CMKM Diamonds Inc. (fka CMKX)

[mretgnol]

Mark Cullen and his bogus MD degree have already tried this scam before under another name (SulphCo). Mark and his buddies were exposed for their previous pump and dump back in 2001.

Do you ever check these people out before you post?



About Petrosonics, LLC
Petrosonics, LLC is a privately held, development stage, U.S. based oil refining and production technology company. Petrosonics' patented products and services utilize high power ultrasound energy in order to reduce sulfur, nitrogen, and trace metals in refinery intermediates and product streams. Intermediates and product streams receiving the Petrosonics treatment show reductions in oil density and viscosity, reduced hydrogen use/loss, and increases in API specific gravity and volume. The proprietary Petrosonics technology has additional application in treating and/or pretreating sour crude oils. Petrosonics was formed in 2001 by Mark Cullen, M.D. Dr. Cullen was previously the President and CEO of SulphCo (AMEX SUF). Today, Petrosonics has acquired and continues to expand its patent portfolio for all of the significant intellectual property associated with ultrasound assisted oxidative desulphurization of oil fractions and the upgrade and desulphurization of crude oil.




SulphCo CFO: PAUL KNAUFF:

Mr. Knauff worked at Technical Equities Corporation for eight years, and had reached the level of President when he departed in 1984, although he remained on the board of directors. In an article from The National Law Journal, Technical Equities was described as "a Ponzi scheme, whereby more than 1,000 investors ultimately lost more than $150 million before the company crashed." The demise lead to several large lawsuits, among them a $147 million verdict against executives of TEC, and a $49 million jury verdict for insurance bad faith against National Union Fire Insurance Co., which held a directors and officers policy for TEC. In 1992, A Santa Clara County Superior Court jury handed up a $122 million verdict against former Technical Equities Corp. CEO Harry Stern for breach of fiduciary duty in connection with the investment firm's 1986 collapse. Stern was found liable after the 10-day trial for making unauthorized expenditures of corporate funds between 1982 and 1985. In 1988, he pleaded guilty to federal securities fraud and was sentenced to five years in prison.

Mr. Knauff was President/Director during the time the crimes were committed. This experience would seem to make him well qualified to keep the books at a Gunnerman company.

PRESIDENT, MARK CULLEN:

The President of Sulphco, Mark Cullen, doesn’t even claim to have related experience (http://www.sulphco.com/about.htm#management). Instead he lists his extensive experience as a Gynecologist. Perhaps the main qualification is to be able to list Dr. before your name. And he probably knows just as much about refining technology as "Dr." Gunnerman anyway, as Dr. Cullen represented SulphCo at the NPRA.

Hey give the guy a chance he knows all about Ultrasound, maybe he knows his stuff.

Well we visited with Mark Cullen and asked him to explain in painful detail how exactly the Desulfurization process works, and he obliged , now follow along in the video /audio closely because he gets very technical and you might get lost so we suggest you watch it several times.

http://www.insidetruth.com/images/slph/mov00083.mpg

BAMM !!! thats it !!

In an inquisitive moment we asked what Mark Cullen thought of cashing out early and Rudy, the founder and he flippantly waived him off and responded:

"So we want out , that is the reality, we want out. On the other hand, We are all in this lab the whole time doing R&D everyday. Rudy is here all the night, too old to be alive" < RAUCOUS LAUGHTER>

After this tiring demonstration and vivid commitment to the SulphCo approach and philosophy in the quest for an" exit strategy" , one of our InsideTruth outside field Investigators asked Mark Cullen if he had any ideas for some nightlife activities in and around Reno for that evening. Mark directed us to the " Mens Club "

http://www.insidetruth.com/images/slph/mov00087.mpg

HEY ! he is a Gynecologist !!

Well , lets address that whole Doctor thing, according to the most recent story written about Sulphco by Dow Jones Reporter, Carol Remond, June 21, 2001, we see the following information about Mark.

" Regulatory filings show that Cullen has a B.S. in chemistry and is chairman of the board of a
startup biotech company called NuStem. Mostly Cullen appears to have worked in the obstetrics and gynecology fields in hospitals and universities in Florida and Nevada. A little digging shows he earned his medical degree in 1983 at CETEC, a university in the Dominican Republic. CETEC was closed down by the Dominican government in April 1984 following a scandal involving the issuance of medical degrees for money to U.S. residents.

We at InsideTruth.com feel it probably more appropriate to just call these guys by their real names Rudy and Mark.

To allay concerns about a refining technology company run by a gynecologist and an honorary PhD., SulphCo points out that its technology was originally developed by Dr. T. F. Yen, Professor of Civil and Environmental Engineering at the University of Southern California. In its 10K, SulphCo says Dr. Yen was paid $275,000 in 1999 and 2000 and will be paid an additional $100,000 in 2001 for his research in sulfur removal. $375,000 is a bargain for a revolutionary sulfur removal process. Especially when compared to the millions spent by the most sophisticated refiners in the world. And what is also very special is that this isn’t the only revolutionary sulfur removal process Dr. Yen has developed.(http://www.usc.edu/ext-relations/news_service/chronicle_html/1998.06.15.html/Smart_Filter_Promises_Wid.html) He also developed a miracle sulfur removing metallic filter for Klinair Environmental Technologies. (OTC:BB KETLF) But it hasn’t been the money maker Klinair expected as the stock rarely trades, and when it does, it can be bought for pennies. As we are about to see, this is actually a positive, because SLPH has retained personal at its disposal who are well versed in the world of penny stocks.

How was Sulphco brought to the public and to the headlines these days??

SulphCo was created by a reverse merger with Bulletin Board stock FWLD. In the exchange, all FWLD management left the resulting company except for one, Alexander Walker. Not only was he retained on the Board of Directors, but Mr. Walker also received a million stock options with a 50 cent strike price. And what unique skill justified this compensation? Perhaps it is his long history with Bulletin Board Penny stocks. And just to be prepared, SulphCo has penny stock experts on staff as well.

His resume starts with Harvard Scientific (VGEN-OTCBB). Walker was secretary and treasurer of this company, but was removed by the board in a meeting during December, 1997 (from press release). He was involved in litigation with Harvard, which was settled when Walker and other previous officers and directors agreed to return 234,810 shares to the treasury. He later returned to the board and received 1 million shares in return for his services. Harvard is a biotech company working in the area of sexual dysfunction, and is currently moving into the entertainment business. Shares were consolidated on a 1-10 basis in 1998 and currently trade at $0.15. Talk Visual Corporation (TVCP-OTCBB): Walker became a director in 1998 when it was called Legacy Software Inc (LGCY). The company claimed it was a pioneer in the video teleconferencing industry, but derives virtually all of its revenue from rental properties. The company was listed on the Nasdaq small cap but currently trades on the OTCBB at $0.05. Then Walker shows up in Endovasc Ltd. (ENDV-OTCBB) Walker received 100,000 shares of stock in payment of legal services for this Biotech company which is trading at $0.10. And then Entertech Media Group. Walker was a director of this company, which has become part of WorldNet Resource Group Inc. (OTCBB-WNRG), a $0.10 company being promoted by Geoffrey Eiten and OTC Financial Network. Then Eagle Environmental Tech. (Pink Sheets EGVR) Walker received shares in payment of legal services. Eagle lost it's bulletin board listing for non-filing, and currently trades at $0.05 on the pink sheets. It was promoted by Future Stocks, and was the subject of a Stock Detective article in September, 2000. Capita Research Group (OTCBB CEEG): Walker was the secretary of the shell, his wife was president, his daughter Amanda received 100,000 shares, and the Walker controlled Nevada Agency and Trust received 435,833 shares for services rendered. CEEG was sold to a group that pioneered techniques to read peoples brain patterns. It last traded at $0.04. Diabetex International Corp. (Pink Sheets- DBTX): This company was incorporated by Walker's daughter Amanda, and his Nevada Agency and Trust was the transfer agent. Diabetex trades in the $0.30 area on the pink sheets, and is developing a non-invasive blood glucose meter. Several known Vancouver-based promoters are reported to be involved with the company. Nevada Agency and Trust: This is a transfer agent, which is controlled by Walker and family. It functions as the transfer agent for some of Walkers own deals (Harvard Scientific, Diabetex Int. Corp.), as well as a long list of penny stocks, which include: Jaguar Gaming Corp. (Pink Sheets-JAGG) $0.005 Platform International (Pink Sheets-PLFM) $.10 Starfest Inc. (OTCBB-SFST) $0.095 Bio Pulse Int. (OTCBB-BIOP) $0.51 Forefront Inc. (OTCBB-FOFR) $0.07 Internet Infinity Inc. (OTCBB-ITNF) $0.13

On December 19, 2000, (http://www.sulphco.com/news1219002.htm ) SLPH announced the selection of Cerg, Inc. Marketing and Relations, of Salt Lake City, to assist in communications. Eleanor Muth was listed as one of the CERG representatives. A search of public records identified additional clients of CERG include: Wyndham Hotel, Nevada Agency & Trust, Harvard Scientific, Precious Metals Inc., Taki Casuals, Inc., Steve Regan Co., Club Axis and Utah Congressman Merrill Cook.

We have already seen Nevada Agency & Trust and Harvard Scientific in our discussion of Walker. But that shouldn’t be a surprise, as the phone number listed for Cerg is in fact the law offices of Alexander Walker. Even stranger, the registered agent for Precious Metals Inc. is Ernest Muth, Eleanor’s husband. And her son Steven Muth listed Precious Metals Inc. as his employing firm on a NASD report. This is the same Steve Muth who has been sanctioned by the NASDR (http://www.nadsr.com) a number of times, including regarding his involvement in the recent promotion of Creative Host Services (CHST) which mysteriously ran from $1 to $29 and all the way back down again. Once again, we see great experience in the penny stock promotion game. Some investors might question the need for that kind of skill in a legitimate technology company, but of course, SLPH insiders seem to have their own reasons.

THE OTHER COUPLE OF EMPLOYEES :

Gunnerman also brought to SulphCo many of the same family members and associates who worked with him on his other schemes. When you call SulphCo now, you are likely to talk to the same Erika Herrmann who is listed as the corporate Secretary of BioSolar. And Rudolf’s daughter, Kristana, is a large shareholder of SLPH, as well as being the VP of HR and a board member of Clean Fuels and also a co-defendant in the EECO Energy lawsuit. His son Peter is also a large shareholder of SLPH, a co-defendant in EECO and demonstrated the A-55 technology in a CNN interview. Even the Board of Directors carries over with Joe Sutton being on the board of Clean Fuels and SulphCo as well as a shareholder of SLPH. And don’t forget Luigi Profumo, member of Clean Fuels Advisory Board and President of IPLOM, important SLPH press release subject.

SHOW ME THE MONEY !!!

Both Gunnerman and Walker have experience in making money on their investment schemes regardless of the success of their investors. For Walker, the key has been selling stock into whatever strength is available. And upon completion of the SulpCo/FWLD merger, he began to sell stock. From December 2000 through February 2001, he disposed of approximately 160,000 shares at prices as low as $1.87. A good indication that he knows when a stock has reached a good sell price.

Gunnerman has been involved in Private Companies in the past, so how did he make any money by running companies that seem to have failed??

Gunnerman is a bit more creative than Walker, as he has had to get money out of private companies. We find a terrific example of Gunnerman’s true genius in the Gutierrez lawsuit (#380364 California Superior Court, County of San Mateo). According to the complaint, Gunnerman convinced Alfred Gutierrez to loan EECO Energy $500,000 for research and development efforts. In return Gutierrez was issued a promissory note, which was collateralized by stock in BioSolar. But, things didn’t exactly work out. The plaintiff alleged the funds were actually used "to pay for various consulting fees, past debts of the corporation, including salaries and living expenses of Gunnerman and other defendants herein (including his wife and children), and for other services that were fictitious in nature." In addition, plaintiff is informed and believes and thereon alleges that the money was diverted to and intermingled with other corporations and enterprises that defendants owned and/or controlled." And when they started missing payments, the plaintiff also found that his collateral, stock in BioSolar, was worthless.

A-55 has the most complete public record and thus the most glaring examples of how Gunnerman has extracted money from his private companies. From the A-55 S-1: "From time to time A-55 utilizes for corporate travel purposes a plane owned by Starbright Charter, Ltd., a corporation wholly owned by R. W. Gunnerman. During 1998, A-55 paid Starbright Charter, Inc. approximately $595,800." A-55 had no revenues, but someone consumed $600,000 in air transportation. It seems like a high number until you remember that Gunnerman controlled A-55 and Gunnerman owned Starbright. From those numbers it seems reasonable to speculate that Starbright isn’t a non-profit company.

And in what may be the most egregious example we find in the S-1: "Approximately $21.8 million will be used to repay the indebtedness of A-55 to Rudolf W. Gunnerman, who is the Chairman and Chief Executive Officer of A-55 ("R. W. Gunnerman"). A-55's indebtedness under notes payable to R. W. Gunnerman bears effective interest rates at the prime rate as charged from time to time, which is currently 7.75% per annum, and is due on demand. Of the total amount of indebtedness outstanding at January 28, 1999, approximately $9.0 million has been incurred within the last 12 months. The funds were used to fund product and market development and other operating expenses." Many people would find it surprising that Gunnerman would have $22 million to put into the company. After all, this is the same man who we saw was facing personal bankruptcy and facing having his businesses closed for debts of only tens of thousands of dollars. And since that time we can’t find any record of a successful business venture. But just before his company is going public he finds promissory notes made out to himself, so that IPO proceeds will flow right into his own pocket. It seems very convenient and also very suspicious. But we make no legal conclusions, we let you decide. We certainly weren't able to get anything out of him when we visited with Rudy, other than he would rather " make love and not war ".

EQUIPMENT, MACHINERY and FACILITIES:

No due diligence on our part can be complete without a visit to the Company and an in-depth interview with the officers and a view of the operation.

Please note the sophisticated aluminum foil which must keep the cavitation chambers at optimum temperatures as the " pixie dust " from Target is being ultrasonically mixed around with the water and the oil

http://www.insidetruth.com/images/slph/DSC00076.JPG

Keep in mind Mark , the youngest member of the team has already suffered 4 strokes , according to him. I don't know he looks pretty healthy to me, check out them guns.

The Company claims to have about $ 500,000 in machinery, we toured the entire facility and we photographed everything that looked like it was worth more than $ 100 bucks and this is all we came up with .

http://www.insidetruth.com/reports/DSC00084.JPG

and

http://www.insidetruth.com/images/slph/DSC00085.JPG

We especially liked Erikka who was showing off her ring and watch ensemble

http://www.insidetruth.com/images/slph/DSC00072.JPG

Try as we might we were unable to find anything worth over 500K combined so we thought maybe SULPHCO was including the transportation used by its officers. The two of these military type vehicles do add up to possibly $ 150,000.00, I should mention that Gunnerman did say that his Hummer was specially made bullet proof and is armored. A quick check ( Pacific Equity Investigations also owns a Hummer ) revealed it wasn't armored.

http://www.insidetruth.com/images/slph/DSC00069.JPG

and

http://www.insidetruth.com/images/slph/DSC00071.JPG

SUMMARY and CONCLUSION:

We at Insidetruth believe firmly that we have uncovered facts not readily available to shareholders in SLPH and potential investors in this company. We believe that we are providing not only a public service to the investing community but also an opportunity to profit if this company fails as we predict. We base this belief on the above information along with a long history of failed ventures operated by the above Individuals. We believe that Sulphco has omitted material facts and has hidden the true background and history of its officers. This is what we believe and we believe we have told the truth. We are short SLPH shares and stand to profit when if and when it falls in value. We strongly suggest that everyone do their own due diligence and verify the above information that we believe is accurate and painfully sourced for easier verification. Many parts of this report were contributed by outside sources that prefer to remain anonymous and we believe that their information is accurate and worthy of being on Insidetruth.com. We at Insidetruth.com always protect our sources and those who struggle to bring the truth splattering down on your front lawn.