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How's this for starters?
May 24, 2005
Leslie Hakala
Counsel for the Division of Enforcement
Securities and Exchange Commission
5670 Wilshire Boulevard, Suite 1100
Los Angeles, CA 90036
Dear Ms Hakala:
Please forgive the presumption of an unsolicited letter but I feel constrained to communicate with you.
I am touched by your personal story and congratulate you for perseverance and success in the face of adversity. To the point, I address this open letter to you both as an admirer and as a concerned investor in several companies I believe to be illegally shorted, one of which is currently on your agenda (CMKX). It is my hope that you will personally resonate to what truth may be in this letter and that moreover you will forward this to all SEC attorneys for their independent perusal.
Most likely you are now painfully aware of the SEC’s internal conflict(s) re the emerging “Stockgate” revelations that center on electronic counterfeiting of market securities. In your place, I would probably feel somewhat set up and a little used. It seems SEC staff attorneys are instructed to enforce only selective securities regulations while well-connected superiors contravene regulations of more universal import.
You (and most SEC staff attorneys) are no doubt aware Regulation SHO grandfathers all past failures to deliver, effectively legitimizing years of counterfeiting without so much as a token fine or slap on the wrist of any entity responsible. Take your pick of entities in the “short” chain…the DTC, Cede and Co., the NSCC, certain Market Makers, various off-shore and domestic Hedge Funds, certain Broker/Dealers, certain Institutional Banks…not one was taken to task. Equally ludicrous, SHO ostensibly corrects a problem the SEC’s top brass repeatedly denies exists. This is not rocket science…even a cursory review reveals this “regulation” gave the counterfeiters a get out of jail free card despite inordinate “profits” gleaned from selling naïve investors phony shares created to dilute the value of hundreds (maybe thousands) of targeted companies. The end game is to dilute the targeted company out of business so the failure to cover becomes moot; moreover the money made (translate stolen) from the sale of the counterfeit shares is likely never reported or taxed. With boatloads of easy money in the mix none of the participants are anxious to make good on their failures to deliver, after all, if the SEC’s top cop doesn’t care, why should they?
Most SEC staff attorneys are aware (or should be) that “top cop” regulatory officer Annette Nazareth has long been the chief apologist for what we now understand to be blatant counterfeiting. Under her “watch”, the illegal activity multiplied exponentially and now appears systemic. Nazareth (and now Donaldson) would have us believe there is no illegal naked shorting whatsoever, but if there is perhaps just a little bit of naked shorting (wink, wink), it is somehow necessary for the “good” of the market.
George Orwell would love all this. We also hear the SEC "conventional wisdom" that all pink sheets are pump and dump scams in the first place and probably 96% deserve to be put out of business. If the 4% that do not “deserve to be put out of business” get whacked (or put of business) in the process, that’s perfectly OK…kind of like friendly fire or collateral damage and never mind the dollar loss to the naïve small investor. In reality, the percentage of “honest” pinks is of course considerably higher than the 4% admitted by Nazareth with damage to small investors increased proportionally. Inexplicably, Nazareth is now recommended for a big-time promotion instead of being sent to jail, the precise location many victimized investors devoutly wish to see her “settle”, so to speak. Fortunately for Nazareth, she has friends in high places. Being married to the Vice-Chairman of the Federal Reserve would seem to have advantages despite (or maybe because of) the Fed’s own apparent complicity in this sordid affair of the naked shorts. I would imagine Annette and Roger have lots to talk about. The Federal Reserve is guilty by association with the Depository Trust Company, the Federal Reserve’s cash-guzzling stepchild. It is common knowledge the DTC arrogantly scoffs at even the pretence of transparency by cavalierly refusing to disclose short positions and transaction records germane to the convoluted Stock Borrow Program. The whole issue of naked shorts will remain cloudy until the DTC is forced to open its books.
Most SEC staff attorneys will soon be aware (as are you, Ms. Hakala, through CMKX), of the growing number of outraged American investors now convinced they have been robbed by a rigged system beholden to big (and crooked) players cavalierly fashioning their own “rules”. Any rationalization whatsoever for continually allowing the sale of something one does not own (and continually fails to acquire) seems suspect at best, conspiratorial at worst. There seems to be growing evidence of large scale, on-going failures to deliver not only in CMKX but also in scores of other securities. I personally exchanged several emails with one broker, Wells Fargo Securities, wherein WF named E-trade as their broker/dealer and moreover identified them as being short 5 million shares of GLKC with no specific time constraints within which to cover, thus the certificate I requested was (and still is) simply unavailable. I was surprised at Wells Fargo’s ultimate candor and, if you have an interest, I would be delighted to send you a record of the entire (and rather preposterous) exchange. In an attempt to gather first hand evidence of naked shorting I had purchased a few shares of GLKC shortly after Senator Bennett identified the company as a poster child for naked shorts during a recent Senate Banking Committee hearing. I trust you are aware of the Committee hearing to which I refer; Senator Bennett attempted (unsuccessfully) to get some straight answers from Chairman Donaldson regarding the subject phenomenon of naked shorting. Donaldson’s responses were, to be charitable, obtuse, and he was instructed by Bennett to report back to the committee with some answers they could understand. Might you know if a date has been set?
Most SEC staff attorneys I’m sure believe (at least in principle) the small investor deserves a level playing field but will, for a variety of personal reasons, continue to ignore or rationalize the “short” issue. I pray however (and I’m not a praying man) that one or two SEC staffers has the courage and conviction to transcend their comfort zone, come clean and blow the whistle. It would be a real service to working America.
Ms. Hakala, you would be the ideal whistleblower in that your center of gravity is unquestioned. You are an extremely bright light, so bright in fact that now, with new information, you must suspect your employers’ malfeasance in this whole sorry phenomenon. There seems to be growing evidence of a trail of major mischief snaking in and out the SEC’s back door. I would imagine your interactions with Bill Frizzell have been instructive and that you have become at least “suspicious” of collusion in your own workplace, have you not?
As a major player in this drama it is likely you will (like it or not) go down in history one way or another as the story of CMKX (together with the Stockgate scandal) plays out. While CMKX may have some dirty or unreported linen, in my view the counterfeiting activity associated with Stockgate is a trillion times more egregious (literally and figuratively) and undermines our entire economy. There is considerable dark speculation as to where some illegal and unregulated hedge fund profits eventually land; anti-American interests are at the top of many lists.
Leslie (if I may presume to call you Leslie), while I don’t suppose I expect you to actually blow the whistle on SEC complicity (or will actually forward this to fellow SEC staffers), I would love to be pleasantly surprised. An epiphany with attendant will to action sometimes springs from strange sources when least expected.
As an aside, one thing for sure…this is Great Theater for us all and I bet you never dreamed you would encounter the legendary Robert “Iron Bob” Maheu. I think you would agree Mr. Maheu is a separate reality all by himself and that just possibly he is on to something of major import; hence his association with Urban Casavant and CMKX.
In any event, thank you very much for reading this and allowing a small investor like me to express his views. Needless to say I am anxiously awaiting the next chapter in the continuing saga of “The SEC Meets CMKX.”
Regards and good health,
XXXXXX
XXXXXX
XXXXXX
Ccs: The Honorable Brenda P. Murray, Bill Frizzle, Don Stocklein
Shore Gold Shorts are covering ...
Short History
Symbol Exchange Report Date Volume Change
SGF T 2005-05-15 770,100 -725,746
SGF T 2005-04-30 1,495,846 355,446
SGF T 2005-04-15 1,140,400 -316,688
SGF T 2005-03-31 1,457,088 -1,032,622
SGF T 2005-03-15 2,489,710 1,933,810
SGF T 2005-02-28 555,900 -337,900
SGF T 2005-02-15 893,800 -102,139
SGF T 2005-01-31 995,939 524,783
SGF T 2005-01-15 471,156 10,806
SGF T 2004-12-31 460,350 83,850
May 19, 2005 (FinancialWire) The group set to demonstrate in front of the U.S. Securities and Exchange Commission June 6 before heading to Capitol Hill and then to New York, may have a new target: Annette Nazareth, director of market regulation at the SEC, who, despite what some say is a Marie Antoinette attitude towards victims of industry lawbreakers, seems in line to be appointed to become a Commissioner.
Nazareth was quoted in February in the New York Times (NYSE:NYT) as “doubting” that threshold companies such as Overstock (NASDAQ: OSTK), Martha Stewart Living Omnimedia (NYSE: MSO) or Novastar Financial (NYSE: NFI) were being “manipulated,” and that victims of illegal naked short sales are simply people who want their “stocks to go up.”
She said those who complain of their losses to illegal trading activity have an attitude that “it’s a criminal conspiracy when stocks move the wrong way, and the government should do something about it.”
“What is criminal,” said one who believes Nazareth’s appointment, so far championed by U.S. Senators Charles Schumer (D-NY) and Harry Reid (D-NV), would be disastrous for small investors who someday expect justice and a fair playing field in the markets, “is that someone could be in a position of authority at all with this kind of anti-investor attitude.”
National Counterfeit Conspiracy Days are scheduled in Washington, DC on June 6, and in New York City June 7 by a group planning a film to highlight the national financial scandal known as StockGate. Its website is http://www.counterfeitconspiracy.com
The film project, said to be a “Michael Moore”-type docudrama, is planned by Fuego Entertainment of Miami.
The group is organizing the citizen lobbying effort June 6, beginning at 11:30 a.m., in front of the U.S. Securities and Exchange Commission building, followed by lobbying on Capitol Hill.
“After we make our United Voice heard on Capitol Hill, we are headed to New York City by busloads to make that same voice known to all the world from the hub of the financial district where cameras from all over the world have a constant eye on what’s happening,” the organizers stated.
“Our busses will depart Washington D.C. on June 7th at 7:30am to head to NYC. We will be protesting on Times Square at 2 p.m. After an afternoon on Times Square we will head back to D.C.”
In other recent StockGate developments, Senator Richard Durbin has joined Senator Robert Bennett in complaining about the ineffectiveness of Regulation SHO, and a Global Links (OTC: GLKC) shareholder, Dennis Smith, was told in an email by Wells Fargo (NYSE: WFC) that it can not provide delivery of Global Links certificates because it and E*Trade Group (NYSE: ET) are hopelessly short. And the individual who started the controversy, Robert Simpson, has said he has also been unable to get delivery from Oppenheimer Holdings (NYSE: OPY).
In his communication to SEC Chair William Donaldson, Sen. Durbin also contested the claim by the Depository Trust and Clearing Corp., a unit ot the New York Stock Exchange and NASD, that it has no responsibilities under Regulation SHO.
Overshadowing all of this, of course, is the admitted tampering with the media by the DTCC in curtailing distribution of FinancialWire via Yahoo (NASDAQ: YHOO) via Investors Business Daily and the Dow Jones (NYSE: DJ) MarketWatch, and its suspected interference in the mysterious “postponement” of a DTCC expose on General Electric’s (NYSE: GE) Dateline NBC.
Senator Durbin’s letter to Donaldson appears to sharply contest the Depository Trust & Clearing Corp.’s contention that it has no role in Regulation SHO.
“I am writing to request information regarding the June 23, 2004 Securities and Exchange Commission (SEC) short sale regulation, designated Regulation SHO. On March 9, 2005, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing on Regulation SHO, in which Chairman Bennett spoke with you about the regulation’s effects on the illegal practice of naked short selling. I thank you for your testimony and I hope that you can follow up on some of my concerns not fully addressed by the Banking Committee hearings.
“I appreciate the efforts of the Securities and Exchange Commission (SEC) to control abusive short selling practices. As a result of Regulation SHO, the names of firms with large amounts of unsettled shares are published on the Threshold Security List daily. This list assists individual investors in making informed decisions about potential manipulation of the market, and gives regulators and investigators a centralized list of firms with significant numbers of undelivered shares. However, it has come to my attention that Regulation SHO may not be curtailing abusive naked short selling practices.
“Several of my constituents have contacted me since the SEC introduces Regulation SHO. They have raised concerns about potential loopholes in settlement regulations. During your recent testimony before the Banking Committee, Chairman Bennett asked you about the ability of brokerage houses to shuttle unsettled shares every 13 days in order to avoid settling the borrowed shorted shares. Due to time constraints at the hearing, the committee did not receive a complete answer. This issue is worthy of a full response.
“Additionally, my constituents have expressed concern about SEC enforcement of Regulation SHO. While the Threshold Security List publicizes securities that might have been manipulated, I am concerned that some securities repeatedly appear on the list. What steps is the SEC taking to investigate trading practices that result in vast quantities of unsettled shares, and to punish those people who violate SEC naked short selling regulations? What is the SEC doing to ensure that the Depository Trust & Clearing Corporation (DTCC) is complying with Regulation SHO, and what actions does the SEC undertake when the DTCC identifies large quantities of shares that have not been delivered?
“It is important that the SEC identify abuses and prevent manipulative naked short selling practices that undermine faith in the market. Thank you for your attention to this matter. I look forward to your timely response,” Senator Durbin concluded.
Wells Fargo had written to Smith:
“The other broker/dealer who is short shares of your security is E*Trade. Though this type of activity makes it difficult to issue physical certificates, it is legal and within regulations.
“There is no definite date by which E*Trade would have to purchase the shares. In many cases, a broker/dealer will sell shares they don't hold hoping that the price will fall. If it does fall, the broker/dealer will buy the shares at that time, and deliver those newly acquired shares, making a profit. If the stock price continues to rise, the broker/dealer will eventually buy the shares and deliver them to prevent any additional losses.
“According to our trading desk, E*Trade was the only broker/dealer offering shares of GLKC yesterday. This has been the case since you originally requested your certificate. Anybody who has purchased this security in that time period has likely purchased the shares from E*Trade.
“You are free to sell the shares anytime. When E*Trade acquires shares, they would be delivered to the current owner. However, a certificate cannot be issued until the shares are actually received.
Pink Sheets head Cromwell Coulson has asked the SEC to publish short positions on all over the counter and bulletin board stocks, and that request is currently in a comment period.
The request for rulemaking, which Coulson has told companies traded on the Pink Sheets, is needed “to make regulators turn on the lights and protect investors from the menance of hidden short selling in the OTC market,” is at http://sec.gov/rules/petitions.shtml
In an email to Donaldson, Coulson had said “I believe that it is very important to require the disclosure of short positions because the lack of transparency is allowing promoters to defraud investors by blaming all selling on naked market maker short selling. Disclosure and transparency can easily remedy the issue.”
In other news on the naked short-selling front known as “StockGate,” adding to what TheStreet.com founder James Cramer calls the “Hedge Fund Relief Act,” the termination of the Uptick Rule, is the fact that those using illegal naked short selling in the past have been granted a kind of amnesty for acts before the first of 2005. The SEC just “grandfathered” those illegally-begotten gains and resultant counterfeit shares into the system, so these windfall gains are now available to downtick with reckless abandon on downticks.
The “grandfathering” admission is at http://www.sec.gov/spotlight/keyregshoissues.htm
In the same document, the SEC has inexplicably stated that not all forms of illegal naked short selling, the equivalent of counterfeiting shares in public companies, are actually “illegal.”
The DTCC actions in the StockGate mire are the most serious, if not notorious since the agent of two SROs, the New York Stock Exchange and NASD is also peopled by some 21 directors whose companies, such as Merrill Lynch & Co. (NYSE: MER), State Street Corporation (NYSE: STT) and Goldman Sachs (NYSE: GS), are unlikely to support the DTCC in what attorney Marshal Shichtman, Esq., has termed “strong-arm” tactics.
The DTCC has admitted it has engaged in an act of censorship of this newsletter in squelching its redistribution by Investors Business Daily, and via Investors Business Daily, to Yahoo Finance, a portal owned by Yahoo! (NASDAQ: YHOO), and it is a suspect in the sudden and so far unexplained “postponement” of a widely anticipated expose by Dateline NBC.
In a wide-ranging letter to the DTCC, Robert J. Shapiro has charged statements made by Larry Thompson, DTCC Deputy General Counsel, were “inaccurate or misleading,” and asked the DTCC to correct the record and respond to his comments and questions.
Shapiro is chair of Sonecon LLC, a private economic advisory firm in Washington, D.C., who served as U.S. Under Secretary of Commerce for Economic Affairs from 1998 to 2001, Vice President and co-founder of the Progressive Policy Institute from 1989 to 1998, and principal economic advisor to Governor William J. Clinton in the 1991-1992 presidential campaign.
He holds a Ph.D. from Harvard University and has been a Fellow of the National Bureau of Economic Research, Harvard University, and the Brookings Institution.
Shapiro currently provides economic analysis to the law firms of O’Quinn, Laminack and Pirtle, Christian, Smith and Jewell, and Heard, Robins, Cloud, Lubel and Greenwood, on issues associated with naked short sales, which he noted includes “matters raised in an interview published by @DTCC with DTCC deputy general counsel Larry Thompson.”
He asserts the following in his letter:
Thompson begins by asserting that “the extent to which [naked short selling] occurs is in dispute.” While this statement may be narrowly correct, objective academic analysis has established that naked short selling has been a widespread practice and one which, when allowed to persist, can pose a threat to the integrity of equity markets. A recent study by Dr. Leslie Boni, then a visiting financial economist at the SEC, analyzed NSCC data and found that on three random days, an average of more than 700 listed stocks had failures-to-deliver of 60 million-to-120 million shares sold short – naked shorts – that had persisted for at least two months. In addition, over 800 unlisted stocks on any day had fails of 120 million-to-180 million shares sold short that also had persisted for at least two months. The total number of naked shorts, including those that had persisted for less than two months, was presumably considerably greater.
Regarding the extent of naked shorts, Thompson has provided closely-related additional information: “fails to deliver and receive amount to about $6 billion daily…including both new fails and aged fails.” Thompson minimizes this total by comparing it to “just under $400 billion in trades (emphasis added) processed daily by NSCC, or about 1.5% of the dollar volume.” By most people’s standards, a problem involving hundreds of millions of shares valued at $6 billion every day is a very large problem. Moreover, the $6 billion total substantially underestimates the actual value of all failed-to-deliver trades measured when the trades actually occurred. Most of the $6 billion total represents uncovered or naked short sales, many of which have gone undelivered for weeks or months with their market price being marked-to-market every day. As a stock’s price falls, the market price of naked shorts in that stock also declines, reducing the total value of the outstanding failures-to-deliver cited by Thompson.
In other respects, Thompson’s comparison to the “$400 billion in trades processed daily by NSCC” seems disingenuous and misleading, because that $400 billion total covers not only U.S. equity trades which can involve most of the failures-to-deliver at issue, but many other transactions also processed by the NSCC. The value of all equity transactions on U.S. markets in 2004, for example, averaged $82.3 billion/day. If Thompson is correct that the daily value of fails-to-deliver averages $6 billion, that total is equivalent to 7.2 percent of average daily equity trades or nearly five times the 1.5 percent level suggested by Thompson. Furthermore, the DTCC reports on its website that on a peak day, “through its Continuous Net Settlement (CNS) system, NSCC eliminated the need to settle 96 percent of total obligations.” Assuming that CNS nets out the same proportion of trades on other days, $384 billion of the $400 billion in daily trades cited by Thompson are netted out, leaving only $16 billion in daily trades that require the actual delivery of securities. The $6 billion of fails-to-deliver securities existing on any day are equivalent to 37.5 percent of the average daily trades that require the delivery of securities, or 25 times the 1.5 percent level cited by Thompson.
Thompson tries to explain the large numbers of shares that go undelivered – in most cases arising from naked short sales -- by citing problems with paper certificates, inevitable human error, and the legitimate operations of market makers. This also seems misleading or disingenuous. Regarding problems with paper certificates, the DTCC estimates that 97 percent of all stock certificates are now kept in electronic form. Nor can human error or legitimate market-making operations explain the high levels of failures-to-deliver that persist for months – on any day, an average of 180 million-to-300 million shares have gone undelivered for two months or longer – as documented by Dr. Boni’s analysis of NSCC data.
Thompson also disparages the attorneys who represent companies that have been damaged or destroyed by massive naked short sales, and their shareholders, by claiming falsely that the cases in this matter have almost all been dismissed or withdrawn. The legal firms that I advise -- O’Quinn, Petrie and Laminack; Christian, Smith and Jewell; and Heard, Robins, Cloud, Lubel and Greenwood – have not lost any motions against the DTCC or its affiliates and currently have one case against the DTCC pending in Nevada and another case against the DTCC pending in Arkansas. In addition, on February 24, 2005, these attorneys were granted an order by the New York Supreme Court ordering the DTCC to produce trading records involving two companies they represent, including records from the Stock Borrow program, which may establish whether large-scale naked short sales were used to manipulate and drive down the stock price of those two companies.
Thompson also asserts that the plaintiffs suing the DTCC for damages associated with the handling of naked short sales rely on “theories [that] are not an accurate reflection of how the capital market system actually works.” This assertion is inaccurate. There is no dispute about how the capital markets work -- nor any doubt that naked short sales have been used to manipulate and drive down the price of stocks, as seen in numerous death-spiral financing cases. The issue here is the DTCC’s role in allowing or facilitating such stock manipulation through its treatment of extended naked short sales.
In explaining the DTCC’s role in these matters, Thompson rejects the claim that the NSCC’s Stock Borrow program allows the same shares to be lent over and over again, potentially creating more shares than actually exist or “phantom” shares. By Thompson’s own account, shares borrowed by the NSCC to settle naked short sales are deducted from the lending member’s DTC account and credited to the DTC account of the member to whom the shares have been sold. Therefore, those same shares become available to be re-borrowed to settle another naked short sale and, if that happens, to be re-borrowed again and again to settle a succession of naked short sales. Throughout this process, the actual short sellers may continue to fail-to-deliver the shares to cover their shorts and, as Dr. Boni’s analysis of NSCC data found, the underlying failure can age for months or even years. The process which Thompson describes is one in which shares can be borrowed and lent over and over again, introducing more shares into the market than are legally registered and issued. If any ambiguity remains, Thompson can clarify it by responding to the following query: Once a share that has been borrowed through the NSCC Stock Borrow program is delivered to the purchaser, is that share restricted in any way so it cannot be lent again?
It is important to note that the Stock Borrow program is used when continuous net settlement cannot locate the shares to settle. As a consequence, Stock Borrow is usually called into play when there are relatively few shares available for borrowing. These are propitious conditions for market manipulation: Unscrupulous short sellers undertake large-scale naked short sales involving stocks for which few shares are available for trading and lending, relying on the Stock Borrow program to borrow the limited available shares, again and again, at sufficient levels to drive down the market price of the shares.
Thompson notes that of approximately $6 billion in outstanding failures-to-deliver existing on any day, “the Stock Borrow program is able to resolve about $1.1 billion … or about 20% [18 percent] of the total fail obligation.” In this statement, Thompson raises very serious questions about the integrity and operations of the NSCC and DTCC, which he can clarify by responding to the following queries: If the Stock Borrow program “resolves” only 18 percent of total fails, what is the disposition of the remaining 82 percent of outstanding fails? When failures-to-deliver occur that are not resolved through Stock Borrow, does the NSCC credit the undelivered shares to the member representing the buyer, creating genuine “phantom shares”? Finally, how many shares do the borrowing brokers, clearing firms and other participants in the Stock Borrow program owe the NSCC on a typical day, and what is their total value?
In a related matter, Thompson tries to distance the DTCC from charges that shares held in restricted accounts – for example, cash accounts, retirement accounts and many institutional accounts – are improperly lent through the Stock Borrow program by claiming that responsibility for segregating restricted shares from lendable shares falls to the “broker and bank members” of the DTCC, while responsibility for monitoring or regulating their performance in this matter falls to the stock exchanges and the SEC. As a trust company, the DTCC cannot hold that it has no role, duty or responsibility to ensure the probity of its operations. Thompson could address this issue by responding to the following queries: What procedures does the NSCC have to ensure that shares held in members’ accounts for possible loan through the NSCC Stock Borrow program are unencumbered by regulatory or legal restrictions from being pledged or assigned and eligible to be borrowed? On any given day, how many participants in the Stock Borrow program have lent shares that exceed their lendable shares, in what numbers and of what value?
Thompson also tries to distance the DTCC as far as possible from the naked short selling that generates most of the extended failures-to-deliver: “We don’t have any power or legal authority to regulate or stop short selling, naked or otherwise. We also have no power to force member firms to close out or resolve fails to deliver … we don’t even see whether a sale is short or not.” In fact, the DTCC chooses to not distinguish short sales from long sales, chooses to not regulate or stop extended naked short sales, and chooses to not force member firms to resolve protracted naked short sales.
First, Regulation SHO requires that all transactions be clearly marked short or long. If the DTCC and NSCC do not know whether sales are short or long as Thompson contends, they choose to not know. Second, the NSCC has a clear responsibility and adequate means to stop naked short sales of extended duration, with no legal barrier that would prevent them from so doing. As a trust company with an acknowledged duty to provide investors certainty in the settlement and clearance of equity transactions, the DTCC chose to carry out that duty by assuming the role of counterparty to both sides of every equity transaction, through the operations of the NSCC’s CNS system and the Stock Borrow program. By allowing short sellers to fail-to-deliver shares for months or even years, the NSCC clearly fails to provide certainty in settlement to the buyers, sellers and issuers of securities. Since it is widely known that extended naked short sales have been used to manipulate stock prices in cases of death-spiral financing, and the NSCC created the Stock Borrow program to address failures-to-deliver that prominently include naked short sales, the NSCC and DTCC share a responsibility with the SEC and the stock exchanges to protect investors by resolving extended fails.
Third, the DTCC and NSCC have the clear capacity to force member firms to resolve the extended failures-to-deliver of their customers by purchasing shares on the open market and deducting the cost from the member’s account. A 2003 study by Dr. Richard Evans and others provides evidence that forced buy-ins by any party occur very rarely. They found that a major options market maker who failed to deliver all or a portion of shares sold in 69,063 transactions in 1998-1999 was bought-in only 86 times or barely one-tenth of 1 percent of the fails. Thompson can clarify investors’ understanding of their operations by responding to the following query: What proportion of shares that are persistent fails-to-deliver, of one month or longer, are ever bought in?
Thompson acknowledges that the DTCC and NSCC know precisely how many failures-to-deliver exist for each stock and the precise duration of each of these fails. Yet, the DTCC refuses to disclose this information even to the issuer of the stock in question, which Thompson justifies by citing “NSCC rules” prohibiting such a release of data based on “the obvious reason that the trading data we receive could be used to manipulate the market, as well as reveal trading patterns of individual firms.” This response is both disingenuous and revealing. We know now, for the first time, that the DTCC has full knowledge of the extent of protracted, large-scale naked short sales in all particular cases. We also know now that the DTCC has had this information for at least a decade, since Thompson also notes that “fails, as a percentage of total trading, hasn’t changed in the last 10 years.” Yet, based on the DTCC’s own rules, it allowed these abuses to persist and fester. The DTCC and NSCC can change their rules at any time. Moreover, in this case, those rules are unjustified. Data documenting outstanding short sales in each stock are currently issued publicly, so further data on how many of those short sales are naked would not reveal additional information about the trading patterns of individual firms or in any way empower manipulators. In fact, the DTCC could substantially disarm manipulators by both publicly reporting naked short sales in each issue and pledging to force buy-ins of all naked short sales that persist for more than a limited period.
Surely, if large-scale, extended naked short sales have effectively created “phantom” shares, companies have a responsibility to their shareholders and the right to secure this information from the organization which manages the settlement of short sales. At a minimum, the DTCC should respond to requests by issuers for data on extended failures-to-deliver in their own stocks, both in the past and currently, so they can take steps to resist stock manipulators or bring them to account for past manipulation.
Thompson also claims that the DTCC did not create or manage the Stock Borrow program to serve its own financial interest, insisting that the service generates less than $2 million a year in direct fees to the DTCC and that all DTCC services are priced on a “not for profit” basis that seeks to match revenues with expenses. Without further information, these responses beg the question of whose private financial interest has been served by the Stock Borrow program, especially as the DTCC is owned by the stock markets, clearinghouses, brokerage and banking institutions that use its services. Thompson and the DTCC can clarify this serious matter by responding to the following queries: Do DTCC participant/owners receive interest or other payments through or from the Stock Borrow program for lending the shares of their customers and, if so, how much have they received for these activities over the last 10 years? Further, do DTCC participant/owners receive any dividend, interest or other payments or distributions from the DTCC or its subsidiaries?, Shapiro concluded.
In a recent editorial, Investrend Information head Gayle Essary questioned whether the board and principal shareholders would “be party to shenanigans that lead to the censorship or disabling of any media” that he says is “un-American activity.”
The DTCC’s letter to Investrend’s counsel, Marshal Shichtman, Esq., is posted at http://www.investrend.com/Admin/Topics/Articles/Resources/349_1113403487.pdf
Essary said that the arrogance the DTCC expressed in its censorship efforts shows that the entity has “become too large, too encompassing, too powerful, too unresponsive to those it serves, primarily the investing public, and too unresponsive to the Congress under whose auspices it should be operating.
“First, it is time to unconflict it, with real public representations on its board,” he said, and second, “it is time to break it up, with its various duties provided by smaller agencies under separate unconflicted boards.”
DTCC board members include Michael C. Bodson, Managing Director, Morgan Stanley (NYSE: MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (NYSE: UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);
Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (NYSE: WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (NYSE: MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (NYSE: STT); Bradley Abelow, Managing Director, Goldman Sachs (NYSE: GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (NYSE: LEH); and Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C), Eileen K. Murray, Managing Director, Credit Suisse First Boston (NYSE: CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (NYSE: MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (NYSE: BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (NYSE: JPM).
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http://www.investigatethesec.com/
I doubt you guys have read the complete PR report yet. Not until you've read Table 1 and the Appendix.
Hasher ..
Didn't see you at the run yesterday ... are you wearing yourself out?
How much you stand to lose in this saga hasher?
The SEC knows there's an investigation going on. I hope.
Frizzel wrote:
" I was asked [by the SEC] whether or not I had requested this information through a Freedom of Information Act request and I informed these individuals that I had not made a FOIA request...."
You mean they didn't want it in the public record.
If it's evidence of CMKX dumping why did SEC want it back when the hearing ended?
You hashing again? ... it's obvious he added it for clarification. That's why it's in brackets and bolded.
Resurrecting Richard Ney
By Ronald L. DeLegge - March 15, 2004
“Hidden behind the facade of pompous jargon and noble affections, there is more sheer larceny per square foot on the floor of the New York Stock Exchange than any place else in the world.” Those were the venomous words of Richard Ney, an actor turned investment advisor in the early 1970s. Remember him?
Mind you, Mr. Ney's characterization of floor specialists and the exchanges they peruse was made during a time period far removed from routine days of billion share volume and sophisticated electronic trading platforms. Yet, the echo of his voice still lingers - “The money stolen from many is divided among few.”
In retrospect, was Richard Ney correct in his brash assessments of floor trading specialists? What about the exchanges? Why should ETF investors care? “The money stolen from many is divided among few.”
Well in mid-February 2004, a full 34 years after Mr. Ney attacked Wall Street's untouchables, the five largest floor trading specialists on the NYSE formed a tentative agreement to pay $240 million to settle charges of ill-gotten gains reaped from innocent investors. Can you believe that? This was proceeded by a December 2003 bombshell announcement of a lawsuit from CalPERS, America's largest pension fund, alleging seven floor trading firms used their knowledge of pending orders to profitably trade their own accounts and that the NYSE failed to correct the matter. Without surprise, this mess caught the attention of the SEC and they've begun to investigate the practices of specialists on the NYSE, (currently home to 5 ETFs), the American Stock Exchange, (home to 100+ ETFs), and others that still use this archaic system to trade stocks, ETFs, and options. Can order matching technology reach humanity before it's too late?
Without going into anymore gory details, let's just say Mr. Ney called it, though it took everyone (us included) a few decades to notice the subtle financial gimmickry of the specialist system. Forget about the valuable services market makers say they perform. The impact of a rigged marketplace for investors of individual stocks and ETFs are clearly negative. “The New York Stock Exchange is not an auction market – prices are controlled absolutely by the specialists.” For years, Richard Ney was passed off as an outdated kook – but now he's anything but. Perhaps this explains why he would ride around Beverly Hills in his Rolls Royce all alone – just him and his dog.
Thankfully, we sense meaningful change on the way. Even Lucky Luciano, a confirmed criminal and mobster took note of all this. After he visited the floor of the NYSE and someone explained to him the role of the floor specialist, he commented, “A terrible thing happened. I realized I'd joined the wrong mob.”*
*The Wall Street Jungle 1970 Grove Press, Inc. by Richard Ney
http://www.besttermliferates.com/view_article.php?slug=Resurrecting%20Richard%20Ney&ID=5&D_I...
The SEC deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Knight Securities, L.P. ("Knight" or the "Firm").
“ … Moreover, from January 2000 through December 2001, Knight failed reasonably to supervise Knight's institutional sales traders, including Knight's Leading Sales Trader, who repeatedly misused ACT trade modifiers. </U></I></B> Knight's sales traders' misuse of ACT trade modifiers limited Knight's customers' ability to assess the execution quality they were receiving from Knight. Knight's failure to prevent the traders from repeatedly misusing the ACT trade modifiers also limited the ability of the Firm's institutional customers to detect the fact that Knight was extracting excessive profits at their expense -- and resulted in Knight's institutional orders trading ahead of certain limit orders placed by Knight's customers.
Knight also violated the books and records provisions of the federal securities laws from January 2000 through May 2002. Specifically, Knight did not retain email communications relating to its business. In addition, Knight's purchase and sales blotter (also referred to as a trading blotter) contained inaccurate information regarding time of execution of certain trades. Finally, Knight failed to include required information on some order tickets and failed to maintain certain order tickets for the time period required by the federal securities laws ...”
========
<B><I><U> "ACT" refers to the automated system owned and operated by The Nasdaq Stock Market, Inc. which, among other things, transmits reports of transactions to the National Trade Reporting System for dissemination to the public and the industry. </U></I></B>
http://www.sec.gov/litigation/admin/34-50867.htm
Thomsen tapped to lead SEC enforcement
New chief joined regulatory agency in 1995; oversaw SEC's probe into Enron scandal.
May 12, 2005: 2:19 PM EDT
WASHINGTON (Reuters) - The top lieutenant of former Securities and Exchange Commission enforcement chief Stephen Cutler will replace him, the SEC said Thursday, making Linda Thomsen the first woman to hold the job.
Thomsen, 50, takes over what some consider the most powerful staff position in the agency, with the SEC setting records in recent years for the magnitude and severity of enforcement actions brought against securities lawbreakers.
"I am so pleased that she's been willing to accept this job," SEC Chairman William Donaldson told reporters after speaking to a financial officers group here.
"She is a very firm person in terms of cracking down on malfeasance and so forth. But she has an ability to talk to people, to hear the other side," he said.
Thomsen joined the SEC in 1995 as assistant chief litigation counsel. In 2002 she became deputy director of the enforcement division. She has overseen the SEC's handling of the massive scandal at energy trading group Enron Corp.
The commission said last month that Cutler was stepping down to return to private practice after heading the enforcement unit since October 2001.
The SEC did not say who will be Thomsen's new deputy.
Before joining the SEC, Thomsen was in private practice at Davis Polk & Wardwell in Washington and New York and served as an assistant attorney for the District of Maryland.
http://money.cnn.com/2005/05/12/news/newsmakers/thomsen_sec.reut/
November 21, 2003
Jonathan G. Katz, Secretary
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609
Re: File No. S7-23-03 - Regulation SHO
Dear Mr. Katz, Commissioners and Staff:
This letter is in response to the Securities and Exchange Commission's ("SEC") request for comments on proposed Regulation SHO, which is intended to reform current short selling rules and regulations and, in part, to curb market abuses related to illegal "naked" short selling.
///SNIP///
Conclusion
Again I would like to commend the SEC for acknowledging the problems associated with "naked" short selling and settlement failures in the U.S. securities markets, and for putting forth a proposal to "curb these abuses." I strongly urge the SEC to fulfill its Exchange Act mandate and "stop short selling abuses" wherever they occur, by (i) requiring trades to timely settle, with forced buy-in's for failures to timely settle, whatever the cost and with additional real pecuniary and restrictive punishments for violators, (ii) applying the new rule to market makers and specialists, who are-based upon their current behavior-likely to abuse any exemption, and (iii) applying the "uniform bid test" to all securities markets (instead of only exchange listed securities), and specifically applying this rule to market makers and specialists, as well as everyone else.
The Proposed Rule and comments thereto indicate the SEC recognizes many of the problems. The SEC has the opportunity to do the right thing and put an end to these abusive and destructive practices. Please do it now, so that it won't have to be done again later after still more companies have been destroyed and still more investor wealth has been stolen by the market manipulators and their enabling industry partners.
Sincerely,
H. Glenn Bagwell, Jr.
Attorney at Law
http://www.rgm.com/articles/godwin.html
Post from DrDiamond – Reply #5 in this thread:
http://cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&num=1115959468
The Short Version -
It is amazing to me that we go into the Administrative Hearing hoping that we can stop the SEC from unjustly prosecuting our company in calling for a revocation of our registration and hopefully buy some time so we can get the filings completed and turned in. Everyone was up in arms about the SEC, DTCC, NSCC, MM’s, Shorty, etc… and we were pulling together to help protect our investment and our company from unjust and/or undue manipulation and harm.
We also had a long shot opportunity to have our position on the NSS heard in the Hearing, let our voice be heard, and come out with a favorable opinion from the Judge knowing that whatever happened from the Hearing, the company was still rolling forward in developing assets and shareholder value and even a revocation wouldn’t stop that nor would it make the manipulators obligation to the NSS position go away.
The adversary negatively manipulates the Hearing experience, asserts expected damages from the results, focus’ the attention on weak points of the Hearing, creates a wall of division between the shareholders, and goes for the Jugular of our CEO and little is done to resist. I must have missed something or maybe I misread the tenacity, courage and heart of our shareholder base. This is very disappointing and in many cases shameful.
Many are saying Urban’s finished, that he and Rendal are on the outs and Ed Dhonau wants nothing to do with CMKX. I say ridiculous! If this were the case then how come they are all flying together down to Ecuador to check on the mining operations and spend
3 to 4 days together? I believe some have been trying to dupe the shareholders and lead them on a lynching campaign and I believe everyone needs to stop and take a deep breath and see what these guys (Urban, Maheu, Rendal, and Ed) are doing now that the Courtroom Phase of the Hearing has ended. There are MANY RESPECTED individuals in our midst that would love to see Urban step down from all that he has worked for and that simply isn’t going to happen because he doesn’t need to or have to. I believe anyone that knows anything about where we are going as a company isn’t expecting him to step down at all. I for one am still 110% behind Mr. Casavant, Mr. Maheu, and their efforts.
There are no hearing results only opinions? The results are not in yet because the Judge has not rendered a decision. What’s up?
(1)She wants to weigh the exhibits and info gathered from the Hearing in D.C.
(2) She is going to allow more input until 29 Jun 2005.
Additionally
(1)She doesn’t take the drastic action and “halt” the trading
(2)The SEC doesn’t push for a suspension or halt to trading
(3)The SEC meets with our attorney’s the following morning of the courtroom phase to discuss other articles of info including the NSS position
(4) No charges filed against Urban or anyone else
And this is bad?
We already knew the records wouldn’t be ready by the time of the Hearing, because Mr. Maheu had already told us that when the Form 15A was filed. He knew the 15A would bring us into a 60 day obligation to present the filings that we would be unable to satisfy and he openly stated that in a PR. Many hoped and speculated that Sarbanes Oxley was a main reason that the filings were being held up and even Mr. Frizzell stated that Sarbanes Oxley affects all companies and their filings including CMKM Diamonds.
Unfortunately, many thought or assumed that the records were complete and ready to go, that it was only the S.O. requirements that had Urban, Mr. Maheu, and Attorneys afraid to sign off on them. This was a bad assumption as the underlying truth that many tried to bring to the fore front was that the information was still trying to be collected so the reports could be compiled. I specifically remember replaying a similar scenario that happened with one of my companies in the past where we had to “recreate records”. It is extremely difficult as you have to often use very primitive means of research, rely on others [clients/employees (past and present)/suppliers/etc…], their record keeping skills, their desire to cooperate, their accessibility, receipts, contracts, etc… I’m getting a headache just thinking about it.
The Long Version -
1. The records are not complete! No news
2. Urban thought things were covered and why shouldn’t he have. Check out the conclusion of 2002 as CMKM Diamonds took over Cybermark (see below). Urban hired Desormeau, (who was never subpoenaed to testify by either side I might add) who was CFO from 2002-2004 (Also testified to by Susan Herring in the Hearing) and should have been responsible for the accounting, but evidently did next to nothing in that area. Also you will see Wesley Casasvant had some very relative involvement at this early stage which could add to the reason for Urban exercising his right to take the 5th.
http://questfordiamonds.com/news/topic77.htm
Excerpt: Dec 3, 2002 - Mr. DeSorneau, 56, is a resident of Las Vegas and a 32 year veteran of financial accounting systems. A graduate of New York University at Albany in accountancy, Mr. DeSorneau will implement over the next 45 days a customized intranet platform connecting the Company's headquarters in Las Vegas with its field operations in Saskatchewan and throughout the world.
Wesley Casavant, who was recently appointed secretary-treasurer, will coordinate the new financial accounting system with the Company's auditor to ensure seamless integration with newly enacted Securities and Exchange Commission auditing practices for public companies…
– Very Important News IMHO
3. This is the time period where the Form 15 was filed removing our reporting requirements. Why would a CFO want that to happen within the 1st year of his new job? We don’t know what was told Urban, but we do know that the Desorneau System and Wesley’s coordination must not be working and wasn’t keeping the accounting up to speed because they forfeited a very treasured position for a company – The Registration of it’s Securities! Why? Very important question, that needs to be looked at IMHO!
4. Urban’s response to this? Wesley is gone and Desormeau is gone and in comes Roger Glenn. Why? Because he is trying to cover up things he did wrong? I don’t think so! Look at late 2002 and early 2003 and you will find Urban bringing in Desormeau for the Accounting and financial coordination system and adding Wesley (Who was somewhat qualified to do this for sure) to keep the family involved. (Right or wrong, I’ve done it myself. But I wanted my family as involved as possible within their ability and skills. Never outside their skill levels!).
Until just over 100 years ago 99% of the world population thought that the world was flat, the center of the universe, and everything revolved around it. The Pope even decreed it in a Papal Bull (No pun intended). What is believed true today may be proven false tomorrow and vise versa.
5. What was Urban doing in the time preceding the Form 15 filing while this 45 day system was supposedly being set up?
(A) News> Casavant Mining Kimberlite International OTC BB CMKI
Chairman Announces Mineral Claim Acquisitions
Nov. 27, 2002 http://questfordiamonds.com/news/topic79.htm
(B) News> Casavant Mining Kimberlite International Announces Purchase
Bid for Latest Model Truck Mounted Drilling Rig with Diamond
Exploration Schedule
Dec 2, 2002 http://questfordiamonds.com/news/topic78.htm
(C) News> Casavant Mining Kimberlite International Inc. (OTCBB:CMKI)
announced today the hiring of David DeSorneau to implement a real
time financial reporting and inventory control system.
Dec. 3, 2002 http://questfordiamonds.com/news/topic77.htm
(D) News> Casavant Mining Kimberlite International Announces Letter of Intent to Acquire Diamond Mining Company (GEMM: addition mine) and Shareholder
Meeting January 15, 2003 in Las Vegas, NV
Dec. 4, 2002 http://questfordiamonds.com/news/topic76.htm
(E) News> Casavant Mining Kimberlite International Appoints Dr. Rupert A.
L. Perrin to Board of Directors
Dec. 6, 2002 http://questfordiamonds.com/news/topic75.htm
(F) News> Casavant Mining Kimberlite International to Sponsor
Representative Office in Antwerp, Belgium to Promote the
Casavant Diamond Brand and to Support Worldwide Demand for
Conflict Free Diamonds
Dec. 9, 2002 http://questfordiamonds.com/news/topic74.htm
(G) News> Casavant Mining Kimberlite International Announces
Appointment of Cindy Casavant to the Board of Directors
Dec. 13, 2002 http://questfordiamonds.com/news/topic72.htm
(H) News> Casavant Mining Kimberlite International Commences
Negotiations With Dia Bras Exploration, Inc. of Montreal to
Acquire a Private Placement and Warrants
Dec. 16, 2002 http://questfordiamonds.com/news/topic71.htm
(I) News> Casavant Mining Kimberlite International Hires Howard Bronson For Financial Public Relations
Dec. 22, 2002 http://questfordiamonds.com/news/topic68.htm
(J) News> Casavant Mining Kimberlite International Announces its Annual General Meeting (Sorry I don’t have the link – Check with GB)
Dec. 30, 2002
Casavant Mining Kimberlite International (OTCBB:CMKI) will be holding its annual general meeting Wednesday, January 15, 2003 at the Sunset Station 1301 W Sunset Rd., Henderson, Nevada, beginning at 10:30 AM for the election of directors and matters pertaining to acquisitions in addition to other business.
(K) News> Casavant Mining Kimberlite International Announces a new Hot Line for Investor Information
Dec. 31, 2002 http://questfordiamonds.com/news/topic65.htm
(L) News> Casavant Mining Kimberlite International in Negotiations to
Acquire Zinc Mining Claims as Part of Dividend Spin-Off with Pink
Sheet Company
Jan. 6, 2003 http://questfordiamonds.com/news/topic63.htm
(Note: Majority Shareholder Meeting Announced and expectations are high going into it, but the next PR shows a problem was discovered. Naked Short Selling has been identified and they are trying to figure out what to do. IMHO)
(M) News> Casavant Mining Kimberlite International Inc. (OTCBB:CMKI) announced today a series of corporate initiatives in advance of the January 15, 2003 majority shareholder meeting to be held in Las Vegas, NV.
Jan. 7, 2003 http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Jan_7/ai_96198036
I will provide an overview of this one:
First, CMKI is encouraging every shareholder to hold his shares in certificate form.
Second, CMKI will be contacting the broker-dealer and market maker community to request their cooperation in the shareholder audit.
Third, CMKI has been informed that majority shareholders plan on holding their shares in certificate form indefinitely if it helps the Company combat "naked short selling".
Fourth, CMKI, as previously announced, plans on approving at its majority shareholder meeting a mandatory share and cash dividend policy.
Fifth, CMKI believes that its shareholders and the targeted company's shareholders will best benefit from a "cross-dividend" policy.
Sixth, CMKI believes that its cross-dividend policy will result in share dividends being issued in the 3Q03. The legal audit of its shareholders of record will speed up this process.
Seventh, CMKI believes that its acquisition strategy, spearheaded by the Casavant Family, will require the addition of a seasoned management team.
(N) Casavant Mining Kimberlite International Inc. (OTCBB:CMKI) announced today that effective on the opening of the markets on Wednesday, January 29, 2003 that it's new trading symbol will be "CMKM".
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Jan_27/ai_96931474
Jan. 28, 2003
(O) Casavant Mining Kimberlite International, Inc. (OTCBB:CMKM) announced today that it had filed a Schedule 14C with the Securities and Exchange Commission.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_3/ai_97184605
Feb. 3, 2003
(P) Casavant Mining Kimberlite International Inc. (OTCBB:CMKM) announced today that its time shared lease agreement of an ancient Chinese jade collection was appraised by experts and a random sampling of the overall collection was authenticated by Elizabeth Childs-Johnson.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_7/ai_97318609
Feb. 6, 2003
(Q) Casavant Mining Kimberlite International (OBB.CMKM) is pleased to announce it has commenced negotiations to reorganize its business, in conjunction with another Bulletin Board publicly trading company.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_14/ai_97608437
Feb. 14, 2003
(R) Casavant Mining Kimberlite International, Las Vegas, (OTC BB: CMKM) is pleased to announce that it is entering into discussions tomorrow in Las Vegas with representatives from Fugro Airbourne Services to plan for a systematic comprehensive aerial survey and analysis of the Fort a La Corne, Saskatchewan Diamond Claims.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_18/ai_97779682
Feb. 18, 2003
Exploration
(S) Casavant Mining Kimberlite International, Las Vegas, (OTC BB:CMKM) is pleased to announce that at 9 a.m. today the company signed a Canadian $956,540 (approximately U.S. $630,000) contract with Fugro Airbourne Services, Ottawa, Canada, to fly fixed-wing electromagnetic surveys from a Casa 212 aircraft utilizing GEOTEM, over the first 700,000 acres of diamond claims surrounding the De Beers diamond mine at Fort a La Corne, in Saskatchewan, Canada. Contract preparation will start immediately.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_20/ai_97893323
Feb. 20, 2003
(T) -- FUGRO AIRBOURNE SURVEY
Until just over 100 years ago 99% of the world population thought that the world was flat, the center of the universe, and everything revolved around it. The Pope even decreed it in a Papal Bull (No pun intended). What is believed true today may be proven false tomorrow and vise versa.
The Fugro Airbourne Survey is moving ahead with Fugro's GEOTEM. This is new proven technology used successfully in Alberta which will be utilized in Saskatchewan for the first time by us. Results will be announced daily starting this coming week as we begin to survey the 700,000 acres of immediately adjacent to the De Beers Claims, of approximately 1.9 million acres, including options in total. This expenditure of $ 956,540 Canadian, along with a small amount of expenditure on drilling will keep the claims current.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_24/ai_98002954
Feb. 24, 2003
(U) Dr. Mark Hutchinson, Consulting Geologist for Casavant Mining Kimberlite International (OTCBB:CMKM) was interviewed on 21 February, 2003 by Tom Allinder of HotStockChat.com.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_Feb_25/ai_98036193
Feb. 25, 2003
(V) Casavant Mining Kimberlite International, Las Vegas (OTCBB: CMKM), has reached an agreement to the terms of an acquisition for the Snowden Kimberlite Pipe with Anglo Minerals Ltd. Claim S-133707 (Section 5, Twp 52, Rge 18, W2). This claim is one of many targeted by Casavant Mining, and Claim S-133707 is currently surrounded by Commando/Buckshot Holdings which recently was acquired by Casavant Mining Kimberlite International.
March 5, 2003 http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_March_5/ai_98373658
(W) Casavant Mining Kimberlite International, Las Vegas, (OTCBB:CMKM) is pleased to announce that: The Board of Directors of CMKM announced today the approval of a plan to spin-out Casavant International Mining Corporation, a wholly owned subsidiary of CMKM which owns zinc depositories. CMKM shall issue 1 preferred share for every 10,000 shares of CMKM for the purposes of completing the spin-out. The transaction will be completed, pending shareholder approval and SEC registration requirements.
http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_March_10/ai_98548413
March 10, 2003
(X) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_March_31/ai_99620555
SEC FILING
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number 000-30551
NOTIFICATION OF LATE FILING
(Y) March 31, 2003
Casavant Mining Kimberlite International (OTCBB: CMKM) management today announced that it has terminated negotiations with Juina Mining for the proposed acquisition. It is in the best interest of the company to focus all of the operational and financial resources on the Fort a la Corne claims in Canada at the present time. In the future, if both companies have a mutual interest, negotiations may resume.
(Z) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_1/ai_99463232
April 1, 2003
The board of directors of Juina Mining Corp. (OTC Pink Sheets: GEMM), announced today they have halted all negotiations, and null and voided all agreements, with Casavant Mining Kimberlite International (OTCBB: CMKM). The decision was reached by mutual consent of all parties, and was deemed to be in the best interests of the company, and as well stated in a most recent press release by Casavant Mining Kimberlite International.
(AA) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_1/ai_99471709
April 1, 2003
Casavant Mining Kimberlite International, Las Vegas (OTCBB: CMKM) management today announced that it has terminated negotiations with Dia Bras Exploration Inc.
(BB) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_7/ai_99735835
April 7, 2003
Casavant Mining Kimberlite International, Las Vegas (OTCBB:CMKM), management today announced that it has cancelled the acquisition of the ancient Chinese jade collection as previously stated in CMKM's 14c, which stated on Dec. 30, 2002, the company acquired $50 million dollars worth of ancient Chinese jade for 500 million shares of common stocks of the corporation. The cancellation was reached by mutual agreement by both parties.
(CC) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_17/ai_100189778
April 17, 2003
Casavant Mining Kimberlite International (OTCBB:CMKM) on April 14, 2003 held a Board of Directors Meeting at 1489 Warm Springs in Las Vegas, Nevada and is pleased to announce the appointment of Corey Klassen as Executive Vice President.
(DD) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_April_21/ai_100402143
April 21, 2003
Casavant Mining Kimberlite International, Las Vegas (OTCBB:CMKM), management is pleased to announce that an exploration program aimed at identifying kimberlite targets on CMKM's mineral claims at Fort a la Corne, Saskatchewan has now been established.
(EE) MAY – JUNE 2003 No PR’s
(FF) July 17, 2003 SEC FILING
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 15
CERTIFICATION AND NOTICE OF TERMINATION OF REGISTRATION UNDER SECTION 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR SUSPENSION OF DUTY TO FILE REPORTS UNDER SECTIONS 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
Commission File Number 000-30551
Casavant Mining Kimberlite International, Inc.
(Exact name of registrant as specified in its charter)
(GG) http://www.findarticles.com/p/articles/mi_m0EIN/is_2003_July_23/ai_105730755
July 23, 2003
Urban Casavant is pleased to announce that Casavant Mining Kimberlite International (OTC: CMKM) has approved a drilling permit application for the Fort a La Corne claims.
The approval of the drilling permit application by the board is a major step forward for the company.
------------------------------------------------------------------------------------------------------------
I believe you get the idea that Urban Casavant was not sitting back playing tiddly winks in the months preceding the decision to file the Form 15. One of the only reasons at this point to file the Form 15, IMHO is if the boys in the Office (DeSorneau and Wesley Casavant) are not keeping up with the records of the work that Urban has been doing as you can clearly see above. I believe the Desorneau 45 day wonder program had difficulties and problems being implemented and the CFO (DeSorneau) didn’t put forth the effort to build the ledgers, reports, and collect pertinent data the old fashioned way. JMHO
This was a team effort and Urban was building shareholder value and exploring the assets potential and bringing in a team for management. I believe that the unveiling of the subsequent breakdown in the DeSorneau System and the implementation of Sarbanes Oxley had most all of out new additions to the Board heading for the door. JMHO. It appears they all ran, but Urban Casavant! Does that make him bad? No way. I say thank you Urban, or we wouldn’t have had a chance at this opportunity that is in our midst right now.
Urban has spent a lot of time and money trying to get this done! I believe if you follow the PR’s you’ll see the whole story especially the Form 14C. Phoenix Gold has information that he has gathered that ties in the Form 14C and hopefully someone has a link to it or he will post it soon. I have checked out the info and it is very accurate. Very interesting as well.
I believe Urban was following the advice of the professionals he had hired to do a job and I believe they were possibly trying to do a job on him, like many apparently still seem to be trying to do today. A great question PhnxGold asks is who benefits if Urban defaults or folds? The answers are there!
Until just over 100 years ago 99% of the world population thought that the world was flat, the center of the universe, and everything revolved around it. The Pope even decreed it in a Papal Bull (No pun intended). What is believed true today may be proven false tomorrow and vise versa.
The above is just my opinion and I ask that you treat them as such.
Go Urban and Maheu.
By the way. If Ed, Rendal and Urban were having such terrible relationship issues and the hearing went so bad, why are they traveling to Ecuador together for 3 or 4 days. Doesn't sound like anyone is trying to distance themselves from the other one in this tight knit group. Think about it. JMHO
Thank you and success is at hand.
Dr. Diamond
A good area to be holding mineral claims ...
http://forestgate.ca/pdfs/other/SaskDiamondProperties.pdf
Janice, you are soooo predictable.
I luv it ...
Oh what a beautiful sting.
THE BEGINING OF THE END
« Thread started on: Today at 16:04:05 »
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Can you feel it? This is the begining of the end folks. We might be finally able to say soon and actually mean soon. A couple months of course but I believe it now is soon. I believe UC wanted to go to court.
UC had a problem with NSS, and he had no way of stopping it. So he had to take action. This is how I believe it went down. First you set the bait. Raise the a/s to 500 billion. Then you start making moves with your company and do a promoting campaign. Get sharholders and lock them in with the dividends. Then you raise the a/s again to 800 billion. You have those investors locked in and more buying because you got the goods and you can get a bunch for a couple hundreths of a penny.
Of course the mm's bit. So then when they filed the amendment to form 15 it gives the SEC chance to take them out. When you have to go to court send some subpoenas for the trading activity.
People were asking why did the SEC request this info from Jeff. No it was us that requested this info. Look at our request for subpoens and it is on the bottom of page 3 and on to 4. This is Jeffs excuse. It is all comming out now. Make some popcorn and sit back because it is going to get really interesting. I wonder what else UC has under his sleeve
http://cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&num=1115931845
That $25 spent on retaining Frizzel was the best $25 the longs have ever spent.
Re: Jefferies letter posted on OG site
« Reply #27 on: Today at 12:14:53 »
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This is "SEC Exhibit 60"
This Exhibit was not on the "Exhibit List" and copies were not provided to Stocklein (when evidence was shared 3 weeks ago).
This Exhibit was provided to all parties at the start of the hearing as "New Evidence" that the SEC requested be include on the SEC Exhibit List.
At the conclusion of the hearing, the SEC requested that this Exhibit be removed from the Official File. The SEC claimed that since this Exhibit was not used, then the Exhibit should not be a part of the Official File.
Objections were raised by both Stocklein and Frizzel.
We won and this document is now part of the "Official File."
How this Exhibit was handled by the SEC is a clear indication (and proof) that the SEC is trying to avoid all topics on NSS.
ps.
Makes me wonder what else the SEC has on record and not provided to CMKX Attorneys.
From Reply #27 …
http://cmkxdiamond.proboards32.com/index.cgi?board=general&num=1115916988&action=display&...
I believe there is something in the agreement Frizzel has with CMKX that restrains him at this time.
Exhibit 60: "The Jefferies Letter" ...Disclose it!
« Thread started on: Today at 09:38:21 »
From the court hearing this past week I think one item would be of GREAT interest to the public shareholders. I know Frizzell said he is working on getting it publicly released so let's hope he is successful.
Let us see "The Jefferies Letter" which apparently is a letter sent from the General Counsel of Jefferies to the NASD. This letter was eventually forwarded onto the SEC when the SEC requested the NASD supply information about CMKX trading to try and help prove it was NOT naked shorted. The SEC received this letter and then later wanted it removed from the Exhibits submitted into evidence for the case. Hmmm ... wonder why?! It may or may not be what we think but I would sure rather read it so I can KNOW what is says...instead of guessing.
It sounds like this letter may give some insight as to why many of us watched the Market Maker JEFF sit on top of the ASK for months and months selling hundreds of billions of shares last summer....and then POOF....disappeared all together. Stating they no longer make a market for CMKX. Many of us continue to scratch our heads regarding these events...we just want to know WHAT IS GOING ON! LOL.
I obtained the "Exhibit 60" info from a post by Pedro2004. It can be found part way down the thread here:
http://cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&num=1115897542
The post I am referring to basically states:
The document is called "Exhibit 60."
The Exhibit contained (around) 20 - 25 pages.
And the Attorneys called the Exhibit "The Jefferies Letter."
Interesting how he is the only one that has posted this "Exhibit 60" reference and that it contains around 20-25 pages. How did he get this info? Can he share any more items with us about this letter or others submitted as exhibits? Is he trustworthy? I dunno.
Ok....just needed to get this out of my system. I hate all this secrecy crap and hope Frizzell is successful in obtaining the letter's release.
Don't let this request die....(I think that goes without saying around here!)
Tod
If this judge has never heard of NSS, doesn't find a need to understand it and will not let it be entered as evidence, why would Frizzel not start using words she does understand … like
VIRTUAL shares, PHANTOM shares, NON-EXISTENT shares ...
She might recognize she has a need to have those terms clarified.
Is something upsetting you now Sec old boy?
LOL It's said it takes one to catch one ...
" ... conspiracy, entrapment and violation of numerous federal laws ..."
Will someone please switch on the webcam.
A couple of cages of kangaroos just went by.
How many times do you naysayers need to be told SHO isn't working? I'm not going to be wasting my time responding to you naysayers any longer... nothing sinks in.
I've been taking the same position as zeninvestor 99% of the times I post in this forum. Don't respond to naysayers. Next it'll be 100%
It's because CMKX is just the tip of the iceberg.
" ...So why wouldn't they just agree to a modest settlement and sweep it under the rug? ..."
I believe hundreds of other companies are in the same boat as CMKX to varying degrees.
Counterfeit Conspiracy March to Washington on June 1st and the protest in NYC Time Square.. This is very important event..
www.counterfeitconspiracy.com
http://blogcounterfeitconspiracy.blogspot.com/
Post your comments here..
Jose Davila said...
As more and more unfolds concerning the various medthods used by broker-dealers to keep your hard-earned dollars, the question to ask is; Why is there such a high daily volume with no movement in the stock price?. One thing we do know for sure is that CMKX is not creating a false market with wash trades. That then leaves only one alternative, that is the incentives for broker-dealers to manipulate small cap and micro-cap stocks for profit is sufficient to them that they will skirt the law on the side of lawlessness to their benefit by doing every manner of things illegal and non-conducive to the investing public.
The SEC Executives are beginning to see the handwriting on the wall. They are beginning to see that shareholders are no longer going to stand for this sort of treatment. We are going to expose every single trick used by broker-dealers to steal our money. This includes the counterfeiting of shares. An aggregious action that has left many shareholders holding fictitous shares of stock with no chance of ever seeing any gains from it unless they stand up and cry "foul"! Shareholders are crying foul and are saying they have had enough. It is time for governement regulators to begin regulating and policing themselves instead of targeting public companies that are trying to defend themselves against the injustices of the system.
As the CEO of Zoomingstocks.com, I endorse this effort to expose this calamitous action against unsuspecting investors and hope that you all will come together to ensure that reforms are put in place to prevent this crime from ever occuring again.
This is only the beginning...
1:00 PM
Counterfeit Conspiracy Blog
This blog for the “Counterfeit Conspiracy” is being put up to allow anyone and everyone the freedom to express their opinions about the crimes of manufacturing and selling of counterfeit shares, also known as naked short selling.
Please feel free to visit our blog often and make comments of fact, opinion or both.
“Counterfeit Conspiracy”, produced by Hugo Cancio and Fuego Entertainment, is a documentary that is being filmed to educate the American public of the fraud and corruption happening on a daily basis in the U.S. market places through the use of naked short selling.
Naked short selling is actually the manufacturing and selling of counterfeit or fictitious shares to the investing public. Unlike the financial disasters of Enron and Worldcom, this crime is NOT being perpetuated by the companies, it is being perpetuated by a combination of brokers, market makers, clearing houses, hedge funds and the DTCC and all of its entities.
And, unlike Enron and Worldcom, there is a lot more at stake in the naked shorting scheme than we saw in these two financial disasters combined. Over the past decade it has been estimated that this crime has claimed the lives of over 7,000 small businesses, destroyed investments and savings of millions of investors and has been responsible for Trillions of U.S. dollars leaving this country.
After the stock market crash in 1929, Congress instituted the Securities Exchange Act of 1934 to make sure that the acts that led to this crash would never be allowed to happen again. The act of naked short selling has been against the law since this Act was put into law. However, on our own Securities and Exchange Commission’s website, they state that “Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules”. This statement and many others like it can be found at http://www.sec.gov/spotlight/keyregshoissues.htm
This all makes you wonder why this crime has/is being allowed to continue and why the Securities and Exchange Commission has not been enforcing the laws.
Some people are under the impression that the whole controversy of the naked short selling issue is just a scam made up in the minds of people wanting to make a quick buck scaring innocent people into thinking there is a problem where none exists. Nothing could be further from the truth!
The counterfeiting of shares is real and the damages to individuals and businesses continue to happen at alarming rates every single day. Small public companies are the ones being picked on the most as they are the most vulnerable and least likely to have the means to fight back.
One man, with a lot of money and his own Blog about this issue, claims that naked short selling doesn’t exist and even if it did exist in the Pink Sheet companies, he doesn’t care and anyone that invests in Pink Sheet companies deserves to loose their investment! Wonder if he dares to come over to this blog?
posted by blogcounterfeitconspiracy at 11:06 AM on Apr 30 2005
That included an error which has now been corrected
Street Shares: 268,964,129,448 Cert Shares: 27,533,532,590
Total Shares: 296,497,662,038 Signed Agreements: 4816
So you guys figure you have the judge zipped up in your back pocket do you?
Then you may be right.
Don't know about Overstock's situation, whether they could PROVE NSS ... but you can be sure CMKX doesn't intend to violate Sarbanes Oxley.
That's likely the difference.
".. Why is CMKX different? .."
Sure I do SEC ... $$$$$$ TRILLIONS
We are talking TRILLIONS of dollars stolen from investors and businesses over the past several years.
So you're admitting you are representing the interests of many who are shorting this stock. Paid to do it too eh.
Hasher, please explain to me why you,
… you who doesn’t own any CMKX, has more interest in this stock than 91% of the 50,000 stockholders?
You must be a real heavy shorter or represent the interests of many who are.
” … so far, if 50,000 stockholders is accurate, only 9% seem interested enough to respond. And I would guess they are the largest numbers of shares. This is going to make it awfully difficult to get a real count.
I'd guess that the remaining 40,000 plus have such small holdings that it's not worth the 25 bucks to register …”
What you said makes a lot of sense.
From your past post Relaxin you're not likely to be a shareholder of CMKX.
Fake!!
4004 individuals don't think like you Bull
Street Shares: 252,377,383,373 Cert Shares: 23,441,530,665
Total Shares: 275,818,914,038 Signed Agreements: 4004
Don't watch, join in ...
Whenever I think of the power of the human spirit I am reminded of the image of the lone protester standing in front of a tank minutes before the Tiananmen Square massacre. The following quote encapsulates the moment;
“a citizen, armed only with his battered briefcase staring down a column of tanks. A makeshift lady liberty, flimsy and idealized, warning Communist Party bosses that there were alternatives to their rule.”
Now, we are that lone protester, facing a battle that seems un-winnable. Every time we stand up we get knocked down. We have watched nothing happen for months and for some of us years. We surf the net, check the stock price, cruise the boards, waiting, just waiting for something to change; and nothing does; and there is nothing we can do about it.
Naked short selling is theft. Not only is it theft of our money, it is the theft of something much bigger. It strips us of trust in the establishments that are supposed to protect us. Is the SEC protecting us? Who are they protecting? How many of you are angered over the injustice? How many of you are angered over the arrogance of those who make the rules? How many of you want it to stop? What are you going to do about it? What can you do about it?
In all of history, the most extraordinary events have always been started by ordinary people, ordinary people just like us. The greatest moments in history grow from a lone voice in the crowd, a single person that has had enough, someone who shouts from the roof tops, someone who will not give up.
John Martin is that lone person who had enough and stood up with his fists clenched in a in a fit of rage. He is the one who took it upon himself to start a movement to try and bring an end to the corruption and injustice, to show the SEC that we are not going to roll over and die. That we are here, we are strong and we will fight for what is right.
Do not make this about the 25$ and do not make this about how much Frizzell is making or not making. Now, more than ever, we need to stand together as one voice and present ourselves in front of that column of tanks.
I have put aside my own rule to come out and urge those who have not signed up to sign up, only because this is important. We need to present ourselves as a single united front to confront those who steal our money and violate our trust. This is not about Naked Shorting. We are but mere peasants, the elite stepping on our heads, holding us to the ground, and telling us what is good for us. We are better than that, “you” are better than that.
I do not know what will happen, what the future holds, or how big this will become or if it will fall flat on its face. But we can’t sit back and wait for something to happen. We have to make things happen. Where is the pioneering spirit? Where is the willingness to take a chance, to stand behind a cause that is worth while? Are we asleep? Has the mightiest country in the world now become a victim of its own success and now stealing from its own people? Is this America? Are you proud of it?
Friends, this could very well be the genesis of a huge movement to bring down the SEC, to show those in power that “we” are in control, that we will not be punched, kicked, spit on and dragged through the mud. Stand up and be counted, be a part of the solution, show that we are united, we are mighty, and we are fighting back. This is the America I know.
‘All that is necessary for the triumph of evil is for good men to do nothing’
http://cmkxdiamond.proboards32.com/index.cgi?board=general&action=display&num=1115186167