go2guy posted a February 09 update from Hodges to eggie. It appears Hodges was just fishing around for the infamous "funds collected" based on circumstantial evidence, so he had to settle on the SEC instead of the DTCC as the holders of the infamous "funds collected".
The lack of any hard evidence in the lawsuit is more apparent. This is becoming more obvious as a wing and pray strategy. All this began with message board rumors and snowballed into a ridiculous lawsuit, imo.
February 13, 2009
Mr. Robert Hollenegg
Dear Bob:
Please consider this an update on our continuing efforts to secure confirmation of funds collected for the benefit of CMKM Diamonds, Inc.’ shareholders. We have, since February 5, had a number of contacts with the DTCC and its subsidiaries; these contacts have included discussion with Mr. Morris Richard as well as others. Please be advised as follows:
Mr. Richards was originally located at the New York DTCC facility, working in the Dividend & Call Processing area.
Mr. Richards relocated to the Florida DTCC facility some time ago, although his duties and responsibilities remain the same.
The Dividend & Call Processing activities involve [primarily] dealing with tracking, certifying, etc. dividends and associated public company distributions.
Mr. Richards is not involved in any way with tracking, holding or otherwise dealing with funds of any kind.
Mr. Richards has verified that the DTCC still holds common shares of CMKM Diamonds, Inc stock.
Mr. Richards also volunteered that perhaps the other shareholders he had spoken to, “misunderstood” what he was talking about when he discussed a long-pending distribution of the shares of stock still held by the DTCC.
The DTCC has no procedures, nor ‘machinery’ to allow them to distribute funds directly to public company shareholders; such distributions would in all cases be made by DTCC ‘participants,’ or by the company T/A, or by the company itself.
Any further information regarding DTCC funds could not be established.
In a nutshell, we are now persuaded that funds collected for the benefit of shareholders are not being held by the DTCC. This does not, however, change our previously stated conclusions based upon the totality of circumstantial evidence [in our opinion, of course].
You are of course free to post all or part of this brief memo, as you choose. We shall continue to keep you advised of our progress; we have not given up.
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