The judge had a power session fitting the entire hearing into one day. There is no testimony tomorrow. I agree, the transcripts will be the most unbiased version. Here's the rest of ChuckWheat's version. He seems to have captured more detail of the hearing than the others reporting back so far.
3. C-Dub's Observations: CMKX Witnesses, Closing « Thread started on: Today at 02:59am »
First CMKX Witness: Ed Donhue, CEO, Nevada Minerals (NM)
Mr Donhue (pronounced "dough-no") first had contact with UC in the FALC region (Canada), then moved on to the Yellow River operation. NM has over 500K acres in FALC. He believes CMKX claims are approx. 1M acres.
In stark contrast to RW's seemingly not knowing much about anything, and UC's silence, ED seemed very knowledgeable and in control of issues...he knew process steps in depth. He provided financial data to UC and the CMKX legal team. NM earned $1.1M in revenues this year; CMKX owes $180K, and is in default. UC has agreed to turn over "The SANS(?)" to cure the default.
ED parted with CMKX, and will have another $2M due come Dec 2005. ED stated he broke off the relationship due to an emotional reaction to the investigations...and felt NM would be better off going it alone.
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Second CMKX Witness: Robert Mahue, Co-Chairman and Director, CMKX
Mr Mahue (IBM) commanded a certain respect as he entered, but had a few moments of levity as well. One of these moments came immediately after he entered the courtroom. The judge asked him to approach, and she remarked "you seemed to have taken the long way around", referencing the fact that he went the longer route to the witness stand. IBM replied "I'll make it!", to which a burst of appreciative laughter rang around the room.
IBM stated that UC asked him to join CMKX in Feb 2005.
When asked why he joined, he replied "I'm intrigued by challenges and difficult assignments...been that way since I was 10 years old." He went on to express his interest in shareholder well-being, and proudly stated his background was impecable...not afraid of background checks.
When asked "how can you help?": Understands compliance needs. "I'm no novice. Fifty years ago he set up government programs to assist small businesses become compliant.
"What did UC expect?" IBM: "I don't know what UC expects. But I told him I'd surround myself with a team that would clear past mistakes- and CMKX would have to be compliant in the future.
"Do you have reservations about being part of a company under investigation?" IBM: No.
"How much are you compensated?" IBM: $40K a month
"How much time spent with his team?" IBM: A LOT of time with them. IBM went on to say, "I earned the nickname "The man with the whip...I still have that whip."
The judge pressed IBM: "Others have testified that information hasn't been forthcoming from the company, but you see it differently" IBM: To my knowledge, the info has been provided. She then asked IBM: All the other witnesses talk about dealing with UC...but you haven't been mentioned. IBM: I am aware of the requests, but not for the responsiveness.
IBM has known Mr Stocklein for 15 years. Stocklein's office does more than just legal, also financials.
Then Mr Frizzell: If a dispute between UC and yourself existed, who would prevail? IBM: I would consult Mr Stocklein.
IBM, like UC, conducts business from his home address.
IBM couldn't give dates when reports would be finished, but stated "I assure you, it will be done".
SEC began cross examination: "Does CMKX have any offices?" IBM: Not to my knowledge.
"Do you know numbers of employees, or names?" IBM: No
"Are there any other directors of the company?" IBM: No
"Have you ever disagreed with a decision of UC?" IBM: "No, I have not".
The Feb 17, 2005 PR was written by IBM.
IBM doesn't know the assets or liabilities.
SEC: "In Sept 13, 2004 PR, it was stated that CMKX received $5M from St George Metals. Can you tell me where that money is?" IBM: "I don't, but I'll follow up with you and tell you".
Judge: "Were you bought for your legitamacy?" IBM: "To date, I've only been paid $80K. I've spent a lifetime in business, and I'm paid for my expertise".
Judge: "Do you think you may be being used by CMKX?" IBM: "No, I do not".
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Final CMKX Witness: Christine Buck, Securities Law Institute (sub-company of Stocklein law firm)
Christine is responsible for starting work to get compliance documents in order. She ordered ALL documents, received "boxes" of information...PRs, agreements, shareholder equity forms, mining claims (she has verified the claims). Also pulled GSI Online Filinigs (similar to Edgar reports). In short, pulling everything.
When reviewed the July 22, 2003 Form 15, she was troubled by the lack of reporting prior to it. Review of form revealed that a discrepancy existed in shareholder numbers. Based on her research, there were more than 300 shareholders. She contacted Kevin O'Neil (sp) from the SEC, and asked what should be done. He told Christine that the Form 15 needed to be amended. She then verified the (share) numbers with the Transfer Agent. After some internal conversation, it was agreed that amending the Form 15 was the best course of action...and was done in July 2003.
A problem that surfaced immediately afterwards was the 60 day requirement to get current following the Form 15 amendment. Mr Desormo told Christine that she needed someone else to take care of that (Mr Desormo was paid $1.5M to do all this).
Edwards and Engles (sp?) law offices produced a one page letter, when information was requested from them.
Christine stated the10K work is ongoing. Still getting info gathered and organized...called it "an ongoing process". When asked what significant docs were missing, she stated "Financial statements. The mining claims are verfied via the "Sask. Industry Resource", which is a Canadian Gov't run website (she didn't know the URL). It took days to download these claims, due to the sheer number of them. ( ) She was very surprised she couldn't get this info from the former lawyers and accountants.
Judge: "Do you have enough understanding to complete the reports?" Christine: We can begin with what we have.
Mr Frizzell began his questioning.
"Who's paying for your work?" CB: I don't know. Not being paid by stock.
"How many boxes of infor did you get?" CB: I don't know. Debbie (coworker) got them for her.
CB: A lot of info to go through, and a lot of progress getting it done.
"Is CMKX prioritized among your 40 other clients?" CB: (CMKX) is not especially prioritized. Filings could be done if all documents were present.
The SEC began cross...had a good spat over the number of banker boxes you could fit a response into...Mr Stocklein finally stopped it all with an objection, and the judge got everyone laughing again with a "I think it's two boxes of info". LOL
SB also testified that Mr Desormo was paid with stocks, and she doesn't know why.
The jade contracts were brought up again. SEC asked if she had requested the contracts. SB: Not yet
SEC: Can you file unaudited reports? SB: No SEC: When will you have them ready? SB: Won't speculate
***End of Testimony***
Closing:
Judge wrapped up with dates for the attorneys (June 3rd, 17th, and 29th). These dates are for responses and counters and final rebuttal. They have to have all info to the judge by June 29, and she has until July 15th to make a ruling.
******** My Closing Notes for this Evening: I got to meet and speak with several good people, including Mogoo. MLDiamonds, and Cesar Salazar. I also got to speak with UC, IBM, Mr Frizzell, John Martin, and others.
I'll give more detailed notes and some thoughts on how I interpretted all this soon, but for tonight, the C-Dubster is spent. I hope this is useful to those looking for more fact than spin...but remember too that my notes and/or memory may not be perfect on all things, but I won't lie to you intentionally.
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