CMKM Diamonds Inc. (fka CMKX)

[IQ1]

Federal Judge Tells SEC Lawyer “Sit Down, Shut Up”

Ha ha ha thats what the SEC gets !!!!!!
So don't listen to the Bashers on this BB and do your own DD.

October 26, 2007, 2:17 pm
Federal Judge Tells SEC Lawyer “Sit Down, Shut Up”
Posted by Peter Lattman
Judge Graham Mullen on Wednesday dismissed part of an SEC civil lawsuit alleging that a former executive at Friedman Billings Ramsey engaged in illegal conduct related to a securities offering. The claim alleged that John Mangan Jr. committed a so-called Section 5 violation involving a Pipe, or private investment in public equity. Representing Mangan: George Covington of King & Spalding in Charlotte and James Wyatt at Wyatt & Blake. Said Wyatt to the Observer: “We firmly believe (the case) will be resolved in his favor because we believe he has done absolutely nothing wrong.”

While the case is interesting — especially for those of you obsessed with the controversy surrounding Pipes and naked short selling — what’s interesting to us is this excerpt from the transcript of Wednesday’s oral argument on Mangan’s motion to dismiss.

Judge Mullen: Naked shorts are not legal, are they?

SEC lawyer Amy Greer: No. No, they’re just very risky, Your Honor.

SEC lawyer Catherine Pappas: And Your Honor –

Judge Mullen: They’re not illegal; they’re just risky.

Greer: Correct. Naked short sales are not illegal; they’re just risky, Your Honor.

Judge Mullen: Why in the world don’t you all make them illegal? Don’t you understand what happens in the market when you allow naked short selling to attack companies? I mean, do you understand that?

Greer: Your Honor, I think that that’s an issue for the United States Congress. I appreciate your concern –

Judge Mullen: Well –

Greer: — and I –

Judge Mullen: — the answer to my question is, yeah, I understand it or, no, I don’t.

Greer: I do understand your –

Judge Mullen: Do not try — okay.

Greer: I do understand, Your Honor.

Judge Mullen: Thank you for understanding it.

Covington: Your Honor, one thing –

Judge Mullen: Excuse the interruption.

Covington: No, sir.

Judge Mullen: Sit down, shut up, let the man talk. I’m not going to let him introduce (sic) you. Last warning.

Pappas: I’m sorry?

Judge Mullen: Sit down –

Pappas: Yeah, I got that.

Judge Mullen: — shut up, let the man talk. Last warning.

Pappas: Okay.

Judge Mullen: Understood?

Pappas: Okay.

Judge Mullen: Excellent.

Covington: With all due respect, Your Honor –

Judge: And you don’t interrupt her when she’s talking.

Covington: Yes, sir.

Judge: Proceed.

“Sit down, shut up, let the man talk”? Wow. Readers, what do you make of the exchange?

http://blogs.wsj.com/law/2007/10/26/federal-judge-tells-sec-lawyer-sit-down-shut-up/

This was filed this year. 2-20-08.

Now............

...........if anyone says that Urban is a crook, direct them to this Company filing.
............if anyone says that Urban was in charge, direct them to this filing.
............if anyone wants to know why Kevin and Bill continue on; direct them to this filing
.............if anyone says the company is broke, direct them to this filing.
.............if anyone says that the SEC was not watching and acting, direct them to this filing.

I have gone through it, page by page, and given short quips of what I see.

IceCrush

http://www.cmkmdiamondsinc.com/documents/eton-added-filed-2-20-08.pdf

Eton Property, Nevade, page 2, lines 1-3

50,000 shareholders, page 4, line 8

SEC and CMKM were directed by the judge to provide discovery Apr. 24/05 page 4, line 16-17

Massive dilution of stock by Edwards and Desormeau page 4, line 21

Page 4 Line 25-28
14. Although great damage has been caused to CMKM by the Defendants and others, CMKM acquired assets that will allow it to return to trading status. Current management plan to restore CMKM to a viable entity. Plaintiff brings this action to seek recovery for CMKM from those individuals and companies that have caused damage to CMKM.

1 Mil of CMKM invested into CIM Page 5 line 7

1.5 Mil paid over 2 yrs to process accounting Page 5 line 13

Urban unknowledgeable, Desormeau lost/destroys/withheld company records Page 5 Lines 16-19

Clearly CMKM had not filed financial reports and has never filed such reports. Defendant Desormeau, although compensated in extraordinary sums, breached the duties owed to Company by losing, destroying or hiding company records from company officials and regulatory authorities.

Desormeau owns 2 companies, Part time Management got 63 Bil CMKX shares, and Business works at this time holds cert for 47,145,000 shares. Part time still holds 332,000,000 shares, all other shares have been sold into the market or to 3rd parties Page 5 line 20 and on.

Desormeau Companies associated with Edwards: Page 6 lines 1 onward

Desormeau failed to implement a system for account and refused to hand over information to do it, this preventing cmkm from filing Page 6 lines 16-22

Control of CMKM goes to John Edwards Page 6 line 27

All bills paid, by J.Edwards, held all company ledgers and journals sent money to others page 7 line 1

250 Bil shares cmkm dumped through Edwards, SEC and NASD saw, and filed complaint against NevWest in 2006. confirmed over 500 transaction, valued by NASD as $53 Mil page 7 lines 19-28

Eton formed by J. Edwards, forged stock powers, multiple signatures, and bought property with the money.......Golden Sands, $260 thousand, 401 Kings Fork $275, thousand, 25.41 Acres Commercial property $800 thousand and believe others will show up Page 8 11-19

Text book case of market manipulation Page 8 line 27

Not clear if previous cmkm management was aware of toxic financing page 8 lines 2

Explains how previous cmkm management probably was and could have been deceived Page 9 Line 16-26

27. In a sense the facts of the CMKM saga represent the “perfect storm” in a penny

28. stock dilution. CMKM has a somewhat dynamic and charismatic CEO that is convincing in his story about of discovery of valuable mineral deposits. A promoter (sometimes referred to in this case as a merchant banker) aligns himself with management with promises of raising millions for this new company. Immediately appears the known short sellers, profiteers, and toxic financing agreements. It is unclear to present company management whether these individuals and their methods were known to company management at the time the early financing was procured. Regardless, the grip on CMKM by these sophisticated manipulators resulted in a delisting and almost a destruction of CMKM. A look at the early stock distributions in CMKM shows recipients of stock to be people from the area known by law enforcement as the “maggot mile” in Boca Raton, Florida. And area where short sellers and market manipulators have access to hedge funds and finances that can control and cripple a small cap company.

Market makers control the company, dilute stock and make fortunes. Page 10 Line 1 and on

Failed promise for no seamless integration system Damages in excess of $10,000. Page 10 Line 27

Failed to raise capitol and provide services Damages in excess of $10,000. Page 11 Line 10

Breach of duties/good faith/fair dealings Damages in excess of $10,000. Page 11 line 26

Punitive damages in excess of $10,000. Page 12, Line 3

Eton/Desormeau/Edwards Conspiracy-divert funds Damages in excess of $10,000 Page 12 line 14

Willful, wanton/malicious NRS 41A.010 Damages in excess of $10,000. Page 12, line 18

Intentional false misrepresentation Damages in excess of $10,000 Page 13 line 8

Punitive damages for intentional misrepresentation Damages in excess of $10,00 page 13 line 10

Direct joint actions of defendants, Damages in excess of $10,000. page 13 line 25

Enrichment at expense of CMKM, Damages in excess of $10,000. page 14 line 13

Breach of duty, Damages in excess of $10,000. page 14 line 27

Breach of fiduciary duties, exploitation, massive distribution/dilution Damages in excess of $10,000. Page 15, line 14

Also...........Page 15, lines 8-10 "Specifically, CMKM has a valuable property right to its stock. Defendants exploited CMKM through the massive distribution and dilution of Company stock."

Request return of all assets gained- unlawfully- cash, stocks, real estate/others Page 16

List of all damages requested Pages 16-17

Signature David Koch, Dec. 18/07


ANYONE WHO doubted that we are still OFFICIAL in NEVADA...Perhaps you should read line 22 of the OFFICIAL COURT DOCUMENT...It says "CMKM DIAMONDS INC. IS and WAS a NEVADA Corporation doing business in Clark County State of Nevada." http://www.cmkmdiamondsinc.com/documents/eton-added-filed-2-20-08.pdf

HMMMM
It does not say state of Texas.... VERY INTERESTING!!!