CMKM Diamonds Inc. (fka CMKX)

[jarta]

IQ1, ... Judge Graham Mullen is your hero for telling attorneys (including both the SEC attorney and Mangan's attorney, Covington) to sit down and shut up?

CHARLOTTE, N.C., Aug. 20 /PRNewswire/ -- Today, in a summary judgment, U.S. District Court Judge Graham Mullen dismissed the United States Securities and Exchange Commission's ("SEC") case against John Mangan, Jr. that alleged 10B-5 insider trading. The case focused on a single trade made more than six years ago in 2001 when Mangan worked for the Charlotte office of Friedman, Billings, Ramsey ("FBR").

Last October, Judge Mullen threw out a related SEC claim against Mangan that alleged a Section 5 violation from a single PIPE (private investment in public equity) transaction. At that hearing, Judge Mullen said he was "very close" to allowing the motion to dismiss on the 10B-5 claim as well.

The Section 5 ruling was a landmark decision that will enhance the ability of smaller companies to access financing more easily in the capital markets by confirming investors' ability to hedge their investments and deliver fully registered shares against their hedged positions. Additional rulings by federal courts in other jurisdictions have already affirmed Judge Mullen's ruling.

The movement of the insider trading case to summary judgment in March 2008 permitted Mangan to submit evidence in his defense, something he was not allowed to do until then. "We knew that once we had the opportunity to present our facts in this case, we would prove Mr. Mangan's complete innocence," said Mangan's co-counsel, George Covington of King & Spalding.

Mangan's co-counsel, James Wyatt of Wyatt & Blake, LLP added, "We've proven that the SEC's accusations against John on both the insider trading and Section 5 were completely and unequivocally wrong."

"I fought this case because I knew that I did nothing wrong," stated Mangan. "I could not allow the SEC to derail my career over unfounded accusations. This ordeal has been extremely difficult for me, my entire family and my former colleagues and employees. I am proud to have my name and integrity vindicated and am eager to move on with my life."

John F. Mangan, Jr. is the former founder and partner of Charlotte money management firm Mangan and McColl Partners, LLC. He has been an active member and leader in the securities industry for over 23 years with a distinguished record of integrity and success."

I have no idea whether Mangan violated the insider trading or Section 5 Pipes restrictions. However, how does the case advance the restrictions on NSS? Mangan was a hedge fund manager.
http://charlotte.bizjournals.com/charlotte/stories/2008/08/18/daily33.html

I thought hedge fund managers were always the baddies. And, it seems like the delivery of registered shares against the already hedged position that Mangan was engaging in might be considered NSS by most of the CMKX stuckholders. ... eom