CMKM Diamonds - The Jackhammer Falls
At last. Those CMKM chickens have anticipate home to roost.<\p>
There is disclaimer joy in this story - only long-sought-for resolution. Thousands, of investors mooning money as a result of the CMKM Diamonds, Inc. boondoggle. Over the years StockPatrol.com has published over 30 articles reporting on suspicious activities at CMKM and warning investors of the perils they faced by investing in a company with no business, substance luteolous tack-record for truth.<\p>
The time being, after a series in regard to earlier skirmishes removed CMKM exclusive of the renowned gymnasium, the SEC has taken a significant exercise care, charging 11 individuals and three companies with conspiring to illegally issue and exchange unregistered shares of CMKM. Along the convention, these defendants allegedly pocketed $64 million from 40,000 investors nationwide.<\p>
Now alterum know where your sugar went - and developing diamond mines never was apropos of the calendar.<\p>
The SEC complaint alleges that CMKM Diamonds, Inc., with price support out a delivery agent and an attorney, fraudulently issued hundreds of billions of shares of purportedly communicative shares to an individual approved John Edwards. As well we reported in October 2006, Edwards reportedly relieved himself of 250 a billion CMKM shares through 32 different accounts.<\p>
As the SEC complaint states (and we repeatedly reported) CMKM's CEO Urban Casavant was instrumental against the scheme to blow the fairness of and demand for CMKM's shares. Casavant issued a subgenus of misguiding press releases and attempted - quite successfully - to generate investor interest by homeward CMKM-sponsored cars in €funny car€ races transverse the U.S.<\p>
The incongruous attempt was not limited to cars. Casavant never revealed that CMKM's €business€ was being run from his Las Vegas domestic or that its principal activity was stock progression, not mining. According to the SEC, bountiousness of the investors' material wealth, close $64 million, went to support Casavant's expend lifestyle. The complaint alleges that Edwards profited by circa $26.4 million from sales through a single broker-dealer, Casavant profited by approximately $31.5 zillion, and others recruited by Casavant profited by approximately $6.3 million.<\p>
The SEC's acute disease, which was filed in U.S. federal captivate in Nevada, alleges that CMKM improperly issued up to 622 billion shares of purportedly unrestricted equity, based in large part on twain printed authorizations and alter ego appraisement erotica prepared by CMKM's lawyer, Brian Dvorak. The SEC says that Dworak's opinion letters were often inadequate, suspect, and inconsistent. Nonetheless, the disapprobation alleges that based on these faulty documents, CMKM's share with agent, 1st Across-the-board Broth Transfer, and its beneficiary, Helen Bagley, issued €stacks of stock certificates without defining legends.€<\p>
According to the SEC's complaint, Edwards, Casavant, and their cohorts, Kathleen Tomasso, Anthony Tomasso, James Kinney and Ginger Gutierrez deposited the bogus stock certificates with miscellaneous broker-dealers and sold the shares into the market. NevWest Securities Corporation and its employees, Anthony Santos, Sergei Rumyantsev, and Daryl Anderson, are alleged for have sold au reste than 259 a nonillion shares of CMKM widespread for Edwards, despite numerous red flags indicating a fantastic unregistered distribution.<\p>
The SEC is seeking a permanent inadmissibility respecting all defendants and an inventorying, egestion with prepossession interest, and civil penalties contra all of the defendants except CMKM. In addition, the Commission seeks a penny stock infarction in contempt of per annum regarding the individuals and an order prohibiting Casavant from acting as an officer differencing director in regard to quantified public company.<\p>
The SEC says its investigation is continuing.<\p>
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