Very interesting and informative



May 13, 2010

To: CMKM Management

Re: Litigation Update

I received five phone calls yesterday from four pleasant and concerned shareholders. The fifth caller was rude and insulting but left his message after normal business hours so he did not reach anyone in my office. I have not had the chance to speak with him as of this writing but I will continue my efforts to reach him. This shareholder gave his name in such a way that his last name is not audible and he left his phone number with the last four digits trailing off to where it is indecipherable. I left messages at voice mails for two different numbers that could possibly have been the caller’s number but I have not received any return phone calls. After discussing the reasons for the influx of calls with these concerned shareholders, I have decided to issue an update on the status of the litigation for the benefit of all shareholders. These well meaning shareholders suggested that I address certain topics. I will endeavor to cover them from the legal perspective.

Desormeau Suit -- I was hired by CMKM after Kevin West became CEO in early 2007. I was in Las Vegas preparing to file a shareholder’s derivative suit against Dave Desormeau (former CFO for CMKM), John Edwards (owner of the CyberMark shell that became CMKM) and other insiders of CMKM. It was obvious that Company management prior to Mr. West’s appointment had neither desire nor inclination to bring suit against the parties I was prepared to sue. The facts uncovered since Mr. West has taken office along with indictments and other regulatory proceedings, confirm that such legal actions were appropriate on behalf of the Company. Mr. West, in one of his first decisions, asked me not to file the suit against Desormeau, et al as a derivative suit but to bring the action directly against the named Defendants on behalf of the Company. I did so. That action resulted in a $33,000,000 judgment in favor of CMKM against John Edwards. Most of you know by now that having a judgment against someone is not the same as receiving funds in that amount. Your Company and your legal team have spent significant monies to obtain judgments against certain defendants and there is hope for recovery of significant funds from these judgments.

Two pieces of real estate have been recovered on behalf of the Company in a related proceeding. Litigation was brought in North Carolina and Nevada in an attempt to attach certain pieces of real estate which were believed to have been bought with illegally obtained proceeds. A compromise was reached in the North Carolina proceeding which allowed for the transfer of these properties to CMKM while the $33,000,000 judgment against John Edwards with ongoing interest remains in full force and effect. It was agreed that John Edwards would be allowed credit for the value of these properties against the outstanding judgment. These properties were purchased with “ill gotten gains” from actions alleged in the Desormeau lawsuit and the Company has a duty and a right to collect any real estate or other assets that were acquired through such illegal activities. Collection efforts against John Edwards are ongoing to satisfy the remainder of this judgment. The Company is attempting to sell the real estate acquired through this lawsuit, but due to real estate market conditions no sales have occurred for the benefit of the Company as of the date of this writing.

I will make occasional references throughout this update to documents being filed and filing dates. You are directed to the Company website www.cmkmdiamondsinc.com to view the documents mentioned herein.

Recently CMKM has amended the petition in the Desormeau suit to add Wells Fargo, the STAMP Program, Stacy Ewing, Helen Bagley and First Global Stock Transfer. CMKM’s ongoing investigation headed up by Mr. West uncovered the actions described in the recent amendment which resulted in this new filing. In this amended filing CMKM alleges that the actions of Wells Fargo, its employee Stacy Ewing, along with Helen Bagley and the Company transfer agency, assisted John Edwards and others in the issuance of free trading shares which were not authorized by CMKM. The Court granted CMKM’s Motion to add Wells Fargo et al to the lawsuit in March of 2010. CMKM is awaiting a signed order from the Court so it may proceed with service on all the new parties. The investigation by CMKM shows that the CMKM stock certificates issued as a result of the negligence and wrongdoing of Wells Fargo and others totals over $50 million dollars. This amended portion of the Desormeau suit seeks damages for the losses caused to CMKM for the issuance of these shares.

Casavant/Glenn Suit -- In August of 2009 CMKM sued its former attorney Roger Glenn, his law firm Edwards Angell Palmer and Dodge, LLP, Rendal Williams, Cierra Williams, MonteVerde Holdings LLC and Patricia DeCosta by adding them to the Casavant suit filed in 2007. Roger Glenn’s attorneys filed a Motion to Dismiss aimed at certain claims in CMKM’s petition. CMKM amended its lawsuit and filed the Second Amended Complaint against Glenn, et al, on January 5, 2010. Glenn’s attorneys filed an answer on January 21, 2010. On March 2, 2010 a Joint Case Conference Report was filed which sets out certain discovery deadlines agreed to by the parties. CMKM received Glenn’s First Set of Interrogatories and a Request for Production in March. In response to Glenn’s discovery requests CMKM has provided to Glenn over a half a million pages of documents accumulated by the Company during its three years of investigation into the Company’s activities. For the specifics of what was provided to Glenn’s attorneys please view the Case Conference Report on the Company website. Glenn’s attorneys have provided in their initial disclosure to CMKM 1576 documents (which includes many duplicates) totaling less than 8,000 pages of records.

On February 17, 2010 all parties, through their respective attorneys, met by video conference call to work out the Case Conference Report and the particulars involving the initial disclosure required by the Nevada Rules. Glenn’s attorney took the deposition of Kevin West on March 23, 2010 with Kevin West being named as the Company representative most knowledgeable about the Company records. This proceeding is called a Rule 30 (b) (6) deposition. Mr. West testified for most of the day about the records of the Company and where Glenn might look to find documents of the Company. Glenn’s attorneys have issued a subpoena to Don Stoecklein, former CMKM attorney, for all of his firm’s records related to his representation of CMKM. Stoecklein forwarded these records to Glenn’s attorneys two weeks ago. Glenn’s attorneys amended their deposition after receiving the documents from Mr. Stoecklein and have now elected to depose Kristen Buck at their offices in Costa Mesa, California next week. I will attend the deposition to represent the Company. The Company is preparing their first round of discovery to Roger Glenn and intends to have it filed in the next thirty days. A trial date has not been set at this time. Due to time deadlines agreed to in the Case Conference Report, it is likely a trial could occur as early as May or June of 2011.

Share Cancellation Suits-Smith County, Texas -- After reviewing hundreds of thousands of pages of bank records, transfer agent records and other corporate documents, it became clear that billions of shares of CMKM common stock were issued to certain companies and individuals who never provided services nor paid for the receipt of those shares. In 2008, the Company began notifying those companies and shareholders that appeared to have large holdings of CMKM common stock yet the records of the Company did not show any proof that such stock had been paid for by either cash or services. The Company received responses from only a small number of the shareholders who were contacted. Most of the people who responded said they were unaware that stock was issued in their name or that any stock was currently outstanding in their name. CMKM management has a duty to cancel any and all shares that were never purchased or acquired legally. The Company has an ongoing investigation into illegally issued stock and will continue to identify those that received stock without paying for the same. Forty individuals and companies including a number of companies created by John Edwards and including a number of relatives of Urban Casavant and certain individuals known to be insiders of the Company have now been sued by CMKM. On March 25, a default was granted against some of the named Defendants. On April 20, 2010 Mr. West appeared in Court and testified about the circumstances surrounding the issuance of the shares sought to be cancelled. He also testified about the methods suggested for awarding damages for the acts of the Defendants. The Court awarded CMKM nearly $30 million dollars based on the sales price of the shares that were ultimately sold by the named Defendants. Approximately 20 billion shares have been cancelled as a result of this litigation. New Defendants in this suit will be added in the coming months.

Al Hodges’ Bivens Suit -- After discussing this issue with a couple of shareholders, I thought it necessary to explain CMKM’s legal position regarding the Hodges’ suit with more clarity. Kevin West and the all those associated with CMKM including the new COO, the Board of Directors and all the lawyers being employed by the Company are dedicated to seeing this Company succeed and become a trading entity again. The promises made to shareholders before the current management took over have left many shareholders with the hopes and expectations of fabulous wealth and windfall profits from relatively small investments. The hope for wealth from this investment lives in many of us. The claims made in the Hodges’ suit are good reason for hope to continue. CMKM management has been on a steady course for three years to rebuild this Company. Because the previous management did not file tax reports, the Company is having to reconcile each year beginning in year 2002 in order to file each period accordingly to regain reporting status. The Company plans to maintain its course while the Hodges’ litigation comes to some resolution. I make these comments in regards to the Hodges’ suit for this reason. All work being performed by Kevin, his staff and his Board is for the sole purpose of benefitting all shareholders and bringing the Company back to trading status.

When Kevin West took the job, he became duty bound to do things that are required of corporate officers. CMKM’s investigation does not reveal that any trust fund exists. The Company has stated publicly that it does not have any evidence of funds awaiting the shareholders. This does not mean there are no funds being held in trust for the shareholders. The Company simply has no evidence of the existence of these funds. This position by the Company does not mean the Company is opposed to the finding of funds belonging to the shareholders. Quite to the contrary, the Company exists for the sole reason of increasing the value of the stock to the shareholders. If it comes in the form of a windfall from a trust fund, then so be it. I personally think Al Hodges is a very capable and experienced attorney. I am hopeful that his litigation is successful but CMKM management does not have the luxury of waiting to see what will come of that lawsuit. Based on the recovery sought in the Hodge’s suit, if it is successful, the matters being litigated by the Company will pale in significance. The Company will watch the proceedings in the Hodge’s suit with great interest and hope that something of value comes of that litigation for the shareholders.

Communication to Shareholders -- I was informed that many shareholder resent the Company’s inability or refusal to communicate with shareholders. You are advised that Kevin West has been a key witness, and without a doubt the most important witness, on behalf of the Company. He has already testified in court on numerous occasions. He has been named as a witness by me and by Roger Glenn’s attorney in our formal disclosure documents. The act of naming someone as a witness has significant legal ramifications. Mr. West will be deposed at some point in the future by Roger Glenn’s attorney as may any officer or board member. He may be deposed in other lawsuits related to his work for the Company. Any remarks made by Mr. West whether written or verbal to third parties is discoverable by the opposing parties. Any information he imparts may subject him to cross examination. Statements made outside court are often used in court against a witness. Since casual conversations or general dialogues about the Company business are difficult at best to screen or scrutinize. I am forced to restrict any officer or board member in what he or she can discuss and to whom he or she can discuss matters with.

I have a legal obligation to prepare these cases for trial and I am duty bound to instruct Company witnesses on the potential harm that could come from discussing Company business for the entire world to hear and see. Additionally, the parties have entered into a Protective Order signed by the Court which directs all parties to protect as confidential any materials deemed by the parties to be confidential. I think the Order is posted on the Company web site, but if it is not, I will see if we can get it posted. If any officers or board members were to discuss or display to shareholders documents deemed confidential, he could be subjecting himself and the Company to sanctions or be exposed to a contempt of court action. It is extremely difficult in a case involving large volumes of business records and confidential documents for an attorney to police his witnesses as to what areas they can talk about and what areas they cannot discuss publicly. I have advised the officers and board members not to discuss Company business because of this litigation. Are you entitled to answers to your questions? Depending on the question, you may well be entitled to answers or certain information. But in light of the mountain of litigation being brought by this Company, you will be required to get your answers in a more controlled fashion. You are not entitled to unlimited and uncontrolled access to the corporate officers or board members when your questions involve matters that are subjects of the litigation. Any lawyer who would suggest otherwise would not be doing his job in my opinion.

Information Request -- I have been receiving a number of faxes and emails from people who are telling me they have been instructed to send me proof of their holdings. I will assume this is an honest mistake on somebody’s part. One nice individual has sent me a quote from a current message thread but the quote is five years old where John Martin was asking shareholders to send proof of their holdings by fax to my office. I have no idea why anyone would suggest there is some need to do that at the present time. The thread that was sent to me was written by Mr. Martin when I was compiling the information we gave to the SEC following the administrative hearing. This is a waste of time for the shareholders who are being told to do this and it serves no purpose whatsoever.

Sincerely,

Bill Frizzell

Credit to tbo452 over at the Million Millionaires board


www.ibtimes.com/articles/20100504/government-sting-operation-leaving-cmkm-diamonds-shareholders-tired-of-waiting-for -reimbursement.htm

By Jonathan | May 4, 2010 8:12 AM EDT
“Government Sting Operation” Leaving CMKM Diamonds Shareholders Tired of Waiting for Reimbursement

Today we have spent hours reading on the whole CMKM Diamonds debacle and the government’s involvement in what they have termed a “sting” to actively pursue people and corporations involved in naked short selling and the illegal activities that are often part of the penny stock market world. We are still dumbfounded that this wasn’t all over the press for the world to know.

Granted there are a lot of lawsuits filed every day, but it seems that one of this magnitude, a $3.87 trillion lawsuit against U.S. Securities and Exchange Commission Chairman Mary L. Shapiro, as well as several other current and former SEC commissioners, would be a little more publicized. Recently a clip on television criticized SEC officers for watching porn while on the clock. If that was newsworthy, this lawsuit which alleges a multitude of illegal activities and misrepresentations from our government certainly is also.

The long and short of the situation is best summed up by some of the direct quotations from the complaint filed by Pasadena attorney Al Hodges on behalf of the CMKM Diamonds shareholders. The complaint was filed on January 8, 2010 in the U.S. District Court, Central District of California.


[Complaint paragraph 31] 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.

[Complaint paragraph 32] 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.

Furthermore, the complaint states that the Security and Exchange Commission worked in cooperation with the Department of Justice and the Department of Homeland Security to take the covert operation to a whole new level as they believed and developed evidence that said short sellers were utilizing their activities to illegally launder monies, wrongfully export monies, avoid payment of taxes, and to support foreign terrorist operations. Pretty serious stuff that was truly deserving of the efforts put forth by the government to catch the criminals. The problem is that all of this was done at the shareholder’s expense. All of the naked short selling and corruption eventually led to CMKM inevitably being delisted in October of 2005.

We obviously gave a very abridged version of the complaint, but hopefully made the point. The government went to great lengths to set up this operation and fulfill its purpose, but (and here’s the important part) no arrests were made. In lieu of prosecution, the people involved were granted immunity in exchange for statements and repayment of illegal monies obtained. So, where is the money? That is what the shareholders of CMKM Diamonds want to know.

Despite numerous, documented attempts to collect the money that has been promised by the government to the shareholders, no transactions have taken place to reimburse shareholders for their losses. The carrot has been dangled several times through promises of “within the month” or “in a couple weeks” to properly compensate the holders of CMKX stock, but it has never been completed. Hence, the lawsuit has finally been filed that alleges that the SEC is illegally withholding funds collected from unscrupulous broker/dealers that facilitated the selling of more than 2.25 Trillion shares of CMKM Diamonds stock into the market.

Time will tell how this situation will play itself out as the common conception is that it will be settled before it ever reaches trial. In the meantime the shareholders will have to sit and wait.

A copy of the complaint can be viewed at: http://www.qualitystocks.net/misc/hodges_SEC.pdf

Hodges and Associates INTERIM UPDATE 4/27/2010

Hodges and Associates INTERIM UPDATE
« Thread Started Today at 7:15pm »

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I have previously stated that I would not provide an “update” until we had confirmation of economic receipt or, I became convinced that payment to CMKX shareholders would not be forthcoming in a timely manner.

This “Interim Update” is the exception that proves the rule, so to speak. However, it has been a relatively long period [certainly more than I originally anticipated] since I communicated with the shareholders at large, and there is material information to impart.

Before providing some information about what has been transpiring and our current status, let me address a few other matters:
•

I am an attorney and have been retained by seven brave and exceptional shareholders that represent a cross section of the proposed class.
• The Bivens action which I have filed not only sets forth the facts as I know them, it seeks to become a class-action on behalf of all shareholders.
• At this instant in time however, I literally represent only the seven named plaintiffs; as a result, I am constrained in the types and extent of information which I can provide to putative members of the class.
•

In the unlikely event that this litigation continues forward, a motion will be filed with the Court requesting that a class be certified. If granted, at that point I will, presumably, be appointed by the Court to continue acting as counsel for the class; thereafter, the Court will be required to approve any and all settlements, and others matters.
• The status of the litigation can at all times be monitored on PACER; as a result, we do not respond to inquiries at my office; accordingly, please do not contact us directly for such information.
•

For everyone’s information, all defendant’s have been served, and an initial scheduling conference, originally set by the Court to be held on April 26, 2010 has been continued by mutual agreement of the parties [with consent of the Court] to July 26, 2010.
• The litigation will be aggressively pursued until such time as all CMKX shareholders have been paid.
In a similar vein, please understand that we are not involved in any ongoing negotiations with the SEC and/or their representatives with a view to compromising and/or otherwise attempting to resolve claims of the shareholders.

We have set forth in the complaint what the shareholders are entitled to receive; compromise is not anything that the shareholders want, desire, or would tolerate or accept.

The belief of some that yelling and screaming, loudly and publicly enough, can somehow “force” release of the CMKX moneys, is erroneous and misplaced; it will not. Having said that, I do believe that media exposure is beneficial in the sense that it keeps the pressure on the entire financial community.
Inquiring minds want to know: what is our status; what has been going on; what is holding up economic receipt; when will our money be released; and how much money is there? Let me address each of these questions, to the extent I am able, separately:

1. How Much Money – As I have said before, we have persuasive evidence to all of the facts alleged as such in the complaint; accordingly, there is a total of 3.87 Trillon Dollars.

2. When is Release – The CMKX distribution funds will be released within a very short time after there is confirmation of Economic Receipt. What does that mean? It means that currently in process is a massive shift of wealth within the US and the world community; that includes: pay out of all the domestic settlements; institution of the US dollar re-funding project; pay out of world settlements; and, distribution of funds to many other programs. This involves a total of more than $ 42 Trillion. Economic Receipt occurs when all trustees have access to all of the funds they are responsible for.

3. Our Status – We are literally on the thresh-hold. This means that the “work” remaining to be finished will not consume more hours than can be accomplished within one day. We have been at this point now for more than a few weeks.

4. The Delay – Although I could write a book about what’s been going on behind the scenes to cause this additional delay, I’ll try to give you the condensed version:

First - Please be aware and understand that there is an economic war raging in the background.

Second - The naked corruption that is endemic in D.C. is more than most can comprehend; it is clear that these miscreants have no regard for the US Constitution, Federal Laws and Regulations, nor even any sense of simple morality. They are convinced that they are above any constraint that might apply to lesser mortals and that no enforcement activity will ever successfully address them. I hasten to add that such opinions are not universal; having said that, it is more widespread than not.

Third - These miscreants are, in effect, fighting for their lives – at least that part of their lives that establishes an environment in which they can continue to lie, cheat, steal, and mortgage your progeny’s lives, all for their personal gain. Accordingly, they will fight until the doors are all closed by a power that they cannot subvert. That fight continues as I prepare this interim update.

Fourth - The good news is, we are winning the battle. The circle within which these bad apples can operate draws inexorably smaller with each attempt to bribe, suborn and otherwise corrupt the system, and the people within it. By way of example, I was advised that over the weekend one State Department person, 10 bankers and 18 Federal Reserve people were arrested and dealt with.

Fifth – By what date will we have Economic Receipt, you ask. We will have it when this initial battle phase comes to a successful conclusion. That will be in the very near future in my opinion; the current schedule based on advice I received this afternoon is that it should all be finished, with funds in the Trustee’s hands, by week’s end.
I want to extend our heartfelt thanks to those of you who continue to demonstrate support and encouragement for our efforts. We remain very optimistic for the long term. Rest assured that the fight will continue, and we will prevail.

Al Hodges

**Manhattan Headlines Examiner: CMKM Diamonds and the $3.87 trillion lawsuit you didn't hear about**

http://wwww.examiner.com/x-9341-Manhattan-Headlines-Examiner

http://wwww.examiner.com/x-9341-Manhatta....idnt-hear-about

March 30, 7:10 PMManhattan Headlines ExaminerTim Barello


As the United States continues to fracture in every way imaginable, most citizens are unable to keep up with the never-ending hodgepodge of government corruption. Each day, a new larger-than-life scandal emerges, and in the short mind span of news media, there is always a bigger and better story to chase. Right now, the hot button issue for mainstream news outlets is healthcare reform, and its myriad implications for our society; this doubtlessly ensures the aforementioned media will continue to overlook unprecedented accusations brought forth in a recent $3.87 trillion lawsuit against U.S. Securities and Exchange Commission Chairman Mary L. Shapiro, as well as several other current and former SEC commissioners, among others.

This Bivens action suit represents the largest fraud case in world history, and was filed in the U.S. District Court, Central District of California, on January 8th by Pasadena attorney Al Hodges; in his complaint, made on behalf of CMKM Diamonds shareholders, Hodges alleges that:

[Complaint paragraph 31] 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.

[Complaint paragraph 32] 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 associates 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.
Based on these assertions, CMKM was used by the U.S. government as part of a covert sting operation – unbeknownst to shareholders – to apprehend criminals for their offenses. However, instead of prosecuting most of them, restitution deals were apparently cut:

[Complaint paragraph 34] During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, 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.

[Complaint paragraph 35] 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.
Therefore, the crux of this complaint – and the massive fraud allegedly committed by the SEC (and Department of Justice) – is as follows:

[Complaint paragraph 36] 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.

[Complaint paragraph 37] 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.
During the timeframe referenced above, CMKM was registered as a publicly traded diamond and gold mining company. By 2005, concrete evidence detailing fraud within the company emerged; in addition, it became publicly apparent that CMKM also sold, at the very least, hundreds of billions of unregistered shares – a practice often referred to as naked short selling – to third parties. Eventually, the SEC moved to delist CMKM stock, whose value never exceeded one penny per share, in accordance with Section 12(j) of the Securities and Exchange Act of 1934. After several administrative proceedings, CMKM stock was ultimately deregistered in October 2005.
In September 2006, Floyd Norris, chief financial correspondent of The New York Times and The International Herald Tribune, caught wind of the CMKM scandals, and began to report on some elements of the criminal fraud that ravaged CMKM’s estimated 40,000 shareholders. Norris has reported on more than one occasion that at least 259 billion shares of unregistered CMKM stock was sold; however, per the SEC’s 2008 action against CMKM, the agency itself acknowledges that as many as 622 billion shares of “purportedly unregistered stock” was sold by the company over a 20 month period.
So, how did Hodges initially determine that at least 2 trillion unregistered shares were sold?

[Complaint paragraph 25] A frequently asked question (FAQ) page was added to the web site [CMKMTaskForce.com] on the evening of November 4, 2005 and in response to a question about the degree of naked shorting of CMKM stock, the Task Force [consisting of Robert A. Maheu, Donald J. Stoecklein and Bill Frizzell] indicated that “Credible information indicates the number of naked short shares is potentially as high as 2 Trillion shares.”
‘QUITE A CASE’

Several weeks ago, I spoke with Al Hodges, a practicing attorney with four decades of experience, to find out more about this extraordinary case, and moreover, to determine exactly how he calculated his clients’ potential damages to be nearly $4 trillion – a figure many observers have openly scoffed at.
Almost immediately, I could not help but ask why the mainstream media has not fairly reported on this case; frankly, given the scope of accusations, one would assume that, at the very least, Floyd Norris and The New York Times would have some interest in thoroughly examining the merits of this action; instead, Norris has essentially brushed off Hodges' allegations as being baseless.

It’s not that Hodges and his associates haven’t tried to attract the media’s interest; in fact, on this side of the Atlantic, all the major dailies, including The Los Angeles Times, The New York Times, The Wall Street Journal and The Washington Post have all been informed of the suit. Their respective editorial staffs - with the exception of Floyd Norris - have utterly decided to ignore it.
In the United Kingdom, efforts have also been made to attract mainstream media interest. Veteran financial intelligence Editor and Publisher Christopher Story FRSA – an investigative specialist that focuses on covert government operations and scandals – has personally reached out to The Daily Telegraph’s International Business Editor Ambrose Evans-Pritchard, with whom he is acquainted, to notify him about Hodges’ case. To date, Pritchard has failed to respond to Mr. Story, who has authored a number of articles (1) – and other published commentary – in The Daily Telegraph over the course of his near 50-year-career.
Hodges noted that Story, publisher of International Currency Review, and several other serials, is “subscribed to by every intelligence operation in the world.”

If intelligence agencies are reading about CMKM, then why isn’t the mainstream press covering this case? Hodges prudently observed that “they’re not going to touch it.”
MAINSTREAM MEDIA WON’T COVER ISSUES TIED TO COVERT OPERATIONS? (EVIDENTLY NOT)
“They [the government] used the shareholders without their consent to perform this ‘sting operation’ for National Security interests, and it wouldn’t have worked the way it worked if they had disclosed it,” he continued.

“On the other hand, it isn’t right to bury a company and put them out of business for the purpose of trapping people who are using the company to cheat the government, to line their own pockets, and to fund their operations against the United States.”

As noted above in complaint paragraph 34, and per Hodges, a deal was eventually reached with the aforementioned criminals; they paid the government restitution for documented illegal actions, and in turn, were offered immunity from prosecution.

“Rob Maheu had all these people in a big room in Las Vegas, and made [an] offer to them,” he said.

“Every person, organization and representative in that room stepped up, and either transferred money while they were there, or agreed to transfer money upon some further schedule” to avoid indictment.

Hodges also said, “I have a witness who was there, who saw it, and part of the 2.25 trillion phantom shares is documented by that person’s observations of how many shares were represented in that room.”

HOW MUCH MONEY DID THE FEDS REALLY COLLECT FOR RESTITUTION?

“People are going to laugh and titter about the amount of money that is being claimed, but understand the context of the lawsuit,” he said, before concluding, “we are not asking the government to pay us $3.87 trillion, what we’re asking is for them to release the funds that have been collected for us.” Thus, the implication is that this sum also incorporates substantial punitive damages.

In the end, Hodges believes the U.S. government is going to settle the case before it actually moves to trial. On this possibility, he said, “I think its in the process of happening as we speak.”

Based on these explanations – and the recent scandals and assertions that have surfaced about the SEC – I believe the mainstream media is doing the public a great disservice by not properly examining Hodges’ CMKM case.

The same conclusion must also be drawn about Christopher Story’s reports on the criminality that is undermining international efforts to refund the U.S. dollar, which is dangerously close to losing its status as the world’s global reserve currency...but that’s touching on a whole other can of worms…or is it?

(1) In Paul Johnson’s article “Unions, Pensions, and Financial Responsibility: The British Experience” published in the Journal of Labor Research, Volume 2, Issue 2 (1981) pp. 292, 294, 295, 296, he highlights Christopher Story’s authoritative research, as published in The Daily Telegraph on 30 April, 31 August and 1 September 1976, as well as on 4 September 1978.
More About: Media · CMKM Diamonds · Lawsuit · SEC ShareThis

March 19, 2010

To CMKM Diamonds Shareholders,

Because you previously contacted the Securities and Exchange Commission (SEC) Office of Inspector General (OIG) about matters related to alleged fraud involving CMKM Diamonds, we are providing you with an update concerning our work regarding this matter.

The primary functions of the OIG are to perform audits of SEC operations, programs, activities, and organizations, and to conduct investigations of alleged staff and contractor misconduct. The OIG was requested to investigate matters pertaining to CMKM Diamonds and conducted an investigation into the allegation that fell within the OIG's jurisdictional purview, namely, that the SEC's Division of Enforcement staff provided favorable treatment to a former SEC attorney by not naming that individual in a securities fraud civil action.

The OIG completed its report of investigation in this matter (Case No. OIG-528) on March 16, 2010. However, as a matter of policy, the OIG does not publicly release its reports of investigation. In order to request a copy of the OIG's report of investigation, you may make a request pursuant to the Freedom of Information Act (FOIA) to the SEC's FOIA and Privacy Act Office by following the procedures described at http://www.sec.gov/foia/howfo2.htm.

Finally, many of you have expressed concerns or made inquiries about how you may recover funds that were invested in CMKM Diamonds. Please note that the OIG does not have any authority to distribute funds to shareholders and such matters fall outside the OIG's jurisdiction. Therefore, we suggest that you contact the SEC's Office of Investor Education and Advocacy regarding these issues.

Sincerely,

Natasha Dandridge
Legal Assistant
On behalf of the Office of Inspector General
of the U.S. Securities and Exchange Commission

Oldepro posted this on the Millionaire's board...

zanmia
Administrator
Posts: 6,722
Lawsuit is Now Online

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Schmedrick posted this on the Millionaires' Board...



Lawsuit is Now Online

The lawsuit has been entered into the system, and the ball is officially rolling. There is a 21 day response time. Scroll to the bottom to read the initial comments.

We're on our way folks



*** http://viewer.zoho.com/docs/aJdcqc ***



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http://millionaires.proboards.com/index.....ay&thread=28796

DIAMOND JEDI
TEXT OF THE CMKM/CMKX LAWSUIT AGAINST THE S.E.C.
CASE NUMBER CV10-00031-JVS (MLGX): SEE REPORT DATED 7TH JANUARY 2010
Saturday 9 January 2010 03:15
THE SUMMONS CIVIL COVER SHEET DISPLAYS:
'MONEY DEMANDED IN COMPLAINT: $3.87 TRILLION'

http://viewer.zoho.com/docs/paKdda

Stamped filing date....January 8, 2010



A. CLIFTON HODGES, State Bar No. 046803
HODGES AND ASSOCIATES
4 East Holly Street, Suite 202
Pasadena, California 91103
Telephone: (626) 564-9797
Facsimile: (626) 564-9111


Attorneys for Plaintiffs

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA

DAVID ANDERSON, LT. COL.; NELSON L. REYNOLDS, LT. COL.; SHEILA MORRIS; PATRICK CLUNEY; ROBERT HOLLENEGG; ALLAN TREFFRY; and REECE HAMILTON, Individually and on behalf of all similarly situated,

Plaintiffs,

vs.:

CHRISTOPHER COX, an individual; MARY L. SCHAPIRO, an individual; CYNTHIA A. GLASSMAN,
an individual; PAUL S. ATKINS, an individual; ROEL C. CAMPOS, an individual; ANNETTE L. NAZARETH, an individual; TROY A. PAREDES, an individual; LUIS A. AGUILAR, an individual; ELISSE B. WALTER, an individual; KATHLEEN L. CASEY, an individual;

and DOES 1 through 10, inclusive,

Defendants. Case No.: CV10-00031-JVS (MLGx)

COMPLAINT FOR DECLARATORY JUDGMENT,
AND FOR DAMAGES FOR VIOLATION OF CIVIL RIGHTS

(JURY TRIAL DEMANDED)

COME NOW Plaintiffs DAVID ANDERSON, LT. COL.; NELSON L. REYNOLDS, LT. COL.; SHEILA MORRIS; PATRICK CLUNEY; ROBERT HOLLENEGG; ALLAN TREFFRY; and REECE HAMILTON, individually and on behalf of all others similarly situated, who, for causes of action herein allege:

INTRODUCTION:

1. This action for declaratory judgment and for damages for violations of the Plaintiffs’ civil rights under Bivens v. Six Unknown Agents of the F.B.I., 403 U.S. 388 (1971), against Commissioners of the Securities and Exchange Commission, arises out of actions and failures to act occurring over the period from January 1, 2006 to date by Defendants CHRISTOPHER COX, an individual; MARY L. SCHAPIRO, an individual; CYNTHIA A. GLASSMAN, an individual; PAUL S. ATKINS, an individual; ROEL C. CAMPOS, an individual; ANNETTE L. NAZARETH, an individual; TROY A. PAREDES, an individual; LUIS A. AGUILAR, an individual; ELISSE B. WALTER, an individual; KATHLEEN L. CASEY, an individual; and other government agents whose names are not now known to the Plaintiffs.

2. These Defendants, acting in the course and scope of their employment by the United States of America as duly authorized Commissioners of the Securities and Exchange Commission, a federal agency, through their acts and omissions knowingly, consciously, wrongly, without compensation and without due process of law have effected a taking of property from each of the named Plaintiffs and all who are similarly situated.

JURISDICTION AND VENUE:

3. This action for declaratory relief and damages is predicated on the provisions of the Constitution and Statutes of the United States, the legal and equitable jurisdiction of this Court, the principles of common law, and this Court’s concurrent and pendant jurisdiction.

4. This Court has jurisdiction over the Plaintiffs’ claims under Article III of the United States Constitution and the Fifth Amendment thereto. This Court has jurisdiction over Plaintiffs’ property rights under the foregoing citations and, in addition, pursuant to Title 28 U.S.C., Section 1331 and the case law precedent of Bivens v. Six Unknown Agents of the F.B.I., 403 U.S. 388 (1971).

5. Venue is proper in this Court under Title 28 U.S.C., Section 1391(e)(1)/(2). Defendants are all past or current Commissioners of the Securities and Exchange Commission and therefore agents of the United States Government, and a substantial part of the property, and the acts related to such property subject to Plaintiffs’ claims, occurred or was situated in this Central District of California at all times relevant.

THE PARTIES:

6. Plaintiff DAVID ANDERSON, LT. COL., U.S. Air Force pilot, resides in the State of Missouri, owns more than 280,000,000 shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

7. Plaintiff NELSON L. REYNOLDS, LT. COL., U.S. Air Force pilot, resides in the State of Texas, owns more than 15,000,000 shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

8. Plaintiff SHEILA MORRIS, a company owner/CEO resides in the State of North Carolina, owns
more than 400,000,000 shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

9. Plaintiff PATRICK CLUNEY, a retired professional athlete resides in the State of Florida, owns more than 680,000,000 shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

10. Plaintiff ROBERT HOLLENEGG resides in the State of North Carolina, owns more than 85,000,000 shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

11. Plaintiff ALLAN TREFFRY, a licensed State of California Attorney, resides in the County of Los Angeles, State of California, owns more than One Billion shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

12. Plaintiff REECE HAMILTON, a business owner/partner resides in the County of Los Angeles, State of California, owns more than One Billion shares of stock in CMKM Diamonds, Inc., and at all times relevant to the allegations set forth herein, was a citizen of the United States.

13. Defendants CHRISTOPHER COX, Chairman 2005-2009, MARY L. SCHAPIRO, Chairman 2009-2010, CYNTHIA A. GLASSMAN Commissioner 2002-2006, PAUL S. ATKINS, Commissioner 2002-2008, ROEL C. CAMPOS, Commissioner 2002-2007, ANNETTE L. NAZARETH, Commissioner 2005-2008, TROY A. PAREDES, Commissioner 2008-2010, LUIS A. AGUILAR Commissioner 2008-2010, ELISSE B. WALTER Commissioner 2008-2010 and KATHLEEN L. CASEY, Commissioner 2008-2010: are and, at all referenced times mentioned herein were, acting as individuals and as Commissioners of the Securities and Exchange Commission, an agency of the UNITED STATES OF AMERICA, and acting within the course and scope of their employment. These Defendants are the real parties in interest in the claims set forth herein.

14. Other employees and servants of the Securities and Exchange Commission are also liable for damages under the causes of action set out in this Complaint. However, the names of these employees and servants are not now known to Plaintiffs, who thereby names them herein as DOES 1 through 10. When the names of these employees and servants become known, Plaintiffs reserve the right to amend this Complaint to add the names of these DOE Defendants.

FACTUAL CONTENTIONS APPLICABLE TO ALL CAUSES OF ACTION:

15. In November and December, 2002, CYBER MARK INTERNATIONAL INC., a public company domiciled in Nevada, reverse-merged with Casavant Mineral Claims, which then held mineral claims to more than 600,000 acres within Saskatchewan, Canada, increased authorized capital from 500,000,000 to 10,000,000,000 common shares, cancelled all preferred shares, and changed its name to CASAVANT MINING KIMBERLITE INTERNATIONAL, INC. (CMKI); as of February 3, 2003, 7,241,653,404 shares were issued and outstanding.

16. During the succeeding months CMKI declared a 2 for 1 stock split and filed with the Securities and Exchange Commission: Form 15 exemption claim, July, 2003; Certificate of Amendment to Articles of Incorporation changing its name to CMKM DIAMONDS, INC. (CMKM), February 5, 2004; Certificate of Amendment to Articles of Incorporation raising its authorized capital to 500,000,000,000 common shares @ $0.001 par value, March 1, 2004; Certificate of Amendment to Articles of Incorporation correcting the par value of common shares as of December 26, 2002 to $0.0001 par value, July 13, 2004; Certificate of Amendment to Articles of Incorporation raising its authorized capital to 800,000,000,000 common shares @ $0.0001 par value, July 13, 2004.

17. During the summer and fall of 2004: New York Attorney Roger Glenn was retained by the company; the number of acres upon which CMKM held claims increased to over 1.2 Million acres; claims development activity was pursued by the company; and a shareholders appreciation party was planned to be celebrated in Las Vegas, Nevada to thank the shareholders, to give them an opportunity to meet company personnel, and to announce an agreed upon merger with another public company, U.S. CANADIAN MINERALS INC. On the eve of the party celebration, the Securities and Exchange Commission placed an order on CMKM preventing any public disclosure of anticipated mergers or other development information.

18. In early 2005, CMKM announced the addition of Robert A. Maheu to the Board of Directors who shortly thereafter became the co-chairman of the Board; CMKM announced a new “corporate strategy plan to dramatically and comprehensively transform” the company for generation of consistent, long-term growth and profitability for the shareholders; CMKM filed an amended Form 15 on February 17, 2005 reinstating the company to a public reporting status; and on March 3, 2005 was notified by the Securities and Exchange Commission of a temporary suspension of trading of the company’s stock (Pink Sheets-CMKX) based upon, inter alia, concerns over the “adequacy” of publicly available information.

19. On March 16, 2005 the Securities and Exchange Commission instituted a public administrative proceeding pursuant to Section 12 (j) of the Securities Exchange Act of 1934 against CMKM to determine whether the company was required to file periodic reports under Section 12(g) and whether CMKM failed to comply with Section 13(a), and rules there-under, by failing to so file. CMKM responded on April 11, 2005 admitting that CMKM had a duty to file public reports and alleging various grounds of mistake, malpractice and other affirmative defenses to the factual allegations.

20. 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.

21. On May 10, 2005 the Section 12 (j) administrative proceeding was conducted in a United States Central District of California courtroom; the Administrative Law Judge, Honorable Brenda P. Murray entered her decision on July 12, 2005 finding the facts to be as alleged by the Securities and Exchange Commission. CMKM then filed a Petition for Review which was granted, and a briefing schedule set.

22. On October 20, 2005: Robert A. Maheu resigned as a member and co-chairman of the CMKM Board of Directors; Urban Casavant agreed to remain as the sole officer and Director of CMKM until the affairs of CMKM were wound up to ensure all shares and other assets of CMKM were properly distributed to its stockholders; CMKM entered into an agreement with Entourage Mining Ltd. pursuant to which CMKM assigned its 50% interest in United Carina Resources Corp. to Entourage for 15,000,000 shares of stock, sold its 36% interest in Nevada Minerals, Inc. claims to Entourage for 5,000,000 shares of stock, and made a joint agreement with 101047025 Saskatchewan Inc. and Entourage whereby certain claims were transferred and CMKM became entitled to receive 30,000,000 shares of stock; CMKM’s other agreements with United Carina Resources Corp. and Nevada Minerals Inc. were terminated.

23. On October 21, 2005 CMKM approved formation of a Task Force consisting of Robert A.
Maheu, Donald J. Stoecklein and Bill Frizzell for the purpose of assisting CMKM and Mr. Maheu, as “designated Trustee, to conduct an orderly and verifiable pro rata liquidating distribution of any Entourage Mining Ltd. shares…and any other available assets of CMKM;” the SEC Petition for Review was withdrawn by CMKM on October 21, 2005 and a Securities and Exchange Commission Order de-registering CMKM subsequently was formally entered on October 28, 2005. CMKM had 703,518,875,000 shares of common stock issued and outstanding on that date.

24. On November 4, 2005 CMKM established a web site (CMKMTaskForce.com) for the purpose, inter alia, of advising all shareholders to request physical share certificates evidencing their ownership interest in CMKM as one means of establishing that they were bona fide shareholders of the company. The company intended at that time to wind up its affairs and distribute the 50 million shares of Entourage Mining Ltd. stock and any other assets, including previously unpaid dividends, to the bona fide shareholders. The web site set forth procedures to be followed and established a means of registering all bona fide shareholder certificates prior to December 31, 2005; certificates evidencing 43,309,298,585, shares had been registered at that time.

25. A frequently asked question (FAQ) page was added to the web site on the evening of November 4, 2005 and in response to a question about the degree of naked shorting of CMKM stock, the Task Force indicated that “Credible information indicates the number of naked short shares is potentially as high as 2 Trillion shares”.

26. The Task Force issued a press release on January 19, 2006 discussing a reduction in total shares of Entourage Mining Ltd. stock to be distributed to CMKM shareholders from 50 Million shares to 45 Million shares as a result of a reduction in mining claims involved.

The Task Force also discussed issues involving difficulties obtaining physical share certificates being experienced by shareholders; accordingly the deadline date for registration of shares was extended to March 15, 2006.

The Task Force was provided a new “cert list” by First Global Stock Transfer showing certs issued “and active” on January 13, 2006; ADP Services also provided information to the Task Force. This data reflected a sample of 25,021 certificates representing 350,000,000,000 plus shares of stock and a total of more than 67,000 additional certificates to be counted.

27. On March 16, 2006 the Task Force issued a public release that “…we received a visit in our office [in Tyler, Texas] by an E-Trade rep today. This rep personally hand delivered copies of approximately 4000” certificates. Further information regarding on-going discussions with the DTCC and other brokerage houses was also provided.

28. The Task Force provided additional information on March 20, 2006, extending the time for registration of certificates to May 15, 2006, advising the shareholders that Urban Casavant and his immediate family would not participate in the share distribution, and advising that a printed notice to stock holders would be published in at least one nationally circulated United States newspaper.

29. On May 25, 2006 the Task Force received a second batch of 1,200 share certificates from AmeriTrade, having received some 1,000 share certificates a week earlier. AmeriTrade’s cover letter indicated that several hundred more certificates would be delivered within “the next few days.” The deadline for registering certificates of May 15, 2006 had not been extended, although the Task Force continued to advise shareholders that they should obtain their certificates and that the Task Force would honor any bona fide shareholder at the time of asset distribution. By late Fall, 2006, the Task Force had received and counted copies of certificates from more than 39,000 shareholders, evidencing more than 635 Billion shares.

30. Kevin West was hired pursuant to a written agreement by CMKM during the summer of 2006
to assist in winding up the affairs of the company and, more specifically, coordinating the share certificate pull. After serving nearly a year as Interim CEO, Kevin West was appointed Chairman of the Board on March 29, 2007 after which Urban Casavant stepped down as sole director, president, secretary and treasurer of CMKM Diamonds, Inc. Mr. West soon thereafter appointed Bill Frizzell as CMKM General Counsel and provided instructions for the filing of a number of lawsuits to attempt to recover moneys and other assets which had been wrongfully taken from the company.

31. 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.

32. 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 associates 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.

33. 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.

34. During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, 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.

35. 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.

36. 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.

37. 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.

38. At all times mentioned herein, the Defendants acted with deliberate indifference or reckless disregard for the Constitutional and other rights of all Plaintiffs, or with the intention and knowledge that they were violating Plaintiffs’ Constitutional or other rights or to cause them other injuries, losses and damage.

39. As a result of the Defendants’ misconduct, each of the named Plaintiffs and all of those similarly situated, have been denied their Constitutional rights, including, but not limited to, their Fifth Amendment right to be secure in their property, free from taking without just compensation and without due process of law, and have suffered injuries and property loss in excess of Three Trillion Dollars.

CLASS ACTION ALLEGATIONS:

40. Plaintiffs bring this action individually, and on behalf of all others similarly situated, and in the public interest.

41. Plaintiffs bring this action on behalf of a class of persons who were and are bona fide shareholders in CMKM Diamonds, Inc., a public company directly supervised by the Securities and Exchange Commission.

42. Plaintiffs are members of said class, have a claim typical of the claims of all members of said class, and will fairly and adequately represent the interests of the members of said class.

43. The members of said class are so numerous that joinder of all members is impracticable.

44. All of the class members are wholly identifiable from documents known to be in the possession of Defendants and of the Securities and Exchange Commission.

45. The claims of the members of said class present common issues of fact and law which predominate over any questions affecting only individual members of the class.

46. The defenses available to defendants to the claims of the members of the class present common issues of fact and law which predominate over any questions affecting only individual members of the class.

47. The prosecution of separate actions by the individual members of the class would create a risk of inconsistent or varying adjudications which would establish incompatible standards of conduct for defendants.

48. Adjudications with respect to individual members of said class would, as a practical matter be dispositive of the interest of other members not parties to the individual adjudications or would substantially impair or impede the right and/or ability to protect their interest.

49. Defendants have acted or refused to act on grounds generally applicable to said class thereby making appropriate final injunctive relief with respect to the class as a whole.

50. Unless ordered by this court, Defendants will continue their illegal and wrongful conduct, and repeated actions by individual class members will be required to obtain relief; and thereby the remedies available at law are inadequate.

51. For all of the above reasons, a class action is superior to other available methods for the fair and efficient adjudication of the claims alleged herein.

FIRST CAUSE OF ACTION
(FOR DECLARATORY RELIEF AGAINST ALL DEFENDANTS):

52. Plaintiffs incorporate as though fully set forth herein, all of the allegations contained in Paragraphs 1 through 39 above.

53. Plaintiffs allege that an actual controversy exists in this jurisdiction, in that it is the Plaintiffs’ contention that:

(a) The Defendants are, or in the past were, Commissioners of the SECURITIES AND EXCHANGE COMMISSION, an agency of the UNITED STATES OF AMERICA. At all relevant times herein, said Defendants were acting as individuals and in their official capacity as agents of the SECURITIES AND EXCHANGE COMMISSION.

(b) On and after January 1, 2006, the Defendants, acting alone and acting in concert with each other, and acting without just cause, did consciously, knowingly, intentionally and wrongfully cause certain acts and omissions to proceed in such manner as to hinder, delay, and ultimately prevent the distribution of moneys held for the benefit of Plaintiffs, and all similarly situated, said moneys being payable to each said person on a per share basis.

(c) The Defendants, and each of them, acted in their individual and their official capacities with deliberate or reckless disregard for the Constitutional and other rights of Plaintiffs and all similarly situated or with malicious intent and with the knowledge that their acts and omissions violated and denied the Constitutional and other rights of Plaintiffs and all similarly situated, or that their acts would cause said Plaintiffs and all similarly situated other injuries.

(d) The Defendants, and each of them, did unlawfully and wrongfully cause certain acts and omissions to proceed in such manner as to hinder, delay, and ultimately prevent the distribution of moneys held for the benefit of Plaintiffs and all similarly situated, even though the Defendants knew that said persons had a vested interest and Constitutional right to receive said moneys in a timely, unfettered and unconstrained manner.

(e) The Defendants, and each of them, knew that Plaintiffs and all similarly situated had a vested interest and Constitutional right to receive said moneys in a timely, unfettered and unconstrained manner when they committed the acts and omissions set forth above, causing each said person to be deprived of property without just compensation and without due process of law.

54. The Defendants, and each of them, contend to the contrary. Therefore, it is necessary and proper for this Court at this time to determine and declare the validity of the contentions of the parties as set forth above.

SECOND CAUSE OF ACTION
(FOR VIOLATION OF THE PLAINTIFFS’ CONSTITUTIONAL RIGHTS AGAINST DEFENDANTS COX, SHAPIRO, GLASSMAN, ATKINS, CAMPOS, NAZARETH, PAREDES,AGUILAR, WALTER, and CASEY):

55. Plaintiffs incorporate as though fully set forth herein all of the allegations contained in Paragraphs 1 through 51, above.

56. Defendants, by committing the above-mentioned acts and omissions, violated and denied the Plaintiffs’ Constitutional rights, and those of all similarly situated, including, but not limited to, their Fifth Amendment right to be secure in their property, free from taking without just compensation and without due process of law.

57. Defendants, and each of them, acted and failed to act with the intent to deny the Constitutional rights of Plaintiffs and of all those similarly situated, or with the intentional or callous disregard or deliberate indifference to those rights. The above described acts of the Defendants, all charged with securities law enforcement as Commissioners of the Securities and Exchange Commission, in violation of the Constitutional rights of Plaintiffs and of all those similarly situated, were not intended to be exempt from liability.

58. As a result of the Defendants’ acts, Plaintiffs and all those similarly situated have suffered injuries and property loss in excess of 3.87 Trillion Dollars in an exact amount to be determined at the time of Trial. Because Defendants’ actions were intentional or done with callous disregard or deliberate indifference to the Constitutional and other rights of all Plaintiffs, this Court should award punitive damages against each individually named Defendant.

WHEREFORE, Plaintiffs seek judgment as follows:

1. For a declaratory judgment, pursuant to Title 28 U.S.C., Sections 2201 and 2202, which determines and declares the validity of the contentions of the parties set forth in Paragraphs 52 to 54, above;

2. For a judgment for compensatory, general and special damages in the amounts prayed for in the Second Cause of action set forth above;

3. For a judgment for punitive damages in an amount sufficient to punish and to make examples of these Defendants, and to deter these Defendants and others from engaging in similar conduct;

4. For an award of reasonable attorney’s fees, expenses and costs of suit incurred herein; and:

5. For such other and further relief as this Court deems just and proper.

Dated: January 10, 2010.

HODGES AND ASSOCIATE

By: [Signed]

A. CLIFTON HODGES
Attorneys for Plaintiffs

DEMAND FOR JURY TRIAL

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

http://cmkxunofficial.proboards.com/index.cgi?board=mofo&action=display&thread=4385

Re: DOJ Questionaire Has Been Posted
« Reply #3 on Oct 19, 2009, 1:04pm »

--------------------------------------------------------------------------------
Lots of discussion about this on various boards...good to see. On Millionaires an important point to note: this is NOT A SECURE SITE.

That alone has caused me to pause and think. I am not comfortable about posting name, address, phone, email on an unsecured site--let alone cert number, number of shares, money invested, etc. I realize the latter is not asterisked as required, but still the site is not secure.

That has given me serious pause about filling this out.

Moreover, there is an important question there that seems limiting; how can you prove you've been harmed? Any proof readily available on the company website is directed soley at the insiders. There is no document available to prove damage done by the SEC/DTCC. That makes me pause and wonder too.

I think we could use a well-crafted response from the likes of Al Hodges to show some bullet points that would make the 400-word response all that it should be. Even still, the site ought to be secure before posting personal info, imo.


pr

Re: DOJ Questionaire Has Been Posted
« Reply #1 on Oct 19, 2009, 12:35pm »

--------------------------------------------------------------------------------
silverbulletgirl
DIAMOND JEDI WARLORD


Re: The Questionairre
« Reply #1 Today at 10:14am »

--------------------------------------------------------------------------------

If you have ever spoken with the following persons, please check all boxes that apply:

John M. Edwards
Urban Casavant
Ginger Gutierrez
James Kinney
Helen Bagley
Brian Dvorak



Did you purchase CMKM shares? *
Yes
No



If yes, please answer the following questions:



How many shares do you currently own?


Certificate number(s) of the shares you currently own:


At the time you purchased your shares, how did you learn of CMKM? Please check all boxes that apply:

Internet forum/chat room
Attended promotional event
Learned from friends
Learned from family members
Received solicitation
Other (25 words maximum)





When did you purchase your shares?
--Select a Month-- January February March April May June July August September October November December --Select a Year-- 1999 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

How did you purchase your shares? (25 words maximum)


In total, how much money did you pay for your shares?


Did you sell any shares or recover any money?
Yes
No

If you sold any of your shares, how many shares did you sell?


If you sold any of your shares, how much did you receive?




--------------------------------------------------------------------------------

Please summarize in your own words how you have been victimized in the space allotted below. You may also provide any additional information that you would like to bring to our attention. (400 words maximum)




If you believe you have evidence that shows that the defendants are innocent, please check the box below:

John M. Edwards
Urban Casavant
Ginger Gutierrez
James Kinney
Helen Bagley
Brian Dvorak



--------------------------------------------------------------------------------

I affirm that my responses are true and correct to the best of my knowledge. I understand that providing false information could subject me to the penalties of perjury under Title 18, United States Code, Section 1001. *


http://www.usdoj.gov/usao/nv/victim_witness/case_updates.html

ty portrush...
compliments of ocd on Tramp's board

ocd
Senior Diamond Miner
« Reply #16 Today at 7:23pm »

Hee hee a haw haw, hee hee a haw haw!
There are so many good points in that update it ain't funny!!!!!!!!!!!


1. US Department of Justice

2. several agencies of the US government

3. nationwide level of awareness spotlighting the shareholders plight

4. Government agencies will be providing additional information on the CMKM website

5. shareholder/victims

6. audited financials

7. Legal advice on the course of this Company has been obtained from one of the leading securities attorneys working in a national law firm

8. seek damages from those individuals and companies

9. additional legal actions planned

Mark Faulk Resigns

Dear Shareholders,

On Thursday, September 17, 2009 the following indictments were unsealed and issued by the US Department of Justice for John Edwards, Urban Casavant, Helen Bagley, Brian Dvorak, James Kinney and Ginger Gutierrez. These indictments come because of the dedicated and combined efforts of many individuals within several agencies of the US government. Although the Company will not specifically name those individuals today, the Company would like to wish each and every one of them sincerest appreciation for all of their hard work.

CMKM would like to give special thanks to Mark Faulk for helping to promote a nationwide level of awareness spotlighting the shareholders plight over the last several years. At this time, Mr. Faulk is stepping away from the Company as CEO and moving on to pursue other endeavors. The Company would like to thank Mark for his dedicated service and wish him well in everything he does in the future.

Mr.Faulk commented, "My primary goals with CMKM were to ensure that criminal charges were filed against those who wronged the company and its shareholders, and to assist Kevin West and Bill Frizzell in their legal efforts. These indictments bring those goals to fruition. It has been an honor to work with everyone involved, and I will continue to be available on a consultant basis as the company moves forward."

CMKM Chairman Kevin West has been reappointed by the board of directors and will resume his duties as CEO/President of the Company.

The Company agreed not to communicate publicly about any matters concerning the ongoing criminal investigation before these indictments were unsealed.

Government agencies will be providing additional information on the CMKM website to shareholder/victims regarding notifications from and communications with law enforcement authorities regarding these matters. CMKM has not been given any timeframe for these communications to begin.

The Company continues to work on the documents which will be necessary to obtain audited financials. Legal advice on the course of this Company has been obtained from one of the leading securities attorneys working in a national law firm.

We intend to continue our efforts to seek damages from those individuals and companies that benefited from the illegal actions set out in the indictment. We have additional legal actions planned.

We appreciate your patience as this work continues.

Kevin West,
Chairman / CEO

http://www.cmkmdiamondsinc.com/index.html

- DOJ Issues Six Criminal Indictments in CMKM Diamonds Case
by Mark Faulk
Seven years after the saga of CMKM Diamonds, Inc (CMKX) officially began, over four years after the company was revoked by the SEC, and a year-and-a-half after the SEC filed civil charges against eleven individuals and three corporate entities, the Department of Justice unsealed criminal indictments against six individuals in the largest penny stock fraud in history.

Former CMKM CEO Urban Casavant and alleged mastermind John Edwards, along with cohort James Kinney, transfer agent Helen Bagley, attorney Brian Dvorak, and Urban’s secretary Ginger Gutierrez were charged with five counts of securities fraud in the massive and complex scam, which involved the selling of over 700 billion shares of CMKX stock to unsuspecting shareholders for an estimated $250 million.

The 40-page indictment, unsealed today in Las Vegas, included allegations of selling unregistered shares of company stock “by use of the mails, over-the-counter mediums of exchange (e.g, the Pink Sheets), and other means” in violation of federal laws. The indictment states that “JOHN M. EDWARDS, URBAN CASAVANT, HELEN BAGLEY, BRIAN DVORAK, GINGER GUTIERREZ, JAMED KINNEY, and others known and unknown, conspired to fraudulently issue and sell unregistered shares of CMKM stock for the purposes of enriching themselves.”

Casavant was also charged with income tax evasion for failing to report a “large part of the income tax due and owing by him to the United States of America for the calendar year 2004.” The charges allege that Casavant “concealed income from the stock and securities of CMKM Diamonds, Inc., by using nominees to conceal and disguise his interest in the shares and the proceeds, and by routing proceeds to accounts of nominees, corporate alter egos, and other entities” within his control.

The charges also included four “forfeiture allegations,” seeking either fines or property seizure on each count. Each forfeiture count states, “It is the intent of the United States of America to seek forfeiture of any properties of the defendants up to $60,000,000 in United States Currency.”

Timothy S. Vasquez, who was instrumental in the arrest and conviction of John Edwards’ wife Diana Lee Edwards (formerly Diana Lee Flaherty) in 2006, was brought on board to head the criminal task force investigating the CMKX scam earlier this year, helping to breathe new life into an investigation that many people (including this reporter) believed had been shelved for good. The multi-agency task force was comprised of representatives from the DOJ, FBI, IRS, and the SEC.

Defendants Bagley, Kinney, and Gutierrez, who were arrested in Las Vegas yesterday, and Brian Dvorak, who was apprehended in Colorado, were released on bond today. Defendant John Edwards was arrested on September 7 in England. Extradition proceedings are ongoing. Urban Casavant, believed to be in Canada, is still at large.

With over 300,000 pages of evidence scanned during the discovery process, the trials involving all six defendants could take years, but at least the criminal justice process has officially begun. After years of waiting and hoping, sometimes all but giving up hope, today’s criminal indictments will hopefully offer some degree of closure for the over 50,000 victims in the CMKX scandal.



--------------------------------------------------------------------------------
(Editor’s note: This article will be posted at www.FinancialWire.net as well. We are working on an in-depth article about CMKM Diamonds, Inc. chronicling some of the past year’s events involving the company and the criminal investigation, which should be released in a day or two.)

Mark Faulk, author of “The Naked Truth: Investing in the Stock Play of a Lifetime”, which chronicles the story of CMKM Diamonds (http://www.thenakedtruthbook.com), has written over 150 articles on the topic of financial reform and naked short selling since 2004, and has logged hundreds of hours in radio and television interviews. His articles have been reprinted or excerpted in numerous major publications, including The Huffington Post and Financial Wire, and financial journals such as the prestigious Capco Journal of Financial Transformation. In the fall of 2009, he will complete work on a major documentary about financial fraud, due to be released in December, 2009.

****Did anyone read closely the 7th & 8th page.....(Sections)

X
IT IS ORDERED, ADJUDGED AND DECREED that Casavant is liable for disgougement of $31,500,000 representing profits & pre-judgment interest of $2,689,433.62 & a civil penalty of $31,500,000........Casavant shall satisfy this obligation by paying $65,689,433.62 within 10 business days to the Clerk of the Court. Monies to be placed in a Fund @ 10% interest. The Commission may by motion propose a plan to distribute the Fund subject to the Court's approval. The funds would be distributed pursuant to the Fair Fund provisions of Section 308(a) of the Sarbanes-Oxley Act of 2002!!!

XI
IT IS FURTHER ORDERED.......this Court shall retain jurisdition of this matter to enforce the terms.
There being no reason for delay.......the Clerk is ordered to enter this Final Judgment forthwith......WOW.....

ty bikinipro

thanks......alch11
Diamond Finder
SEC Website Posting


What's New on the SEC Website
September 4, 2009

This page contains the latest in events, developments, and updates to the SEC website — check back here often. The links listed here indicate the date the content was posted, not the official release date. Bookmark this page to keep up with the latest at the SEC!

View Previous Issues
Divisions
--------------------------------------------------------------------------------

Division of Corporation Finance
Staff No-Action, Interpretive Exemptive Letters
Emeriti Consortium for Retirement Health Solutions (September 3, 2009)
Division of Trading and Markets
Compliance Guides
Regulation S-AM: Limitations on Affiliate Marketing
Enforcement Investors Claims Funds
CMKM Diamonds, Inc., Urban Casavant, John Edwards, Ginger Gutierrez, James Kinney, Anthony Tomasso, Kathleen Tomasso, 1st Global Stock Transfer, LLC, Helen Bagley, Nevwest Securities Corporation, Daryl Anderson, Sergey Rumyantsev, Anthony Santos, and Brian Dvorak (Case No.: 2:08-cv-00437-LRH-RJJ)
Litigation


http://www.sec.gov/news/whatsnew/wn-today.shtml

THE STING...~At Long Last~...Tuscan...
« Thread Started Today at 9:30am »

--------------------------------------------------------------------------------
By: tuscan9
02 Sep 2009, 05:46 AM EDT
Rating: post rating 0 Msg. 864211 of 864225
Jump to msg. #
~At Long Last ~

* We bought cmki....some bought cmkm.....then cmkx....then revoked shares...

* 'THEY' (company insiders) SAW the demise...and set the trap... entraping the greedy Wall Street Hedgefunds and Brokers plus all the Crime Family Heads that had scammed for decades.

* Decades of Criminals doing as they please.. why should Brokers think anyone could stop their fun? question wasn't even entertained.
How could anyone stop them or figure out WHO amongst the criminals was doing anything wrong.. they hit the market and tossed the stock
before the next guy knew what hit 'em.

* But all good things come to a end... and Maheu et al finally had a vehicle to go after issues on his mind, that were far beyond cmkm or overstock or sssu ..but to accomplish his long thought venue he NEEDED vehicles and some REALLY brave company heads along with a company with VALUE.
He found it... (I would imagine he is the only one who could put that bumper sticker on his car and KNOW what it really meant...
remember that I FOUND IT sticker?

* Draw in all REAL stock secretly... secure it safely.. then go out and pump the stock, smile and have a fun time.. talk to folks.. and have 'em buy your stock and then pull the 'stockplay of a lifetime'..
REVOKE yourself and 'stop the music' on the Wall Street Boyz.

* Wallstreet curled like a slug with salt poured on it !
What? 'How could THEY do that to us?' I am sure the Crime bosses yelled. Others murmured down the corridors of Wall Street as things started to fall apart at the seams.. as the uneasy rest started being felt.

* TSUNAMI... cmkx'ers heard that word and wondered...

* A 'few good men' were busy with modern technology..(not just abc guys know how to use it !
while CERTS were being ASKED for by 1000's of normal, unassumming people that were told there is no such thing as Naked Shorting by
those answering the brokerage house phones.

* The counter started showing the incoming shares certed...
There were 'characters' amongst us, we were warned. Many laughed,
sneered and said that just can't be so.
Sandia and government entities started hitting the CERT site..
now, some shareholders said 'hmmm'.. others still denied the stock
was anything but 'cmkm in a box'. And those folks sort of 'assigned' to make our friendship during this escapade for brokers and government agencys tried to and succeeded to get our naive friendship
while we DD'd the Mining world and watched the Canadian Map change many a time. All the while.. most real unsuspecting shareholders
thought everyone WAS a shareholder.

* STING was yelled.. (in fact, lol.. many STINGS).. with shareholders
or the plants (?)
still yelling you are nutz ! go away... get lost.. Tyler boyz joined in and put up a DARE to prove a STING was even possible..remember that ridiculous thrashing... unusual to say the least to see so-called company folks step on boards and start DARES with money laid on the line, to boot. yes, the fight was on from all sides... and we shareholders knew we were being READ and WATCHED
and manuevered and pushed around.

* imo, Maheu could not have gone forward without the impressive
response the cmkm shareholders pulled off. They all complied.. a
massive surprise to see folks who have little means go ahead and
pay for certs that were deemed worthless. Tal about SUCCESS !!

* At the stage the cert counter rang a CERTAIN NUMBER of shares
Maheu 'et al' must have let out a smiling hooray! Between that successful endeavor and the wonderful thing called a INTERNET which he never had before to fight a fight... IT was under way !!

* Let's don't forget that those in cmki/cmkm, years back, remember the hush of the test and the total silence after that.. it was LOCKDOWN time.. fly overs... don't forget that and also
WHO else did their OWN 'Fly OVER' Things were now hoppin' behind the scenes !!

* Meanwhile, back on the Internet boards shareholders are assuming
its close.. accomplished.. we did our part.
NOPE. But could they tell us that when they knew it was years OUT?
Not really... so they sent in the clowns.. or maybe a nicer name would be ' 'Hansel and Gretle' types to drop clues.. and send us down the Primrose Lane for years with ongoing 'droppings' of info that meant zippo at the time, but we had to keep it on the left side of the desk or in our memory bank until we could piece it together.

* Those of us that realized early on that it was a STING(sss) were in
a situation of understandingthat PERFECT TIMING of EVENTS would be taking place at their DUE TIME..not before, and most of it was now most likely on the TIMING of the government. Afterall, it was them that had to do plenty of PAPERTRAIL to appease the public that was going to find out plenty in the near future.. and answers would have
to have been recorded on the Internet and appeared that things were done. Ya know.. the story had to be concocted then played out !

* A 'FEW GOOD MEN and WOMEN' were set to work, and the LEVERAGE grew as massive info was stacked on the table for Maheu to use at his perfect moment in time.

* I use Maheu in this, lets call it 'script'.. but he was by far not alone in this mess of a venture. We saw many a top knotch name
enter this saga.... all for a micro penny revoked stock?

* Skipping way ahead now, we saw the dollar destabilize.. was that on purpose.. we saw wealthy leave the country with their buck AHEAD of the mess on WallStreet.. Did they KNOW to do that .. lol..
(must be nice to have a whisper in your ear to 'get out of Dodge')

* The deriviative issue was starting to tick off Europe and both sides of the pond.. no books were balancing.

* G/7 - G/20.. China are pressuring for monetary stability.

* Financing was ramping up for everyone.. come get a house.
Tricky... when you are about to be exploited for what you have done wrong for decades.. and the deriviative issue is crumbling.. throw a bone to Joe Public and make a mess of things so you can later say Joe was a dummie for doing what he did.. 'Its all Joe's fault

* THEN,....Humpty Dumpties Wall Street had a roaring Wave that rolled through Wall Street like the TSUNAMI were had heard about.
Now the word Fit the puzzle !

* Electronic Trading.....we heard about that way before the new
trading platform was established..hmmm,

* Treasury 'dollar'...... well, wait on that one. YET to COME !
But remember the rumors flying about Rainbow Money..?? hmm

* Remember when rumor was FDIC would NOT be on the Banks anymore..
wait on that one also... but, what is roaring across the Internet now.. far out of the reach of cmkm boards. weird, huh?

* Bank Failures.. why did we know that was coming BEFORE it did..
down to the names of the ones we watched for...
and its not yet overwith...more to come on Bank Failure.

* Mining DD was massive back when......we crossed names from one
company to another .. saw the lists of companies connected to major
ones and heard the world CONGLOMERATE a long time ago.

* The rr.......the wonderful renounceable rights !
Now, why would brokers send in 'their' clowns to befriend us, smile and ask what we know.. share stuff.. or bash us like crazy for years.. whichever part they were assigned to take on... ?

(I insert here that this write is all in my opinion... if that is still in this late date a necessity !)

Renounceable Rights is a decision.. Key words here cling to my mind...
in order to knock the socks off Wall Street and defunk Banks ..
VALUE has to be heavy...have leverage and make 'em sit up and bark !
What country doesn't want what Canada holds..
What person would not like stock in that?
What broker would not want to be on the lower level of IPO's?

for years, while much has been going on all around us.. some have been busy making it their duty (paid duty..lol) to tell us we hold
zippo. Our CERT is worthless. We are dummies.

I, for one, do not deem my CERTs worthless... not when I have watched the StockPlay of a Lifetime, in no uncertain words, and seen the
Wall Street come crashing all around and all the chapters of my script in this saga come true..and the script was written long before the FACT.

We are not capable of making this stuff up.....but some have certainly kept us fed info at the perfect TIMING to keep and hold our interest.....and we never broke as a group.

That is the demise of the bad boyz......

The Internet kept those worldwide in cmkm ALERT..CONNECTED.. and
Educated ! Ya just can't beat that !
and the bad boyz drug it out too long for their benefit in the end.
If they had let the payout go a couple years ago.. the entire
shareholder base would have put some money in the Market and LOST IT .. bought a house.. and by now, would be pretty much holding much less money and entraped in a home (or many homes) worth much less than they paid... that couldn't be sold.

Now, most that are not on the boards.. shareholders that know little about what they own have seen the Market mess.. see what has been told them has come to be.. and they WILL now listen for at least a few minutes to those of us that have kept up with the entire ride of this saga.

Bad Boy loses all around. The shareholder base will be one to reckon with .. not naive any longer ~

Was yesterday a good day..? YUP!
One giant step for cmkx'ers !

Best to all ! Congrats on hanging in there !

Tuscan



http://ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=864211

...Flying Moose(cmkxunofficial)