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CMKM Diamonds, Inc. Update
Progress
is being made in the Casavant lawsuit. Various parties have
now been served with publication and the Company will be proceeding with
default judgments shortly against those that have not answered. CMKM
attorneys met with attorneys for Roger Glenn last week and have agreed to
a Case Conference report which will be submitted to the trial judge as is
customary in Nevada courts. The parties will then be operating under a
somewhat structured time line as to future discovery including depositions
and other matters. The Company intends to disclose thousands
of pages of documents to Mr. Glenn's attorneys this week as part of the
required initial disclosures. The Company should in turn receive from
Mr. Glenn any documents he and his attorneys feel are required to be
disclosed under local rules."
CMKM Diamonds, Inc. Shareholder
Update
CMKM
Diamonds, Inc. has completed the selection process of a new Stock Transfer
agent. CMKM has a great deal of data entry work that must be completed and
sent forward to the Transfer agent for their approval. To the satisfaction
of the new transfer agent and final approval the information will be
uploaded into the new system and the Company will put out an update with
the Name of the Transfer Agent and the corresponding contact information.
At that time shareholders will be able to make any address changes
and submit for transfer requests. The Company expects this process to be
completed within the next 30-45 days. The Company believes it has found
the right transfer agent for the immediate and long term needs of a
shareholder base of our size. CMKM would like to thank all the
shareholders for their patience through this long process.
On
2.23.2010, President Kevin West, personally spoke with a Team Manager who
is a Licensed Principal in Corporate Actions with Ameritrade about the
concerns that a number of shareholders recently brought to my attention
regarding their CMKM shares and/or Casavant Mining International shares
still in street name at Ameritrade. I was informed that the share holdings
at TD Ameritrade system for old restricted dividend shares of Casavant
International Mining were being held as CMKM Diamonds, Inc. / Casavant
International Mining. In order to make an adjustment in their system, they
changed the Casavant International Mining shares from being classified as
stated above into a new CUSIP number reclassifying them strictly for the
Casavant International Mining shares. This change in no way
affected/effects the CMKM Diamonds, Inc. shares that some shareholders
still hold in street name with TD Ameritrade. CMKM Diamonds, Inc shares
are still CMKM Diamonds, Inc shares in all TD Ameritrade accounts. There
should not be fees of any kind involved in this transaction and any
Ameritrade customer that finds a fee related to these transactions can
contact Ameritrade to have it removed. August 14, 2009 CMKM Diamonds, Inc. filed an amendment yesterday to add several individuals and entities to their current lawsuit in Nevada against former CEO Urban Casavant and other insiders of the Company. The amendments include attorney Donald Roger Glenn, Rendal Williams, Cierra Williams, former Silver State Bank representative Patricia DeCosta, Monte Verde Holdings, and Edwards, Angell, Palmer and Dodge LLP. The lawsuit, originally filed on April 25, 2007, is one of several legal actions against individuals and entities who are believed to have played a major role in the fraudulent insider activities and massive stock dilution of the company. Additional lawsuits and actions against other parties are planned by the Company. This newly amended lawsuit is posted on the Company website at http://www.cmkmdiamondsinc.com/documents/casavant_amendment_8-13-09.pdf CMKM Diamonds, Inc. has also filed an amendment in Texas to add several individuals and entities to their current lawsuit against Casavant family members and other insiders of the Company. This newly amended lawsuit is posted on the Company website at http://www.cmkmdiamondsinc.com/documents/texas_amendment_8-13-09.pdf June 17, 2009 CMKM Diamonds, Inc. recently held its Annual Board of Directors meeting, at which all Company directors and officers were present. The past 12 months have been extremely eventful, as the Company has provided updates to its diverse shareholder base a total of 30 times through press releases, Corporate and Shareholder updates, Q&A updates, and CEO radio shows. To date, nearly 100 documents have been posted on the Company website. The highlights of the past year include: July, 2008 - CMKM Diamonds, Inc. was awarded a $33,675,365 judgment in a Nevada District Court against one of the former insiders of the Company, John Edwards, just over a year after current Chairman and then CEO Kevin West hired attorney Bill Frizzell as Corporate Counsel to file lawsuits on behalf of the Company against numerous company insiders and others who conspired to defraud the Company and its Shareholders. The Company has been ably supported by local counsel in the various jurisdictions of our many legal actions. July, 2008 – CMKM Diamonds appointed an Advisory Committee to assist the Company in its efforts and decision making process and to begin the search for Board of Directors members and a new Company CEO. August, 2008 – Based on recommendations from the Company Advisory Committee, Board Chairman and CEO Kevin West appointed a Board of Directors consisting of shareholders Stan Polsom, Tom Stephenson, and Roger Summers. September, 2008 – Based on recommendations from the Advisory Committee and the Board of Directors, CMKM Diamonds, Inc. appointed nationally recognized stock market reform advocate, author, and businessman Mark Faulk as its new CEO, with Kevin West remaining as Chairman of the Board. October, 2008 – Mark Faulk conducted his first CEO Chat, a radio show designed to help answer shareholders’ questions and update shareholders on current events. All radio shows are available on the Company website. January 20, 2009 – The CMKM Diamonds Plea for Justice: CMKM Diamonds, Inc. CEO Mark Faulk sent a letter (with the help of the BOD and Advisory Committee), along with accompanying supportive documents, to incoming President Barack Obama and over 50 regulatory officials and U.S. congressmen. The letter began: “CMKM Diamonds and its shareholders respectfully ask that our government act responsibly in seeking justice in one of the largest singular frauds ever perpetrated in our financial markets.” The letter was subsequently distributed to countless public officials and media outlets by our diligent shareholders. February, 2009 – CMKM Diamonds followed up their Plea for Justice letter with an online petition that read: “We the undersigned ask that the DOJ, FBI, and IRS to act immediately to issue criminal indictments against all of those individuals who conspired to defraud 50,000 CMKX shareholders of over $250 million.” The petition, containing almost 2,000 signatures, was forwarded to public officials and the Criminal Task Force investigating prior fraud in CMKM Diamonds. February 2, 2008 – An email was sent to 20 people within the DOJ, FBI, IRS, SEC, and FINRA, containing the CMKM Plea for Justice Letter, along with an introductory email detailing the hundreds of thousands of pages of bank account records, transfer agent records, trading records, and other evidence that the Company and its legal counsel had accumulated, and renewing offers to assist the various agencies in their investigations. Less than two hours later, the Company received a phone call from an FBI agent who is a member of the Task Force. Since that phone call, the Company has worked closely with federal agents to provide evidence in order to ensure that criminal charges will be filed in one of the largest financial frauds in history. February, 2009 – The Company has also mailed a Letter of Request to the Task Force asking that all CMKM Diamonds, Inc. (CMKX) shareholders be added to a victims’ list under the Victim Notification System (VNS). April, 2009 - CMKM negotiated a settlement agreement in their lawsuit against Eton Properties, Inc. in which the Company accepted a parcel of real estate in Clayton, Georgia. This settlement represented the first real value returned to CMKM Diamonds, Inc. since former CEO Urban Casavant fled to Canada leaving only $558 in corporate bank accounts. April, 2009 – CMKM announced that paperwork signed in October of 2008 had laid the groundwork for negotiations with Entourage Mining Ltd. to settle ongoing lawsuits. Parallel to negotiations with Entourage Mining Ltd., CMKM Diamonds, Inc. also announced that the Company is also working on other related agreements to benefit the Company and its shareholders. Once these negotiations have been finalized, details of all agreements will be released. May, 2009 – CMKM announced that the Company had received deed to a second parcel of property as part of the settlement with Eton Properties Corp. This property is 62.176 acres located in Franklin, Virginia. Legal issues announced regarding the transfer fees due at the time of recording the deed have since been resolved, and the property deed has been properly recorded in the name of CMKM Diamonds, Inc. In current events, the Company has appointed a Due Diligence Committee in order to assist us in our ongoing research and investigation into the massive fraud that was perpetrated on CMKM Diamonds, Inc. While the members of the Due Diligence Committee (as well as numerous other dedicated shareholders) have already individually contributed invaluable research and information to the Company, we believe that by coordinating those efforts we can move the Company forward in a more effective manner. The Company will continue to update its shareholders on a regular basis as we move forward or settle existing lawsuits, file additional lawsuits, and proceed in our efforts to recover stolen assets. We will continue working with the Federal Criminal Task Force to ensure that those who defrauded CMKM Diamonds, Inc. and its shareholders are brought to justice. While it has been an eventful time period for CMKM Diamonds, Inc., the upcoming months should be even more fruitful. Finally, as always, we would like to thank our Board of Directors and our various committee members for their hard work, and our loyal shareholder base for their patience and support as we work towards making CMKM Diamonds a viable company. May 11, 2009 April 21, 2009 CMKM has negotiated an agreement with Eton Properties, Inc. which will result in a dismissal of the litigation filed in Haywood County, North Carolina. The settlement agreement between CMKM and Eton Properties, Inc. contains a strictly worded confidentiality clause so the settlement agreement will not be posted on the web site. CMKM Diamonds, Inc. has accepted a parcel of real estate in Clayton, Georgia. There is a possibility of additional litigation against unnamed third parties in order to conclude the settlement and obtain the full benefits of the settlement agreement. The Board of Directors of CMKM Diamonds, Inc. has approved the settlement agreement.
At CMKM Diamonds, we are fighting a war on multiple fronts. While we move forward with our own corporate lawsuits in an effort to return value to the Company, we are also urging our government to enact justice against those who have wronged our shareholders. In order to keep pressure on the DOJ, FBI, and IRS Task Force that has been investigating the fraud committed by those criminals who stole an estimated $250 million dollars from innocent CMKX investors, we have posted a petition seeking justice “in one of the largest and most blatant singular frauds ever perpetrated in our financial markets”. When enough signatures are accumulated to present a united front, we will present the petition to those who are in charge of the investigation and their superiors. We have always believed that properly motivated, our shareholders are our greatest asset. This is a perfect opportunity to, in the words of Company Chairmen Kevin West, “unite this group of wonderful people, our shareholders, for a common cause.” PLEASE go to http://www.petitiononline.com/CMKX/petition.html to sign the petition. Let the government Task Force know that WE WILL NOT GO AWAY QUIETLY. Let your voices be heard. Post it on message boards, discuss it in chat rooms, and send it to everyone you know. You do not have to be a shareholder to sign the petition, just a citizen who believes that justice still counts for something in our country. Let CMKM Diamonds be the first step in cleaning up the rampant corruption that plagues our financial system. United we can change the world.
To: DOJ, FBI, and IRS Task Force investigating CMKM Diamonds, Inc. (CMKX): PETITION: CMKM Diamonds and its shareholders respectfully ask that our government seek justice in one of the largest and most blatant singular frauds ever perpetrated in our financial markets. The company's stock (trading as CMKX) was revoked over three years ago, but its shareholders still await the filing of criminal charges against the numerous individuals who defrauded over 50,000 shareholders of an estimated $250 million. From 2003 until late 2005, criminals in control of CMKM Diamonds, Inc. sold over 703 billion shares of stock to unsuspecting shareholders, including blue collar workers, the elderly, disabled, and even soldiers fighting for our country in Iraq and Afghanistan. Mastermind John Edwards and CEO Urban Casavant were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms. On April 8, 2008, the SEC charged 11 individuals and 3 corporate entities with civil violations, but despite a mountain of evidence clearly showing massive criminal fraud, a multi-year investigation by the DOJ, FBI, and IRS has yet to produce a single criminal indictment. Many of the criminals have already fled the country, while others are involved in new scams with the intent of robbing other investors. To view a Letter to the President and supporting evidence sent out by current CMKM Diamonds, Inc. management, go to: www.cmkmdiamondsinc.com/letter_index.html We the undersigned ask that the DOJ, FBI, and IRS to act immediately to issue criminal indictments against all of those individuals who conspired to defraud 50,000 CMKX shareholders of over $250 million. http://www.petitiononline.com/CMKX/petition.html
12-06-08 A hearing was held on December 5, 2008 in Waynesville, NC on Eton Properties' motion to dismiss and motion for summary judgment in the Eton Properties Corp. vs. CMKM Diamonds, Inc. lawsuit. The hearing was attended by CMKM General Counsel Bill Frizzell and by CMKM local counsel Jeffrey Norris. At the beginning of the hearing, Eton Properties' attorney withdrew their Motion to Dismiss. In Eton's Motion for Summary Judgment, the Court interpreted the North Carolina statute as demanding that a suit be filed in North Carolina within 60 days of the filing of the Lis Pendens. CMKM's attorneys were not in agreement that this was necessary to comply with the statute since our suit was filed in Nevada. Attorneys for CMKM reminded the Court that Eton has sued CMKM, and that CMKM has filed counterclaims against Eton and the Court acknowledged this filing. The Court granted Eton’s Motion for Summary Judgment which simply struck CMKM's first filing of the Lis Pendens. CMKM's attorneys immediately went to local counsel’s office and prepared and filed a second Lis Pendens. CMKM will now proceed with discovery and a new Lis Pendens is now in effect on the property which we have sought in this proceeding. New documents pertaining to this case can be found in the Documents section of the Company website. CEO Mark Faulk said, "We are very pleased with the performance of our attorneys in both the Eton and Viashow lawsuits, and anticipate continued progress as we move forward on these and other legal matters that the Company has undertaken. We will not only continue to represent CMKM to the best of our ability on pending legal actions, we will also broaden the scope of our actions to include other parties who have wronged CMKM and its Shareholders. Furthermore, we intend to continue efforts to push for justice within our criminal system against those individuals and entities who defrauded CMKM and its Shareholders of over $250 million." For more information on these lawsuits, see CMKM vs. ViaShow Lawsuit under Misc. CEO-Released Documents, and the Eton Properties Lawsuit section of the Documents area.
9-25-08 CMKM Diamonds, Inc. has received letters from a broker requesting that larger CMKX certificates (held in the same broker's name) be broken down into several smaller certs. The written request contained the notation "FOR FAILS PHY". The broker confirmed that the request was to cover a fails to deliver in the stock. In a separate incident, one major brokerage firm requested the transfer of a bulk certificate from another major brokerage firm. This request was dated June 29, 2008, over two and a half years after the Company was delisted and no longer trading. The Company also has in its possession a letter where a clearing firm discusses the cost effectiveness of obtaining stock so that they could issue certificates to their clients, saying "Given the price of the stock, it may be more reasonable for us to go out and buy the shares to cover the short." This letter is dated almost two years after the Company was delisted and its shares no longer trading. In a CMKM Diamonds press release dated April 20, 2007, it was confirmed that the Company "halted the transfer of a large bulk certificate to a major brokerage from a third party". The Company is continuing its investigation of this and other questionable brokerage activity. Mark Faulk,
4-10-08 On Monday, April 7, 2008 the Company was served with a lawsuit from the Securities and Exchange Commission. The SEC is seeking injunctive relief and disgorgement of profits from numerous parties who were involved with the Company in the past. At the time this lawsuit was filed, I was out of town on Company business and was not able to return to the office until this morning. As you can well imagine, there are many sensitive issues that must be discussed with our corporate legal counsel and with the SEC before any official statements can be released to the public. At this time the Company stands firmly behind the findings of the SEC as they are explained in the lawsuit. Since I was appointed sole officer and director in March of 2007, the Company has cooperated fully with the SEC investigation and I look forward to continuing this relationship. As documents and other information become available for release to the public, we will post them on the Company website. Sincerely,
For several years now, I have listened to rumors and unfounded fantasies about shareholder payouts and naked short trust funds. These rumors have no factual basis and I feel compelled to once again address these issues. Like many of you, I once believed there was an involvement or some sort of covert action taking place behind the scenes which might suggest an ongoing sting or conspiracy theory. Just as many of you are now doing, I spent endless hours performing due diligence and engaging in talks with other shareholders. At that time, I did not have the facts before me that I have today. I have shared many of these facts with you through providing you with sworn declarations, documents and other information that is available on the Company website. When Urban Casavant and Michael Williams contacted me about becoming interim CEO, I demanded to know more about what was really going on before accepting the job. I was promised more information and given many stories that seemed credible at the time. Because I was so trusting and wanted so badly to believe that things were being done for the benefit of the shareholders, I made the decision to accept the position being offered. This was a hard decision to make because I already had a very good job. When I accepted the job as interim CEO, I did so because I felt that no matter what the circumstances were I would be in a position to help the shareholders. I also believed that if there were unknown problems facing Urban and CMKM that I could be of some help in resolving those problems. My sincere thought was that if there was ever going to be a return to these shareholders, I believed in my heart that my efforts would assist Urban and whoever he might have been working with to finally bring everything to fruition. I must say that my seven months as interim CEO was not a good experience. Unfortunately, what I learned did not in any way support the rumors or fantasies that I had been hearing for years. The facts uncovered since accepting the job as permanent CEO have also proven quite a different story to the ones that I was being told and a whole new set of facts came to light. I made a promise when I became your CEO that I would do everything I could possibly do to report the condition of the Company and the facts as I found them to you as objectively as possible. I assumed that presenting facts via documents and sworn declarations would be helpful to the shareholders and would minimize the rumors and fantasies that have been so rampant for the last several years. While this has minimized the effect of these rumors to some extent, the rumors are still fueling false hopes to many. Upon becoming sole officer and Director in March of last year, I made an immediate decision to cooperate in every way possible with any law enforcement and regulatory bodies that have been investigating this Company. Almost every day I spend time investigating the occurrences of the past few years. The results of our many investigations will be important as we proceed with our civil litigation. Let it be known that there have not been any law enforcement agencies nor any regulatory bodies (SEC and others) that have contacted me to request my help or my assistance in any of their investigations. However, I did make personal contact with many of them and have since provided numerous files and documents which contained information that I believe may be of some help to government investigators. It should come as no surprise that there are criminal investigations and SEC enforcement investigations that have been ongoing in CMKM for several years now. Part of my duty as CEO is to be able to identify our bona fide shareholders. I have been conducting a very extensive and ongoing shareholder audit since I took office last year. Several months ago it was brought to my attention that there were some illegally issued certificates. Since that time, we have uncovered many forged stock powers and other irregularities in the stock issuing process. We have begun contacting numerous shareholders requesting proof of payment or of any services rendered as payment for their stock. We have had to engage in this lengthy process because the company records, in many cases, do not show payment or services rendered as payment for stock being issued. Since we have irrefutable proof of forged signatures and other types of irregularities on many of the documents necessary for the valid issuance of shares, I have instituted a policy of reviewing proposed stock transfers before our transfer agent does the job it is entrusted to do. If there are any stock transfer requests coming in from shareholders that I feel might be of interest to law enforcement or the SEC, then I feel compelled to make such information available to them. Law enforcement and the SEC may or may not find the information I forward to them helpful. There has never been an approval or denial given to me by the SEC nor any law enforcement agency for any of the proposed transfers that have been requested by shareholders since I have become CEO. Law enforcement and the SEC may or may not do further investigation on the proposed transfers. In light of the knowledge that I have about past irregularities, I believe it is my duty to review proposed transfers. If there are any proposed transfers of this stock that I feel might be of interest to law enforcement or the SEC, I forward the materials to them. I do not want it to appear that this company is in any way protecting, condoning or hiding such transfers. There are shareholders stating that I have said these stock transfer proposals were being reviewed and approved by the SEC. I felt it necessary to tell you that such statements are completely untrue. I have merely told a few shareholders that I was sharing the information with the SEC and that I would continue the transfer process after a few days from forwarding that information to them. I have told several shareholders in writing what I am telling you in this update. I have also heard that some shareholders were hoping to sell some of their stock to new investors because they believed these actions were proof of some eventual windfall. Nothing could be further from the truth. It would be a terrible injustice for someone to interpret these acts as some proof of an eventual payout or any potential benefit to the shareholders. I reiterate to you that our lawsuits, depositions by government agencies, documents and statements of witnesses do not suggest there has ever been one penny placed in trust nor set aside for the company shareholders. Our lawsuits are based on facts. The supporting declarations are factual. All documents posted on our website are factual. There is not one iota of factual evidence that shows that any actions were ever taken nor money set aside by previous management for any type of eventual payout to the shareholders of this Company. I have tremendous faith in our legal team and I believe that they have made huge steps forward in the eventual recovery of some of the assets that were purchased with your investment dollars. While it is our plan to eventually return to a trading status of some kind, we cannot even contemplate becoming publicly traded in any form until we can build a real business that has tangible assets, a full Board of Directors, a management team and a business plan that has foreseeable revenues. In other words… a real business. I fully realize that making such statements will not be well received by a small number of shareholders who feel it necessary to fuel your hopes with absolute falsehoods. I want to emphasize once again that I have never told anyone that our stock transfers are being approved, disapproved or even being reviewed by the SEC. I am simply forwarding our information to the SEC out of an abundance of precaution that any such transfers might be of help to them as they do their jobs of enforcing the securities laws. I would request that shareholders ignore the many false rumors and tune into the Company website for factual information and updates as they are provided. Sincerely,
12-12-07 In the normal course of litigation, the plaintiff does not give out the documented evidence it has acquired for dissemination to the public. Normally a statement of facts is presented in the lawsuit petition along with exhibits to support those facts. This is eventually followed by interrogatories and document requests by the opposing side. In our lawsuit filed by the Company against former management and other insiders, there has not been an opposing side to show up in court to request our evidence. I have discussed releasing some of our documented evidence to the shareholders via this public website. Company legal counsel has advised me against doing this because it is not a normal legal course of action. However, I am going to release a portion of our evidence because of the obligation that I feel to the shareholders to share with them the facts as they have happened. There are many documents that simply cannot and will not be made public at this time due to their role in a potential recovery of assets. With the support of our legal team, I still hope to be able to recover some of the assets that belong to the Company. If and when enough assets are recovered, they can provide a financial basis for this Company to appoint a Board of Directors and hire officers to initiate a formal business plan and finally move this Company forward to become a real and viable entity. Many are wondering about the talk in the past of naked shorting of the Company’s stock when it was publicly traded. The Company does have proof of actual fails to deliver in our stock. The number of fails and the number of shareholders affected by this problem have not yet been established due to an ongoing shareholder audit. Most people do not realize the number of hours and the amount of money that has to be expended with every step the Company takes in any of the ongoing issues, the shareholder audit being one of most exhaustive of these resources. Having a shareholder base of 40,000+ people multiplied by the fact that our shareholder base is from around the world, makes every step a massive undertaking. Because of the enormous size and international locations of our shareholder base, any event that would require the Company to attempt notification of all shareholders through a certified process would cost a minimum of $250,000 by the time all costs were added together. Many are asking me to disclose my personal salary. Since this is a private company, I am not obligated to do so. However, since it is not a big secret, I will provide this information to you. Just before his resignation on March 29th of this year, the former Chairman of this Company gave me a new 3 year contract as sole officer and director of the Company at $10,000 per month. Since the Company was left with little more than $500 in the bank when I took over on March 29, 2007, the Company has relied upon loans put together by Bill Frizzell to continue to survive. Because most of this money has to be used in an effort to recover assets for continued survival, my personal income has been very minimal and has not been enough for my salary to be paid in full through July of this year. Many are asking about the interpleader action that was supposed to have been filed by the former attorney of CMKM Diamonds, Inc., John T. Moran lll. The Company still does not know what actually took place during the time that Mr. Moran was hired to file the interpleader because that attorney is still refusing to turn over our Company’s file. At this time, the Company is now involved in yet another lawsuit that was filed by Entourage Mining in British Columbia in an effort to reclaim the shares of Entourage stock that was supposed to be included in the interpleader that was never filed in Nevada. This lawsuit must be decided before any further actions can be discussed or taken with these holdings. The Company will not answer to threats by shareholders or anyone else. Current letters that have come to my attention that are threatening a phone, fax and email campaign will not be answered in any way, shape or form. Anyone that believes that wasting the very limited time and resources of our legal team and other service professionals are only looking for ways to get recognition and these acts are no help to the Company or the shareholders. These suggested ways to try and manipulate management into discussing matters that are pure fantasy are only going to further delay what we are trying to accomplish for the good of everyone. Bill Frizzell and I have taken time out of our very busy schedule to visit with many shareholders who have dropped in without an appointment, but our limited time simply does not allow for unscheduled visits in the future. I would suggest that these individuals get a shareholder representative to call the law firm and ask to schedule an appointment to come and look at the real facts. If shareholders want to hire an attorney and have that attorney call Bill Frizzell, he will be happy to schedule time for him or her also. As discussed earlier in this update, I am going to release some of our many documents on this website for shareholders to view. These documents are going to be released as we have time to put them into a form suitable for public viewing. These documents are only being shared as a way to show shareholders the truth as to what has happened. The Company will not give any opinions on these documents as they are pretty much self-explanatory. Out of everything that I have to deal with on a daily basis, my biggest burden is for the families of those that continue to live in a fantasy land of big checks coming that will save the day. Families are suffering for the actions of spouses that are addicted to these get-rich-quick rumors. There are no checks coming from any source. As shareholders, our only hope for liquidity and any possible ROI in the future is to get this Company back to trading status with value in it so that you can one day make a choice to either sell your holdings or hold on and grow with the Company. Those that continue talk of checks are only misleading you for their own purposes or for the purposes of those that do not want to face the wrath of this shareholder base for the crimes that they have committed against them. As the CEO, I am thrilled with the results of our legal work. I have confidence we will be successful in our efforts to rebuild this Company. Sincerely,
11-01-07 Sincerely,
9-28-07 As many of you are aware, CMKM Diamonds, Inc. is currently involved in a total of five lawsuits in which the Company is the plaintiff in two of them and the defendant in the other three. The Company also has an outstanding issue concerning a Wells notice with the SEC and an issue to be dealt with concerning the Manitoba Securities Commission. Other issues at hand are the actions that the Company is taking to become fully compliant in order to return to trading status. Entourage Mining has recently filed suit in British Columbia against 101047025 Saskatchewan LTD. and CMKM Diamonds, Inc. to cancel the contract of October 2005 in which our Company was issued 45 million shares of Entourage Mining stock in a restricted certificate. We have made contact with several law firms in Vancouver. We will retain counsel to represent the interests of the company and the shareholders. We have communicated with the attorney for Entourage. CMKM has not been served with the lawsuit but we have reached an agreement with counsel for Entourage regarding service of the summons. Entourage counsel is aware of our efforts in retaining counsel in Vancouver. This lawsuit is very important to this company. It appears from all records we obtained from prior counsel and all records which we have received from other sources that CMKM has never owned the claims which are now involved in the lawsuit being brought by Entourage. Our records show substantial money was paid for the claims and for drilling on the claims. It is the company’s firm belief that these remaining claims should belong to the company because of the money spent to maintain these claims. CMKM Diamonds, Inc. is also the defendant in two Nevada State court cases. 1. Jay Rutherford vs. CMKM Diamonds, Inc.
2. Francisco Carrano vs. CMKM Diamonds, Inc.
The Company has filed two Nevada State court cases against former management and other insiders of the Company. 1. CMKM Diamonds, Inc. vs. Dave Desormeau; John Edwards; Does 1-50; and Roes 1-50
2. CMKM Diamonds, Inc. vs. Urban Casavant; The UAJC 2005 Irrevocable Trust; Michael Williams; Deshawn L. Wayne; Brian Dvorak; James Kinney; Ginger Gutierrez; P.A. Holdings, Inc.; Bucko LLC; Does 1-20; and Roes 1-20
Bill Frizzell has made contact with an attorney at the Manitoba Commission. Since current management was not involved with the company’s acts which have been alleged in the proceeding being brought by the Manitoba Commission, we have requested certain items from the Manitoba Commission’s file. We will respond appropriately when we receive the requested information from the Commission. The Company has not filed an official response to the Wells Notice but we are in contact with the SEC regarding the matter. Current management was not involved in the matters being alleged by the commission when the acts occurred. We are acquiring information through various sources so that we can adequately respond to the matters raised in the Wells Notice. As we have previously discussed, the Company is working diligently to obtain the financial records and company documents which were used to transact hundreds of business and stock deals over the last four years. We have been fortunate to have subpoena power to obtain certain documents and financial records. Some of the records we are requesting are voluminous and because of the large volume, we occasionally receive requests for extensions of time from those parties that receive our subpoenas. Delays often occur through no fault of the company, but the material is vitally important to our efforts to have a set of auditable books. We have discovered many transactions that will need documentation before this company can become compliant. We are succeeding in our efforts to obtain all needed records. Many shareholders have inquired as to why the Company feels that it is feasible to return to trading with no tangible assets. We are not prepared to guess at what assets the Company may have in the future. Current management knows and understands that the Company will need to have tangible assets and a well structured business plan in order to have any chance of success in the markets. We continue our efforts in this regard. Sincerely,
8-30-07
8-10-07 CMKM attorney Bill Frizzell and I have been struggling to remedy the shareholder communications dilemma: there are no funds to support a full-time IR position, and the legal effort Bill and I are undertaking leaves us with little or no time to personally respond to individual phone calls, letters and emails. Nevertheless, we recognize the high importance of maintaining an effective channel of communication between shareholders and company management. Absent such communication, the vacuum tends to be filled with rumors and no factual information. Our FAQ section offers what we feel is an effective, efficient way to address your questions for the benefit of the largest possible number of shareholders. A prominent feature of the new section is that each and every question comes from you, the shareholders. The following email address has been set up for the receipt of your questions to CMKM management: Approximately twice per month, Bill and I will select a number of questions from among those submitted, and post both questions and answers in the FAQ section. Previous sessions will remain on the site for future reference. This first session is made up of questions that have come in from several different shareholders. From now on, however, only questions sent directly to the FAQ address will be considered for selection. Questions not selected for a particular posting session will be deleted. Therefore, if your question has not been addressed and you’d like to give it another shot, feel free to re-submit your question for the next session. Please do not expect any personal replies to questions submitted to the FAQ address. The only replies will be auto-responses to acknowledge that questions have been received. We are working hard on a daily basis to bring value to this company. There is no quick fix to the damage that has been done in the last four plus years. I would ask for shareholders to realize that it is going to take some time to put the right pieces together before this Company can be in a position to move forward to becoming a trading company once again. Have a great weekend, Kevin West
6-29-07 Sincerely,
To CMKM shareholders, I have advised Kevin not to answer specific questions regarding litigation matters. It is not legally appropriate for a CEO to discuss company business that is in litigation with shareholders or other third parties. For this reason, I have agreed to update you in a general fashion on certain matters. A Wells Notice was issued to the company in February of 2007. The attorney representing the company at that time failed to timely respond to the notice. The allegations in the Wells Notice involve matters that occurred while Mr. West was not involved with company management. A full and complete response by the company requires information which we are seeking at this time through the Courts. I have discussed this matter with the SEC and I am confident the company can make a full and complete response in cooperation with the SEC. We have obtained financial records of the company from several banks and brokerage houses beginning in 2002 and continuing to the present. It is taking an extraordinary amount of time because of the sheer volume of records that were generated over the years. These records are necessary for the preparation of audited financials. When Kevin assumed his position of CEO, he was told by various lawyers and former insiders there have never been any official books of the company. There has never been a corporate tax return filed. There is not a set of books from 2002 through the present date. We will eventually obtain all the records necessary to have an audited set of books. I can give you no specific date when this process will conclude. The work is ongoing daily. This is the first and most important step to a return to trading by the company. The rumors of payouts and huge trust funds are not supported by the records being examined by Kevin, the accountants and the attorneys. David Desormeau has been served and he has filed an answer. We are awaiting service on John Edwards. Once Mr. Edwards is served, discovery will begin in that litigation. Urban Casavant has not been served but efforts are ongoing to have him served. Our investigation is continuing to support additional claims against new parties for personal loans and disbursements which were made from company funds to individuals and other third parties. We find records of millions of dollars which were loaned or gifted out to other parties but never returned to the company. We expect to be adding additional parties to our litigation in the next few weeks. There have been many inquiries about our ongoing naked short investigation. We are providing Susanne Trimbath with certain information that she has requested. Although the company is continuing its investigation into the problem of identifying its bona fide shareholders, the litigation is taking priority and consuming most of our time at this point. The Entourage and interpleader situation is undergoing extensive review and discussion. Mr. West has not yet received any files from previous Company attorneys regarding work that was done on the interpleader. Mr. Stoecklein has continued to hold the Entourage certificate in his possession. Please follow the company website for developments. Management will provide quarterly updates to its shareholders with the next scheduled update to occur on September 30, 2007. Any significant event or occurrence will be reported through interim updates on an as needed basis. Bill Frizzell
6-15-07 The order that was filed on 6-08-07 is now available on the Company website. As soon as the new order is filed and received from the court, it will also be made available on the Company website. Be sure to remember to express to your Dad just how much he means to you on this Father’s Day weekend. And to you fathers out there; “I don't care how poor a man is; if he has family, he's rich”. ~M*A*S*H, Colonel Potter Thank you for your continued support, Kevin West
6-01-07 Based on the results of the subpoenas that we have sent out over the last few weeks, and depending on the advice of our attorneys, we may be adding a new party or parties to an amended TRO. I will continue to keep you up to date on events as they unfold. Have a wonderful weekend with family and friends. Thank you for your continued support, Kevin West
5-25-07 As you are enjoying your Memorial Day weekend with friends and family, please spend at least a few moments in silence to remember those that have given their lives so that we may continue to enjoy the freedom that their sacrifice has made possible. Thank you for your continued support, Kevin West
5-21-07 Mr. Penkilo is also a certified fraud examiner (CFE) and is in charge of the firm’s fraud examination department. His team of fraud examiners and accountants investigate, analyze and summarize financial data and then communicate their findings in the form of reports, exhibits and collections of documents. They also provide assistance in legal proceedings, including testifying in court as expert witnesses and preparing visual aids to support trial evidence. Mr. Bundy is also accredited in business valuation (ABV) by the AICPA and is the Vice-President of Henry & Peters, P.C. He heads the firm’s business valuation and litigation departments. In addition to the above, Mr. Bundy has performed forensic work damage calculations, asset discovery and tracing, verification with court ordered actions and other matters related to litigation. Thank you for your continued support, Kevin West
5-17-07 We are continuing our search for assets and have greatly expanded our efforts to obtain all documentation related to the operating history of the Company. I will continue to keep you up to date on events as they happen. Thank you for your continued support, Kevin West
5-11-07 Any cause of action that I take must contribute to the stability and long term success of the Company. The current litigation and my findings in the continuing investigation into all recoverable assets will be important as we proceed. If an Interpleader action truly distributes the sole remaining asset of the Company, such action may not be in the best interests of the Company. We are discussing other ways to identify our shareholder base without filing an Interpleader. A lot of options exist and we are examining them in great detail. The Company has recently retained the services of Susanne Trimbath who is the CEO and Chief Economist of STP Advisors in Santa Monica, California. Ms. Trimbath has agreed to help the Company in our efforts to determine “fails to deliver” in our stock. She is currently reviewing much of the material gathered by the Company in the last two years including but not limited to: NOBO lists, shareholder certificate lists, DTC security position reports and information gathered about certain brokers during the cert pull. Many shareholders are requesting answers to a myriad of questions. A large portion of these questions concern matters that are involved in litigation. The attorneys have asked me not to answer privately or publicly many of these questions that I get from shareholders. We have individuals that do not want this company to succeed. It is not proper during litigation to disclose certain information that might be helpful to our opponents: matters such as arrangements with attorneys regarding legal fees and their expenses, payments for expert consultants and their expenses and payments for any other professional needs. Please be advised that the Company has made more than adequate arrangements for funding in each of these areas. I also get regular questions from shareholders that suggest that the Company is involved in secret plans and meetings on matters not being officially disseminated to the shareholders. The current state of the Company can be determined by reading the “facts” that are set out “under oath” in our lawsuits and court pleadings. I have been visiting with experts about the Entourage claims and the core samples which I have personally examined. I will report to you any plans regarding these assets when I have something definitive to discuss with you. I look forward to sharing another update with you sometime next week after our hearing. Don’t forget to tell your Mothers how much you love and care for them and please have a safe and happy Mother’s Day weekend. Thank you for your continued support, Kevin West
4-23-07 I am presently working on information to share with you in the next press release to be made public within the next couple of days. Thank you for your continued support, Kevin West
4-18-07 Update #2 The former Chairman stepping down last month has absolutely nothing to do with a plan. There is no secret sting in place, compartmentalized management or any other such secret operation. This is a very critical time, and if we don’t correct the problems from the past, we will further delay our move into the future. These posters and others like them are part of the problems from the past. Apparently, giving frequent and factual information has not stopped these individuals from preying on innocent shareholders. It breaks my heart every time I hear of one of these posters stirring up the shareholder base with the excitement of a looming payout. Please understand that these posters are only feeding on your emotions and I cannot allow it to continue. I am currently in discussion with our legal counsel about our legal options against people that post blatantly false information pertaining to our Company. We are in a rebuilding stage and everything will become more evident after this next press release. Thank you for your continued support, Kevin West
It has been another busy week. We have an extremely large amount of information to share with you in the next press release. I must once again ask for your patience during the next couple of days as we finalize the actions that precede the press release. The press release is written, but the information to be provided along with it is not finished and it is of utmost importance that everything is done in order. Again, we have no room for error. I am going to go ahead and share some information of the progress that we are making with you today. The Frizzell Law Firm is assisting the Company in the hiring of accounting professionals which we need without further delay. We have begun discussions with a Tyler CPA firm. We are seeking help from a CPA with the proper forensic experience and certifications. We are convinced there is a large volume of records that have been lost, misplaced or destroyed. We will obtain all financial records of this company and we will have these records audited. Bill is conducting a full scale investigation into the sale of bulk certs which seems to be an ongoing problem. We are concerned about certs that were obtained with forged signatures from people that were at one time close to company insiders. It is the company's intention to cancel any illegal, forged or unauthorized shares regardless of how they were obtained. This is part of the shareholder and outstanding share audit we have been undergoing and transparency is a requirement in everything we are doing. The Frizzell Law Firm has also assisted CMKM by hiring attorney Rich Lottmann to assist in the restructuring of the Company. Rich is advising me on changing the domicile of the company as well as other matters to include the best way to proceed in attracting new management to help us turn our company around. Work is already in progress to move the corporate home of CMKM to Texas. We are working very hard to get a lot of situations handled at one time. Please have the respect and courtesy not to call any of the attorneys or firms mentioned in any updates or press releases. I understand your anxiousness and need for verification, but these professionals have a huge workload and time is of the essence for CMKM. I will provide you with updates on progress as it becomes available. Thank you so very much for your support and understanding, Kevin West
4-13-07 One of the things I am most sensitive about is communicating with you when I say I am going to do so. I know that some of you have doubted my word in the past and that it was mostly because of my silence during the last 6 months. Hopefully, you can now understand that I simply had no control over any of the decisions being made at that time. I know that I must now once again earn your absolute trust. In my quest for rebuilding your trust, I have put myself into a position to get things done on a highly accelerated timeline. However, while trying to progress in this fashion, I also am very aware of the fact that we have no room for error. I want to communicate with you as often as possible and have chosen to put a CEO Update section on the website to make sure that I can communicate with you at least on a weekly basis. I would ask that you be as patient with me as possible during this time. There is much work to be done in a very short timeframe and we are working through the weekends to get it all done as quickly and efficiently as possible. I especially need your patience with me when something arises that keeps me from putting out a PR in the timeframe that I have put myself under. Having said all that, I need to delay the PR that I said was coming out this week by just a few days. I will do my best to have it out by Wednesday of this next week. Have a wonderful weekend with your family and friends, Kevin West |
Corporate Updates December 2007
November 2007
11-01-07 September 2007
9-28-07 |