CMKM Diamonds Inc (fka CMKX)

[Sec 10]

Gump-it's called due process. The SEC has the power to revoke share registration, but that power is subject to review by an Administrative Law Judge under Federal civil procedures.

An Administrative Hearing is narrowly focused and limited in scope. In essence the judge will hear SEC testimony that:

CMKX has shares registered under the 34 act, and is therefore required to file

CMKX has not made the required periodic filings

Under those circumstances the SEC has the statutory and regulatory authority to revoke the registration, and should do so to protect future investors.

There really is no response CMKX can make. That is why virtually all revocation actions are taken after an offer of settlement by the company agreeing to the action.

The SEC has never failed to prevail in a revocation action, and there is only one case in which a revocation was reversed after the company came into full compliance with reporting requirements.