as soon as possible under the guidance of its new director, Robert Maheu.
"These assurances cannot be trusted," the SEC argues. "The Division does not doubt that Mr. Maheu has only good intentions in this matter, yet the evidence clearly indicates that he lacks a sufficient grasp of the situation and adequate control of the company to ensure prompt compliance.
"Mr. Maheu testified that he did not know whether CMKM Diamonds had any offices; did not know the company's liabilities; did not know the company's assets; did not know how many employees the company had or what kind of work they did; had no background in mining; and that he never disagreed with any decision made by Urban Casavant since he came on the Board.
"Moreover, Mr. Maheu testified that he was under the impression that an audit of CMKM Diamonds financial statements had begun, which is, of course, incorrect.
"Likewise, Mr. Maheu only learned during the hearing in this proceeding that CMKM Diamonds still had not provided its accountants with documents requested three months earlier.
"In short, the Division shares the concern expressed by this Court that CMKM Diamonds may simply be using Mr. Maheu and paying him $40,000 per month in order to 'give some color of legitimacy' to CMKM Diamonds." (All amounts are in U.S. dollars.)
Moving on to the fifth Steadman factor, the SEC claims that CMKM's statements call into question whether the company truly recognizes the wrongfulness of its conduct.
According to the SEC, CMKM still seems prone to making inaccurate statements about the status of the company's financial statements. As an example, the U.S. regulator points to a news release issued in February in which the company claimed that it was working toward completing an audit of its financial statements.
"In fact, however, at that time CMKM Diamonds did not even have -- and still does not have -- financial statements to audit; an audit had not even begun, much less was it nearing completion," the SEC states.
In a footnote to its brief, the SEC pointed to another allegedly inaccurate news release in which CMKM claimed that it had new offices at 5375 Procyon Street in Las Vegas as of March 1. According to the SEC, CMKM's lawyers learned on April 6 that the Procyon address contained only a hot rod shop.
"Instead of correcting the error, however, it appears that the company's counsel thought the company should pretend to 'move in' to the empty warehouse and 'talk to Shawn at the hot rod shop,'" the SEC claims. The regulator adds that almost a week later CMKM was still reporting "the phony Procyon Street address."
The SEC also takes issue with CMKM's public claim that the company first identified the problem with the July, 2003, Form 15 and brought it to the attention of the regulator in February of this year. According to the SEC, the enforcement division had contacted the company about the matter two months earlier.
Among other things, the U.S. regulator also notes that CMKM informed its shareholders that its stock would still trade on the Pink Sheets regardless of the outcome of the proceeding. According to the SEC, in the event of a suspension or revocation, CMKM will not be trading anywhere.
"CMKM Diamonds' ongoing misstatements signal that the company either still does not appreciate the magnitude and potential consequences of its misconduct -- or worse -- wishes to misrepresent them to its shareholders and the investing public," the SEC argues.
Turning to the final Steadman factor, the SEC argues that CMKM's reporting violations are highly likely to continue.
"Evidence developed during the hearing in this matter demonstrates that CMKM Diamonds is not even close to becoming fully compliant in its reporting," the SEC states, going on to claim that the company has barely begun reconstructing three years worth of financial statements.
"Moreover, the auditor retained by CMKM Diamonds in January 2005, Bagell Josephs & Company LLC, has recently terminated its engagement with CMKM Diamonds," the June 2 brief reports.
"The engagement partner, Neil Levine, testified that CMKM Diamonds simply 'isn't a company that [he or his] firm wants to continue to represent," the SEC notes. "Mr. Levine also indicated his distress with the fact that he had not received requested documents from CMKM Diamonds and that he found Urban Casavant's assertion of his Fifth Amendment privilege 'problematic.'
"Thus, CMKM Diamonds currently has no independent auditor to audit its non-existent financial statements."
Under the circumstances, the SEC argues, it is extremely likely that CMKM will continue to violate securities laws by failing to file periodic reports.
Rounding out its approximately 20-page posthearing brief, the SEC argues that the public interest is best served by revoking the registration of CMKM's stock.
"Although CMKM Diamonds has not devoted any meaningful effort towards preparing auditable financial statements in the past three years, it has purportedly engaged in numerous multi-million dollar transactions," the SEC states. "For example, the company allegedly received $3-million from U.S. Canadian Minerals Inc. and $10-million from St. George Metals Inc. in exchange for mineral claims in 2004.
"Unfortunately, the company seems to have no idea where that money went and shareholders have no way of finding out.
"Likewise, it appears that CMKM Diamonds may have issued over $24.6-million worth of stock in 2003, but the company's bookkeeper does not know why.
"And, the company may have acquired $56-million in jade, but cannot definitively explain what happened to that purported asset.
"By failing to file required reports, CMKM Diamonds has been able to operate in shadows and in secret, relieved of the obligation to keep its shareholders, regulators and the investing public apprised of its actual activities or lack thereof."
According to the U.S. regulator, the registration of CMKM's common stock should be revoked because the investing public lacks access to complete and reliable information about the company and, therefore, cannot make informed investment decisions.
"Revocation under these circumstances is a measured and appropriate form of relief, not a draconian remedy," the SEC claims. "The Division acknowledges that revoking the registration of CMKM Diamonds' common stock will substantially limit the ability of CMKM Diamonds shareholders to liquidate their investment in the company.
"However, such liquidation (not to mention CMKM Diamonds insiders' liquidation of their holdings) is only at the expense of potential future investors who cannot make informed decisions about investing in CMKM Diamonds."
The SEC brief goes on to suggest that "if at some point in the future CMKM Diamonds obtains audited financial statements and is prepared to make complete and accurate disclosures of its operations in accordance with federal securities laws, it will be entitled to file a Form 10 and seek to register its stock under the Exchange Act, just like any other company seeking Exchange Act registration status for a class of stock."
In a final footnote to the June 2 posthearing brief, the SEC acknowledges that the administrative law judge has the authority to suspend CMKM's registration for up to 12 months rather than revoke it entirely.
"The Division believes, however, revocation (and not merely suspension) is warranted in light of the egregious nature of CMKM Diamonds' past infractions and the high likelihood of future violations," the SEC argues.
Stockwatch will provide coverage of expected posthearing briefs by CMKM and by an attorney representing approximately 7,000 CMKM shareholders as they become available. Stockwatch will also review the transcript from the May 10 hearing in future articles.
Meanwhile, with trades now being executed at less than one-100th of a penny, CMKM tallied a modest volume of 708.5 million shares on June 6.
The saga continues.
-------------------- The Mouse Posts: 443 | From: Valemount | Registered: Dec 2003
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posted
i wanna know what idiot bought $24.6 million dollars of the POS. wouldn't it be a serious slap in the face if CMKX was NS'ed & UC sold that to the NS'ers to cover. UC walks with cash & since the bookers can't figure out what happened, the Jade too. but that was for shares too so he got it free. if this SOB doesn't get jail time they might as well let the enron guys go too.
legal stated that if you have less then $10 million in assets you can have over 300 shareholders...the rule states under 500 & less then $10 million...698 is more then 500 even using cmkx math.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
well since legal is gone i guess i'll post the new theory. these folks are seriously brain damaged by the kool-aide. this was posted today. i'm sure they read the SEC report. probably read stock watch & yet they come up with this.....
What was CMKX's administrative hearing all about...??? Our delinquint filings.
What would CMKX need to do to insure that their registration is not revoked....??? To file on time.
What would insure that CMKX does get their registration revoked....??? To not file on time.
So if we do not have our filings done in time to meet the requirements of the judge then we will most likely get our registration revoked. I had this feeling way back in January that the longer CMKX waited to file that it just increased the likelihood that they never intended to file in the first place. At least not at this current stage of the game and not in this present entity.
Now, you might ask, why would CMKX allow this to happen when all they would have had to do is simply file on time....???
Releasing the filing would also release all of the pertinent information that CMKX has been protecting for so many months. Key information like our float, current O/S, number of shares that are owned by Urban, family, and staff and most importantly, the results of our drilling and valuation of our company.
Why would Urban not want to release this info now...?? Because it will do not good until our NSS issue is resolved. Because Urban wants to move to a higher exchange and wants to attract the institutional buyers and that can't happen until the NSS issue is resoved.
Please keep in mind that there are two separate issues with our investment- the NSS issue and our valuation as a company. Please do not confuse these issues and intermix them in your mind's eye. If you are smart you will benefit from both sides of the equation.
IMHO the NSS must be dealt with first before we move forward as a company. This is where Roger Glenn, Robert Mahue, Firzzell and the Stoecklin group comes into play. John Martin stated in an email last week that the Frizzell team has already proven the NSS and that they are working towards a settlement. Let's hope for the sake of all shareholders that a settlement like I had envisioned in my Starlight's Theory where all shareholders benefit from a settlement that would be drawn from a major portion of the DTC's multi-trillion dollar insurance policy comes into fruition.
But don't be surprised if CMKX does roll its assets into another entity (CIM or SGGM). They have already transferred most of their mineral claims into other entities so this would naturally follow as a possible course of action for them. And how will you make certain to benefit from the second half of CMKX's equation? By making certain that your dividends move forward with you. And the only way to insure that is to have your CMKX stock in cert form. Yes, the MMs and brokerage houses will supposedly have to make the dividends good on all electronic shares but I would not hold my breath for that to happen.
So here you have it.... More to come as my mind clears up and the words start to tumble out....
Still Keeping the Faith....!!!
Starlight
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-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
What happened to Legal? Did the SEC report wake him up to reality? Nah, his koolaid was too strong. I figured he would have posted Phxgolds new letter to the Jdge but of course it was picked apart till its worthless now anyway. Oh well.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
just joined some cmkx board because they had a why are there bashers thread...lol it was too good to pass up. i was nice & didn't use the word scam or suggest UC needs jail time. same board as the repost i brought in here. i'm hoping it brings out a few of the cult..lol
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
Ahhh, he is in Washington for the protest. I knew the koolaid was too strong for him to see the light. Hanging around with the other koolaid drinkers should give him some zest when he starts posting again, lol.
posted
at least somebody there has a brain left after the kool-aide buzz...still $40K on CMKX????!!!!
BUSY WORK
That's what that letter and this effort (shareholder efforts for the past six months have been). There is a reason Urban is the self annointed Chairman and CEO and we are not, he get's to make the decisions and we don't. He get's the credit for the good, we don't and he should get the credit for the bad.... unfortunately letters like this continue to perpetuate the myth that it's always someone else's fault.
This is about filing. This is about misleading. As I waive goodbye to my $40K that I virtually pee'd in the wind, like I announced on this board week's ago, i'm looking at Urban to act like a chairman and like a CEO and save HIS company and HIS shareholders. Not Frizzle, not phxgold, not all us cast of characters. And like I also stated when speaking about why it was silly in my mind NOT to support Frizzel for fear of a class action, ANYONE of us can hire a lawyer when enough facts are revealed to take class action against Urbie.... and I smell many coming... unfortunately, the move that was strangely supported by some here, perhaps in their own ignorance, of CHEERING Urban's move to place his home in a trust and shift ownership of the claims basically means that in a revocation we get nothing.... but the promise of Urban's love that he will "take care of the shareholders". Class action thus becomes more frivelous with CMKX than it is anyway in a case when shareholders have been bilked.
Again no offense against Phxgold, but it's busy work. The guys we need fighting for us and that count are Urban and Maheu or this is OVER. The facts are plain, well drawn out and very simple, and as an employee in a Fortune 10 company for many years now, I can tell you the SEC wasn't unfair. This is a cutthroat world and CMKX offered the SEC the knife. It is foolish and emotive to see it any other way.
This company has had 2 yrs to file. It is their fight. Again I beg, if you really want to be active with "busy work", let's turn collective attention on the 24th hour removal of Urban from a Frizzel Shareholder Group perspective. There is no doubt in my mind after reading the SEC briefing that they don't trust him, after reading pure STOCK boards I visit, traders don't trust him, and IMO 1/2 of us longs don't trust him. I honestly think, save producing the filings ALL OF THEM, it would be the next best thing to present to the judge or we are revoked.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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By: number_1_rags 07 Jun 2005, 12:23 AM EDT Msg. 983701 of 983713 (This msg. is a reply to 983698 by acca_ass.) Jump to msg. # azza - can you sell urbans house on ebay???????? they sold the carolyn pipe on ebay
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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quote:Originally posted by bill1352: well since legal is gone i guess i'll post the new theory. these folks are seriously brain damaged by the kool-aide. this was posted today. i'm sure they read the SEC report. probably read stock watch & yet they come up with this.....
What was CMKX's administrative hearing all about...??? Our delinquint filings. Starlight
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These people really need to step away from their monitors before the brain damage is permanent. Now they think the SEC proceedings is just a cover for the sting operation to expose the evil doers. From pumperboards:
Dearest Imfishing,
I believed that the hearing was staged.... everyone's response including the SEC's. And don't you find it curious we never had a second day of the hearing as was originally planned..... that everything that happened on the second day was all handled behind closed doors...
Do you not also find it curious that Urban claimed the fifth and that so many very intelligent people were so willing to look so foolish at an administrative hearing....???
They are obviously protecting something much more important than their own egos and how they look to other people.... something much bigger than themselves... like the future of CMKX and our mineral claims. IMHO it is simply as part of the sting operation.... Just going through the motions. I have believed that the SEC has been on our side for some time now and that we are working with them to catch the MMs and offshore hedge funds in action and to stop the possible flow of money that is seeping out of our country to fund terrorists activities...
Now that is something that we would all want to stop and reason enough for the government to be working with us to prove that the NSS does exist once and for all.
And, no, I don't take everything at face value the way you do, Imfishing.... We are just birds of different feather.... You can think the way you want to think and I will continue to think outside the box....
Cheers!!!
Starlight
-------------------- By the time we've made it, we've had it. Malcolm Forbes Posts: 8 | From: St. Louis | Registered: May 2005
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