CMKM Diamonds Inc. (fka CMKX)

[jetfish]

This post from another forum is interesting.

Certificate pull notification responsibility...


Many are wondering where the responsibility will fall if someone is not notified of the certificate pull by the company.

IMHO (in my humble opinion) = This is all just my opinion and I ask that you treat it as such.

Reasonable attempt to notify shareholders by the company about the certificate pull should be acceptable. Mail, announcements, notify the brokerage firms, news release, etc...

The TA data can be used to send the notification to the true certificate holders. Those should be no problem. OBO – NOBO lists are unreliable and can’t be used as they are old unless there is one available since the revocation and halt of CMKX trading.

From what I can decipher the electronic shareholders notification is the responsibility of the broker. We need to remember that the company has no knowledge of the identity of the electronic shareholders as they are being held in Street Name under CEDE and Co. IMHO

Additionally, CEDE and Co along with the NSCC/DTCC as a whole are not willing to share that information with the company. So the demand by the company to pull certificates places responsibility on the brokers to notify the clients that are holding CMKX shares in their brokerage firm.

If a client’s shares are being held by a broker and the broker’s shares are being held at DTC in CEDE and company then they (Broker/CEDE & Co/DTC/NSCC) have a fiduciary responsibility to notify their clients (the electronic share holders) that there is a certificate pull underway by the company. IMHO

In short: All electronic shareholders should be notified by CEDE & Co. representative/broker/DTCC/NSCC. If not, then they are liable as they are the ones responsible for upkeep and possession of those shares. IMHO

Additionally, I would think that since CMKM Diamonds is no longer trading that the DTC/NSCC could no longer hide their trading data behind the guise of protecting clients trading strategies. We requested trading information for the administrative hearing and were denied access, but what would be the excuse now?

I too wanted to add this win by USXP over Shorty news from Oct 2005

An excerpt from a USXP announcement from Wednesday October 5, 9:35 am ET
They won their suit against naked shorters on the State level for over $500 million including punitive damages. $500 million to 703 billion cmkx shares would be .0007 per share. That would be a start. “Shorty” does lose. USXP was small scale compared to what we could be looking at with CMKX. JMHO


…"Universal Express has always been diligent in pursuing malefactors, private or governmental, who damage or attempt to damage our businesses or hard-working American businesses", continued Mr. Gunderson.
"We have been singularly successful in the past in pursuing our remedies. For example, Universal Express was successful in obtaining two separate state jury verdicts in Dade County, Florida against defrauders and 'naked shorters' totaling $389 Million and $137 Million, respectively, including punitive damages", noted Mr. Gunderson.

http://biz.yahoo.com/bw/051005/55480.html?.v=1
Be well

This is all just my opinion and I ask that you treat it as such.

Dr.D