CMKM Diamonds Inc. (fka CMKX)

[Stockdung]

In July of 2004, Mr. Casavant suffered a stroke which left him with no alternative but to rely upon the professionals he had retained to oversee the Company operations.

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By: kevinw777
17 Apr 2005, 08:07 PM EDT
Msg. 196777 of 346247
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America needs to Know: What game is being played with CMKM Diamonds, Inc.?

By: Kevin M. West

The Los Angeles office of the SEC is taking CMKX (CMKM Diamonds) to an Administrative hearing on May 10th to try and revoke their listing as a public company. We know they want to revoke CMKX as evidenced by the Disposition of Summary that the SEC asked for in the phone conference held last week between the Administrative Judge and attorneys involved in this case.

In the story of a mining and exploration company from Las Vegas, Nevada, it appears that the SEC is either taking some unjustifiable sort of revenge, protecting the rich of Wall Street from a destructive blow or the company is a complete fraud that has been allowed to sell hundreds of billions of shares to investors. It will be up to you to decide and, in a moment, we will lay out the time table of events that have put CMKM Diamonds in this predicament, but let s first try to reason as to what is really going on here.

CMKM Diamonds is a diamond exploration and mining company based out of Las Vegas, Nevada. The company owns 951,968.54 acres (385,248 hectares) of mineral rights consisting of 1,038 separate claims in the mineral rich territory of Saskatchewan, Canada. The adjacent and surrounding claims of DeBeers that have boasted tens of billion of dollars in valuation on around 58,000 acres or about 1/16th the total size of the land mass of known mineral rights belonging to CMKX. The company also owns at least one gold mine (the American Gold Mine) in Ecuador and mineral claims (and possible mines) with zinc, uranium among other minerals in Canada and elsewhere.

With all the apparent valuation of CMKX, why would the SEC take to stripping money from tens of thousands of investors, rather than just help this company get back on it s feet and make money for it s investors like it has been trying too? If the company is revoked, the shares become worthless in the market. If the company continues and becomes fully reporting again, the investors may become very wealthy due to the company s potential valuation.

Also, as listed in one ongoing count of very concerned investors, why is there over 87 billion shares held by less than 1,000 shareholders when it is rumored that there are as many as 40,000-72,000 CMXK shareholders and only 800 billion shares authorized? It would appear we have not billions, but trillions of shares on the market. Could the company have put them there, it s not even possible. Are they counterfeit shares? They would HAVE to be! Who would be responsible for that you ask, it would be the market place along with NON-Regulation by the SEC.

This January, the SEC enacted Regulation SHO to put an end to the counterfeit shares (also called Naked Short Shares) being transacted into the market. However, the SEC grandfathered in all of the felonious crimes of counterfeiting shares previous to the day Regulation SHO was enacted. WHY?

Now let s get back to the story of CMKM Diamonds and how all this talk of counterfeited shares possibly relates to the reason the SEC wants them gone.

(*1)On July 22, 2003, upon the advice of counsel, a Form 15 pursuant to Rule 12g-4(a)(1)(i) was filed as certification and notice of termination of registration under Section 12(j) of the Act, stating that at the time of filing the Form 15 CMKX had approximately 300 stockholders of record.

(*2)On June 4, 2004, the Company retained the services of Roger Glenn, Esq. from the New York law firm Edwards & Angel LLP to assist in preparing the required SEC reports.

The Company continued its efforts to bring its filings up to date by engaging Neil Levine, of the Firm of Bagell, Josephs & Company, LLC, as independent auditor.

In July of 2004, Mr. Casavant suffered a stroke which left him with no alternative but to rely upon the professionals he had retained to oversee the Company operations.

(*3)During the 3rd or 4th quarter of 2004, the Enforcement Division launched an investigation in the Matter of U.S. Canadian Minerals, Inc. LA-2937. Under the umbrella of the LA-2937 investigation, the Enforcement Division caused the issuance of subpoenas, deposed and interrogated CMKM Diamonds consultants and management. inclusive of the Company s new auditor, the Company s financial consultant, and Edwards & Angel LLP. In addition, a subpoena was issued directly to CMKM Diamonds, where under the Company supplied significant information to the Commission, including substantial information regarding the Company s mining claims.

(*4)CMKX appointed Mr. Robert Maheu to the Board of Directors in order to oversee the necessary regulatory requirements. Bob Maheu is not just any co-CEO, Mr. Maheu was the main man Howard Hughes used to run the mob out of Las Vegas among a huge list of many other outstanding achievements . He has never lost a regulatory battle. Mr. Maheu, on behalf of the Company, immediately retained the service of Stoecklein Law Group on February 7, 2005 for the primary purpose of coordinating the preparation of all reports due under the Act for the respective missing periods. Upon its initial due diligence of the Company, Stoecklein Law Group realized that at the time of filing the initial Form 15. The Company had 698 stockholders of record and that the filing of a Form 15 was not available to the Company as of July of 2003.

Upon its initial due diligence of the Company, Stoecklein Law Group realized that at the time of filing the initial Form 15. The Company had 698 stockholders of record and that the filing of a Form 15 was not available to the Company as of July of 2003.

(*5)On February 17, 2005, Stoecklein Law Group advised the Company to file a Form 15/A which resulted in the Company being subject to the reporting requirements of Section 12(g) of the Act.

During March 2005 a financial consulting firm was retained to assist the Company in its financial statements and logistical coordination was commenced between management, the financial consulting firm, the audit firm, Stoecklein Law Group, and the transfer agent.

(*6)The Company believes that as a result of the Enforcement Division investigation in LA-2937, the Enforcement Division caused the issuance of a temporary trading suspension on March 3, 2005 and the issuance of the Order Instituting Administrative Proceeding on March 16, 2005. While the actions by the Enforcement Division are designed to be remedial, they may in fact be causing a punitive effect on the Company s stockholders by further perpetuating a growing naked short (counterfeit shares) position in the Company s stock, as alleged by numerous stockholders.

OK, now one might ask why would the SEC not want to help this company get back on its feet and produce a valuation that would make its shareholder base happy and their investment portfolios grow? It is obvious that CMKX is not a fraud, but possibly a victim of poor past management because those involved didn t know how to run a public company. Is this a crime? No it s not a crime, and co-CEO and original founder of CMKX, Urban Casavant is an extremely good man with a heart of gold. This world could use many more men like him, in this writer s opinion!

Is it better to PUNISH CURRENT INVESTORS, strip away 100% of their investments perhaps destroying the savings and college funds of thousands of American families than to fine the company and take a hands-on approach into getting them current in their filings?

Let s look at what could possibly happen if there are even just 800 billion naked short shares on this stock, and not trillions as is suspected. DeBeers has already boasted a conservative 40-80 billion dollar valuation on approximately 58,000 acres. Using 1/10th the lowest possible valuation (for safety) of $40 Billion, or $4 Billion on 58,000 acres and CMKX owning 16 times the land mass, the math would look like this.

$4 Billion x 16 = $64 Billion valuation (at only 1/10th lowest possible DeBeers valuation)

$64 Billion divided by 800 Billion shares = .08 per share (worst possible scenario)

800 Billion counterfeit shares x .08 per share = $64, 000,000,000 (Billion) owed to share holders by the market place! (Keep in mind, the current trading price of CMKX is less than 1/100th of a penny per share). Now multiply that by a possible 10-20 times the valuation and 2-3 times the number of counterfeit shares and there is some SERIOUS trouble involved here!

What could be done to solve this problem, reward long enduring shareholders, let the company focus on its mining and exploration programs and save the market from a messy situation at the same time?

The SEC could do its job and PROTECT shareholders, first off. Tens of thousands of CMKX shareholders are NOT going to stand by and let the SEC use that old line that they are looking out for the potential new investors of this stock . That s garbage and all CMKX investors and the SEC know it is! Those responsible for creating and helping this fraud to perpetuate (possible violators include but are not limited to the DTCC, Brokers, Market Makers and Hedge Funds) need to come to the table and make an offer to all shareholders and the criminals responsible for this unjustifiable crime need to go to jail.

America needs to know; What is the SEC going to do to protect the CURRENT shareholders that have millions and millions of dollars invested in CMKX?

Stand up America , and TAKE YOUR COUNTRY BACK!

Sincerely,

Kevin M. West

www.ahandup.us/america_needs_to_know.htm

References

(1)http://www.noboxtrading.com/cmkx/press_releases/041105CMKM%20Response%20TO%20SEC.asp
(2) http://www.noboxtrading.com/cmkx/press_releases/060404b.asp
(3)
http://www.uscanadian.net/news.asp?news_id=70
(4)http://www.noboxtrading.com/cmkx/press_releases/013105.asp
(5)
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=3279945&doc=1&total=&back=2&g=&attach=on
(6)http://www.noboxtrading.com/cmkx/press_releases/031605secorder.asp


** The views and opinions written in this article belong to the writer and are not sponsored or approved by anyone but the writer. This article is in no way affiliated with CMKX, the CMKX owner s group or any other groups or organizations. The article is in no way intended to be used as investment advice.