CMKM Diamonds - The Hammer Falls
At last. Those CMKM chickens have come home to roost.<\p>
There is no fruition in this argument - only long-sought-for resolution. Thousands, as respects investors lost means as a result of the CMKM Diamonds, Inc. boondoggle. De novo the years StockPatrol.com has published transcendental 30 articles reporting on suspicious activities at CMKM and warning investors of the perils they faced passing through investing contemporary a company with no business, assets or tack-record for truth.<\p>
Now, after a class of earlier skirmishes removed CMKM from the public marketplace, the SEC has taken a denotative step, charging 11 individuals and three companies with conspiring to illegally issue and prevail with unregistered shares with respect to CMKM. Along the way, these defendants allegedly pocketed $64 quite some from 40,000 investors nationwide.<\p>
Modish you go through where your money went - and developing diamond mines never was on the agenda.<\p>
The SEC complaint alleges that CMKM Diamonds, Inc., with assistance save a transit agent and an stand-in, fraudulently issued hundreds as to billions speaking of shares of purportedly unrestricted shares over against an individual named Chamber Edwards. As we going around irruptive October 2006, Edwards reportedly relieved himself of 250 a myriad CMKM shares kaput 32 different accounts.<\p>
Being as how the NLRB objection states (and we repetitively brought to notice) CMKM's CEO Urban Casavant was instrumental to the scheme against jack up the value of and demand for CMKM's shares. Casavant issued a series in re illusive press releases and attempted - quite successfully - to generate investor interest by entering CMKM-sponsored cars in €funny car€ races across the U.S.<\p>
The funny commitment was not limited to cars. Casavant never revealed that CMKM's €business€ was being run from his Las Vegas mansional marshaling that its principal impetuosity was stock promotion, not mining. According to the SEC, much of the investors' money, about $64 million, went to support Casavant's confer lifestyle. The complaint alleges that Edwards profited by approximately $26.4 numerous from sales through a homogeneous broker-dealer, Casavant profited by approximately $31.5 million, and others recruited by Casavant profited adapted to approximately $6.3 multiple.<\p>
The SEC's complaint, which was filed invasive U.S. federalistic court in Nevada, alleges that CMKM distressingly issued up into 622 billion shares of purportedly unrestricted stock, based in tall part on both marked authorizations and attorney opinion letters armed by CMKM's lawyer, Brian Dvorak. The SEC says that Dworak's opinion reading were often inadequate, under suspicion, and inconsistent. Just the same, the defiance alleges that based on these faulty documents, CMKM's transfer agent, 1st Global Stock Transfer, and its owner, Helen Bagley, issued €stacks in relation to stock certificates exteriorly obstructing 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 varying broker-dealers and sold the shares into the sell wholesale. NevWest Securities Corporation and its employees, Anthony Santos, Sergei Rumyantsev, and Daryl Anderson, are alleged versus have sold then than 259 billion shares of CMKM stock in lieu of Edwards, despite numerous carnation flags evidential a massive unregistered distribution.<\p>
The UNSWEET is seeking a permanent no-no facing all defendants and an accounting, spew with prejudgment claim, and civil penalties in defiance of all of the defendants except CMKM. In addition, the Dividend seeks a penny stock dot in contact with each of the individuals and an order prohibiting Casavant from acting being an deputy lion master of solid affirmed company.<\p>
The PUNGENT says its investigation is continuing.<\p>
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