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Reply with quote | #46 |
Here is a cert w/sentence...Flying Moose(cmkx-treme) Attached Images:
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Reply with quote | #47 |
SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against "naked" short selling. The Commission's actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," said SEC Chairman Christopher Cox. "The Enforcement Division, the Office of Compliance Inspections and Examinations, and the Division of Trading and Markets will now have these weapons in their arsenal in their continuing battle to stop unlawful manipulation."
In an ordinary short sale, the short seller borrows a stock and sells it, with the understanding that the loan must be repaid by buying the stock in the market (hopefully at a lower price). But in an abusive naked short transaction, the seller doesn't actually borrow the stock, and fails to deliver it to the buyer. For this reason, naked shorting can allow manipulators to force prices down far lower than would be possible in legitimate short-selling conditions.
Today's Commission actions, which are the result of formal rulemaking under the Administrative Procedure Act, go beyond its previously issued emergency order, which was limited to the securities of financial firms with access to the Federal Reserve's Primary Dealer Credit Facility. Because the agency's exercise of its emergency authority is limited to 30 days, the previous order under Section 12(k)(2) of the Securities Exchange Act of 1934 expired on Aug. 12, 2008.
The Commission's actions were as follows:
Hard T+3 Close-Out Requirement; Penalties for Violation Include Prohibition of Further Short Sales, Mandatory Pre-Borrow
The Commission adopted, on an interim final basis, a new rule requiring that short sellers and their broker-dealers deliver securities by the close of business on the settlement date (three days after the sale transaction date, or T+3) and imposing penalties for failure to do so.
If a short sale violates this close-out requirement, then any broker-dealer acting on the short seller's behalf will be prohibited from further short sales in the same security unless the shares are not only located but also pre-borrowed. The prohibition on the broker-dealer's activity applies not only to short sales for the particular naked short seller, but to all short sales for any customer.
Although the rule will be effective immediately, the Commission is seeking comment during a period of 30 days on all aspects of the rule. The Commission expects to follow further rulemaking procedures at the expiration of the comment period.
Exception for Options Market Makers from Short Selling Close-Out Provisions in Reg SHO Repealed
The Commission approved a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Regulation SHO. This rule change also becomes effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
As a result, options market makers will be treated in the same way as all other market participants, and required to abide by the hard T+3 closeout requirements that effectively ban naked short selling.
Rule 10b-21 Short Selling Anti-Fraud Rule
The Commission adopted Rule 10b-21, which expressly targets fraudulent short selling transactions. The new rule covers short sellers who deceive broker-dealers or any other market participants. Specifically, the new rule makes clear that those who lie about their intention or ability to deliver securities in time for settlement are violating the law when they fail to deliver. This rule also becomes effective at 12:01 a.m. ET on Thursday.
# # #
http://www.sec.gov/news/press/2008/2008-204.htm
...Flying Moose(cmkx-treme)
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Reply with quote | #48 |
SEC Pushes Hedge Fund Oath in Manipulation Probe (Update1)
By David Scheer Sept. 20 (Bloomberg) -- The U.S. Securities and Exchange Commission, seeking to jumpstart a hunt for suspected manipulation of financial stocks, will require hedge fund managers, brokerages and institutional investors to describe under oath their bets on the firms. Investors with ``significant'' trades in the companies' securities or credit default swaps must disclose their positions and provide ``certain other information'' in written statements, the regulator said yesterday. SEC spokesman John Nester declined to say who would receive the requests. The SEC issued a series of emergency measures, rules and warnings to hedge funds this past week as lawmakers including Senate Banking Committee Chairman Christopher Dodd and executives such as Morgan Stanley Chief Executive Officer John Mack said traders may be spreading misinformation and using abusive tactics to attack companies. On Sept. 17, the agency said it may also force funds to hand over their communications. ``This is the SEC saying it's going to get tough,'' said Barry Barbash, a former attorney at the agency now at Willkie Farr & Gallagher LLP, whose clients include hedge funds. ``By emphasizing that it's under oath, they're trying to say, `Don't think it's going to blow past us. Don't try to fast-talk us. We're taking a close look at what's going on.''' Return Date The regulator, which typically relies on subpoenas to acquire information, has resorted to sworn statements in some of its most prominent probes, such as its initial inquiry into the fraud that toppled WorldCom Inc. in 2002. In that case, investigators gave the company five days to describe what led it to restate earnings. ``I'm sure they'll have a very short return date for those sworn statements,'' said Gregory Bruch, a former SEC attorney who is a partner at Willkie Farr & Gallagher LLP in Washington. ``It'll give them a tremendous amount of information quickly.'' The New York Stock Exchange's regulatory arm and the Financial Industry Regulatory Authority, which polices almost 5,000 brokerages, will conduct a parallel probe into short sales, including on-site visits to firms, the SEC said. Large declines in brokerage shares this month were often accompanied or preceded by moves in credit default swaps tied to those firms, the Wall Street Journal reported today. ``Abusive short selling, market manipulation and false rumor mongering for profit by any entity cuts to the heart of investor confidence in our markets,'' said Linda Thomsen, the SEC's enforcement chief. ``We will root it out, expose it, and subject the guilty parties to the full force of the law.'' `Go Get Them' The regulatory efforts are already attracting criticism from investors. James Chanos, president of hedge-fund firm Kynikos Associates Ltd., told CNBC yesterday there is ``no shred of evidence in the U.K. or the U.S. about a conspiracy or manipulation of shares'' and that short-sellers aren't to blame for the week's declines. ``If you have managers actively engaged in false rumor mongering and naked short selling, I'd say go get them,'' said Bill Grayson, president of Falcon Point Capital LLC, a San Francisco-based investment firm. ``But a wholesale witch hunt is not going to be met with a lot of smiling faces in the hedge-fund community.'' Among the SEC's other measures aimed at shoring up investor confidence this week, the regulator said it will force hedge funds and investors managing more than $100 million in securities to disclose their daily short-sale positions. Yesterday, it temporarily banned short sales in shares of 799 financial companies through Oct. 2. Companies on the list include Morgan Stanley, Wachovia Corp., Washington Mutual Inc., Goldman Sachs Group Inc. and Warren Buffett's Berkshire Hathaway Inc. To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net. Last Updated: September 20, 2008 09:07 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=a9AeBwRLLoHk&refer=home
...Flying Moose(cmkx-treme)
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Reply with quote | #50 |
casper 9-22-09
After Bush /HLS stopped dels. last Friday , he and a large entourage went to the ranch in Crawford where they continued trying to access accounts all over the world, including individual accts. using the SUPER computer located in Crawford.
Meanwhile the packs were relocated to D.C. from Charlotte and were still there Sunday night.
Mainland China loaned Bush $500B last week most of which was used to prop up the stock market. In came the Staggering Paulson announcements, Socializing America, saving Wall Street and the banks at the taxpayers expense, and appointing himself Sole and Exclusive Czar over the Trillion Dollar Bailout.
Meanwhile Bush tells the Couriers, Banks, etc. Anyone delivering a package will be immediately arrested.
The announcements are still the key stopping the criminal behavior which becomes more intense everyday, his position being that exposure results in anarchy and the people will burn D.C. to the ground.
It is a day by day tug of war, slug fest, knife fight and as of early afternoon today, D.C. is in complete lockdown, sources can not be reached and Euro. sources are equally in the dark.
It is more of the same, de-je-vous all over again. Moves, countermoves, with trillions at stake.
Paulson briefly had his hands on our tax funds last week. That was blocked and funds retrieved.
It is more difficult than ever to follow the bouncing ball as there is so much secrecy and intensity involved.
We will update when possible.
The attempt by a corrupt President to appoint a corrupt Treasury Secretary to a God Like position of power, to be rubber stamped by a bribed congress is beyond the pale.
SEE BELOW FOR URGENT UPDATE
There exists NO Law and NO Morality in D.C. or N.Y.
Clearing their books (Banks) at the peoples expense is self dealing on a scale heretofore unimaginable.
USA is Bankrupt. The great experiment ends in Socialism with Sugar Daddy Paulson in control.
600B in bailouts already done. 700B just announced which is a low ball number. 85B to AIG. F and F 200B and counting. The FDIC requests a Govt. Loan.
Foreign Banks holding US mortgage securities to be bailed out at US taxpayers expense ( Barclays, UBS).
A Bush led criminal gang controls our Nation.
Congress says they will approve the largest and scariest financial bailout in History, all within a week,committing what could easily total $1-2 T of taxpayers funds "so they can get home Friday to start campaigning".
Fred and Fannie announced they will again start buying MBS's Mortgage backed securities, compounding previous errors.
Crooked Govt. begets Crooked Industry
D.C. politicians provide the grease (votes) for one scam heaped upon top of another scam all to keep the larger scam ( Corporate US) operating.
Bush destroys Republican party, conservatism and the nations solveniency.
Cheney refuses to release his papers including appt logs, claiming he is not part of the Executive Branch.
Criminal gangs and control of nations political and financial systems.
Glass-Stegall repeal allowing merging of commercial and investment banks -the very thing causing previous disasters.
Budget deficits, already out of control, will now explode.
Christopher Dodd, Barney Frank, Christopher Cox, and others are Silly Putty in the hands of Criminals.
Gold sets historical record one day up-tick of $70 plus.
Russian Banks propped up by Russian Govt.
Banks in Brazil under water and down dramatically.
Previous providers of rescue capitol such as TPG's ( Texas Pacific Groups) $7B to Wa-Mu and Sovereign Fund Investments and US financial institutions now virtually worthless.
Trillions in shareholder equity, F and F, AIG, Lehman, Etc. wiped out. Financials stock prices fall of 80% common.
Merrill/B of A merger usually requiring 6-12 months, agreed to in 48 hours.
Franklin Raines and other GSE Executatives walk with a Hundred Million Plus Plus Plus Golden Parachutes.
Goldman Sachs pays 12.1B in Employee Bonuses in 2007.
Domestic Auto Mfgs. seeking bailouts.
Potential Buyer of WaMu demanding Govt. loans to facilitate deal.
Lowest Housing starts in SIX decades.
Credit default swaps totaling tens of trillions only now coming Front and Center.
Nationalization of all bad debt, from credit cards to student loans to auto loans to mortgages, swept out of corrupt banks and laid upon citizens children and grandchildren, reducing US living standards for generations to come.
Websites say Greenspan is spilling the beans and plea bargaining regarding BILLIONS stolen from Iraq and paid to President of Spain and others in Italy ( Vatican?)
CIA proprietary accounts used for Payoffs. Supposedly identified by Greenspan.
BBC investigating missing billions in Iraq.
Don't forget the 2T or so missing from the Pentagon budget.
Greenspan fingers Bush and Clinton?
For years the US has been "Exporting" it's Toxic Financial Trash bringing the world to the brink of systemic collapse. The rumor we reported a month ago is likely true, " decisions have been made US is too big to fail".
Today the Chi Coms issued an International statement to the effect, paraphrasing, " The world can not afford to follow the US example of corrupt financial dealings" (in diplomatic language of course).
The action right now is in D.C. and whatever is happening is in secret meetings we have not yet penetrated.
It appears that after Bush fights the NEW with his last breath he has decided to bet the worlds' last breath also as we always heard he would.
As the politicians get their Long Over due exposure and expulsion it is not surprising they will do anything to preserve their corrupt Fiefdoms.
As we have said before the Congress is a Whorehouse working for a small group of Elites who have captured and ransacked our Govt. for their personal benefit laying waste to all they touch, from War to Border security, from the currency to the banks, to Wallstreet , to budget deficits Skyrocketing and Govt.. liabilities totaling 50T BEFORE Paulson gets stared bailing out his buddies at our expense.
Never again will the US be able to point a finger at Castro or Chavez or Morales or any ten horned socialist dictator.
The great experiment has ended UNLESS WE HAVE DELS AND ANNOUNCEMENTS IMMEDIATELY.
casper
ps: Urgent Update 8PM Monday night:
The banks have been ordered to del. tomorrow or our allies who control the supply of money, will close ALL Banks in the U.S.
We also hear the 700B Bailout is Toast.
The above is dependable Intel and delvs. tomorrow are likely to result in announcements tomorrow night.
http://www.fourwinds10.com/siterun_data/nesara/news/news.php?q=1222135634
...Flying Moose(cmkx-treme)
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Reply with quote | #51 |
----- Original Message ----- From: AF Sent: Wednesday, October 08, 2008 7:10 PM Subject: Hi Patrick, could you please post this message. I am trying to rally support related to "The Packages." A MESSAGE OF FREEDOM TO CMKX SHAREHOLDERS An interesting perspective…
…just for your own benefit. Take it or leave it, but it is an approach that not everyone has considered.
Yes, there was a massive sting on CMKX. Yes, there is a massive naked short on the stock. Yes, intel agencies were brought in to address the issues related to this stock. Yes, there is massive valuation in the claims. Yes, there is a government settlement for the naked short, which has been delayed several times and never once for a reason benefiting the shareholders.
What is the catch?
The elites want our claims and the mafia wants our payout – plain and simple. Ask yourself, has there ever been one major natural resource find in the last 100 years that when the dust settled, the same elites did not control it – irrespective of what country it was in? Has there ever been a large amount of money put into the hands of average citizens that was not attacked by the mafia? Didn't’ you see Patrick Byrne’s statements that he had over 8000 emails from White Knights within the brokerage firms exposing the brokerage houses in communication with the major media in communication with the mafia to manipulate and control and steal out of Wall Street? What on earth makes us so arrogant or foolishly hopeful that we are the one exception in history to have beaten a seemingly timeless foe who has raped, murdered and plundered, without accountability, for centuries?
I am not going to go into praising or impugning the actions and the character of each of the individual people involved with CMKX, but know that as shareholders, we have the rights to something very big, that many very powerful, greedy and evil people want who will stop at nothing to get it. I find it interesting that Buffett and Gates showed up in Canada recently to look at our claims. I note it funny that the media, a common tool of the elites, have presented to us almost as many media “pumps” for disinformation (from “the trucks are rolling” to the latest “Forte al a Corne” Video and Shore Gold) as there are still pumpers and bashers in the rooms still telling us that the stock and the claims are worthless and that Urban is a crook. Why both? Control both sides of the information stream and you control what people will know – plain and simple.
That is another issue. Why was Urban chased off? How can this man be the deliverer of all these valuable claims to the shareholders and yet, you have Tyler informing us he is a crook, that he and his associates stole everything, at the same time, they are basically ignoring the naked short issue? Mark Faulk could not even answer Ines’ simple question as to the real status of the cert pull. Why? Because he is clearly covering up the truth. For that matter, do you really think that “The Naked Truth” is nothing more than the latest government cover-up of a massive screwing of the American people? It is nothing more than the latest version of the Warren Commission Report, another document that concealed the government’s evil dealings with the mafia and the murder of one of the only truly patriotic men to be president in this nation. However, this time, the crooks are not getting away with the lies so easy. Now you see the reason that Bush threatened to pass the bailout, or there would be martial law. http://www.youtube.com/watch?v=HaG9d_4zij8 People, Tyler is deceiving you. If not, why wont they tell us the progress on the cert pull? Why won’t they use the $33m judgment as a basis for having real book value and sue the brokers for the naked shorting and manipulation? Why has the SEC refused to stop naked short selling across the boards when they know that at least $13.5b per day is still being counterfeited right out of the country? At that rate, the equal to the entire bailout money would be stolen in a mere 50 days of trading. Tyler is working in cooperation with the SEC, the agency who still openly permits this theft after all that has been revealed? Excuse me, but “No f’ing thank you!” Private lawsuits are working for Overstock. It is long overdue time that we did the same, against the brokerages and the SEC, not the penny pushers they have named. After all, you have Donald Trump and a street bum to sue, who do you sue if you intend to collect? The lawsuits at this stage are just a show, nothing more. If Urban and his pals were so “dirty,” why are they only suing a few people involved and they aren’t they suing Glenn, Edwards & Angells, all the partners of Edwards & Angells, as well as Maheu’s estate? Why have they dropped the term “naked shorting” to replace it with the far more benign term, “fail to deliver?” When you are trying to convince a cop that someone robbed you, do yo u say the words, “I was robbed” or that “someone borrowed money from me?” Why hasn’t Tyler pursued, for the past 2 years, the Entourage certs, which would have given the company and then the shareholders, about $14m in value? Where are the dividends we never received with regards to the other stocks we were promised? Why isn’t Tyler protecting our interests regarding that issue? Why does Tyler pretend to know nothing about CIM when in fact, many people have still not even received their CIM dividend – a duty to deliver same which includes Tyler? Why has Tyler, the very same Tyler who has promised transparency and open disclosure, told us why the feds arrived at the October 31, 2004 shareholder party and prevented Urban and the real team from telling the truth about the naked short, the float and the valuation? How about the truth regarding Jeffries letter? Why did Mark Faulk take on a job as a CEO of a company that he stated was worthless and had become a shareholder cult? Why on earth has the company changed over from a Nevada Corporation and they have gone to Texas, becoming an entirely different company, and not issued new shares to you from the Texas Corporation, as well as an assignment letter from the Nevada Corporation, giving the new Texas Corporation all the rights, interests and titles that the Nevada Corporation once possessed? Do you know that absent an assignment, and the issuance of new shares, you have zilch rights to the old CMKX and i ts’ assets? The Texas CMKX is a nothing. The question is “why?” People, Bud Burrell said it best – the shareholders need organization. If we continue to sit and wait, letting the people that the other side brought in to be our quarterback to do anything of substance, then we are history and you will get just what Tyler revealed to one source, less than .10 on every dollar you invested. We need some life in the shareholders, not ongoing complacency. We need action, not sleep. We need independent thinking, not blind faith in following the many paid shills on the boards who have been sent here to distract you and aid in the theft. Please, we need each other if we are to win. Do not trust any of those entities conveniently put in place to help us who were sent here by the bad guys in the first place. Do not trust these boards. Do not trust the pumpers, the bashers or the people who claim to be gurus with so much information about a payout that has never once come true, especially if they don’t reveal to you specifically where the information came from. Time has proven the contents of this letter I have written to you to be accurate. If not, ask yourself why we should have been paid in June of 2006 and to this date, we have nothing. Open you minds people. This has been a mind-screw on us all, to manipulate us all into inaction and blindly trusting people who you never even met. You need to awaken and start shaking the trees, or the fruit will never fall. You have trusted corporate officers and board members who have admitted criminal backgrounds. Does that not concern you just a little bit that the fate of hundreds of billions of dollars is allegedly in the hands of these people? Watch and see, the paid shills will attack the contents of this message, or more likely, the messenger. They cannot help themselves – it is their job and they must continue to manipulate you. Read this post very carefully, paying special attention to the merits of what I say, not the personal attacks of people who have been paid to lie to you. If I were not correct, if my comments were not logical and true, then how could I have predicted their attacks to happen? Note, the attackers will be many of the same people who have played the guru roles or new posters. My, what a coincidence indeed. http://www.fourwinds10.com/siterun_data/government/banking_and_taxation_irs_and_insurance/social_security/news.php?q=1223518029
...Flying Moose(cmkxunofficial)
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Reply with quote | #53 |
OUR LAWYER
hawkeye1
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***Letter From A. Clifton Hodges to...
« Thread Started Yesterday at 9:09pm »
http://www.wallstreet-online.deimg.walls....e-news-bei-cmkm
Chairman West, CEO Faulk, Attorney Frizzell
« Thread Started Today at 7:33am » Quote: Chairman Kevin West, CEO Mark Faulk, and Attorney Bill Frizzell, There are strong growths, there are great strengths, and there are tremendous values associated with CMKX. 40,000 plus Shareholders with tremendous values and in great strengths, are growing stronger in determination to make it right for all Legal CMKX Shareholders, Bona fide and Not Bona fide. We appreciate your assistance and contributions to help make it right for all Legal CMKX Stockholders. Attorney Bill Frizzell…you stated before you accepted the position as CMKM Diamonds Attorney. “I have never seen a case with so much at stake where there has never been one word of negotiating a settlement.” What happened with the NSS/FTD Negotiated Settlement Fund for The CMKX Legal Shareholders held by the DTCC? Why did you divulge to the attorneys representing a CMKX shareholder that shareholders are to receive compensation, yet you conveyed the opposite to the rest of the CMKX Shareholders? Why did your staff assisting The Task Force confirm funds were collected during the cert pull, yet you conveyed the opposite to the rest of the CMKX Shareholders? If there are no known compensation funds for CMKX Shareholders as stated several times in the company updates, then how did trillions of naked shorted shares become legal without payment and without compensation? How huge is/was the NSS/FTD? (The known last count to date since you do not have all of the count). Why were the traders responsible for the CMKX “Fails To Deliver” informed that the CMKX Stocks were oversold 9 times the authorized Outstanding Shares when the Cert Pull was initially requested? The E*TRADE Situation… The DTCC Position Report, dated April 16, 2006, indicates E*TRADE’s FTD were 38,594 Shares. On May 15, 2006 a top E*TRADE Executive visited the Task Force. CEO Mark Faulk conveyed during the CEO Update Radio Show the E*TRADE Executive did this for closure. Why would E*TRADE go through the trouble and expense of sending a top executive from E*TRADE to meet with the Task Force for closure of 38,594 CMKX Shares with the last annotated average trade value of $0.0001 per share, $3.86? Did the E*TRADE Executive negotiate, tried to negotiate, or made a settlement offer at any time? Attorney Bill Frizzell you also stated… “As we worked to compile these numbers we saw an increasing number of summaries that were not being reported on the NOBO/OBO list. We soon learned that our NOBO list does not include stocks, which have been sold through most overseas brokers. We have also learned that most Canadian brokerage houses have shares that are not represented in the OBO list. This stock has traded in 64 countries around the world. When you add the shares, which are being represented by electronic entries in foreign countries, our total of outstanding shares will approach one trillion shares. The NOBO list tells us there are 52,676 accounts in various brokerage institutions that report to the NOBO service. Our figures are a tally of only 10,500 of those accounts at the brokerage houses. The true tally of shares in the market place will not be known until we add the remaining 42,000 accounts owned by CMKM shareholders that have not yet responded to our request. We ask this Court to consider that revocation of this stock may have more to do with the naked shorted shares than a concern over late filings. This may explain what I perceive to be a rush to judgment. I have never seen a case with so much at stake where there has never been one word of negotiating a settlement.” NSS/FTD confirmation update … Attorney Bill Frizzell (during Task Force Representative) June 1, 2006 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 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. .” Confirmation of CMKX Shareholders were the victims of THE LARGEST NAKED SHORT IN HISTORY… CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Subject: File No. S7-08-08 From: A. Clifton Hodges, Esq. Affiliation: Attorney March 27, 2008 http://www.sec.gov/comments/s7-08-08/s70808-151.htm To The SEC Commission and Financial Industry at Large: Naked shorts in the United States = "counterfeit shares." The case of CMKX represents the greatest "counterfeit shares" fraud in the UNITED STATES. CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stockholder pull physical stock certificates out of brokerages, and out of street name, to trap those whom had committed fraud. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES" Naked short selling is a case of short selling the shares without first arranging a borrow. The Securities Exchange Act of 1934 stipulates a settlement period up to three business days before a stock needs to be delivered, generally referred to as "T+3 delivery". The SECs public position as of the Spring of 2005 was that naked shorting did not exist. With enactment of Regulation SHO, the subsequent elimination of the SHO grandfather exemption, and now the promulgation of this rule, the SEC has finally admitted the error of its ways. The Depository Trust and Clearing Corporation has also been criticized for its approach to naked short selling. DTCC has been sued with regard to its alleged participation in naked short selling, and the issue of DTCC's possible involvement has been taken up by Senator Robert Bennett and discussed by the NASAA and in articles -- disagreed with by DTCC -- in the Wall Street Journal and Euromoney Magazine. Robert J. Shapiro, former undersecretary of commerce for economic affairs, has, however, found that naked short selling has cost investors $100 billion and driven 1,000 companies into the ground. Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns. It is in fact, institutional fraud further, counterfeiting of securities is a crime of U.S. Constitutional magnitude. This criminal conduct, once asserted by the SEC not to exist, has destroyed many, many companies, lives and opportunities. But now the word is out on naked shorting it must be stopped, and all whom conspired put in jail. This naked shorting fraud rule must be passed - NOW. Sincerely, A. Clifton Hodges� http://ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read=800974...F;ying Moose(cmkx-treme) |
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Reply with quote | #54 |
EXPOSURE OF A BUSH SR. OPERATION TO STEAL $12.8 BILLION
We will now explain in detail how these Fed arrests came to pass, and how the trail exposes an operation masterminded by George Bush Sr. to steal $12.8 billion, which we believe was targeted to provide the Bush ‘Black’ operatives and associates with funds to replenish a depleted ‘bribery pot’ needed, even at this late stage, to corrupt bankers and others at home and abroad.
Specifically, a California-based shareholder of outstanding shares of CMKM Diamonds, Inc. (a Nevada-based corporation traded on the OTC market as CMKX) exposed to us on 18th January 2009 the involvement of a Mr William A Frazell, of Attorneys Frazell & Mosley PLL (Austin, TX), Mr Kevin West (the Chief Executive Officer of CMKX) and Mr Urban Casavant, of Casavant Mining Kimberlite International, in connection with the receipt of over $12 billion being the proceeds of a settlement with CMKM/CMKX, known to the Securities and Exchange Commission following a lawsuit concerning ‘naked short-selling activities’.
The California-based shareholder, who is an Attorney, advised us that CMKM/CMKX was very recently ‘converted out’ from Nevada and moved to Tyler, Texas – a corporate move of which the outstanding registered shareholders, who own more than 800 billion shares, were never legally informed. As noted, the source is a holder of outstanding shares in the Nevada-based corporation.
Our sources confirm that Attorney Frazell, acting for and on behalf of CMKM/CMKX, paid a certain shareholder a sum of money equivalent to $0.02 (two cents in the dollar) per share and that the shareholder was made to sign a non-disclosure document demanded by Attorney Frazell, which allegedly denies any information to the remaining outstanding shareholders.
Non-disclosure documents are essentially illegal and are of no effect, rendering the transaction itself null and void (which is the case anyway, as the payout is fraudulent).
Consequent upon this operation, we were advised that $12.8 billion of Settlement funds are or were initially missing and unaccounted for, while the Attorney, W. A. Frazell, was not cooperating with the other shareholders in any attempt to identify the location of these missing funds. On 20th January 2009, it was confirmed that 639 billion shares were paid out at a price of $0.02 per share, equating to a total payout of $12,780,000,000.
The significance of this detail is that, in an earlier conversation with the authorities, the city of Tyler, Texas had only recently been mentioned in the context of the release of ‘settlement funds’, and in the context of known activities of Bush Sr. associates in Dallas, Austin, and Crawford County, Texas and the relevant background involving Delmarva Timber Trust et al.
The 639 billion shares that were sold short were sold WITH the knowledge of the Securities and Exchange Commission. Under the relevant lawsuit concluded in late 2007, settlement funds were to be paid out to all holders of outstanding CMKM/CMKX shares.
Instead of which Attorney Wiliam A. Frazell is reported to us to have taken receipt of the full $12.8 billion in a sham operation in which he signed off illegally on a settlement of $0.02 per share without informing the shareholders. We are advised that these funds were channnelled to the control of a member of the Bush Crime Family operating in Canada.
Specifically, at the direction of George H. W. Bush Sr., these funds were shifted under pretext of a settlement with the knowledge of the SEC from someone else’s account, in typical accordance with the standard Ponzi Scheme model.
The Tyler, TX, Police had to respond immediately because Attorney Frazell had allegedly been contacted by a CMKM Diamonds, Inc. shareholder who happened to be a former agent for the Internal Revenue Service.
The former IRS agent notified Attorney Frazell that the funds had been collected and held by the Despository Trust Clearing Corporation (DTCC) (according to the DTCC), whereupon the former IRS agent was offered a settlement by Frazell; and the non-disclosure document (which is null and void in practice, as the agent will have known) was signed. This information was incorporated with the police complaint report furnished to the Chief of Police in Tyler, Texas.
The DTCC are reported to have separately confirmed that they were and still are, holding funds for the settlement in question.
The Chief of Police in Tyler, TX, was actually notified of this theft/diversion on 22nd January, when documents were submitted to the local police for the purposes of investigation and making the necessary arrests.
• It was as a direct consequence of these developments that Robert Armenta and Christopher J. McMurdy of the Federal Reserve Bank of New York, were arrested on 23rd January.
BUSH SR. ET AL. GRASPING AT EVERY OPPORTUNITY TO STEAL FUNDS
This sequence of events confirms the first proven instance in which a crossover has been verified between the issue of the mishandling of the Refunding and Settlement funds and (in this instance), an entity such as CMKM/CMKX – a linkage which expert analysts inform us means that Bush Sr. and his associates are desperately exploiting every human asset at their disposal (or who can still be bribed), to locate funds that can then be stolen.
This in turn raises yet again the issue: are these former US Presidents gods who have earned carte blanche, buttressed by bribery, to continue pillaging and conducting financial terrorist operations against fellow Americans and the Rest of the World until they die? Are these people – the Bushes, former President Clinton, Cheney, Paulson, Bernanke, Greenspan et al. – considered to be the equivalent of ancient Greek Immortals?
As far as we can tell, they possess two wrists each, both of which can be cuffed with ease. So what is the problem? As previously requested, sane Americans, and the Rest of the World, would like an immediate answer to this question, before, as these criminal terrorists intend, we all go to hell. The Daily Telegraph, London, displayed warnings that Britain is on the edge of DEPRESSION, on its front page for 24th January 2008. We aren’t on the edge of it: we’re in it: and the reason for this is that London has been used as the primary platform by Bush-Blair for the derivatives hypothecation Ponzi scamming orgy.
http://www.worldreports.org/news/187_25_or_99_years_jail_for_arrested_frbny_officia l
...Flying Moose(cmkx-treme)
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Reply with quote | #55 |
Great post....I just dug up this CMKX saga summery...What a web we weave...
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Re: gossip column 4/30
« Reply #7 Today at 11:37am »
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ty soonerlew
I don’t think there is any question that the SEC knew ALL ABOUT CMKX in 2004...UCAD was halted right before the party in the fall of 04 so we KNOW they were heavily involved even before that...the question remains WHY did they not stop trading in CMKX then and protect shareholders...and WHY is RG and others not mentioned in the latest filings...it is CLEAR to me what happened...what is not CLEAR is when this will end and the way it will be ENDED…
In the beginning
* CMKM Diamonds was incorporated in Delaware in 1998 as Cyber Mark International Corp
* In April 2002, Cyber Mark changed its corporate domicile to Nevada.
* On November 25, 2002, Cyber Mark agreed to acquire certain mineral claims held by five companies owned by the family of Urban Casavant (Casavant) in exchange for $2 million and almost 3 billion shares of Cyber Mark restricted common stock with registration rights.
* Prior to his resignation on November 25, 2002, Cyber Mark’s sole director appointed Casavant sole director, president, and chief executive officer.
* On November 26, 2002, Casavant appointed his wife, Carolyn Casavant, as vice president of claims, his son, Wesley Casavant, age twenty-two, to the position of corporate treasurer, and his daughter, Cindy Casavant, to the position of corporate secretary.
* On December 3, 2002, the company changed its corporate name to Casavant Mining Kimberlite International.
* In February 2004, it changed its name to CMKM Diamonds.
* In the most recent information it has provided to the public through a periodic filing, a Form 10-QSB for the quarter ending September 30, 2002, CMKM Diamonds reported total assets of $344.00, all in cash, and total liabilities of $1,672.00.
* Casavant currently is the president, chief executive officer, and co-chair of CMKM Diamonds’s two-person board of directors.
* Casavant and his wife have signatory authority on CMKM Diamonds’s bank accounts.
* CMKM Diamonds has failed to file annual reports for its fiscal years ended December 31, 2002, 2003, and 2004.
* On March 31, 2003, the company filed a request for an extension of time to file its annual report for the year ended December 31, 2002, because it had not yet completed its financial statements.
* Despite having not filed an annual report for 2002, CMKM Diamonds erroneously represented in this filing that it had filed all required reports for the preceding twelve months.
* On July 22, 2003, CMKM Diamonds filed a Form 15, signed by Casavant, pursuant to Exchange Act Rule 12g-4, in which it certified that it had approximately 300 shareholders of record as of that date.
* IM appears on several of JE’s trust documents provided to NevWest as part of the new account documentation. During relevant times to the complaint, IM was the former President, director and shareholder of CMKM, and IM also acted as the Registered Agent on behalf of CMKM.
Profile
StockP Posted: 30 April 2008 03:50 PM
Master
Total Posts 140
Joined 2007-07-26 Before the hearing
* John Edwards opened 32 accounts at NevWest and sold more than 250 billion shares of a sub-penny stock, which generated total sales proceeds of over $53 million. NASD alleged that NevWest earned commission revenue on the sales totaling $2.5 million—36 percent of the firm’s total revenues during the relevant period.
* CMKM opened 100 bank accounts of which 64 million dollars passed through at Silver State Bank
* 703 billion o/s
* Authorized Shares increased from less than 1 billion to 800 billion
* Outstanding Shares increased from less than 1 billion to 779 billion
* 600 billion in dilution in the year 2004
* 407 billion in Cede and Co. as of March 2005
* Ameritrade holds 180 billion shares of CMKX for its clients
* Was told we would be pleasantly surprised by O/S and made to believe it was under 400 billion. Melvin on the air denies that the O/S is over 400 Billion after TA fiasco
* CMKX Transfer Agent gagged per direction of the UC
* UC gave shares in a deal but issued himself those shares just prior to announcement
* 16.5 billion shares buyback and the o/s never decreased and after the PR the o/s doubled
* Refuses to give investors basic information on company
* Refuses to give share structure
* CMKX trading unregistered shares in SASK, trading halted there
* SASK inquiry into CMKX valuations ignored
* CMKX partner USCA under investigation by the SASK
* No revenue stream from company operations
* Repeated claims of being close to reporting when in fact no attempt had been made
* Claims in Canada for mineral rights, made to believe 100’s of holes drilled. but only 15
* claimed buybacks yet O/S raised after each claim
* Goldak would not sign off on the PR of the TDEM survey because the PR was misleading.
* UC buys a 3.5 million dollar property, motor-home, hummer, boat, likes to gamble, likes to race funny cars while shareholders value decreases
* UC at race track almost every weekend
* Spent investors money to sponsor motorcycle and drag racing
* Advertises stock instead of company, Got CMKX
* Voids in records
* UC says he doesn’t know how to run a public company
* UC blames others for mismanagement
* SEC investigation and temporary halt
* Lied on form 15 more then 100% off (claimed under 300, had 689)
* Lied on SEC documents about the Address and tried to cover it up
During the hearing
* Judge ruled that NS is not going to be admitted into evidence because company did not claim it was a factor in not filing
* She asked SEC if they think CMKX has NS and the SEC said no
* When asked by the SEC, TA stated there was no record of CMKX management inquiring into the number of shareholders in July 2003
* RG was paid $250,000 and one page report was presented
* Urban shows up with his own personal lawyer
* Urban invokes his 5th Amendment right to not answer any/all questions asked by the SEC attorneys (12 minutes of “I take the 5th")
* Maheu testifies he was not aware of the problems the new accountant and attorney were having in receiving documentation from Urban to get filings completed.
* Maheu can’t answer question on companies operations
* We find out Urban runs CMKX from his house, not the company PR’d new offices in Las Vegas
* Maheu paid $40,000 a month. Has been paid for 2 months pay even though he has been there 4 months and Judge makes joke about the amount he is paid
* Accountants: all quit after frustration in not being able to do their jobs. Current accountant, Neil Levine, resigns on May 9th one day before the hearing
* Rendal Williams (CEO of UCAD & 50/50 partner with CMKX) has a “failing memory” when questioned on the stand, he appearingly is distancing himself from CMKX/Urban Casavant
* Dhonau met UC at the slot machines
* Carolyn Casavant wrote checks against the company account although she is not an officer of the company, explanation given to the court “that’s what wife’s do.”
* Current financial status, over $30 million in debt
*Judge says this is a filing issue
* Has till 29th of June for rebuttals and decision will be by July 15th
Profile
StockP Posted: 30 April 2008 03:51 PM
Master
Total Posts 140
Joined 2007-07-26 After the hearing
* Two .011 micron size diamonds
* Only 15 holes drilled, nothing found in any except in one hole see above
* Drilling report says to give it up people.
* Company issued PR that 100’s of anomalies found from goldak fly over yet 8K states 16 from goldak fly over & some of them may not be worth drilling
* Refuses to give investors basic information on company.
* Refuses to give share structure
* Auditor files 10-A letter for possible illegal activities with CMKXtreme, deals, and loans to officers. It was illegal that the company did not keep records
* Bill issues a Shareholder Derivative Letter
* UC can’t afford to sponsor Arends car anymore
* Frizzell working on proving NS
* Revoked by the SEC
* UC refuses to let the shareholders know whats going on or give any reinsurances.
After the Appeal was dropped/Cert Pull
* Entourage deal for 45 million shares to be distributed to bonafide shareholders
* Cert Pull was announced before you can get your Entourage distribution
* 8-K states due to lack of funds that they have defaulted on claims (United Carina, 101047025 Saskatchewan Ltd. (“1010”), and American Shaft)
* 8-K states Maheu resigns and UC will resign due to health reasons after distribution
* Task Force formed with Maheu, Stoecklien, and Frizzell
* 1st Corp. Update - As CMKM is effectively a non-operational company holding only the Entourage shares and intangible assets
* 2nd Corp. Update - The Task Force was formed solely for the purpose of establishing a Distribution Plan and supervising the distribution of the Entourage shares and other assets of CMKM, if any. The Task Force will not be conducting any due diligence to determine the validity of any other potential assets of CMKM other than those stated above.
* And - The Task Force has been apprised of the significant rumors pertaining to the receipt of funds and erroneous agreements reached with brokerage firms short in CMKM’s stock. Other than the funds received from Casavant to pay for certain of the costs associated with the Task Force’s operations, there have been no funds received from brokers/dealers or any other sources
* Stoecklien no longer represents CMKX
* We find out that CIM lost it zinc claims and as of now is in Default in Nevada
* Lawsuit against UC, CMKM, and CMKXtreme for unpaid bills
After the Cert Pull
* Stoecklien and the TF recommends and interplead
* Stoecklien and Maheu resign the Task Force and no longer has any involvement in CMKM.
* Was understanding that a PR was to be released in a week which never happened.
* Bill Frizzell no longer represents shareholders and doesn’t no anything more then us.
* TF is dissolved
Profile
StockP Posted: 30 April 2008 03:51 PM
Master
Total Posts 140
Joined 2007-07-26 * 18 months after the last update from UC he issues a PR stating an interplead and new CEO.
* Kevin West is named interim CEO.
* NevWest was charge for Money Laundering with John Edwards as the client funneling shares through numerous companies.
* Company still refuses to communicate with shareholders
* UC refuses to testify at his own civil trial taking the 5th yet again
* After a phone calls to Moron the Company was forced to issue a PR in Dec. 06. Company wants shareholders to stop calling Moran’s office.
* The Company met with their corporate attorney, John T. Moran III of the Moran Law Firm, to discuss the status of interpleader to be filed with the Federal Court as discussed in the PR of 8-28-06. The Company was informed that the pleadings are almost complete, however, Attorney Moran was made aware of and discovered additional Company information that dictated further investigation and due diligence that needed to be performed by all of the attorneys involved before the document can be completed.
* Kevin West, interim CEO seems to be nothing more then a IR person to answer phone calls
* Company promises to write a PR once a month to keep shares informed of interplead.
* Kevin claims Interplead is treading on new grounds and that is for the delay.
* In telephone calls, Kevin tells each shareholder that called there is no settlement, that the Interplead is all that is happening at the moment.
* Interplead has been postponed again. And it looks like it is to the magic statue of limitation date.
* Gene Hurd files a lawsuit in federal court before the 2 year statute of limitation date against CMKM Diamonds, Inc., Urban Casavant, Robert Maheu, David DeSormeau, Rupert Perrin, Carolyn Casavant, Wesley, Casavant, Cindy Casavant, and 50 roes and 50 does.
* Bill Frizzell issues a second Shareholder Derivative Letter
* Bill Frizzell files suit against DeSormeau, Edwards and 50 Does and 50 Roe Corporations
Urban Retires and Turns over Company to Kevin West
* Kevin learned the truth about Urban and has been talking to Bill Frizzell on what to do.
* Kevin takes over CMKM as Urban Casavant issues a PR of his resignation.
* Kevin receive several boxes of information from an attorney in Canada about CMKM which leads to a lawsuit against Urban Casavant.
* Kevin West Hires Frizzell Law Firm.
* The Frizzell Law firm has hired Las Vegas attorney George Cromer as local counsel to file these first two lawsuits on behalf of the Company. Los Angeles attorney, Al Hodges, will be assisting the legal team as it proceeds.
* Bill Frizzell files suit against DeSormeau, Edwards and 50 Does and 50 Roe Corporations
* Kevin west announces that they are moving the corporation from Nevada to Texas and converts out of Nevada.
* The company instructs 1st Global to stop further transfer or issuance of CMKM Diamonds, Inc. stock effective immediately.
* The Company has instructed the law offices of Moran and Associates to cease any and all legal work on behalf of CMKM Diamonds until further notice.
* The As of March 29th 2007, the Company had 3 pending lawsuits, a Wells Notice from the SEC that was supposed to have been answered by March 9, 2007 (of which current management was totally unaware, until an official at the SEC contacted them on 4-10-07), and ongoing investigations by at least four government agencies. In addition there is documentation showing the forfeiture of all claims and mineral rights, no corporate records for the past 4 ½ years of business and taxes that have never been filed. The only tangible asset is a 45 million share certificate of Entourage Mining stock.
* Company only has $558.00 left out of approximately $200 million from the sell of CMKM shares.
* A lawsuit was filed naming Urban Casavant, The UAJC 2005 irrevocable trust, Mike Williams, DeShawn L. Wayne, Brian Dvorak, James Kinney, Ginger Gutierrez, P.A. holdings, Bucko LLC, 20 does and 20 roes.
* Susanne Trimbath has agreed to help the Company in our efforts to determine “fails to deliver” in our stock.
* CMKM Attorney David Koch files a Temporary Restraining Order against several trust and properties related to those involved with CMKM.
* CMKM Diamonds, Inc. has engaged the accounting firm of Henry & Peters, P.C. with a certified fraud examiner.
http://www.cmkxunplugged.com/forum/showthread.php?t=112
Flying Moose(cmkx-treme)
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Reply with quote | #57 |
CMKX Shareholders: The Stand
« Thread Started Yesterday at 3:29pm » |  Quote: " border="0"> ![[Modify]](http://s4.images.proboards.com/buttons/modify.gif) ![[Delete]](http://s4.images.proboards.com/buttons/delete.gif) |
All Legal CMKX Shareholders: Where do we stand August 2009? …
CMKM Diamonds:
A Case of Stands Still and Still Stands as the Stock of a Lifetime?
CMKM Diamonds still continues to operate as a $588 Business Enigma in Tyler Texas…
CMKM Diamonds Legal Shareholders, victims of the Largest Naked Shorted Stock in the History of the Stock Market are still Uniformed and still Uncompensated…
CMKM Diamonds Claims and Findings still Underground and still Underwraps…
CMKM Diamonds still a Controlled Information Abyss by Government Agencies…
CMKM Diamonds…A Case of a being STUNG by a STING…? A Case of pushing SCAM to make Shareholders SCRAM…?
Taking The Stand
Do I believe a Sting-type operation took place using CMKX?...YES!
Do I believe Legal CMKX Shareholders will be compensated?...YES!
Do I believe in Bud Burrell’s assessment that a component of a Sting occurred?…YES!
Do I agree with Mark Faulk’s assessment that a Sting operation did occur before Mark Faulk’s swift back stroke of his writer’s pen, an unexpected writer’s block?…YES!
The Sting Definitions
To cheat or overcharge.
A complicated confidence game planned and executed with great care, especially an operation organized and implemented by undercover agents to apprehend criminals.
To persuade a person to buy worthless property.
A mental pain or distress.
http://www.answers.com/topic/sting
The Evidence
Top BILLing…
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.”
CFRN Investigates:
Interview with Bud Burrell
Dwayne: Good morning. Today is Thursday December the 1st, 2005. And once again we are conducting a special edition of CFRN Investigates as we continue to investigate the allegations of fraud on Wall Street via naked short selling and counterfeit shares. We have with us again today as our guest industry consultant and expert Mr. Bud Burrell…
…D: … is CMKX a sting operation?
BB: I believe that there’s a component of what was going on with CMKX…Casavant stumbled into a major asset find in Saskatchewan…I smelled an asset raid. Many of the so-called naked short bankruptcies were created with the specific intention of trying to strip out a valuable asset from the hands of parties who controlled it through these small public companies
…D: …can you comment on Robert Maheu’s involvement?
BB: I do not know Mr. Maheu personally, but he and I am one step away from mutual friends …He is a lifelong operator. I think his integrity is without question…I don’t believe he’s gone anywhere he wasn’t sent. It’s interesting. He entered the transaction after CITI-Group had one of their lawyers look into the company. I think they found substantial assets. I think what happened is that this panicked some of the major shorts in the stock. And there was too much seller boxing. That’s a term used to describe when the stock trades at .0001. … But it trades enormous volume there… And the bottom line is seller boxing to me is a principle signal of an attempt by someone to cause the change in control of an asset.
D: It’s also an easy way for somebody to double their money on every transaction.
BB: That’s correct. Mostly the people trying to do it, who aren’t part of the market maker clearing- house system, are blocked from being allowed to participate.
D: Okay. What can an investor do to protect himself or herself?
BB: Take delivery of your certificates…Demand delivery. …The certificate is what everybody understands. If you can’t get the certificate, demand a written explanation from the broker… let him know that you’re going to hold him liable for any failure to deliver that cert.
D: Now are you familiar with the Nevada Strike Force story and its connection to CMKX?
BB… I can’t talk about what I’m involved. I provided information to the Strike Force.
What’s At Stake
Substantial Assets?…
Location with Great Expectations…Location is King!
Saskatchewan “Premier Lorne Calvert and Industry and Resources Minister Eric Cline today met with U.S. Vice-President thingy Cheney in Washington D.C. as part of a seven-day economic mission to the United States. The Premier used the meeting to highlight the important role Saskatchewan plays as a secure and reliable energy supplier to the United States. “By raising awareness of Saskatchewan’s vibrant uranium and crude oil industries among top American officials we’re confident of attracting further U.S. investment in those important sectors,” Calvert said…. “The new U.S. Energy Policy Act and President Bush’s recent State of the Union address both present exciting new possibilities for U.S.-Saskatchewan co-operation and collaboration across the energy spectrum,” Cline said. “
Super Deposits..
Large finds in the Athabasca Basin are so rich they are been dubbed “SUPER DEPOSITS”. The Uranium(U3O8) deposits of Saskatchewan are the riches in the world.
CMKM Diamonds was in the picture through Entourage Stock Ownership. Entourage Uranium claims are located on the Eastern side of the Athabasca Basin, 18 miles from Eagle Point, Heart of the Most Prolific Uranium Trend in the Athabassca Basin.
Home of the Uranium Super Deposits.
The Drill…
17 Drill Projects were completed in the Winter 2005/2006 Drilling Projects in the Basin.
2006 Entourage and UCA 50/50 Entourage and UCA (operator) are listed as part of the 17 Drill Projects.
The 54 Asset…
There is that number again. Is this what the number 54 is all about?
In 2004, Casavant drilled core holes located northeast of kilometer 54 of the Division Road in the FalC Forest Reserve based on airborne geophysical anomalies and did not intersect kimberlite. What did he intersect? Why is Shore Gold reporting this in their SEC Filings?
The Bill of Rights…
Bill is Right?
Attorney Bill Frizzell stated in 2007 to the courts,”… CMKM acquired assets that will allow it to return to trading status. Current management plans to restore CMKM to a viable entity....”
“I agreed to do a limited investigation into the value of the mineral estate in the acreage held by our company in Canada. I have had two geologists review the claims area for potential oil and gas benefits. We have all read and heard of the huge value of the Canadian tar sands and the many areas of Canada that are being heavily explored for oil and gas. I am mindful of rumors regarding interest in the oil exploration possibilities. I have heard there were major oil companies interested in the oil rights in our claim area.”
The SEC Filings The SEC Website has documents conveying several facts from legal documents, which allude to a Sting operation in progress.
Was a Sting setup by ex-S.E.C. Attorney and Sarbanes Oxley Expert, Roger Glenn, continued by Federal Attorneys from Stoecklein Law Institute, and Robert Maheu of Global Intelligence?
CMKM Diamonds (CMKX) held claims to vast areas of some of the World’s most lucrative mineral deposits. CMKX was brazenly turned into a minefield by hedge funds, competitors, MMs, and brokerage firms trying to short the company into bankruptcy and ultimately carving up the spoils amongst themselves.
Fortunately for shareholders, CMKX was used as the vehicle to deliver Stoecklein and Maheu to the perpetrators. The information from the S.E.C. files gathered from their website, forms a picture of a possible Sting-type operation. Donald J. Stoecklein (Stoecklein), current counsel for CMKM Diamonds, owns the Securities Law Institute in Las Vegas, Nevada, which assists approximately forty-two public companies in their periodic reporting obligations, including CMKM Diamonds. (Tr. 315-16.) Donald Stoecklein and Debbie Amigone, from Stoecklein Security Law Institute, contributed comments and recommendations to Jonathan Katz, Secretary of Security Exchange Commission, on The Final Rule, which covers investor protection, naked shorting, SHO, shell company mergers and reporting.
Robert Maheu (Maheu) has known Stoecklein for a number of years and is part of a team assembled by Stoecklein, which Maheu believes will clear up past mistakes and will result in compliance going forward. (Tr. 285-86, 296.) Maheu set up the Small Defense Plant Administration fifty years ago, and later the Small Business Administration. (Tr. 285, 287.) .
What part does Debbie Amigone have in this picture? Was the Sting Operation almost uncovered by a shareholder? In February 2005, Debbie Amigone was one of Stoecklein’s employees working on CMKM Diamonds’ matters. (Tr. 163.) On March 4, 2005, CMKM Diamonds announced that, effective March 1, 2005; it had relocated its executive offices to 5375 Procyon Street, Suite 101, Las Vegas, Nevada. (Div. Ex. 53.) However, as of April 6, 2005, this address was occupied only by a “hot rod” shop. (Div. Ex. 55.) “Debbie” at the Securities Law Institute, which is owned by CMKM Diamond’s counsel, reported in an e-mail sent on April 6, 2005, that a shareholder had visited the site, discovered this fact, and reported it on the company’s Web site. “Debbie” advised that “You might want to call Urban [Casavant] or Michael and have them ‘move in’ and talk to the owner of the hot rod shop and also tell Andy what to tell shareholders when they call.” (Div. Ex. 55.)
Stoecklein also owns Opus Pointe, which is an accounting and bookkeeping company and a division of the Securities Law Institute. (Tr. 167, 326-27.) SEC documents stated that Opus Point and the Securities Law Institute are working on CMKM Diamond matters and an employee of each firm testified at the public hearing. (Tr. 167, 314.) CMKM Diamonds did not pay Opus Pointe’s retainer; rather, it was paid by the Securities Law Institute. (Tr. 169.). How often does a law firm pay for auditing a client’s books?
The Audit…
Bill Frizzell “…Mr. Edwards has been in attendance at several meetings in which the progress of an audit was being discussed. Notes from the auditor suggest that Mr. Edwards had the complete stock book in his possession in January of this year. Although the shareholders do not know why Mr. Edwards would be in possession of the CMKX stock book, it seems clear there is cause for investigation on behalf of the company as to the propriety of such acts”
Another Hint …
Some of Attorney’s Stoecklein’s other companies besides Opus. Is there a hidden message in the names?
Saveyoutime, Take A Ride, One Move Entertainment, Fun for You.
Too Late Financial, RubiCon ( Rub I Con) Financial, Tell A Tale, Nothing Corp, Postal Holdings.
The Naked Short Count…
A broker document confirms the naked short amount was known before the Certificate Pull. Recall, Urban was the second largest shareholder in a company, CSII, which specialized in monitoring and identifying naked shorting activities.
The Broker Document…
(The document sent to the broker annotates an oversold situation and the multiplier of 9.)
************************************************** **********************
The certificate will be issued in the name of the account, XXXXXXXXX XXXX. Once the shares have been issued, the shares will not be
showing up in your account.
Regarding the compensation settlement, there is actually an ongoing
voluntary tender for this security. The details are below:
Description CMKM DIAMONDS INC
Symbol 125809103
CUSIP 125809103
Offer MUTUAL FUND TENDER
Offer Description PHYSICAL CERTS
Other Offers Available
Offer Dates
Cut-Off Date 12/16/2005 Cut-Off Time 19.00.00
Withdrawal Date Withdrawal Time 00.00.00
Expiration Date 12/31/2005 Expiration Time 17.00.00
Protected Date
Offer Details
Odd Lot Over Subscribe
Minimum Bid Maximum Bid
Increments Multiplier Factor 9
>TO PARTICIPATE IN THE FOLLOWING DISTRIBUTION, HLDRS MUST ENTER TRANSFER
>& SHIP INSTRS NO LATER THAN 12/16/05. ON 10/28/05, ENTOURAGE MINING LTD
>COMPLETED A PRIVATE PLACEMENT, WHICH EFFECTIVELY REMOVED ALL
>CONTINGENCIES FROM THE AGREEMENT OF 10/21/05 BETWEEN ENTOURAGE & CMKM
>DIAMONDS INC. CMKM IS AWAITING RECEIPT OF THE 50,000,000 SHS OF
>ENTOURAGE MINING COMMON STK. CMKM BOARD OF DIRECTORS, HAS RESOLVED TO
>DISTRIBUTE THE 50,000,000 SHS OF ENTOURAGE COMMON STK TO ALL CMKM BONA
>FIDE STOCKHLDRS. IN ORDER TO BE CONSIDERED A BONA FIDE STOCKHLDR OF
>CMKM, A PHYSICAL STOCK CERTIFICATE IS- SUED IN HIS/HER/ITS NAME WILL
>NEED TO BE PRESENTED TO THE DISTRIBUTION TASK FORCE FOR CONFIRMATION ON
>OR BEFORE 12/31/05.TRANSFER AGENT FEE OF $16.50 PER CERTIFICATE PLUS
>ANY APPLICABLE PERSHING TRANSFER & SHIP FEES WILL BE CHARGED. ONCE
>HLDRS RECV CERTIFICATES THEY MUST FAX THEM TO CMKM. //TO HAVE
>CERTIFICATE ISSUED, WIRE CUSTODY DEPT IN SERVICE CENTER OR SEND ADMS
>WIRE TO "PTFR" BY 12/16/05. FOR INFO GO TO http://www.CMKMTASKFORCE.COM
************************************************** *******************
MULTIPLIER
For ordinary short selling, traders must borrow a stock, or determine that the stock can be borrowed. The stock is annotated as shorted until cleared usually T-3 days.
For naked short selling, the trader does not borrow a stock, or does not determine that the stock can be shorted. Since the stock is not annotated as shorted, the stock can be shorted numerous times creating a multiplier effect. Examples...if the same stock is shorted twice, the multiplier effect is 2 times. If the same stock is shorted 9 times, then the multiplier is 9.
There is an article in the link which explains naked shorting and the multiplier effect..
http://www.efinancialnews.com/usedition/content/2451263662/23191
Based on the Broker document information…
A mutual fund tender is being offered at a premium to the market price. The description of the tender offer areEntourage Shares for CMKX Certificate Holders. The tender offer is oversubscribed by 9 times. For each authorized share of CMKX, there are 9 times the amount of CMKX in the market.
In other words, 703.5 Billion Authorized Outstanding Shares multiply by 9 equals 6.3315 Trillion Shares of CMKX.
Therefore, 6.3315 Trillion shares were required to be covered at a premium determined to be the market price, which for a private company is a fair price determined based on the value determined by the company.
John Martin’s Owners Group assisted the Task Force with the cert pull and share count.
The part of the John Martin Letter, which stands out…
“We know we have a huge naked short (835 billion shares, including cert holders, and NOBO lists, and with just 20% of street shares faxed in, leaving 80% not even reporting! This does not begin to mention those who are not included from other countries.) These two things alone can be our winning combination. “
NSS = 835 Billion Shares counted (20%) + 80% of the shares not reported or faxed in yet + other countries.
The Key Player …
Robert Maheu, public records indicate Mr. Maheu held four positions in CMKM Diamonds, plus voluntarily forfeited his $40,000 per month salary …
1. co-Chairman CMKM Board of Directors
2. Head of CMKM Task Force
3. Chairman of the Audit Committee for CMKM
4. Trustee
Statements made by Robert Maheu while serving “with out pay” as co-Chairman on CMKM Diamonds Board of Directors, Head of CMKM Task Force, and Chairman of the Audit Committee for CMKM.
“Solving problems has been my occupation for many years,”
“Tough assignments are not solved by wishful thinking, but rather by tough action.” A new team of securities attorneys has been instructed that their prime assignment is to correct any deficiencies of the past and to cooperate fully with regulatory bodies both in Canada and the United States to minimize the possibility of such deficiencies in the future.”
“Like the SEC, protecting our investors is a primary concern. We have been aggressively gathering the essential information needed to comply with our public disclosure obligations and anticipate working with the SEC to ensure our compliance with all federal regulations,”
“We are not letting these regulatory matters impede our primary focus of creating stockholder value through the mining and development of our mineral assets,”
“When I joined the board one of my prime assignments was to improve corporate compliance. A prime component was to reinstate reporting status, which was efficiently and expeditiously handled by the Stoecklein Law Group,”
“We are extremely appreciative of Stoecklein Law Group’s immediate attention to our needs. I have worked with them in the past and they have always exceeded my expectations,”.
“When I initially took on the assignment of assisting CMKM with its compliance needs, of primary concern was doing the right thing for the stockholders.”
“I am fully committed to protecting the interests of bona fide CMKM stockholders, including if necessary, bringing appropriate federal or state court actions to ensure the appropriate distribution of the Entourage shares is made.”
“We faced a tremendous number of hurdles, including the trading halt, administrative hearing and let down of numerous professionals. However, with the continued commitment of Urban Casavant and diligent professionalism of Stoecklein Law Group, we are trying to overcome the obstacles of the past and look forward into the future towards distributing value to CMKM’s bona fide stockholders.”
“This is a time for the CMKM stockholders to look forward towards the future and forget the past. Working as a united front will allow us to extract all available sources of value for distribution.”
More Key Players…
CMKM SGGM Key Personnel SEC connections:
Roger Glenn was Federal Securities Counsel for CMKM, worked over 19 years with the SEC.
Donald Stoecklein was Federal Securities Counsel for CMKM, from Stoecklein Security Law Institute, provided information to Jonathan Katz, Secretary of Security Exchange Commission, on The Final Rule, which covers investor protection, naked shorting, shell company mergers and reporting. Stoecklein’s input is referenced numerous times in The Final Rule authored by Jonathan Katz.
William B. Haseltine, was President of SGGM, presently has own law firm specializing in Federal Securities, worked for over 19 years with the SEC (Finance) and with Jonathan Katz:
William B. Haseltine, Special Counsels,
Division of Corporation Finance,
Securities and Exchange Commission,
450 Fifth Street, N.W., Mail Stop 3-12, Washington, D.C. 20549.
The SEC Complicity …
Jonathan Katz, Secretary of the S. E. C., revoked St. George’s (SGGM) registration and granted CMKM Diamonds request to be revoked on the same day and at the same time, with CMKM document number 34-52694 followed by SGGM document number 34-52695? Are SGGM and CMKX connected together? And why would Jonathan Katz take the time from his busy schedule to take care of this matter concerning two pink stocks?
Hold on a SEC…
SGGM is from Arlington, VA and registered in Nevada. SGGM invested $10 Million Dollars in CMKM though SGGM was dormant for 2 years. Where did the funds come from?
‘JUSTice’ SEC..
SEC exercises remedial sanctions because:
CMKM stopped reporting April 2003.
SGGM stopped reporting May 2003.
Hmmm…both stopped reporting about the same time.
Both CMKM and SGGM were revoked consecutively on the same day? Yet, the best Federal Securities counsels were involved with these two pink stocks? Why? Counterfeit shares, imo.
No Hassle Haseltine…
Let see, SGGM makes the largest financial deal in the history of their company in 2004. The deal is with CMKM Diamonds.
Mr. Haseltine, who joined SGGM in April 2005 as President, stated his priorities were to get the company current and compliant with all the SEC Filings plus finalize and close out all deals with other mining companies.
Then Mr. Haseltine, who as an attorney for over 19 years, an attorney schooled on paying attention to the most minute detail, an attorney who worked as a counsel in the SEC Finance Department under SEC Secretary Jonathan Katz, an attorney who did some legal work for SGGM prior to accepting the appointment as President of SGGM, …did not know anything about the largest financial deal in SGGM’s company history when the SEC questioned him in July 2005...did not know that SGGM owned 5% absolute interest in all mineral claims held by CMKM Diamonds a company with 1.9 million acres of claims and 60,0000 plus shareholders…a deal noted all over the internet when a search for information about the company is entered…a deal with CMKX, a company which SEC Secretary Jonathan Katz revoked at the same time as SGGM…and SGGM President Mr. Haseltine had no knowledge…???
The Task …
This is not just about distribution of shares and a few dollars, but also any other available assets of CMKM. What other available assets are there, which would require the approval of a Federal Court. Why would you need Robert Maheu, Donald Stoecklein, Bill Frizzell, support personnel, and a Federal Court to distribute ETGMF Shares and a few dollars for a pink stock company? Companies distribute stock dividends all the time without the Federal Courts approval.
The Roundup…
CMKM Diamonds Inc, becomes a private company and has a certificate pull, the largest in the history of the stock market. The company is private, therefore cannot be accused of manipulating the stock price, and the perpetuators are left standing holding the counterfeit shares. Pure genius…
Urban’s Plight…
The Outer CITI Limits
In 2003 Urban Springs Into Action And Now in 2008 Urban Is The Fall Guy???
If Urban Casavant is guilty then, why hasn’t Urban Casavant been served?
The Lawsuit filed by the New CMKM Diamonds is seeking compensation for over 200 Million Dollars. There is no problem hiring several attorneys. Why not hire a private detective or a Texas Ranger to serve the court papers? Expensive?…not compared to paying several Attorney Fees and the retainers.
The FBI Connection …
The FBI handles Internet fraud, which includes stock scams. “The FBI works through mutual agreement with the host country (reference “Quick Facts about the FBI” below from the FBI’s website). The FBI has offices in Canada. Our international presence currently consists of our Legal Attaché offices, commonly known as Legats. The Legats and smaller sub-offices are located in more than 70 key cities worldwide, providing coverage for more than 200 countries, territories, and islands. Each office is established through mutual agreement with the host country and is situated in the U.S. embassy in that nation.
Legal Attaché’ Offices in Canada
Ottawa, Canada
American Embassy: 1-613-238-5335
Toronto Sub-office
American Consulate: 1-416-640-8650
Vancouver Sub-office
American Consulate: 1-604-685-4311
If Urban Casavant is guilty then why hasn’t the FBI apprehended Urban Casavant? The FBI was protecting Urban due to threats.
Urban’s Cons…
Con-trolled vast amount of claims in an area of one of the World’s most lucrative mineral deposits, uranium, and oil reserves.
Con-tents in the claim areas were located and identified using Airborne Magnetic Survey.
Con-tainment of all 600,000,000 Million personal shares of CMKI by locking up the shares with the TCC in order to protect and increase shareholder value.
Con-solidated claims under CMKI, CMKM/CIM.
Con-nected CMKXtreme Racing to GOT CMKX resulting in a successful advertising campaign and a formidable force to be reckoned with, 40,000 plus Stockholders.
Con-siderate individual, taking care of visitors at the races and children at the children’s hospital.
Con-flict free diamonds and minerals promotion.
Con-fronted the NSS issue.
Con-quered the upper hand from counterfeiters by hiring Mr. Roger Glenn and Mr. Donald Stoecklein, both exceptional Federal Securities Attorneys.
Con-ditioned the atmosphere by bringing in the Master Negotiator, Mr. Robert Maheu.
Con-tinued the constant pressure on the guilty parties associated with the counterfeiting by issuing shareholders of record CIM, USCA, and GEMM dividends.
Con-sented to donating his family’s and his portion of ETGMF dividends to Bona Fide Stockholders.
Con-tacted Stockholders via USA Today, PR, and Task Force that a cert pull is in progress to identify Bona Fide Stockholders for asset distributions.
Con-verted suspect shares to certified shares and personally paid the expenses incurred by the Task Force expenses in the largest certification pull in the US Stock Market by a single company.
Con-vinced the government that there is a counterfeiting problem and that we are not going away.
Con-cealed information to protect valuable assets.
Con-solidated promising, productive claims.
Con-cerned about stockholders, awaiting attorney’s approval to communicate
Con-tingent plan, The Interpleader.
Con-ferred the CEO position to Shareholder Kevin West.
Con-veyed in PRs for stockholders to visit the SEC site.
SCAM?
Still Con-fused…SCAM?
CMKM Diamonds Corporate Videos…. Interesting. If this were a Scam, then why would Urban pay for a corporate video to film his activities?
“The filming activities, all of which were completed, consisted of shooting corporate videos for three U S companies whose projects were filmed in California, Canada and Ecuador. These companies were Nevada Minerals,… United States Canadian Minerals ...CKMXtreme Machines …”
Airborne Surveys…If this were a Scam, then why would Urban pay for a new survey when there are old surveys on file?
“… the airborne magnetic surveys recently completed by Goldak Airborne Surveys of Saskatoon, Saskatchewan. The surveys were conducted during April, May and June 2004 using Goldak’s Navaho aircraft”
Drilling Activities…If this were a Scam, then why did Attorney Stoecklein confirm ongoing drilling activities July 2005?
“…You were encouraged to engage a geologist of your choice to travel with you to Canada to witness CMKM’s ongoing drilling program and meet with CMKM’s professionals handling the Canadian operations. In addition, several offers were made to you to take a trip to Ecuador, again with any professionals you deemed necessary, to observe a gold pour at the Yellow River facility where ore from the American Shaft was being processed.”
Legal viewpoint of the expenditures… Is this why Urban was not served?
Attorney Donald Stoecklein “…Urban Casavant, as the sole officer and director of CMKM, had complete authority to enter into transactions on behalf of CMKM, whether these transactions were with related parties or not. In addition, it has always been CMKM’s intentions to fully and completely disclose all related party and other relevant transactions as part of its audited financial statements when they are completed…”
Did the $4 million for ‘promotion and advertising truly advanced the best interest of CMKM? “… numerous public companies pay millions of dollars per year to sponsor racing and other professional sports teams. … CMKM’s sponsorship of the CMKXtreme racing team has garnered tremendous publicity and has been greatly appreciated by its stockholders.”
Insider Stock Sales …
The BILL Please…Lowriderbill explains it best
“The shares were sold to a trust to cover the short. Once the shares from the O/S increases were issued and opinion letters written, the shares were surrendered and sold. Simultaneously, the shares were purchased by a trust from the open market to offset the short. None of the purchases were reported to ADP/OBO/NOBO because there are many countries outside of the United States that don’t report to these entities. The same system that brokers use to screw everyone else was used to screw them. Brokers had to purchase their electronic markers from the trust in order to deliver certificates to shareholders. All proceeds are retained in trust for distribution to the shareholders and to fund the development of claims in a new entity.”
Thank you Lowriderbill
Stalling For Dollars …
Statutes of Limitations?
Attorney Bill Frizzell “The cases which I have found interpreting the relevant statutes do not suggest a specific time period within which to request action.”
The Most Valuable Assets
CMKM Diamonds Bona Fide Stockholders are the most valuable Assets.
40,000 plus Stockholders
Owners of CMKM Diamonds
Owners of Entourage LTD Stock
Owners of Certificates in hand
Owners and Future Recipients of Royalties
Owners of 703 Billions Shares
Owners of Stock Dividends in U. S. Canadian Minerals
Owners of Stock Dividends in Juina Mining Corporation
Owners of Stock Dividends in CIM
Compensation Victims of Counterfeit Stocks
Compensation Victims of Insider Dumping
Compensation Victims of Forgery
United Formidable Force
United Computer Force
Real Time Access Capabilities
Educated, Trained, and Experience in Numerous Professions
Proactive via Forums
Dedicated
Determined
Thinking Assets
The Conclusion…
The information provided, as evidence of a STING, does it fit any of the definitions of a
STING?…
To cheat or overcharge.
A complicated confidence game planned and executed with great care, especially an operation organized and implemented by undercover agents to apprehend criminals.
To persuade a person to buy worthless property.
A mental pain or distress.
My sincere appreciation goes out to the entities and individuals who are looking after the CMKX Legal Shareholders’ best interest and to all of the shareholders who through their presence, support, and contributions, made an unjust situation known, made “The Stock of a Lifetime” into “The CMKX Family of Friends of a Lifetime”, and made “The CMKX Journey a Memorable and Proud Experience of a Lifetime”.
Please do not rest this case until the LEGAL CMKX SHAREHOLDERS are compensated!
All the best in health and wealth,
BHollenegg
HJRS
References:
http://www.sec.gov/litigation/aljdec/id291bpm.htm
http://www.sec.gov/info/smallbus/gbfor23.pdf
http://www.sec.gov/cgi-bin/txt-srch-sec?text=stoecklein§ion=Entire+Website&sort;=date
http://www.sec.gov/rules/final/34-51983fr.pdf
Stoecklein s email, cc Debbie Amigone to Jonathan Katz Secretary of SEC comments on proposed rules concerning Naked Shorting
http://www.sec.gov/rules/proposed/s72303/stoecklein010504.txt
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage;=3331089
http://cc.msnscache.com/cache.aspx?q=5826330593224?=en-US
http://www.sec.gov/litigation/aljdec/34-52695.pdf
http://www.sec.gov/litigation/aljdec/34-52694.pdf
http://www.sec.gov/litigation/aljdec/id298rgm.pdf
http://www.sec.gov/litigation/aljdec/id291bpm.pdf
http://www.secinfo.com/d1zrpn.zD9.d.htm?Find=advertising&Line;=212#Line212
http://findarticles.com/p/articles/mi_m0EIN/is_2004_June_25/ai_n6086888
http://findarticles.com/p/articles/mi_m0EIN/is_2004_June_25/ai_n6086888
http://ragingbull.quote.com/mboard/boards.cgi?board=CMKI&read;=310483
http://www.fbi.gov/contact/legat/legat.htm
http://www.gov.sk.ca/newsrel/releases/2006/02/14-081.html
http://www.wallstreetresearch.org/reports/etgmf.htm
http://www.consolidatedabaddon.com/i/pdf/ABN-Athabasca-Map-Proof-Glen-Jones.pdf
http://www.consolidatedabaddon.com/i/pdf/ABN_FACT_SHEET.pdf
http://www.secinfo.com/$/SEC/Filings.asp?CIK=1092299&Find;=casavant&Page;=All&List;=Hits&Show;=Each
http://www.secinfo.com/d12Fqz.zx8.htm?Find=casavant&Line;=4161#Line4161
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Reply with quote | #58 |
JOHN M. McCOY III, Cal. Bar No. 166244
E-mail: mccoyj@sec.gov
MOLLY M. WHITE, Cal. Bar No. 171448
E-mail: whitem@sec.gov
LESLIE A. HAKALA, Cal. Bar No. 199414
E-mail: hakalal@sec.gov
Attorneys for Plaintiff
Securities and Exchange Commission
Rosalind R. Tyson, Regional Director
Andrew G. Petillon, Associate Regional Director
5670 Wilshire Boulevard, 11th Floor
Los Angeles, California 90036-3648
Telephone: (323) 965-3998
Facsimile: (323) 965-3908
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA
SECURITIES AND EXCHANGE
COMMISSION,
Plaintiff,
vs.
CMKM DIAMONDS, INC., URBAN
CASAVANT, JOHN EDWARDS,
GINGER GUTIERREZ, JAMES
KINNEY, ANTHONY TOMASSO,
KATHLEEN TOMASSO, 1ST
GLOBAL STOCK TRANSFER, LLC,
HELEN BAGLEY, NEVWEST
SECURITIES CORPORATION,
DARYL ANDERSON, SERGEY
RUMYANTSEV, ANTHONY
SANTOS, and BRIAN DVORAK,
Defendants.
Case No.: 2:08-cv-00437-LRH-RJJ
APPLICATION FOR ENTRY OF DEFAULT JUDGMENT AGAINST
DEFENDANT URBAN CASAVANT
TO ALL PARTIES AND ALL COUNSEL OF RECORD:
PLEASE TAKE NOTICE that pursuant to Rule 55(b)(2) of the Federal
Rules of Civil Procedure, Plaintiff Securities and Exchange Commission
(“Commission”) will, and hereby does, apply for entry of a final judgment of
permanent injunction and other relief by default against defendant Urban Casavant
(“Casavant”). This Application for Entry of Default Judgment Against Defendant
Urban Casavant (“Application”) is made on the grounds that Casavant has failed to
answer, plead, or otherwise respond to the Commission’s Complaint within the
time prescribed by the Federal Rules of Civil Procedure.
Casavant waived service of the Summons and the Complaint on April 11,
2008. A copy of the waiver is attached as Exhibit 2 to the Declaration of Leslie A.
Hakala Supporting Application for Default Judgment Against Defendant Urban
Casavant.
The Clerk of the Court entered default against Casavant on August 12, 2008.
The default is attached as Exhibit 6 to the Declaration of Leslie A. Hakala
Supporting Application for Default Judgment Against Defendant Urban Casavant.
Casavant is not a minor or an incompetent person, and he is not in military
service.
The allegations in the Complaint warrant entry of a Final Judgment against
Casavant: (1) permanently enjoining him from future violations of Sections 5(a)
and 5(c) of the Securities Act of 1933 (“Securities Act”), 15 U.S.C. §§ 77e(a) and
77e(c), Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities
Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. §§ 78j(b), 78 m(a),
78m(b)(2)(A) & 78m(b)(2)(B), and Exchange Act Rules 10b-5, 13a-1, 13a-13, and
Rule 13b2-1, 17 C.F.R. §§ 240.10b-5, 240.13a-1 & 240.13a-13 & 240.13b2-1; (2)
ordering the payment of $31,500,000 in disgorgement plus $2,689,433.62 in
prejudgment interest; (3) ordering payment of third-tier civil penalties; (4)
imposing an officer-and-director bar against Casavant; and (5) imposing a penny
stock bar against Casavant.
Pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure, the
Commission is not required to serve this Application for Entry of Default
Judgment on Casavant because he has not appeared in this action. Nonetheless, on
August 26, 2009, the Commission sent Casavant a letter giving him notice that it
intended to file this Application.
This Application is based upon the accompanying Memorandum of Points
and Authorities Supporting Application for Entry of Default Judgment Against
Defendant Urban Casavant, the Declaration of Leslie A. Hakala Supporting
Application for Entry of Default Judgment Against Defendant Urban Casavant, the
Declaration of Pamela Chattoo Supporting Application for Entry of Default
Judgment Against Defendant Urban Casavant, the files and records of this case,
and any evidence or argument that the Court may consider in connection with this
Application.
Dated: August 31, 2009 /s/ Molly M. White
Molly M. White
Leslie A. Hakala
Attorneys for Plaintiff
Securities and Exchange Commission
Case 2:08-cv-00437-LRH-RJJ Document 128 Filed 08/31/2009 Page 3 of 6
PROOF OF SERVICE
I am over the age of 18 years and not a party to this action. My business address is:
[X] U.S. SECURITIES AND EXCHANGE COMMISSION, 5670 Wilshire
Boulevard, 11th Floor, Los Angeles, California 90036-3648
Telephone No. (323) 965-3998; Facsimile No. (323) 965-3394.
On August 31, 2009, I caused to be served the following document entitled
APPLICATION FOR ENTRY OF DEFAULT JUDGMENT AGAINST
DEFENDANT URBAN CASAVANT on the parties whose service of process
forms have been filed in this action and others, addressed as stated on the attached
service list:
[X] OFFICE MAIL: By placing in sealed envelope(s), which I placed for
collection and mailing today following ordinary business practices. I am
readily familiar with this agency’s practice for collection and processing of
correspondence for mailing; such correspondence would be deposited with
the U.S. Postal Service on the same day in the ordinary course of business.
[ ] PERSONAL DEPOSIT IN MAIL: By placing in sealed
envelope(s), which I personally deposited with the U.S. Postal Service.
Each such envelope was deposited with the U.S. Postal Service at Los
Angeles, California, with first class postage thereon fully prepaid.
[ ] EXPRESS U.S. MAIL: Each such envelope was deposited in a
facility regularly maintained at the U.S. Postal Service for receipt of
Express Mail at Los Angeles, California, with Express Mail postage
paid.
[ ] HAND DELIVERY: I caused to be hand delivered each such envelope to
the office of the addressee as stated on the attached service list.
[ ] FEDERAL EXPRESS: By placing in sealed envelope(s) designated by
Federal Express with delivery fees paid or provided for, which I deposited in
a facility regularly maintained by Federal Express or delivered to a Federal
Express courier, at Los Angeles, California.
[X] ELECTRONIC MAIL: By transmitting the document by electronic mail
to the electronic mail address as stated on the attached service list.
[ ] FAX: By transmitting the document by facsimile transmission. The
transmission was reported as complete and without error.
[X] (Federal) I declare under penalty of perjury that I am a member of the State
Bar of California and an attorney permitted to appear before this Court and
that the foregoing is true and correct.
Date: August 31, 2009 /s/ Molly M. White
Molly M. White
Case 2:08-cv-00437-LRH-RJJ Document 128 Filed 08/31/2009 Page 4 of 6
SEC v. CMKM DIAMONDS, INC., et al.
United States District Court - District of Nevada
Case No. 2:08-CV-00437-LRH-RJJ
(LA-3028)
SERVICE LIST
Irving M. Einhorn, Esq.
Law Offices of Irving M. Einhorn
1710 10th Street
Manhattan Beach, CA 90266
Email: ime@einhornlaw.com
Attorney for Defendant John Edwards
Mark S. Dzarnoski, Esq.
Gordon & Silver, Ltd.
3960 Howard Hughes Parkway, Ninth Floor
Las Vegas, NV 89169
Email: mdzarnoski@gordonsilver.com
Attorney for Helen Bagley and 1st Global Stock Transfer LLC
Urban A. Casavant
RR 5 Site 16 Box 29
Prince Albert, Saskatchewan S6V 5R3
Canada
Email: ucasavant@shaw.ca
John Wesley Hall, Jr., Esq.
1311 Broadway
Little Rock, AR 72202-4843
Email: forhall@aol.com
Attorney for Brian Dvorak
Kathleen Tomasso
9580 Lake Serena Drive
Boca Raton, FL 33496
Email: ttomasso@ncfgcomm.com
Anthony Tomasso
9580 Lake Serena Drive
Boca Raton, FL 33496
Email: ttomasso@ncfgcomm.com
Sergey Rumyantsev
1951 North Jones Boulevard, #G-202
Las Vegas, NV 89108
Email: chaptak@embarqmail.com
Anthony Santos
6965 North Durango Drive, Suite 1115-208
Las Vegas, NV 89149
Email: Ams.nwst@gmail.com
Case 2:08-cv-00437-LRH-RJJ Document 128 Filed 08/31/2009 Page 5 of 6
NevWest Securities Corporation
c/o Anthony Santos
6965 North Durango Drive, Suite 1115-208
Las Vegas, NV 89149
Email: Ams.nwst@gmail.com
Douglas E. Griffith, Esq.
Kesler & Rust
McIntyre Building, 2nd Floor
68 S. Main Street
Salt Lake City, UT 84101
Email: dgriffith@kesler-rust.com
Attorney for Daryl Anderson
Eric N. Klein, Esq.
Eric N. Klein & Associates, P.A.
1200 N. Federal Highway, Suite 200
Boca Raton, FL 33432
Email: enk@kleinattorneys.com
Michael R. Bakst
PMB 702
222 Lakeview Avenue, #160
West Palm Beach, FL 33401
Email: michael.bakst@ruden.com
Case 2:08-cv-00437-LRH-RJJ Document 128 Filed 08/31/2009 Page 6 of 6
http://viewer.zoho.com/docs/racPcac doc 1
http://viewer.zoho.com/docs/tacKgg doc 2
http://viewer.zoho.com/docs/hacHcg doc 3
http://viewer.zoho.com/docs/qacxjd doc 4
http://viewer.zoho.com/docs/zacodm doc 5
http://viewer.zoho.com/docs/qacmwa doc 6
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Moderator
Registered: 02/15/05
Posts: 1,963
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Reply with quote | #59 |
thanks...carmelbeach
01 Sep 2009, 02:45 AM EDT
MEMORANDUM OF POINTS AND AUTHORITIES SUPPORTING
APPLICATION FOR ENTRY OF DEFAULT JUDGMENT AGAINST
DEFENDANT URBAN CASAVANT
[footnotes omitted by carmelbeach]
MEMORANDUM OF POINTS AND AUTHORITIES SUPPORTING
APPLICATION FOR ENTRY OF DEFAULT JUDGMENT AGAINST
DEFENDANT URBAN CASAVANT
I. INTRODUCTION
This Application for Entry of Default Judgment Against Defendant Urban Casavant (“Application”) should conclude the litigation against Urban Casavant (“Casavant”). This case involves the fraudulent sale of the unregistered stock of CMKM Diamonds, Inc. (“CMKM”), a purported diamond and gold mining company, and a scheme to manipulate CMKM’s stock price and volume through false statements from January 2003 through May 2005. As functionally the only officer or director of CMKM, Casavant played a crucial role in orchestrating the fraud and selling hundreds of billions of shares of unregistered stock.
The Securities and Exchange Commission (“Commission”) filed this lawsuit, and Casavant waived service of the Summons and the Complaint more than a year ago. On August 12, 2008, the Clerk entered default against Casavant. As of the filing of this Application, Casavant has failed to plead, file an answer, or otherwise respond to the Complaint within the time prescribed by the Federal Rules of Civil Procedure. Accordingly, pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure, entry of default judgment is proper. Based on the well-pleaded allegations of the Complaint, the Court should enter a final judgment: (1) permanently enjoining Casavant from future violations of the antifraud, registration, reporting, record keeping, and internal controls provisions of the federal securities laws; (2) ordering Casavant to pay disgorgement of $31,500,000 plus prejudgment interest of $2,689,433.62; (3) ordering Casavant to pay third-tier civil penalties; (4) ordering an officer-and-director bar against Casavant; and (5) ordering a penny stock bar against Casavant.
II. STATEMENT OF FACTS
A. Procedural Background
On April 7, 2008, the Commission filed its Complaint. (Complaint, dated April 7, 2008, Docket No. 1.) On the same day, the Court issued summonses against all fourteen defendants in this case, including a summons for Casavant (the “Summons”). (Summons, dated April 7, 2008, Docket No. 5.) On April 7, 2008, the Commission emailed Casavant a copy of the Complaint, the Summons, and a request for waiver of service of summons (“Waiver”). Casavant executed the Waiver and returned it to the Commission by facsimile on April 11, 2008. (Declaration of Leslie A. Hakala Supporting Entry of Default Judgment Against Defendant Urban Casavant (“Hakala Dec.”) ¶ 3 & Ex. 2.) The Waiver explicitly stated:
I understand that a judgment may be entered against me (or the party on whose behalf I am acting) if an answer or motion under Rule 12 is not served upon you within 60 days after April 7, 2008, or within 90 days after that date if the request was sent outside the United States.
(Hakala Dec. Ex. 2.) The Commission filed the Waiver with the Court on the same day. (Hakala Dec. ¶ 3 & Ex. 2.)
The Commission had contact with Casavant in May of 2008, when it attempted to coordinate the early meeting of counsel with Casavant and the other 13 defendants in this litigation. (Hakala Dec. ¶¶ 4-6 & Exs. 3-5.) Although Casavant was invited to attend the early meeting of counsel either in person or telephonically, he did not attend. (Hakala Dec. ¶ 7; see also Stipulated Discovery Plan and Scheduling Order, filed June 18, 2008, Docket No. 5, p. 2.) Casavant has made no appearance in this litigation. At the Commission’s request, on August 12, 2008, the Clerk of the Court entered a default against defendant Casavant pursuant to Rule 55(a) of the Federal Rules of Civil Procedure. (See Hakala Dec. ¶ 8 & Ex. 6.) As of the date of the filing of this Application, Casavant has not filed any answer, pleading or other response to the Complaint, or made any other appearance in this litigation. (See Hakala Dec.¶ 9.)
B. Factual Background
In November of 2002, five private Canadian companies controlled by Casavant entered into a reverse merger with CMKM, a then-empty corporate shell owned by John Edwards.1(Compl. ¶ 28.) Casavant became the sole director and the president and CEO of CMKM. (Compl. ¶ 28.) The company immediately thereafter increased its number of authorized shares from 500 million to 10.5 billion, and eventually increased it to 800 billion. (Compl. ¶¶ 28, 35.) From January 2003 through May 2005, CMKM, which was purportedly a gold and diamond mining company, issued hundreds of billions of shares of unrestricted stock to John Edwards, Casavant, and their nominees. (Compl. ¶¶ 3-4.) But CMKM had no legitimate operations and was only engaged in illegally issuing and falsely promoting its own stock from Casavant’s Las Vegas residence. (Order, dated June 23, 2009, Docket No. 122, p. 3.)
Casavant orchestrated many of these fraudulent stock issuances. (Compl. ¶ 40.) Beginning in December 2003, Casavant retained Brian Dvorak as corporate counsel, primarily to prepare board resolutions and attorney opinion letters of purportedly unrestricted stock. (Compl. ¶ 41.) Dvorak wrote at least 464 opinion letters, which contained baseless or fabricated justifications for the issuance of unrestricted CMKM stock. (Compl. ¶ 41.) Based on these opinion letters, CMKM issued more than 606 billion unrestricted shares in 2004 to the Edwards entities, Casavant’s nominees, and others. (Compl. ¶ 41.)
In 2003, Casavant filed with the Commission a Form 15 removing CMKM from the reporting requirements of Section 12(g) of the Securities Exchange Act of 1934 (“Exchange Act”) because CMKM allegedly had fewer than 300 shareholders of record. (Compl. ¶ 45.) In fact, at the time, CMKM had more than 600 shareholders of record. (Compl. ¶ 45.) From July 2003 to February 2005, CMKM made no filings with the Commission, did not publicly disclose how many of its shares were outstanding, and instructed 1st Global, its transfer agent, not to
release this information. (Compl. ¶ 45.) As functionally the only officer and director of CMKM, Casavant was responsible for ensuring that CMKM complied with its reporting obligations. (Compl.¶ 45.)
Instead, during this period, the company issued numerous false and misleading press releases. (Compl. ¶ 46.) For example, in March 2004, CMKM issued a release announcing a “kimberlite ore discovery” which was named “the Carolyn Pipe” after Casavant’s wife. (Compl. ¶ 46.) However, two and a half months later, the public learned that this kimberlite ore had first been discovered in 1996. (Compl. ¶ 46.) Casavant further enticed investor interest through a variety of Internet activities, including at least eight active Internet message boards that focused on CMKM and its activities. (Compl. ¶ 47.) In a 2004 widely distributed webcast, Casavant misrepresented that CMKM was “ahead of schedule” in periodic reports, when it had not even begun to compile a general ledger, and he claimed that CMKM was “drilling 24/7” on its mineral claims in Canada. (Compl. ¶ 47.)
In addition, Casavant organized a CMKXtreme sponsored race team that traveled across the country to promote CMKM’s stock. (Compl. ¶ 48.) The racecars promoted “CMKX,” CMKM’s stock symbol. (Compl. ¶ 48.) “Got CMKX?” was posted on trucks, banners, billboards, and crew-member shirts. (Compl. ¶ 48.) Hundreds of shareholders attended the races, where CMKM displayed phony maps and videos of its alleged mineral claims. (Compl. ¶ 48.) These and other promotions fueled investor demand for CMKM stock, and as a result, about 40,000 people purchased CMKM stock during the fraud. (Compl. ¶ 48.) During this period, CMKM’s stock price varied from $0.0001 to $0.001, amounting to a loss of $64.2 million to these investors. (Compl. ¶¶ 4, 7.)
From March 2003 through May 2005, Edwards acquired and sold more than 259 billion shares of CMKM stock, generating proceeds of more than $53.3 million. (Compl. ¶ 53.) On aggregate, Casavant made about $35.1 million from the fraud. (Compl. ¶ 4.) He received more than $26.7 million of this money from John Edwards. (Compl. ¶ 59.) And he received another approximately $6 million through Ginger Gutierrez (“Gutierrez”), James Kinney (“Kinney”), and their company, Part-Time Management. (See Compl. ¶¶ 61-65.) Gutierrez and Kinney were nominees for Casavant, who directed millions of dollars to Casavant-controlled accounts in their own names and through Part-Time Management. (Compl. ¶¶ 16-17.)
At all relevant times, CMKM maintained virtually no corporate books or records, such as a general ledger, bank account records, or documents accurately reflecting related party transactions. (Compl. ¶ 66.) Likewise, CMKM implemented and maintained no discernable internal controls. (Compl. ¶ 66.) As CMKM’s only functional officer and director, Casavant failed to implement any system of accounting controls, which resulted in the company’s failure to record assets, liabilities, expenditures, or related party transactions. (Compl. ¶ 29.) After receiving inquiries from the Commission, CMKM acknowledged in February 2005 that its Form 15 was false, and that the company was therefore delinquent in filing periodic reports as required by Section 13(a) of the Exchange Act, and Rules 13a-1 and 13a-13 thereunder. (Compl. ¶ 67.) Despite a ten-day trading suspension and an administrative proceeding initiated in March 2005, fraudulent trading continued. (Compl. ¶ 9.) In October 2005, the Commission issued its final order deregistering CMKM’s stock. (Compl. ¶ 67.)
III. ARGUMENT
A. The Commission Has Satisfied the Procedural Requirements for Entry of Default Judgment
Rule 55(b) of the Federal Rules of Civil Procedure provides for court-ordered default judgment following entry of a default by the court clerk under Rule 55(a). The Federal Rules require that applications for entry of default judgment set forth the following: (1) that the relief requested does not differ in kind from, or exceed in amount, what is demanded in the pleadings; (2) that the defaulting party is not an infant or incompetent person; and (3) whether the defaulting party has appeared personally or by representative, and if so, that notice of the application for default has been served on the defaulting party at least three days before a hearing on the application. See Fed. R. Civ. P. 54(c) & 55(b)(2).
The Commission has satisfied these procedural requirements. First, the relief sought by the Commission does not differ in kind from, or exceed the amount of, what is demanded in the Complaint. The Commission seeks entry of a permanent injunction consistent with Paragraphs II, III and V of the Prayer for Relief in the Complaint. (See Compl. pp. 25-26.) It seeks disgorgement of the $31.5 million that Casavant received, plus prejudgment interest, as alleged in Paragraph 4 of the Complaint and in Paragraph VII of the Prayer for Relief. (See Compl. ¶ 4, p. 26.) The Commission also seeks the imposition of civil penalties, as requested in Paragraph VIII of the Prayer for Relief, a penny stock bar, as requested in Paragraph IX of the Payer for Relief, and an officer-and-director bar, as requested in Paragraph VI of the Prayer for Relief. (Compl. pp. 26-27.)
Second, the Commission has submitted a declaration stating that Casavant is not an infant or incompetent person. (Hakala Dec. ¶ 11.) Indeed, Casavant is more than 50 years old. (Compl. ¶ 14.) And Casavant is not in the military. (Hakala Dec. ¶ 11.)
Finally, Casavant has not appeared in this litigation, so the Commission is not required to provide him notice. See Franchise Holding II, LLC v. Huntington Rests. Group, Inc., 375 F.3d 922, 928 (9th Cir. 2004) (finding no appearance in litigation where defendant was on notice that plaintiff was pursuing litigation and defendant made no effort to preserve its interests); see also Wilson v. Moore & Assocs. Inc., 564 F.2d 366, 369 (9th Cir. 1977) (party must demonstrate a clear purpose to defend the suit). Despite this, the Commission has provided Casavant notice that it would file an Application for Entry of Default Judgment against him. (Hakala Dec. ¶ 10.) On August 26, 2009, the Commission sent Casavant a letter notifying him that it intended to file this Application on August 31, 2009. (Hakala Dec. ¶ 10 & Ex. 7.)
B. The Commission is Entitled to Entry of Default Judgment Based on the Undisputed Allegations in the Complaint
The well-pleaded allegations in a complaint are accepted as admitted in an application for entry of a default judgment. Benny v. Pipes, 799 F.2d 489, 495 (9th Cir. 1986), modified, 807 F.2d 1514 (1987). As explained below, the allegations set forth in the Complaint establish that Casavant was a necessary and substantial participant in the unregistered offer and sale of securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933 (“Securities Act”), 15 U.S.C. §§ 77e(a) and 77e(c), and engaged in fraud in the purchase or sale of securities in violation of Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5. The well-pleaded allegations in the Complaint also establish that Casavant aided and abetted CMKM’s violations of
• the periodic reporting requirements of the federal securities laws, found in Section 13(a) of the Exchange Act, 15 U.S.C. § 78m(a), and Exchange Act Rules 13a-1 and 13a-13, 17 C.F.R. §§ 240.13a-1 & 240.13a-13;
• the record keeping provisions of the Exchange Act, found in Section 13(b)(2)(A) of the Exchange Act, 15 U.S.C. § 78m(b)(2)(A); and
• the internal controls provisions of the Exchange Act, Section 13(b)(2)(B), 15 U.S.C. § 78m(b)(2)(B);
and that Casavant violated the record keeping provisions of the Exchange Act, found in Rule 13b2-1, 17 C.F.R. § 240.13b2-1.
1. Casavant Committed Fraud in Connection With the Purchase or Sale of Securities Section
10(b) of the Exchange Act and Rule 10b-5 prohibit: (1) the making of any untrue statement of material fact; (2) omitting to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading; (3) the use of any device, scheme or artifice to defraud; or (4) the use of any act, practice, or course of conduct that operates as a fraud or deceit. See The Wharf (Holdings) Ltd. v. United Int’l Holdings, Inc., 532 U.S. 588, 593 (2001). Casavant violated the anti-fraud provisions of the securities laws by making misrepresentations of material facts. See Basic, Inc. v. Levinson, 485 U.S. 224, 231-32 (1988) (information is material if there is substantial likelihood that reasonable investor would view information as significantly altering the total mix of information); see also TSC Indus., Inc. v. Northway, Inc., 426 U. S. 438, 449 (1976).
Casavant made numerous materially false and misleading public statements about CMKM and its activities. Among other things, he:
• filed with the Commission a false Form 15, alleging that CMKM had fewer than 300 shareholders of record (Compl. ¶ 45);
• caused the issuance of a false press release claiming that CMKM “was sponsoring a representative office in Antwerp, Belgium” to promote “the Casavant diamond brand” (Compl. ¶ 46);
• told investors that the reported high trading volume in CMKM stock reflected extensive “naked short selling” rather than ordinary stock dilution (Compl. ¶ 6);
• misrepresented in an interview that CMKM was “ahead of schedule” in preparing periodic reports, even though it had not even begun compiling a general ledger (Compl. ¶ 47); and
• misrepresented to investors that CMKM was “drilling 24/7” on its mineral claims in Canada (Compl. ¶ 47).
These representations were false. (Compl. ¶¶ 46 & 47.) Moreover, Casavant engaged in a scheme to defraud the public by improperly authorizing the issuance of hundreds of billions of shares of purportedly unrestricted stock, arranging the sale of that stock to the public either to his accomplices or through nominees, and using the proceeds for his personal benefit, including paying his gambling debts. All of these activities had the principal purpose and effect of hiding from the investing public that the company was massively diluting its stock to benefit only company insiders and their accomplices.
Violations of Section 10(b) and Rule 10b-5 require a showing of scienter. Aaron v. SEC, 446 U.S. 680, 701-02 (1980). Scienter is a “mental state embracing intent to deceive, manipulate, or defraud.” Ernst & Ernst v. Hochfelder, 425 U.S. 185, 193 n.12 (1976). In the Ninth Circuit, scienter may be established by a showing of recklessness. Hollinger v. Titan Capital Corp., 914 F.2d 1564, 1568-69 (9th Cir. 1990) (en banc). Proof of recklessness may be inferred from circumstantial evidence. Herman & MacLean v. Huddleston, 459 U.S. 375, 390-91 n.30 (1983). Casavant had the requisite scienter. (See Compl. ¶ 70.) Because Casavant was CMKM’s CEO, he knew, or was reckless in not knowing, that the company had no meaningful operations other than issuing and promoting its own stock. (See Compl. ¶ 6.) Indeed, he ran the company from his house in Las Vegas. (Compl. ¶ 6.) He therefore knew that his statements about CMKM were false and misleading.
2. Casavant Violated the Registration Provisions of the Securities Laws
Sections 5(a) and 5(c) of the Securities Act prohibit the offer and sale of securities through the mail or interstate commerce unless a registration statement has been filed and is in effect. Anderson v. Aurotek, 774 F.2d 927, 929 (9th Cir. 1985); SEC v. Murphy, 626 F.2d 633, 649 (9th Cir. 1980). A prima facie case of a Section 5 violation is established by showing: (1) the defendant, directly or indirectly, sold or offered to sell securities; (2) no registration statement was in effect or had been filed with the Commission for those securities; and (3) the defendant’s sales used interstate facilities or the mails. See SEC v. Cont’l Tobacco Co., 463 F.2d 137, 155 (5th Cir. 1972). Once the Commission establishes a prima facie violation, the defendants bear the burden of proving that an exemption applies. SEC v. Ralston Purina Co., 346 U.S. 119, 126 (1953). Section 5 liability extends beyond those who sell stock in unregistered transactions to those who are “both a necessary participant and substantial factor in the sales transaction[s].” SEC v. Phan, 500 F.3d 895, 906 (9th Cir. 2007); see also SEC v. Cavanagh, 1 F. Supp. 2d 337, 372 (S.D.N.Y. 1998), aff’d, 155 F.3d 129 (2d Cir. 1998); SEC v. Holschuh, 694 F.2d 130, 139 (7th Cir. 1982); Murphy, 626 F.2d at 651-652 (9th Cir. 1980). The Ninth Circuit has interpreted this standard to mean that “but for the defendant’s participation, the sale transaction would not have taken place” and that the defendant’s acts were not de minimis. See Murphy, 626 F.3d at 651-52.
Here, all of the elements of a Section 5 violation are satisfied. First, Casavant was a necessary and substantial participant in the sale of unregistered CMKM stock. He was the sole director of CMKM, as well as its president and CEO. (Compl. ¶ 25.) Casavant issued, or caused the issuance of, hundreds of billions of shares of purportedly unrestricted CMKM stock to statutory underwriters, including Gutierrez and Kinney. (See Compl. ¶¶ 40, 61-64.)
Second, no registration statement was filed with the Commission or was in effect with respect to any of the CMKM securities offerings. (See Compl. ¶ 74.) Indeed, from July 2003 to February 2005, CMKM made no filings with the Commission at all. (See Compl. ¶ 45.)
Finally, as a necessary participant in the sale of CMKM stock, Casavant indirectly sold investments in CMKM through the Internet and other means of interstate commerce. (See Compl. ¶ 1.) For example, he generated investor interest in CMKM by using false press releases and Internet chat boards. (Compl. ¶¶ 6, 49.) And the company had its own website, as well as website for its racing team and to sell promotional items. (Compl. ¶ 47.) In these ways (and others) Casavant used interstate facilities or the mails to promote sales of CMKM stock.
3. Casavant Aided and Abetted CMKM’s Violations of the Reporting Provisions
Section 13(a) of the Exchange Act, and Exchange Act Rules 13a-1 and 13a-13, require issuers of securities that are registered pursuant to Section 12 of the Exchange Act, as CMKM was, to file accurate periodic reports with the Commission. See 15 U.S.C. § 78m(a); 17 C.F.R. §§ 240.13a-1 & 240.13a-13. To show that Casavant aided and abetted CMKM’s violations of the reporting provisions of the securities laws, the Commission must show that: (1) CMKM violated the relevant securities laws; (2) Casavant knew of the primary violation and his role in furthering it; and (3) Casavant provided substantial assistance in the primary violation. Ponce v. SEC, 345 F.3d 722, 737 (9th Cir. 2003).
First, CMKM violated Section 13(a) of the Exchange Act, and Rules 13a-1 and 13a-13 thereunder.2CMKM violated these provisions by failing to file annual reports on Form 10-KSB for the fiscal years ending December 31, 2002, December 31, 2003, and December 31, 2004, and by failing to file quarterly reports on Form 10-QSB for the quarters ending March 31, 2003, June 30, 2003, September 30, 2003, March 31, 2004, June 30, 2004, September 30, 2004, March 31, 2005, and June 30, 2005. (Compl. ¶ 77.) Moreover, CMKM filed a false Form 15. (Compl. ¶ 45.)
Second, Casavant knew of the primary violation and his role in furthering it. As the sole functional officer and director of CMKM, Casavant knew that CMKM had not filed any of its reports as it was required to do. Indeed, he was responsible for filing a false Form 15 to avoid making periodic filings on behalf of CMKM. (See Compl. ¶¶ 45, 67; see also Initial Decision Release No. 291, Administrative Proceeding File No. 3-11858, p. 11 (attached to the Hakala Dec. as Ex. 8).)
Finally, Casavant knowingly provided substantial assistance to CMKM’s violation of Section 13(a) of the Exchange Act, and Rule 13a-1 and 13a-13. The Ninth Circuit has stated that recklessness may satisfy the “knowingly” requirement for aiding and abetting violations of Section 13 of the Exchange Act. Ponce, 345 F.3d at 737-38. Casavant ran CMKM out of his house in Las Vegas. (Compl. ¶ 6.) As functionally the only officer and director of CMKM, Casavant was responsible for ensuring that CMKM complied with its reporting obligations. (Compl. ¶ 45.) By failing to ensure that the reports were filed, Casavant knew or was reckless in not knowing that he was substantially assisting CMKM’s violation of the reporting requirements of the securities laws.
4. Casavant Aided and Abetted CMKM’s Record Keeping Violations and Violated Rule 13b2-1
Section 13(b)(2)(A) of the Exchange Act requires reporting companies registered pursuant to Section 12 of the Exchange Act to “make and keep books, records, and accounts, which in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer.” 15 U.S.C. § 78m(b)(2)(A). CMKM violated Section 13(b)(2)(A) by failing to make or keep books, records, and accounts which, in reasonable detail accurately and fairly reflected its transactions and the disposition of its assets. (Compl. ¶ 81.)
Casavant aided and abetted CMKM’s violations of the record-keeping provisions of the securities laws. Casavant failed to implement any system of accounting controls, which resulted in CMKM’s failure to record assets, liabilities, expenditures, or related party transactions. (Compl. ¶ 29.) Casavant provided knowing and substantial assistance to CMKM because he, as CMKM’s only functional officer and director and its President and CEO, was the one who failed to implement any system to keep these records. See SEC v. Ponce, 345 F.3d at 737.
Casavant also violated Rule 13b2-1 of the Exchange Act. Rule 13b2-1 provides that “[n]o person shall, directly or indirectly, falsify or cause to be falsified, any book, record, or account subject to section 13(b)(2)(A) of the Securities Exchange Act.” 17 C.F.R. § 240.13b2-1. Casavant violated this rule by preparing company records that misrepresented the circumstances surrounding CMKM’s stock issuances and that helped facilitate the fraudulent issuances of CMKM stock. (See Compl. ¶¶ 39a, 39d & 39f.) As such, Casavant is liable for violating Rule 13b2-1.
5. Casavant Aided and Abetted CMKM’s Internal Controls Violations
Section 13(b)(2)(B) of the Exchange Act requires reporting companies to devise and maintain a system of internal controls. CMKM violated Section 13(b)(2)(B) of the Exchange Act by failing to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary (I) to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements, and (II) to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. (Compl. ¶ 86.)
Casavant knowingly provided substantial assistance to CMKM’s internal control violations, and thus aided and abetted in CMKM’s violation of Section 13(b)(2)(B) of the Exchange Act. See SEC v. Ponce, 345 F.3d at 737. As the company’s only functional officer and director, Casavant failed to implement any system of internal accounting controls, which resulted in the non-recording of assets, liabilities, expenditures, and related party transactions. (Compl. ¶¶ 29.)
Because CMKM was under the sole direction of Casavant, Casavant knew, or was reckless in not knowing, that he failed to implement a system of internal accounting controls.
C. The Court Should Enter a Permanent Injunction Against Casavant
Section 20(b) of the Securities Act and Section 21(d)(1) of the Exchange Act provide that upon a proper showing, a permanent injunction shall be granted in enforcement actions brought by the Commission. See 15 U.S.C. §§ 77t(b) & 78u(d)(1). That burden is met when the evidence establishes a reasonable likelihood of a future violation of the securities laws. Murphy, 626 F.2d at 655; see also SEC v. Koracorp Indus., Inc., 575 F.2d 692, 699 (9th Cir. 1978). In predicting the likelihood of future violations, the Court should evaluate the totality of the circumstances. Murphy, 626 F.2d at 655.
The factors to be considered include: (1) the degree of scienter involved; (2) the isolated or recurrent nature of the infractions; (3) the defendant’s recognition of the wrongful nature of his conduct; (4) the likelihood that because of the defendant’s professional occupation, that future violations might occur; and (5) the sincerity of the defendant’s assurances against future violations. Id.; accord SEC v. Fehn, 97 F.3d 1276, 1295 (9th Cir. 1996). The fact that the illegal conduct has ceased does not foreclose injunctive relief. Murphy, 626 F.2d at 655.
These factors weigh in favor of granting an injunction against Casavant. Casavant was instrumental in the fraudulent issuance and sale of hundreds of billions of shares of purportedly unrestricted stock. (Compl. ¶ 4.) To help perpetrate the scheme and generate shareholder interest in the stock, Casavant used false press releases, Internet chat boards, and “funny car” race events across the country. (Compl. ¶ 6.) Among other things, Casavant falsely represented to investors that: (1) CMKM “was sponsoring a representative office in Antwerp, Belgium” to promote “the Casavant diamond brand”; (2) CMKM’s “ancient Chinese jade collection” previously valued by the company at more than $50 million had been appraised by a noted expert; and (3) that CMKM was undertaking efforts to implement “core drilling” on its mineral claims. (Compl. ¶ 46.) Casavant knew these representations were false. In reality, Casavant was running the company from his house in Las Vegas, and CMKM had no meaningful operations other than issuing and promoting its own stock. (Compl. ¶ 6.) Casavant’s conduct was not isolated. The fraudulent conduct took place for more than two years and resulted in more than $62.5 million in ill-gotten gains. (Compl. ¶¶ 3-5.) Moreover, Casavant has not acknowledged the wrongfulness of his egregious conduct. Although Casavant has resigned all of his roles at CMKM and the company shows no evidence of having ongoing operations or assets of significant value (Compl. ¶ 68), absent an injunction, Casavant is likely to commit future violations. See SEC v. Lorin, 877 F. Supp. 192, 201 (S.D.N.Y. 1995). For these reasons, this Court should enter an injunction against Casavant, enjoining him from future violations of:
• Sections 5(a) and 5(c) of the Securities Act, 15 U.S.C. §§ 77e(a) and 77e(c);
• Section 10(b) of the Exchange Act, 15 U.S.C. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5;
• Section 13(a) of the Exchange Act, 15 U.S.C. § 78m(a), and Rules 13a-1 and 13a-13 thereunder, 17 C.F.R. §§ 240.13a-1 and 240.13a-13;
• Section 13(b)(2)(A) of the Exchange Act, 15 U.S.C. § 78m(b)(2)(A), and Rule 13b2-1 thereunder, 17 C.F.R. § 240.13b2-1; and
• Section 13(b)(2)(B) of the Exchange Act, 15 U.S.C. § 78m(b)(2)(B).
D. The Commission is Entitled to Disgorgement and Prejudgment Interest
The Court should order Casavant to disgorge $31.5 million plus prejudgment interest. It is well settled that the Commission may seek, and courts may order, disgorgement of ill-gotten gains. See SEC v. First Pac. Bancorp, 142 F.3d 1186, 1191 (9th Cir. 1998). “Disgorgement is designed to deprive a wrongdoer of unjust enrichment, and to deter others from violating securities laws by making violations unprofitable.” Id.; see also SEC v. Rind, 991 F.2d 1486, 1491-92 (9th Cir. 1993) (“The deterrent effect of [a Commission] enforcement action would be greatly undermined if securities law violators were not required to disgorge illicit profits.”).
The amount of disgorgement should include all gains flowing from a defendant’s illegal activities. See SEC v. JT Wallenbrock & Assocs., 440 F.3d 1109, 1114 (9th Cir. 2006); SEC v. Cross Fin. Servs., 908 F. Supp. 718, 734 (C.D. Cal. 1995). The appropriate disgorgement amount may be determined by showing “a reasonable approximation of profits causally connected to the violation.” (Order, dated June 23 2009, Docket No. 122, p. 5 (quoting First Pac. Bancorp, 142 F.3d at 1192 n.6).) See also SEC v. JT Wallenbrock, 440 F.3d at 1114. As alleged in the Complaint, about $31.5 million of the proceeds went directly to Casavant. (Compl. ¶ 4.) The Court should therefore order Casavant to disgorge $31.5 million.
Disgorgement normally includes prejudgment interest to ensure that the wrongdoer does not profit from his illegal activity. See Cross Fin. Servs., 908 F. Supp. at 734. The post-judgment interest rate mandated by 28 U.S.C. § 1961 is the appropriate rate at which to calculate pre-judgment interest so as to ensure that “judicially-awarded interest rates are not less than the contemporary cost of money.” Western Pac. Fisheries, Inc. v. S.S. President Grant, 730 F.2d 1280, 1289 (9th Cir. 1984); see also Cross Fin. Servs., 908 F. Supp. at 734. Thus, it is appropriate for the Court to assess pre-judgment interest, as calculated pursuant to 28 U.S.C. § 1961, on Casavant’s ill-gotten gains.
The amount of pre-judgment interest on $31,500,000, calculated from March 5, 2003 through August 31, 2009 is $2,689,433.62. (See Declaration of Pamela Chattoo Supporting Application for Entry of Default Judgment Against Defendant Urban Casavant (“Chattoo Dec.”) ¶ 4 & Ex. 1.) After August 31, 2009, the weekly interest is $8,275.69. (Chattoo Dec. ¶ 4 & Ex. 1.)
E. The Court Should Award Civil Penalties
The Court should order Casavant to pay third-tier civil penalties pursuant to Section 20(d) of the Securities Act, 15 U.S.C. § 77t(d), and Section 21(d)(3) of the Exchange Act, 15 U.S.C. § 78u(d)(3). Civil penalties are meant to punish the individual wrongdoer and to deter him and others from future securities law violations. SEC v. Kenton Capital, 69 F. Supp. 2d 1, 17 (D.D.C. 1998).
The Securities Act and the Exchange Act provide that penalties shall be assessed according to a three-tier system. First-tier penalties may be imposed for any violation of the statutes, and should not exceed $6,500 for a natural person or “the gross amount of pecuniary gain to such defendant as a result of the violation.” 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii); 17 C.F.R. §§ 201.1001 & 201.1002.
Second-tier penalties apply to violations of the Securities Act and Exchange Act which “involved fraud, deceit, manipulation or deliberate or reckless disregard of a regulatory requirement.” 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii). For each violation, the maximum second-tier penalty is the greater of (1) $60,000 for a natural person, or (2) “the gross amount of pecuniary gain to such defendant as a result of the violation.” 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii); 17 C.F.R. §§ 201.1001 & 201.1002.
Third-tier penalties apply to violations of the Securities Act and the Exchange Act that: (1) involve “fraud, deceit, manipulation, or reckless disregard for a regulatory requirement”; and (2) “directly or indirectly resulted in substantial losses or created a significant risk of substantial losses to other persons.” 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii). For each violation, the maximum third-tier penalty is the greater of (1) $120,000 for a natural person, or (2) the “gross amount of pecuniary gain” to the defendant as a result of the violation. 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii); 17 C.F.R. §§ 201.1001-201.1003.
Third-tier penalties are appropriate here because (1) Casavant’s conduct involved a reckless disregard of a regulatory requirement, and (2) directly resulted in substantial losses to other persons. See 15 U.S.C. §§ 77t(d)(2)(C) & 78u(d)(3)(B)(iii). Moreover, when assessing a penalty, courts frequently apply the factors set forth in Murphy, 626 F.2d at 633. See SEC v. Alpha Telcom, Inc., 187 F. Supp. 2d 1250, 1263 (D. Ore. 2002). Those factors include:
• the degree of scienter involved;
• the isolated or recurrent nature of the infraction;
• the defendant’s recognition of the wrongful nature of his conduct;
• the likelihood, because of the defendant’s professional occupation, that future violations might occur; and
• the sincerity of his assurances against future violations.
Murphy, 626 F.2d at 655; see also SEC v. Solow, 554 F. Supp. 2d 1356, 1365 (S.D. Fla. 2008); SEC v. Haligiannis, 470 F. Supp. 2d 373, 386 (S.D.N.Y. 2007).
As previously, discussed, Casavant committed fraud and possessed the requisite scienter. (See supra pp. 14-15.) His conduct was recurrent as it took place for more than two years and involved the fraudulent issuance of hundreds of billions of shares of CMKM stock. (See supra pp. 14-15.) Casavant’s actions resulted in substantial losses to tens of thousands of investors, and he has not recognized the wrongful nature of his conduct, nor has he assured the Court against future violations. (See supra p. 15.) Given the egregiousness of Casavant’s conduct, a third-tier penalty is appropriate.
When imposing penalties, a court can award either a maximum of either $120,000 or the “gross pecuniary gain” per violation of the Securities Act or the Exchange Act. For example, in one fraud case, the court determined the penalty amount by assessing a penalty for each of four different misrepresentations made. See SEC v. Coates, 137 F. Supp. 2d 413, 428-30 (S.D.N.Y. 2001). In another case, the court assessed a penalty for each of 12 investors defrauded. See SEC v. Kenton Capital, 69 F. Supp. 2d 1, 17 n.15 (D.D.C. 1998) (awarding $1.2 million penalty based on an assessment of a $10,0000 third-tier penalty for each of 12 investors that defendant defrauded). However, as this Court previously held, when faced with “a similar array of violations,” as in the instant case, courts often impose a single fine based on the defendant’s pecuniary gain. (See Order dated June 23, 2009, Docket No. 122, p. 9; see also SEC v. Haligiannis, 470 F. Supp. 2d at 386.)
F. The Court Should Bar Casavant from Acting as an Officer or Director of a Public Company
“The district court has broad equitable powers to fashion appropriate relief for violations of the federal securities laws, which include the power to order an officer and director bar.” SEC v. First Pac. Bancorp, 142 F.3d at 1193. Section 21(d)(2) of the Exchange Act authorizes federal courts to impose an officer-and-director bar on an individual who violates the antifraud provisions if the person’s conduct demonstrates “unfitness” to serve as an officer or director of a public company. 15 U.S.C. § 78u(d)(2).
Before the Sarbanes-Oxley Act was enacted, the standard for obtaining an officer-and-director bar was higher, requiring a showing of “substantial unfitness.” See SEC v. First Pac. Bancorp, 142 F.3d at 1193. Although the lower “unfitness” standard applies in this case, the factors that the Ninth Circuit outlined in determining “substantial unfitness” are helpful to determine whether an individual is unfit to serve as an officer or a director of a public company. Those factors are: “(1) the ‘egregiousness’ of the underlying securities law violation; (2) the defendant’s ‘repeat offender’ status; (3) the defendant’s ‘role’ or position when he engaged in the fraud; (4) the defendant’s degree of scienter; (5) the defendant’s economic stake in the violation; and (6) the likelihood that misconduct will recur.” Id. (quoting SEC v. Patel, 61 F.3d 137, 141 (2d Cir. 1995) (internal quotations omitted)).
Casavant is unfit to serve as an officer or director of a public company. His acts are particularly egregious. While Casavant was the only active director and officer of CMKM during the fraud, he knowingly or recklessly signed numerous board minutes improperly issuing billions of purportedly unrestricted shares of CMKM stock. (See Compl. ¶¶ 39a, 39d & 39f.) To entice shareholders to buy CMKM stock, he also issued false press releases and made fraudulent misrepresentations. (Compl. ¶¶ 45-49.) Casavant also failed to implement any system of accounting controls, which resulted in CMKM’s complete failure to record assets, liabilities, expenditures, or related-party transactions. (Compl. ¶ 29.) Casavant’s conduct was not isolated, but occurred over a number of years and ultimately resulted in the issuance of hundreds of billions of shares of purportedly unrestricted stock. (Compl. ¶ 4.) Because Casavant was the only active director and officer of CMKM, as well as its president and CEO, Casavant acted knowingly. (Compl. ¶ 4.) As a result of his conduct, Casavant received more than $31.5 million in ill-gotten gains. (Compl. ¶ 4.) Given the egregiousness of his conduct, Casavant is unfit to serve as an officer or a director of a public company, and an officer-and-director bar is warranted. See SEC v. Universal Express, Inc., 475 F. Supp. 2d 412, 429 (S.D.N.Y. 2008) (ordering an officer and director bar where CEO of public company “personally directed the issuance of over 500 million shares [of stock] that were not registered, over the course of several years during which millions of dollars were flowing to the company in connection with those unregistered issuances.”)
G. A Penny Stock Bar is Appropriate
Section 20(g) of the Securities Act, 15 U.S.C. § 77t(g), and Section 21(d)(6) of the Exchange Act, 15 U.S.C. § 78u(d)(6), authorize district courts to bar individuals from “participating in an offering of penny stock, conditionally or unconditionally, and permanently or for such period of time as the court shall determine.” 15 U.S.C. §§ 77t(g)(1) & 78u(d)(6)(A). The Court can order a penny stock bar against any person who violates the Securities Act or Exchange Act who was “engaging in activities with a[n] . . . issuer for purposes of the issuing, trading, or inducing or attempting to induce the purchase or sale of, any penny stock.” U.S.C. §§ 15 U.S.C. § 77t(g)(2) & 78u(d)(6)(B). As the sole functioning officer and director of CMKM, Casavant clearly engaged in activities with CMKM for purposes of inducing the purchase of CMKM’s penny stock.
The standard for imposing a penny stock bar essentially mirrors that for imposing an officer-and-director bar. SEC v. Universal Express, Inc., 475 F. Supp. 2d 412, 429 (S.D.N.Y. 2008) (citing SEC v. Wolfson, Case No. 02 Civ. 1086(TC), 2006 WL 1214994, *10 (D. Utah, May 5, 2006); Steadman v. SEC, 603 F.2d 1126, 1140 (5th Cir. 1979)). Imposition of a penny stock bar is warranted against Casavant for the same reasons that an officer-and-director bar is appropriate here. Casavant took control of a company with little value, hyped its product through false and misleading press releases and Internet postings, and distributed billions of purportedly unrestricted shares of stock in violation of the Commission’s registration requirement. It is in the public interest to order that Casavant be barred from participating in the issuance of penny stock.
IV. CONCLUSION
For the foregoing reasons, the Commission asks the Court to enter a Final Judgment against defendant Urban Casavant permanently enjoining him from future violations of the securities laws and ordering him to disgorge the $31.5 million in ill-gotten gains that he received as a result of the fraud, pay prejudgment interest of $2,689,433.62, and pay a third-tier civil penalty. The Court should also bar Casavant from acting as an officer or a director of a public company and impose a penny stock bar.
DATED: August 31, 2009
/s/ Molly M. White
_____________
Molly M. White
Leslie A. Hakala
Attorneys for Plaintiff
Securities and Exchange Commission
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Reply with quote | #60 |
By: gusjarvis
01 Sep 2009, 12:17 PM EDT
Rating: Msg. 863943 of 863948
(Reply to 863898 by e362)
Jump to msg. #
3362 not only does that show je and uc made no money
from any sales of stock after sept 5th 2004, it explains a lot more. Nevwest phoned in every single cert sale that was supposedly illegal to the sec after sept 2004, every single one. Those were ok'd by the sec. Not one cent of those sales or any other sales of hundreds of billions of shares went to je or urban or crew.
So what happened after they got caught, why did john edwards run to china per john martin. Why after being caught did urban remain on running this fraud, pr'ing that the sec wouldn't let him file? Why after being caught did bob maheu come on board with a team of super lawyer given everyone on the boards even knew of the silver state bank records? Why did the finish the sggm deal when they were already caught? Why did the silver state bank keep allowing fraud to continue when they were subpoenaed as well? Why did bill use only je in his derivatives letter and leave out urban when he was caught as well, and why did he work with him? Where is the other 190 million and who is on the hook for that? Why did the sec allow urban to continue got cmkx when he was already caught, and why do got cmkx when they never stole one cent of the money after sept 2004 and why did bob maheu allow it?
well I could go on forever of what happened after urban and john edwards were caught, but we all now know it was just like bud said, a scam that turned into a sting. The only question remaining at all is did it start with shawn hackman, with david liston, with roger glenn, with bob maheu, with bill frizzell.
well it is clear that no matter what your view are it started absolutely no later than sept 5th 2004!
http://cmkxunofficial.proboards.com/index.cgi?board=mofo&action=display&thread=4024&page=9
...Flying Moose(cmkx-treme)
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