CMKM Diamonds Inc (fka CMKX)

[jimmym4]

Attorney Bill Frizzell’s letter to Attorney Donald Stoecklein “…You are aware that significant naked shorting of CMKX stock has occurred and the company is hereby requested to assist in the investigation to determine those that may be responsible for the illegal shorting and fails to deliver that are present in this stock.
“Our investigation into naked shorting convinces me there is a huge naked short….IF the only asset this company has is the Entourage stock, then the naked short is still a problem for the brokers and a potential asset for the shareholders because of the problems brokers will experience once the distribution takes place. If by some stroke of luck, there are other assets and the company begins to trade again, then the naked short becomes a real asset for the shareholders and real problem for the brokers with the shorts.”
…“The Task Force has now received certs in the name of certain brokerage companies. Our investigation reveals a potentially huge naked short position in at least two of the very companies that have sent us certs. The certs sent to the Task Force by the brokers represent billions of shares of CMKM stock. It is not the intention of the company to distribute Entourage stock to securities intermediaries and clearing houses for them to distribute the stock at their discretion. It is clear from the Regulation SHO records in conjunction with other sources (ADP, the transfer agent and the DTCC) that huge fails to deliver in this stock currently exist. It would be a breach of the fiduciary duty of the company to distribute these assets to a broker in lieu of its true beneficial owner when there is evidence of known fails to deliver occurring at the same brokerage house.”