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Friday, 04/11/2008 10:08:26 AM

Friday, April 11, 2008 10:08:26 AM

Post# of 159752
Have you all seen this?

FOR IMMEDIATE RELEASE
2008-54
http://www.sec.gov/news/press/2008/2008-54.htm
Washington, D.C., April 7, 2008 — The Securities and Exchange Commission today charged 11 individuals and three companies, alleging they conspired to illegally issue and sell unregistered stock in a purported diamond and gold mining company and lined their pockets with more than $64 million from 40,000 investors nationwide.

The SEC complaint alleges that CMKM Diamonds, Inc., with assistance from a transfer agent and an attorney, fraudulently issued hundreds of billions of shares of purportedly unrestricted stock to the scheme's mastermind. The complaint also alleges that CMKM's CEO Urban Casavant generated investor interest in the company through false press releases, Internet chat boards, and "funny car" race events across the country without disclosing that he ran the company from his house in Las Vegas and that CMKM's primary activity was to issue and promote its own stock.
Additional Materials

* Litigation Release No. 20519
* SEC Complaint

Linda Chatman Thomsen, Director of the SEC's Division of Enforcement, said, "The perpetrators of this massive scheme include several securities professionals and an attorney. Today's action demonstrates that we will aggressively pursue individuals who ignore their obligations as gatekeepers to our markets and instead collude with their clients to violate the federal securities laws."

Rosalind R. Tyson, Acting Regional Director of the SEC's Los Angeles Regional Office, added, "The allegations in this case highlight the significant investor harm that results from abuses in the penny stock market. Although CMKM's stock sold for well under a penny a share, the defendants were able to reap millions in profits by conspiring to flood the market with billions of unregistered shares while falsely promoting CMKM's value."

The SEC's complaint charges CMKM, the broker-dealer and transfer agent involved, and 11 individuals including Casavant. The mastermind of the scheme, John Edwards, who was living in Las Vegas, and others allegedly sold their unregistered shares into the public markets for a profit of at least $64.2 million, much of which was paid to Casavant to support his extravagant lifestyle. The complaint alleges that Edwards profited by approximately $26.4 million from sales through a single broker-dealer. Casavant profited by approximately $31.5 million, and others Casavant recruited profited by approximately $6.3 million, according to the complaint.

The Commission acknowledges the assistance of the Financial Industry Regulatory Authority (FINRA) and the Saskatchewan Financial Services Commission in this matter.

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