Wednesday, February 03, 2010 9:29:55 PM
OMG Have you seen this? As predicted (by bashers) they not only omitted Bill Majcher's name from gus's complaint, they reworded Hodges December statement excluding Majcher and inserted "Royal Canadian Mounted Police". That's not exactly an accurate account now is it?
in a litigation update to his plaintiffs on December 16th Al Hodges included this statement: “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from Royal Canadian Mounted Police…, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
By: twinnster1955
01 Feb 2010, 09:41 PM EST
Rating: Msg. 907664 of 908472
(Reply to 907661 by twinnster1955)
Jump to msg. #
Gus Update:
TEXT OF THE COALITIONS FILING VS THE SEC
« Thread Started Today at 7:16pm »
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I am not at liberty to say why I have waited until tomorrow to make my next filing, but I am ready and you are about to see what is to be filed if need be. I understand every emotion you are going through, I am going through the exact same emotions and frustrations you are. I am filing something that will put my family and myself in possible danger and have to weigh that with the frustration we all feel being stuck in limbo still. I have given deadlines and stretched those deadlines knowing the pain that causes each shareholder, but feel circumstances call for the stretching of those deadlines or I wouldn't have done that. I have demanded respect for you, and feel to this minute you are being respected. Your best interests are being looked after to my satisfaction, and that is my main concern.
Here is what will be filed tomorrow if we don't have our money:
http://tramp2.proboards.com/index.cgi?ac....51&page=1#68456
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Re: TEXT OF THE COALITIONS FILING VS THE SEC
« Reply #1 Today at 7:18pm »
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No E85268
Kelowna Registry
IN THE SUPREME COURT OF BRITISH COLUMBIA
BETWEEN: CMKX SHAREHOLDERS COALITION FOR JUSTICE
Plaintiff
AND: THE US SECURITIES AND EXCHANGE COMMISSION
Defendant
AFFIDAFIT
I David Nelson, of #101 1865 Dilworth Drive Kelowna British Columbia, MAKE OATH AND SAY AS FOLLOWS:
1. I am the Plaintiff in this proceeding and as such have personal knowledge of the matters and facts hereinafter deposed to, save where stated to be on information and belief and where so stated I verily believe the same to be true.
2. In the CMKX SHAREHOLDERS COALITION FOR JUSTICE VS. THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Kelowna Registry No. S 85268, the CMKX Shareholders Coalition for Justice (The Coalition) entered evidence showing the United States Securities and Exchange Commission (SEC) did collude with the corrupt management of CMKM Diamonds Inc. (CMKX). A detailed paper showing collusion between CMKX management and the SEC was presented as evidence in the November 6th writ of summons and is presented here: http://www.cmkx.info/evidence.pdf.
3. CMKX represents the largest counterfeited stock in history (per attorney Al Hodges comment letter to the SEC file number S7-08-08). It was counterfeited by insiders of CMKX with the full blessing of the SEC along with many other firms. The SEC was fully aware of John Edwards, a corrupt insider of CMKX, who is currently indicted by the DOJ, laundering money (selling unregistered shares) through various accounts at NevWest Securities Corp. years before they took action. The evidence is in the phone records of NevWest Securities Corp., who contacted the SEC each time Edwards came in with a cert to sell through different accounts, which were based in Langley, British Columbia, Canada. Instead of stopping the fraud, the SEC told NevWest Securities Corp. to sell the stock, effectively aiding the fraud. Instead of taking action the SEC and NASD (FINRA) ignored the evidence and dozens of other red flags, allowing the scheme to continue unabated, costing CMKX shareholders hundreds of millions of dollars.
4. The SEC and a task force from the FBI/DOJ/IRS and others subpoenaed records that proved insiders of CMKX were laundering money through the Silver State Bank and selling counterfeit stock on September 5th 2004, after which they allowed the fraud to continue despite having this evidence and allowed hundreds of billions of unregistered shares to trade and cost CMKX shareholders hundreds of millions of dollars. At the same time the SEC was in contact with CMKX attorney, and former SEC attorney, Roger Glenn who it appeared facilitated this fraud. They were fully aware of the fraud, and through its negligent actions and inactions the SEC caused CMKX's scheme to continue, perpetuate, and expand, eventually resulting in millions of losses by investors.
5. Given the ease it was to prove the collusion of the SEC and corrupt CMKX management, and given the fact that a task force from the RCMP/FBI/DOJ/IRS/SEC had all the evidence they needed in 2004 to stop this fraud and allowed the fraud to flourish and be promoted, it was assumed this was a sting operation by many shareholders who documented the evidence over years. Mark Faulk, ex CEO of CMKM Diamonds Inc. said, “there are unconfirmed reports of a major sting operation targeting dozens of others involved in the CMKX scandal”. He later denied this fact due to signing non- disclosure agreements. The company itself due to strict non-disclosure agreements and the SEC along with other agencies involved would not confirm this fact, so the CMKX Shareholders Coalition for Justice put together a paper showing the collusion between the SEC and CMKX management, along with other evidence, and filed a case against the SEC on November 6th, 2009. Evidence presented in the Coalition’s writ, which will be added to this affidavit, clearly show the SEC has aided and abetted the systematic counterfeiting of the stock market for over a decade, and CMKX in particular. And although the SEC has participated in several sting operations with many different agencies with the appearance of fighting the counterfeiting of the stock market, the crime and its cover-up continue to this day. Although the SEC has identified hundreds of victim companies and know exactly who the perpetrators are on Wall Street, evidence will show the SEC has gone after the victims and shielded the perpetrators from almost any criminal prosecutions, despite the fact that the crime has cost retail investors multiple trillions of dollars.
6. The fact that CMKX was a sting operation has now been confirmed subsequent to the filing the Coalition’s writ of summons on November, 6th 2009, which is pertinent to our case as it explains the collusion that was proved in our case was for a purpose. In case number CV10-00031-JVS (MLGX), A. Clifton Hodges, State bar No. 046803, filed a complaint in the United States District Court Central District of California against the SEC for 3.87 trillion dollars on January 10th 2010. The case confirms CMKX was used as a vehicle in a sting operation, and statements made in the case are now confirmed by talks taking place to release the money from the frozen trust accounts between Al Hodges and the SEC and other Government entities. In preparation for my filing I have had discussion with Al Hodges and he has confirmed directly to me that these trusts are there and the funds have been collected. His lawsuit is only to force the release of the already collected funds. These trust accounts hold monies from perpetrators who made deals to stay out of jail for their crimes and from proceeds from land sales. Several plaintiffs who hired Al Hodges in this case have confirmed on public forums that talks and actions are ongoing to release these monies, but the U.S. Government has repeatedly lied about the release of those funds, including sending codes to release the money that did not work, and that money was missing out of the trust fund when access codes worked. Hodges and Associates confirmed that these comments were from plaintiffs in this case. Al has confirmed in his suit that the SEC has lied to CMKX shareholders representatives for years about imminent release of the shareholders trust accounts. Many shareholders have died while waiting for their Government to release their property that was illegally being held from them. This information proves that the evidence presented in Al Hodges case is corroborated given they are in the process of getting the funds released by the United States government that were collected in the sting operation. The continued lies by the United States government and stalling of release of these funds forced Al Hodges to finally file a 3.87 trillion dollar Bivens based class action law suit against members of the SEC and FBI. To this moment the United States Government is saying the release of funds is imminent but thousands of shareholders sit watching daily as they are lied to again and again. The fact that the SEC has lied to lawyers representing CMKX shareholders follows their modus operandi in many other well known cases which will be presented as evidence. Evidence gathered for this case show complete collusion of the SEC with the perpetrators in the theft of trillions of dollars from retail investors by systematically counterfeiting all kinds of financial instruments including stocks and treasuries. Comments made by Bud Burrell (file No. S7-19-07 to the SEC), consultant for John O’Quinn who has a multi trillion dollar class action going against the same perpetrators, says that failure to delivers (counterfeit stock) is now over thirteen and a half billion dollars a day, and that there is more naked short shares in the market than there is outstanding shares. Facts will be presented that show the United States Government and Canadian Government worked together to fight this pandemic fraud, but that the SEC in fact aided the fraud by their actions and inactions, and that they are a totally captured regulator by the industry they are suppose to regulate.
7. To focus on the CMKX situation first before focusing on the overall fraud, one has to look at the evidence presented by Al Hodges. Before actually filing his lawsuit Al Hodges gave the SEC the chance to release the funds collected for the shareholders, and in a litigation update to his plaintiffs on December 16th Al Hodges included this statement: “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from Royal Canadian Mounted Police…, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
8. Paragraphs 8 through 17 contain excerpts from case CV10-00031-JVS (MLGX) which are relevant to The Coalition’s case, quotes that are again corroborated by the fact the SEC and or United States Government officials to this day are promising imminent release of these funds. Al Hodges case confirms what Al stated in his comment letter to the SEC, that CMKX was the largest naked shorted stock in history, “During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “phantom” shares of CMKM Diamonds Inc, was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.”
9. “At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company.”
10. “The Securities and Exchange Commission and the Department of Justice, with assistance from the Department of Homeland Security, believed and developed evidence that said short sellers were utilizing their activities to illegally launder moneys, wrongfully export moneys, avoid payment of taxes, and to support foreign terrorist operations. To fulfill the plan to criminally trap such wrongdoers, the Securities and Exchange Commission, with assistance from the Departments of Justice and Homeland Security:
(a) Assisted in and approved the retention of Roger Glenn, an ex-SEC trial attorney and drafter of Sarbanes-Oxley, to join CMKM Diamonds Inc. for the purpose of verifying claims value, increasing authorized shares of stock to 800,000,000,000, and supervising from the inside of the company;
(b) Encouraged the company to expand its promotional activities, assisted in the set up of the “racing activities” of the company, and underwrote a substantial portion of the cost of such activities;
(c) Consented to, facilitated, and supported the sale of certain company claims to several foreign corporations;
(d) Consented to, facilitated, and supported the conferences between Robert A. Maheu and his associates on the one hand, and the wrongdoing short sellers on the other, all for the purpose of settling the potential liability of said wrongdoers with consent of the U. S. Government and a representation of no criminal prosecution for such illegal sales;
(e) Consented to, facilitated, and supported the declaration of dividends payable by the company to each common shareholder of CMKM Diamonds, Inc.
(f) Consented to, facilitated, and supported the distribution of shares of CIM, a private company owned by Urban Casavant, as a stock dividend, including consent and approval of distribution of said shares to holders of more than 1.4 Trillion shares of CMKM Diamonds, Inc. common stock.”
11. “During the period from November, 2004 through April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada, mineral claims to three Chinese domiciled corporations with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the consummation of such sales were placed into a frozen trust for disbursal at a later time.”
12. “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U. S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
13. “Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government, and from the sale of additional assets including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs herein are further informed and believe, and based thereon allege, that said moneys, collected for the benefit of shareholders have also been placed in a trust or are otherwise now held in trust by the Depository Trust & Clearing Corporation and the United States Treasury.”
14. “Plaintiffs herein are informed and believe, and based thereon allege, that at all times mentioned, the Securities and Exchange Commission reserved unto itself the sole and absolute discretion to determine when moneys collected pursuant to the scheme set forth above would and could be released for distribution.”
15. “Demand for release of said moneys has been repeatedly presented to the Securities and Exchange Commission without result. Agents and employees of the Securities and Exchange Commission and the Department of Justice have represented repeatedly that the release of moneys for distribution was imminent, and/or would occur within several weeks, and/or would occur within less than a month. Each of said representations have been made knowing them to be false, and at the specific direction of the named Defendants. These actions of withholding distribution of said moneys, without compensation and without due process of law, amount to a taking of the property of the individual Plaintiffs and of all similarly situated.”
16. “At all times mentioned herein, the Defendants acted with deliberate indifference or reckless disregard for the Constitutional and other rights of all Plaintiffs, or with the intention and knowledge that they were violating Plaintiffs’ Constitutional or other rights or to cause them other injuries, losses and damage.”
17. “As a result of the Defendants’ misconduct, each of the named Plaintiffs and all of those similarly situated, have been denied their Constitutional rights, including, but not limited to, their Fifth Amendment right to be secure in their property, free from taking without just compensation and without due process of law, and have suffered injuries and property loss in excess of Three Trillion Dollars.”
18. The fact that the SEC participated in a sting operation using CMKX, then lied to CMKX shareholder representatives is only one issue in this case, the second is the modus operandi of the SEC and other regulators involved, including the U.S. and Canadian Governments, and in particular the RCMP and FBI. Given the fact the SEC and these authorities have conducted sting operations over the past decade regarding the counterfeiting of the stock market it needs to be explained how the same crime continued unabated for a decade by the same perpetrators. Evidence that will be presented by the Coalition will include congressional investigations and whistleblowers from the SEC that clearly prove the SEC has engaged in several well known cover-ups of crimes involving the counterfeiting of the stock market and are in fact “in bed with the industry” they regulate to the point where they make regulations with the same perpetrators which aid in facilitating the crime and its cover-up. They have ensured that retail victims and the companies they invested in would never recover from the fraud committed against them, and they made sure the perpetrators would not be held accountable, the whole time multiple Government Agencies and authorities watched and did nothing to prevent trillions of dollars in loses to the general public who were unwitting victims in this pandemic fraud.
19. The SEC has for decades colluded with Wall Street firms, the DTCC, the Federal Reserve, hedge funds, and others to defraud all shareholders. Between 1996 and 2001 the SEC and FBI were tracking money laundering through Canada, and knew crime families were trading naked short through Canada as Canada had no affirmative determination laws. In 1998 the SEC received over 3000 comment letters regarding the abuses of naked shorting. In 1999 the SEC participated in “operation uptick” which identified hundreds of companies that were victims of crime families who worked in concert with major wall street firms (none of the firms or those working in these wall street firms were indicted despite the fact that the crime family members they worked with were convicted of RICO crimes). In 2001 the NASD presented the SEC a proposal to modify RULE 3370 to eliminate the loophole associated with the naked shorting through Canada (the loophole was a clear violation in itself of RULE 17A). In 2001 EagleTech Communications filed RICO charges against many well known brokers on Wall Street and eventually won their criminal RICO case against crime family member who worked with many of those well known firms. They finally closed the loophole in April 2004 better than two years later and trillions of dollars in counterfeit shares later, but other loop holes created by the SEC in collusion with these same perpetrators has allowed the crime to continue to today. In October, 2009 Senator Ted Kaufman was seeking cosponsors for bill SB 605, which if passed would require the SEC to reinstate the uptick rule and enforce other regulations against abusive short selling as the SEC themselves refuse to follow their constitutional mandate.
20. EagleTech Communications will be used as an example of one of thousands of victim companies by the same group of perpetrators. They are one of the best examples of what has happened as they have already received convictions in their criminal RICO case regarding the crime family members who worked with Wall Street firms to laundry their proceeds from counterfeiting EagleTech stock. They are also a great example how the SEC treats the victims in these cases and the perpetrators, as the SEC instead of going after the perpetrators went after the victim and protected the Wall Street firms who worked with the convicted crime family members. Excerpts from Rod Young, CEO of EagleTech communications, “in an August of 2004 luncheon meeting with a potential witness in Eagletech’s civil case a member of the CIA showed up un-announced to me wanting details of the involvement of Jonathan Curshen and his Costa Rican Offshore asset protection company Red Sea Management in the demise of Eagletech. I was encouraged to write a criminal referral to the U.S. Secret Service who is charged with investigating counterfeiting of corporate securities under 18-USC-514. I authored 15 pages with 100 pages of evidence implicating the SEC and the DTCC as accessories to the crime. That referral was hand delivered to the Secret Service in Washington DC as a courtesy by the agent.” Despite having overwhelming evidence and winning their criminal RICO case against the crime family member who aided Wall Street brokers who counterfeit their stock, the SEC deregistered EagleTech and forced the victim to have to file RICO charges against the Wall Street firms themselves. The Wall Street firms identified in “operation uptick” that were involved in committing RICO crimes against hundreds of companies received nothing, while crime family members went to jail who laundered the proceeds from these crimes. Inexplicably the SEC ran a sting but aided the perpetrators, while ensuring the victims companies identified in that sting would never recover by creating an illegal clause with these same perpetrators. This illegal ‘grandfather clause” allowed these perpetrators to avoid having to cover their counterfeit shares they created, thus ensuring the depressed stock price would never recover due to the dilution created by the counterfeit shares. These victims companies would never recover due to the collusion between the SEC and these corrupt firms, and unsuspecting public lost trillions of dollars buying fake stock in publicly traded companies.
21. Rod Young, CEO of EagleTech Communications stated “Every shareholder of any Company in America who purchased shares and cannot get them delivered has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights.” EagleTech is just one of thousands of victim companies systematically manipulated and cellar-boxed by the brokerages under the supervision of the SEC and were then delisted / put out of business by the SEC when financially unable to meet their reporting and other business obligations, eliminating any obligation of the brokerage firms to deliver real shares or value to those they sold counterfeit stock to.” And this talking of the SEC, “In my opinion this action against the Company is designed to conceal its own culpability in, using the SEC’s own words, “delivery failures greater than a company’s total public float.” De-registration of the Company’s shares stands to reward manipulators just as a bankruptcy would, since the manipulators would never have to purchase the stock to close out delivery failures still on the DTCC’s books. In my opinion the SEC’s decision to grandfather known criminal securities manipulation has violated the Constitutional 5th Amendment rights of Eagletech shareholders by an inverse taking of their property without due process and without compensation.
http://tramp2.proboards.com/index.cgi?ac....51&page=1#68456
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Re: TEXT OF THE COALITIONS FILING VS THE SEC
« Reply #2 Today at 7:19pm »
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22. Despite the fact that the SEC, the RCMP, the DOJ, the FBI, the IRS, INTERPOL, Homeland Security, and other foreign agencies had information that the systematic crime of counterfeiting the stock market was happening, it flourished. The SEC allowed this fraud and aided and abetted this fraud by their actions and inactions. The SEC concealed from the general public the fact that trillions of dollars in counterfeit shares were on the market. The SEC created rules that not only violated their constitutional mandate, they made rules that ensured that thousands of victim companies and hundreds of thousands of individual investors worldwide would never receive relief. In particular, the SEC aided in the cover up of this fraud by creating the Grandfather Clause in concert with the perpetrators in a closed door meeting with SIFMA. They knowingly violated their constitutional mandate by protecting the perpetrators instead of the investors they are mandated to protect, and they covered-up a multi-trillion dollar fraud. Hundreds of billions of counterfeited shares in CMKX were grandfathered, and trillions of shares market wide were grandfathered, totalling trillions of dollars. The SEC admitted that the Grandfather Clause was to prevent short squeezes in stocks that had large naked short positions in an email to David Patch, as following the law and covering these counterfeit shares would cause market volatility. This is one of the most heinous crimes in history committed on the general public and is clear market wide manipulation by the SEC, a clear violation of their constitutional mandate. In other words, the fraud was so enormous that it was impossible to fix. Most Wall Street firms who committed this multi trillion dollar fraud on the unsuspecting public belong to SIFMA and were allowed to make the rules with the SEC to ensure they would have no resulting culpability for their actions, but victim companies would have no relief from the fraud perpetrated on them as they ensured their stock price would never recover. The agencies whom performed these sting operations have yet to compensate any of the hundreds of victim companies or their shareholders, while the perpetrators continue to commit the same crime to this day with full immunity.
23. The SEC themselves have admitted in a Securities Industry and Financial Markets Association (SIFMA) meeting the true size and scope of the fraud committed, a fraud they facilitated and concealed from the general public, and continue to cover up to this day. Significantly, the above comments relate directly to the Over the Counter (OTC) market alone. In a speech delivered by SEC Commissioner Paul S. Atkins, before the 34th Annual SIFMA Operations Conference states, "I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street. http://www.sec.gov/news/speech/2007/spch043007psa.htm
24. The complete collusion between the hedge funds, Wall Street firms, the SEC, DTCC, SIFMA, and The Federal Reserve is one which is easy to prove. The perpetrators, that the SEC make rules with for the sole benefit of those same perpetrators, are on the board of directors of the DTCC, SIFMA, The Federal Reserve or own shares in the DTCC or Federal Reserve, which are obvious conflicts of interest but ones which are allowed. An example of this is the notorious Bernie Madoff, who through his firm and his family sat on the board of directors of the DTCC and SIFMA, and helped create the infamous SEC excemption that allowed massive naked shorting (counterfeiting), it was called the “Madoff Excemption.” Bernie Madoff is just a small example of collusion that takes place on wall street, one in which the criminals made all the rules, one in which you don’t even have to sell the public real shares. Here is from the Wall Street Jounal’s Ianthe Jeanne Dugan, Feb. 21 2009: "The trustee liquidating Bernard Madoff's investment firm said there was no evidence that Mr. Madoff bought any securities for clients in at least 13 years." The system is rigged and the DTCC themselves admit they fail to deliver a small percent of transactions every day, but given their $1.8 quadrillion dollars in transactions annually that equates to trillions of dollars stolen from the unsuspecting public. This is from Susanne Trimbath, who worked on CMKM Diamonds case, in a Rolling Stone article by Matt Taibbi showing how long the fraud has been going on, "I personally went to senior management at DTC in 1993 and presented them with this issue," she recalls. "And their attitude was, 'We spill more than that.'" In other words, the problem represented such a small percentage of the assets handled annually by the DTC — as much as $1.8 quadrillion in any given year, roughly 30 times the GDP of the entire planet — that it wasn't worth worrying about.”
25. The Coalition will introduce dozens of examples of victim companies and how the SEC followed the same modus operandi of protecting the perpetrators at the expense of the victim companies, their employees, and the unsuspecting public who bought counterfeit shares in those companies.
26. New facts have immerged since the CMKX Shareholders Coalition filed their case against the SEC and since the filing of The Coalition’s initial writ was introduced to the Supreme Court of British Columbia, so damages can now be calculated. The fact that the SEC and or the United States Government officials are about to release the funds from frozen trust accounts for CMKX shareholders proves the damages asked for in Al Hodges case are verified, so The Coalition seeks a court order for full disgorgement of funds held for the benefit of the CMKX shareholders, or damages in the amount in excess of 3.87 trillion dollars.
27. If these funds are not immediately released to the shareholders of CMKX, The Coalition asks for a full public enquiry into the RCMP’s role in the CMKX sting operation through the Public Enquiry Act, full disclosure of monies collected from perpetrators placed into frozen trust funds for the benefit of CMKX shareholders, disclosure of who is the trustee of these trusts set up in concert with the RCMP and how it is possible money could be missing from these frozen trusts, full disclosure of the Canadian brokers who signed agreements to stay out of jail given these agreement have not been lived up to, full disclosure of all regulators in Canada that cooperated with the sting operation, full disclosure of all CMKX land sales made and exact totals in the frozen trust from sales, full disclosure of all Joint venture agreements going forward and land owned by CMKX shareholders or land rights owned by CMKX shareholders.
28. The Coalition seeks a full public enquiry into Canadian regulatory agreements with the SEC and a public enquiry into all thirteen Canadian Securities Regulators and the SEC themselves. Given the clear and indisputable proof that the SEC aided and abetted the pandemic counterfeiting of the stock market and its cover-up, the close relationship and cooperation between the SEC and Canadian Regulators makes it impossible for the Canadian regulators to not have known this fraud was occurring. Also cooperation between several countries and authorities in international sting operations proves that both the Canadian and United States governments and authorities from the RCMP/DOJ/FBI/IRS/HOMELAND SECURITY/INTERPOL, among others, knew the size and scope of the fraud and the habitual perpetrators involved, but concealed this from the public while the crime inexplicably continued unabated, which in itself calls for a full public enquiry into these entities and others to be named.
29. The Coalition, given the mutual agreements shown here, ask that an independent commission oversees the possible collusion of Canadian Regulators in this massive fraud: Paris, France, May 29, 2008 — The Chairmen of four Canadian securities regulators and the Chairman of the U.S. Securities and Exchange Commission (SEC), following a series of meetings coinciding with the annual conference of the International Organization of Securities Commissions (IOSCO), announced today a schedule for the completion of a process agreement that would open the way for discussions of a potential U.S.–Canada mutual recognition arrangement. Canada has a system of securities regulation in which 13 separate provincial and territorial securities regulators administer and enforce highly harmonized laws and regulations. In order to facilitate discussions between Canada and the United States and more closely coordinate their systems of securities regulation, the SEC and the Canadian Securities Administrators (CSA) are working on an agreement setting forth the process to be followed in discussing mutual recognition arrangements. Under the schedule announced today, the process agreement would be concluded in mid-June 2008. The process agreement, once concluded, would open the way for substantive discussions between the CSA and the SEC on the subject of mutual recognition. Mutual recognition could provide Canadian securities exchanges and certain other Canadian financial service providers with greater freedom to operate in the United States under Canadian regulatory oversight, while U.S. securities markets and certain other U.S. financial service firms could gain greater freedom to operate in Canada under SEC oversight. In this manner, dual regulation, redundancy, and regulatory overlap could be eliminated.
30. The Coalition asks for a full public enquiry into the habitual perpetrators, their firms, and their ties to organized crime and Government agencies. In Al Hodges case he outlines some of those involved in the collusion, “Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government”, and “Robert A. Maheu, with assistance from others, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company.” This should include the Canadian government as they had full knowledge of this massive fraud.
31. The Coalition asks for a full public enquiry into the size and scope of all naked short financial instruments. Confirming the size of this fraud, and coupling this with Bud Burrell’s comments that there are more naked shorts on the market than outstanding shares, Susanne Trimbath states there are usual more IOU’s on the bond market than there are bonds. She adds this fact showing the collusion once again of Wall Street and The Federal Reserve, who also helped the same perpetrators clear up there aged fails on the stock market and the bond market, “The latest figures on failures to deliver are 600-800 billion dollars. Dr. Trimbath said, "The numbers look better now because the Fed threw two trillion at the market, which was used to cover these fails." Given The Federal Reserve is a private bank owned by some of the same perpetrators they bailed out, The Coalition as for full public disclosure of the owners of The Federal Reserve.
32. And finally, The Coalition asks for a full public enquiry into The Federal Reserve’s collusion with Timothy Geithner, who worked for one of the main habitual offenders and The Federal Reserve before becoming Treasury Secretary of the United States. This article shows collusion between The Federal Reserve and the DTCC and Wall Street firms and hedge funds who sold counterfeit U.S. Treasury Bonds. FINANCE-US: Treasury Nominee Failed to Halt Bond Scam: By Lucy Komisar* NEW YORK, Jan 19, 2009 (IPS) - U.S. senators at Timothy Geithner's confirmation hearing for Treasury Secretary Wednesday may want to ask him about a failure to act that is costing the U.S. a lot more than the amount he evaded on taxes. The Federal Reserve Bank of New York, which he has led since 2003, conducts the operations on Wall Street of the Federal Reserve Bank in Washington, the country's central bank. The New York Fed under Geithner's presidency has failed to stop massive naked short selling of U.S. Treasury bonds that threatens the stability of the market and sale of the bonds. Ironically, the scam, enabled by a lack of regulation at the behest of Wall Street brokerage houses, makes it more expensive for the U.S. to bail out those same financial institutions. It happens this way: an individual or fund is allowed to sell bonds without owning them. This is called short selling. The seller, whose broker has generally "borrowed" bonds from another broker, is supposed to subsequently buy them on the market, and return them to the lender. The seller does this because he believes that the bond is going down, and he will buy them at a cheaper price than he sold them for. Naked short selling occurs when a seller does not borrow the bonds for delivery at settlement, and therefore never has to buy them. This is called a failure to deliver, or FTD. Meanwhile, the buyer thinks he or she has the bonds but has just an IOU. The result is a distortion of the market. Sellers sell bonds they never own or borrow, so there are more securities sold than issued by the government. These phantom bonds don't represent money paid to the U.S. Treasury or genuine securities for buyers. The major broker-dealers who handle bond trades like the system. They profit from fails by using clients' money for other purposes. The economist who has done the key work on this issue is Dr. Susanne Trimbath, who heads STP Advisory Services in Omaha, Nebraska. She previously worked for the Depository Trust Co, a subsidiary of Depository Trust and Clearing Corp, the U.S. clearing house for stocks and bonds. Dr. Trimbath said, "In fall of 2008, about two trillion dollars in Treasury bonds were sold but undelivered for six weeks, more than 20 percent of the daily trading volume, up from 8.6 percent in the first five months of 2008." It was a spike from 1.2 percent in the first five months of 2007" There was excess demand for the Treasuries," she said. "Rather than allow this to push the price up, the Federal Reserve Bank of New York and the DTCC allowed failures to deliver to depress the price." This affects the value of bonds held by individuals, funds and major investors such as China. The latest figures on failures to deliver are 600-800 billion dollars. Dr. Trimbath said, "The numbers look better now because the Fed threw two trillion at the market, which was used to cover these fails." She said that Geithner failed to heed the warnings of economists at the New York Fed who in 2002 and again in 2005 analysed failures to deliver of Treasuries and recommended fines for the brokers responsible. A New York Fed white paper in April 2006 called for stricter enforcement of del
in a litigation update to his plaintiffs on December 16th Al Hodges included this statement: “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from Royal Canadian Mounted Police…, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
By: twinnster1955
01 Feb 2010, 09:41 PM EST
Rating: Msg. 907664 of 908472
(Reply to 907661 by twinnster1955)
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Gus Update:
TEXT OF THE COALITIONS FILING VS THE SEC
« Thread Started Today at 7:16pm »
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I am not at liberty to say why I have waited until tomorrow to make my next filing, but I am ready and you are about to see what is to be filed if need be. I understand every emotion you are going through, I am going through the exact same emotions and frustrations you are. I am filing something that will put my family and myself in possible danger and have to weigh that with the frustration we all feel being stuck in limbo still. I have given deadlines and stretched those deadlines knowing the pain that causes each shareholder, but feel circumstances call for the stretching of those deadlines or I wouldn't have done that. I have demanded respect for you, and feel to this minute you are being respected. Your best interests are being looked after to my satisfaction, and that is my main concern.
Here is what will be filed tomorrow if we don't have our money:
http://tramp2.proboards.com/index.cgi?ac....51&page=1#68456
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Re: TEXT OF THE COALITIONS FILING VS THE SEC
« Reply #1 Today at 7:18pm »
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No E85268
Kelowna Registry
IN THE SUPREME COURT OF BRITISH COLUMBIA
BETWEEN: CMKX SHAREHOLDERS COALITION FOR JUSTICE
Plaintiff
AND: THE US SECURITIES AND EXCHANGE COMMISSION
Defendant
AFFIDAFIT
I David Nelson, of #101 1865 Dilworth Drive Kelowna British Columbia, MAKE OATH AND SAY AS FOLLOWS:
1. I am the Plaintiff in this proceeding and as such have personal knowledge of the matters and facts hereinafter deposed to, save where stated to be on information and belief and where so stated I verily believe the same to be true.
2. In the CMKX SHAREHOLDERS COALITION FOR JUSTICE VS. THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Kelowna Registry No. S 85268, the CMKX Shareholders Coalition for Justice (The Coalition) entered evidence showing the United States Securities and Exchange Commission (SEC) did collude with the corrupt management of CMKM Diamonds Inc. (CMKX). A detailed paper showing collusion between CMKX management and the SEC was presented as evidence in the November 6th writ of summons and is presented here: http://www.cmkx.info/evidence.pdf.
3. CMKX represents the largest counterfeited stock in history (per attorney Al Hodges comment letter to the SEC file number S7-08-08). It was counterfeited by insiders of CMKX with the full blessing of the SEC along with many other firms. The SEC was fully aware of John Edwards, a corrupt insider of CMKX, who is currently indicted by the DOJ, laundering money (selling unregistered shares) through various accounts at NevWest Securities Corp. years before they took action. The evidence is in the phone records of NevWest Securities Corp., who contacted the SEC each time Edwards came in with a cert to sell through different accounts, which were based in Langley, British Columbia, Canada. Instead of stopping the fraud, the SEC told NevWest Securities Corp. to sell the stock, effectively aiding the fraud. Instead of taking action the SEC and NASD (FINRA) ignored the evidence and dozens of other red flags, allowing the scheme to continue unabated, costing CMKX shareholders hundreds of millions of dollars.
4. The SEC and a task force from the FBI/DOJ/IRS and others subpoenaed records that proved insiders of CMKX were laundering money through the Silver State Bank and selling counterfeit stock on September 5th 2004, after which they allowed the fraud to continue despite having this evidence and allowed hundreds of billions of unregistered shares to trade and cost CMKX shareholders hundreds of millions of dollars. At the same time the SEC was in contact with CMKX attorney, and former SEC attorney, Roger Glenn who it appeared facilitated this fraud. They were fully aware of the fraud, and through its negligent actions and inactions the SEC caused CMKX's scheme to continue, perpetuate, and expand, eventually resulting in millions of losses by investors.
5. Given the ease it was to prove the collusion of the SEC and corrupt CMKX management, and given the fact that a task force from the RCMP/FBI/DOJ/IRS/SEC had all the evidence they needed in 2004 to stop this fraud and allowed the fraud to flourish and be promoted, it was assumed this was a sting operation by many shareholders who documented the evidence over years. Mark Faulk, ex CEO of CMKM Diamonds Inc. said, “there are unconfirmed reports of a major sting operation targeting dozens of others involved in the CMKX scandal”. He later denied this fact due to signing non- disclosure agreements. The company itself due to strict non-disclosure agreements and the SEC along with other agencies involved would not confirm this fact, so the CMKX Shareholders Coalition for Justice put together a paper showing the collusion between the SEC and CMKX management, along with other evidence, and filed a case against the SEC on November 6th, 2009. Evidence presented in the Coalition’s writ, which will be added to this affidavit, clearly show the SEC has aided and abetted the systematic counterfeiting of the stock market for over a decade, and CMKX in particular. And although the SEC has participated in several sting operations with many different agencies with the appearance of fighting the counterfeiting of the stock market, the crime and its cover-up continue to this day. Although the SEC has identified hundreds of victim companies and know exactly who the perpetrators are on Wall Street, evidence will show the SEC has gone after the victims and shielded the perpetrators from almost any criminal prosecutions, despite the fact that the crime has cost retail investors multiple trillions of dollars.
6. The fact that CMKX was a sting operation has now been confirmed subsequent to the filing the Coalition’s writ of summons on November, 6th 2009, which is pertinent to our case as it explains the collusion that was proved in our case was for a purpose. In case number CV10-00031-JVS (MLGX), A. Clifton Hodges, State bar No. 046803, filed a complaint in the United States District Court Central District of California against the SEC for 3.87 trillion dollars on January 10th 2010. The case confirms CMKX was used as a vehicle in a sting operation, and statements made in the case are now confirmed by talks taking place to release the money from the frozen trust accounts between Al Hodges and the SEC and other Government entities. In preparation for my filing I have had discussion with Al Hodges and he has confirmed directly to me that these trusts are there and the funds have been collected. His lawsuit is only to force the release of the already collected funds. These trust accounts hold monies from perpetrators who made deals to stay out of jail for their crimes and from proceeds from land sales. Several plaintiffs who hired Al Hodges in this case have confirmed on public forums that talks and actions are ongoing to release these monies, but the U.S. Government has repeatedly lied about the release of those funds, including sending codes to release the money that did not work, and that money was missing out of the trust fund when access codes worked. Hodges and Associates confirmed that these comments were from plaintiffs in this case. Al has confirmed in his suit that the SEC has lied to CMKX shareholders representatives for years about imminent release of the shareholders trust accounts. Many shareholders have died while waiting for their Government to release their property that was illegally being held from them. This information proves that the evidence presented in Al Hodges case is corroborated given they are in the process of getting the funds released by the United States government that were collected in the sting operation. The continued lies by the United States government and stalling of release of these funds forced Al Hodges to finally file a 3.87 trillion dollar Bivens based class action law suit against members of the SEC and FBI. To this moment the United States Government is saying the release of funds is imminent but thousands of shareholders sit watching daily as they are lied to again and again. The fact that the SEC has lied to lawyers representing CMKX shareholders follows their modus operandi in many other well known cases which will be presented as evidence. Evidence gathered for this case show complete collusion of the SEC with the perpetrators in the theft of trillions of dollars from retail investors by systematically counterfeiting all kinds of financial instruments including stocks and treasuries. Comments made by Bud Burrell (file No. S7-19-07 to the SEC), consultant for John O’Quinn who has a multi trillion dollar class action going against the same perpetrators, says that failure to delivers (counterfeit stock) is now over thirteen and a half billion dollars a day, and that there is more naked short shares in the market than there is outstanding shares. Facts will be presented that show the United States Government and Canadian Government worked together to fight this pandemic fraud, but that the SEC in fact aided the fraud by their actions and inactions, and that they are a totally captured regulator by the industry they are suppose to regulate.
7. To focus on the CMKX situation first before focusing on the overall fraud, one has to look at the evidence presented by Al Hodges. Before actually filing his lawsuit Al Hodges gave the SEC the chance to release the funds collected for the shareholders, and in a litigation update to his plaintiffs on December 16th Al Hodges included this statement: “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from Royal Canadian Mounted Police…, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
8. Paragraphs 8 through 17 contain excerpts from case CV10-00031-JVS (MLGX) which are relevant to The Coalition’s case, quotes that are again corroborated by the fact the SEC and or United States Government officials to this day are promising imminent release of these funds. Al Hodges case confirms what Al stated in his comment letter to the SEC, that CMKX was the largest naked shorted stock in history, “During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “phantom” shares of CMKM Diamonds Inc, was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.”
9. “At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company.”
10. “The Securities and Exchange Commission and the Department of Justice, with assistance from the Department of Homeland Security, believed and developed evidence that said short sellers were utilizing their activities to illegally launder moneys, wrongfully export moneys, avoid payment of taxes, and to support foreign terrorist operations. To fulfill the plan to criminally trap such wrongdoers, the Securities and Exchange Commission, with assistance from the Departments of Justice and Homeland Security:
(a) Assisted in and approved the retention of Roger Glenn, an ex-SEC trial attorney and drafter of Sarbanes-Oxley, to join CMKM Diamonds Inc. for the purpose of verifying claims value, increasing authorized shares of stock to 800,000,000,000, and supervising from the inside of the company;
(b) Encouraged the company to expand its promotional activities, assisted in the set up of the “racing activities” of the company, and underwrote a substantial portion of the cost of such activities;
(c) Consented to, facilitated, and supported the sale of certain company claims to several foreign corporations;
(d) Consented to, facilitated, and supported the conferences between Robert A. Maheu and his associates on the one hand, and the wrongdoing short sellers on the other, all for the purpose of settling the potential liability of said wrongdoers with consent of the U. S. Government and a representation of no criminal prosecution for such illegal sales;
(e) Consented to, facilitated, and supported the declaration of dividends payable by the company to each common shareholder of CMKM Diamonds, Inc.
(f) Consented to, facilitated, and supported the distribution of shares of CIM, a private company owned by Urban Casavant, as a stock dividend, including consent and approval of distribution of said shares to holders of more than 1.4 Trillion shares of CMKM Diamonds, Inc. common stock.”
11. “During the period from November, 2004 through April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada, mineral claims to three Chinese domiciled corporations with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the consummation of such sales were placed into a frozen trust for disbursal at a later time.”
12. “During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U. S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.”
13. “Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government, and from the sale of additional assets including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs herein are further informed and believe, and based thereon allege, that said moneys, collected for the benefit of shareholders have also been placed in a trust or are otherwise now held in trust by the Depository Trust & Clearing Corporation and the United States Treasury.”
14. “Plaintiffs herein are informed and believe, and based thereon allege, that at all times mentioned, the Securities and Exchange Commission reserved unto itself the sole and absolute discretion to determine when moneys collected pursuant to the scheme set forth above would and could be released for distribution.”
15. “Demand for release of said moneys has been repeatedly presented to the Securities and Exchange Commission without result. Agents and employees of the Securities and Exchange Commission and the Department of Justice have represented repeatedly that the release of moneys for distribution was imminent, and/or would occur within several weeks, and/or would occur within less than a month. Each of said representations have been made knowing them to be false, and at the specific direction of the named Defendants. These actions of withholding distribution of said moneys, without compensation and without due process of law, amount to a taking of the property of the individual Plaintiffs and of all similarly situated.”
16. “At all times mentioned herein, the Defendants acted with deliberate indifference or reckless disregard for the Constitutional and other rights of all Plaintiffs, or with the intention and knowledge that they were violating Plaintiffs’ Constitutional or other rights or to cause them other injuries, losses and damage.”
17. “As a result of the Defendants’ misconduct, each of the named Plaintiffs and all of those similarly situated, have been denied their Constitutional rights, including, but not limited to, their Fifth Amendment right to be secure in their property, free from taking without just compensation and without due process of law, and have suffered injuries and property loss in excess of Three Trillion Dollars.”
18. The fact that the SEC participated in a sting operation using CMKX, then lied to CMKX shareholder representatives is only one issue in this case, the second is the modus operandi of the SEC and other regulators involved, including the U.S. and Canadian Governments, and in particular the RCMP and FBI. Given the fact the SEC and these authorities have conducted sting operations over the past decade regarding the counterfeiting of the stock market it needs to be explained how the same crime continued unabated for a decade by the same perpetrators. Evidence that will be presented by the Coalition will include congressional investigations and whistleblowers from the SEC that clearly prove the SEC has engaged in several well known cover-ups of crimes involving the counterfeiting of the stock market and are in fact “in bed with the industry” they regulate to the point where they make regulations with the same perpetrators which aid in facilitating the crime and its cover-up. They have ensured that retail victims and the companies they invested in would never recover from the fraud committed against them, and they made sure the perpetrators would not be held accountable, the whole time multiple Government Agencies and authorities watched and did nothing to prevent trillions of dollars in loses to the general public who were unwitting victims in this pandemic fraud.
19. The SEC has for decades colluded with Wall Street firms, the DTCC, the Federal Reserve, hedge funds, and others to defraud all shareholders. Between 1996 and 2001 the SEC and FBI were tracking money laundering through Canada, and knew crime families were trading naked short through Canada as Canada had no affirmative determination laws. In 1998 the SEC received over 3000 comment letters regarding the abuses of naked shorting. In 1999 the SEC participated in “operation uptick” which identified hundreds of companies that were victims of crime families who worked in concert with major wall street firms (none of the firms or those working in these wall street firms were indicted despite the fact that the crime family members they worked with were convicted of RICO crimes). In 2001 the NASD presented the SEC a proposal to modify RULE 3370 to eliminate the loophole associated with the naked shorting through Canada (the loophole was a clear violation in itself of RULE 17A). In 2001 EagleTech Communications filed RICO charges against many well known brokers on Wall Street and eventually won their criminal RICO case against crime family member who worked with many of those well known firms. They finally closed the loophole in April 2004 better than two years later and trillions of dollars in counterfeit shares later, but other loop holes created by the SEC in collusion with these same perpetrators has allowed the crime to continue to today. In October, 2009 Senator Ted Kaufman was seeking cosponsors for bill SB 605, which if passed would require the SEC to reinstate the uptick rule and enforce other regulations against abusive short selling as the SEC themselves refuse to follow their constitutional mandate.
20. EagleTech Communications will be used as an example of one of thousands of victim companies by the same group of perpetrators. They are one of the best examples of what has happened as they have already received convictions in their criminal RICO case regarding the crime family members who worked with Wall Street firms to laundry their proceeds from counterfeiting EagleTech stock. They are also a great example how the SEC treats the victims in these cases and the perpetrators, as the SEC instead of going after the perpetrators went after the victim and protected the Wall Street firms who worked with the convicted crime family members. Excerpts from Rod Young, CEO of EagleTech communications, “in an August of 2004 luncheon meeting with a potential witness in Eagletech’s civil case a member of the CIA showed up un-announced to me wanting details of the involvement of Jonathan Curshen and his Costa Rican Offshore asset protection company Red Sea Management in the demise of Eagletech. I was encouraged to write a criminal referral to the U.S. Secret Service who is charged with investigating counterfeiting of corporate securities under 18-USC-514. I authored 15 pages with 100 pages of evidence implicating the SEC and the DTCC as accessories to the crime. That referral was hand delivered to the Secret Service in Washington DC as a courtesy by the agent.” Despite having overwhelming evidence and winning their criminal RICO case against the crime family member who aided Wall Street brokers who counterfeit their stock, the SEC deregistered EagleTech and forced the victim to have to file RICO charges against the Wall Street firms themselves. The Wall Street firms identified in “operation uptick” that were involved in committing RICO crimes against hundreds of companies received nothing, while crime family members went to jail who laundered the proceeds from these crimes. Inexplicably the SEC ran a sting but aided the perpetrators, while ensuring the victims companies identified in that sting would never recover by creating an illegal clause with these same perpetrators. This illegal ‘grandfather clause” allowed these perpetrators to avoid having to cover their counterfeit shares they created, thus ensuring the depressed stock price would never recover due to the dilution created by the counterfeit shares. These victims companies would never recover due to the collusion between the SEC and these corrupt firms, and unsuspecting public lost trillions of dollars buying fake stock in publicly traded companies.
21. Rod Young, CEO of EagleTech Communications stated “Every shareholder of any Company in America who purchased shares and cannot get them delivered has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights.” EagleTech is just one of thousands of victim companies systematically manipulated and cellar-boxed by the brokerages under the supervision of the SEC and were then delisted / put out of business by the SEC when financially unable to meet their reporting and other business obligations, eliminating any obligation of the brokerage firms to deliver real shares or value to those they sold counterfeit stock to.” And this talking of the SEC, “In my opinion this action against the Company is designed to conceal its own culpability in, using the SEC’s own words, “delivery failures greater than a company’s total public float.” De-registration of the Company’s shares stands to reward manipulators just as a bankruptcy would, since the manipulators would never have to purchase the stock to close out delivery failures still on the DTCC’s books. In my opinion the SEC’s decision to grandfather known criminal securities manipulation has violated the Constitutional 5th Amendment rights of Eagletech shareholders by an inverse taking of their property without due process and without compensation.
http://tramp2.proboards.com/index.cgi?ac....51&page=1#68456
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Re: TEXT OF THE COALITIONS FILING VS THE SEC
« Reply #2 Today at 7:19pm »
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22. Despite the fact that the SEC, the RCMP, the DOJ, the FBI, the IRS, INTERPOL, Homeland Security, and other foreign agencies had information that the systematic crime of counterfeiting the stock market was happening, it flourished. The SEC allowed this fraud and aided and abetted this fraud by their actions and inactions. The SEC concealed from the general public the fact that trillions of dollars in counterfeit shares were on the market. The SEC created rules that not only violated their constitutional mandate, they made rules that ensured that thousands of victim companies and hundreds of thousands of individual investors worldwide would never receive relief. In particular, the SEC aided in the cover up of this fraud by creating the Grandfather Clause in concert with the perpetrators in a closed door meeting with SIFMA. They knowingly violated their constitutional mandate by protecting the perpetrators instead of the investors they are mandated to protect, and they covered-up a multi-trillion dollar fraud. Hundreds of billions of counterfeited shares in CMKX were grandfathered, and trillions of shares market wide were grandfathered, totalling trillions of dollars. The SEC admitted that the Grandfather Clause was to prevent short squeezes in stocks that had large naked short positions in an email to David Patch, as following the law and covering these counterfeit shares would cause market volatility. This is one of the most heinous crimes in history committed on the general public and is clear market wide manipulation by the SEC, a clear violation of their constitutional mandate. In other words, the fraud was so enormous that it was impossible to fix. Most Wall Street firms who committed this multi trillion dollar fraud on the unsuspecting public belong to SIFMA and were allowed to make the rules with the SEC to ensure they would have no resulting culpability for their actions, but victim companies would have no relief from the fraud perpetrated on them as they ensured their stock price would never recover. The agencies whom performed these sting operations have yet to compensate any of the hundreds of victim companies or their shareholders, while the perpetrators continue to commit the same crime to this day with full immunity.
23. The SEC themselves have admitted in a Securities Industry and Financial Markets Association (SIFMA) meeting the true size and scope of the fraud committed, a fraud they facilitated and concealed from the general public, and continue to cover up to this day. Significantly, the above comments relate directly to the Over the Counter (OTC) market alone. In a speech delivered by SEC Commissioner Paul S. Atkins, before the 34th Annual SIFMA Operations Conference states, "I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street. http://www.sec.gov/news/speech/2007/spch043007psa.htm
24. The complete collusion between the hedge funds, Wall Street firms, the SEC, DTCC, SIFMA, and The Federal Reserve is one which is easy to prove. The perpetrators, that the SEC make rules with for the sole benefit of those same perpetrators, are on the board of directors of the DTCC, SIFMA, The Federal Reserve or own shares in the DTCC or Federal Reserve, which are obvious conflicts of interest but ones which are allowed. An example of this is the notorious Bernie Madoff, who through his firm and his family sat on the board of directors of the DTCC and SIFMA, and helped create the infamous SEC excemption that allowed massive naked shorting (counterfeiting), it was called the “Madoff Excemption.” Bernie Madoff is just a small example of collusion that takes place on wall street, one in which the criminals made all the rules, one in which you don’t even have to sell the public real shares. Here is from the Wall Street Jounal’s Ianthe Jeanne Dugan, Feb. 21 2009: "The trustee liquidating Bernard Madoff's investment firm said there was no evidence that Mr. Madoff bought any securities for clients in at least 13 years." The system is rigged and the DTCC themselves admit they fail to deliver a small percent of transactions every day, but given their $1.8 quadrillion dollars in transactions annually that equates to trillions of dollars stolen from the unsuspecting public. This is from Susanne Trimbath, who worked on CMKM Diamonds case, in a Rolling Stone article by Matt Taibbi showing how long the fraud has been going on, "I personally went to senior management at DTC in 1993 and presented them with this issue," she recalls. "And their attitude was, 'We spill more than that.'" In other words, the problem represented such a small percentage of the assets handled annually by the DTC — as much as $1.8 quadrillion in any given year, roughly 30 times the GDP of the entire planet — that it wasn't worth worrying about.”
25. The Coalition will introduce dozens of examples of victim companies and how the SEC followed the same modus operandi of protecting the perpetrators at the expense of the victim companies, their employees, and the unsuspecting public who bought counterfeit shares in those companies.
26. New facts have immerged since the CMKX Shareholders Coalition filed their case against the SEC and since the filing of The Coalition’s initial writ was introduced to the Supreme Court of British Columbia, so damages can now be calculated. The fact that the SEC and or the United States Government officials are about to release the funds from frozen trust accounts for CMKX shareholders proves the damages asked for in Al Hodges case are verified, so The Coalition seeks a court order for full disgorgement of funds held for the benefit of the CMKX shareholders, or damages in the amount in excess of 3.87 trillion dollars.
27. If these funds are not immediately released to the shareholders of CMKX, The Coalition asks for a full public enquiry into the RCMP’s role in the CMKX sting operation through the Public Enquiry Act, full disclosure of monies collected from perpetrators placed into frozen trust funds for the benefit of CMKX shareholders, disclosure of who is the trustee of these trusts set up in concert with the RCMP and how it is possible money could be missing from these frozen trusts, full disclosure of the Canadian brokers who signed agreements to stay out of jail given these agreement have not been lived up to, full disclosure of all regulators in Canada that cooperated with the sting operation, full disclosure of all CMKX land sales made and exact totals in the frozen trust from sales, full disclosure of all Joint venture agreements going forward and land owned by CMKX shareholders or land rights owned by CMKX shareholders.
28. The Coalition seeks a full public enquiry into Canadian regulatory agreements with the SEC and a public enquiry into all thirteen Canadian Securities Regulators and the SEC themselves. Given the clear and indisputable proof that the SEC aided and abetted the pandemic counterfeiting of the stock market and its cover-up, the close relationship and cooperation between the SEC and Canadian Regulators makes it impossible for the Canadian regulators to not have known this fraud was occurring. Also cooperation between several countries and authorities in international sting operations proves that both the Canadian and United States governments and authorities from the RCMP/DOJ/FBI/IRS/HOMELAND SECURITY/INTERPOL, among others, knew the size and scope of the fraud and the habitual perpetrators involved, but concealed this from the public while the crime inexplicably continued unabated, which in itself calls for a full public enquiry into these entities and others to be named.
29. The Coalition, given the mutual agreements shown here, ask that an independent commission oversees the possible collusion of Canadian Regulators in this massive fraud: Paris, France, May 29, 2008 — The Chairmen of four Canadian securities regulators and the Chairman of the U.S. Securities and Exchange Commission (SEC), following a series of meetings coinciding with the annual conference of the International Organization of Securities Commissions (IOSCO), announced today a schedule for the completion of a process agreement that would open the way for discussions of a potential U.S.–Canada mutual recognition arrangement. Canada has a system of securities regulation in which 13 separate provincial and territorial securities regulators administer and enforce highly harmonized laws and regulations. In order to facilitate discussions between Canada and the United States and more closely coordinate their systems of securities regulation, the SEC and the Canadian Securities Administrators (CSA) are working on an agreement setting forth the process to be followed in discussing mutual recognition arrangements. Under the schedule announced today, the process agreement would be concluded in mid-June 2008. The process agreement, once concluded, would open the way for substantive discussions between the CSA and the SEC on the subject of mutual recognition. Mutual recognition could provide Canadian securities exchanges and certain other Canadian financial service providers with greater freedom to operate in the United States under Canadian regulatory oversight, while U.S. securities markets and certain other U.S. financial service firms could gain greater freedom to operate in Canada under SEC oversight. In this manner, dual regulation, redundancy, and regulatory overlap could be eliminated.
30. The Coalition asks for a full public enquiry into the habitual perpetrators, their firms, and their ties to organized crime and Government agencies. In Al Hodges case he outlines some of those involved in the collusion, “Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government”, and “Robert A. Maheu, with assistance from others, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company.” This should include the Canadian government as they had full knowledge of this massive fraud.
31. The Coalition asks for a full public enquiry into the size and scope of all naked short financial instruments. Confirming the size of this fraud, and coupling this with Bud Burrell’s comments that there are more naked shorts on the market than outstanding shares, Susanne Trimbath states there are usual more IOU’s on the bond market than there are bonds. She adds this fact showing the collusion once again of Wall Street and The Federal Reserve, who also helped the same perpetrators clear up there aged fails on the stock market and the bond market, “The latest figures on failures to deliver are 600-800 billion dollars. Dr. Trimbath said, "The numbers look better now because the Fed threw two trillion at the market, which was used to cover these fails." Given The Federal Reserve is a private bank owned by some of the same perpetrators they bailed out, The Coalition as for full public disclosure of the owners of The Federal Reserve.
32. And finally, The Coalition asks for a full public enquiry into The Federal Reserve’s collusion with Timothy Geithner, who worked for one of the main habitual offenders and The Federal Reserve before becoming Treasury Secretary of the United States. This article shows collusion between The Federal Reserve and the DTCC and Wall Street firms and hedge funds who sold counterfeit U.S. Treasury Bonds. FINANCE-US: Treasury Nominee Failed to Halt Bond Scam: By Lucy Komisar* NEW YORK, Jan 19, 2009 (IPS) - U.S. senators at Timothy Geithner's confirmation hearing for Treasury Secretary Wednesday may want to ask him about a failure to act that is costing the U.S. a lot more than the amount he evaded on taxes. The Federal Reserve Bank of New York, which he has led since 2003, conducts the operations on Wall Street of the Federal Reserve Bank in Washington, the country's central bank. The New York Fed under Geithner's presidency has failed to stop massive naked short selling of U.S. Treasury bonds that threatens the stability of the market and sale of the bonds. Ironically, the scam, enabled by a lack of regulation at the behest of Wall Street brokerage houses, makes it more expensive for the U.S. to bail out those same financial institutions. It happens this way: an individual or fund is allowed to sell bonds without owning them. This is called short selling. The seller, whose broker has generally "borrowed" bonds from another broker, is supposed to subsequently buy them on the market, and return them to the lender. The seller does this because he believes that the bond is going down, and he will buy them at a cheaper price than he sold them for. Naked short selling occurs when a seller does not borrow the bonds for delivery at settlement, and therefore never has to buy them. This is called a failure to deliver, or FTD. Meanwhile, the buyer thinks he or she has the bonds but has just an IOU. The result is a distortion of the market. Sellers sell bonds they never own or borrow, so there are more securities sold than issued by the government. These phantom bonds don't represent money paid to the U.S. Treasury or genuine securities for buyers. The major broker-dealers who handle bond trades like the system. They profit from fails by using clients' money for other purposes. The economist who has done the key work on this issue is Dr. Susanne Trimbath, who heads STP Advisory Services in Omaha, Nebraska. She previously worked for the Depository Trust Co, a subsidiary of Depository Trust and Clearing Corp, the U.S. clearing house for stocks and bonds. Dr. Trimbath said, "In fall of 2008, about two trillion dollars in Treasury bonds were sold but undelivered for six weeks, more than 20 percent of the daily trading volume, up from 8.6 percent in the first five months of 2008." It was a spike from 1.2 percent in the first five months of 2007" There was excess demand for the Treasuries," she said. "Rather than allow this to push the price up, the Federal Reserve Bank of New York and the DTCC allowed failures to deliver to depress the price." This affects the value of bonds held by individuals, funds and major investors such as China. The latest figures on failures to deliver are 600-800 billion dollars. Dr. Trimbath said, "The numbers look better now because the Fed threw two trillion at the market, which was used to cover these fails." She said that Geithner failed to heed the warnings of economists at the New York Fed who in 2002 and again in 2005 analysed failures to deliver of Treasuries and recommended fines for the brokers responsible. A New York Fed white paper in April 2006 called for stricter enforcement of del
IBAFT: We don’t give a rat’s behind about going
after Urban Casavant, John Edwards, their “cohorts” and
the relatively pitiful $250 million that you state they
misappropriated.
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