To All CMKM Shareholders:

I hope all of you had a very Merry Christmas yesterday, with plenty of family time, gifts, and good food! We have much to be thankful for, and the Holidays give many of us time to fellowship, enjoy special memories, and rest (hopefully)!

Since I posted my initial letter to you on December 12, 2011, I have had the privilege of talking with several shareholders by phone or through e-mails. I appreciate the messages of support that many have expressed. I hope to help develop a great sense of unity among all shareholders over time.

The New Year is almost upon us, and with it the many challenges and opportunities we face both individually and as a company come back into focus.   CMKM has many ongoing efforts to move the company into a better financial position – that is job #1. If that task can be accomplished, then the dominoes should begin to fall our way for a change.

Let me reiterate that I fully intend to bring a new level of communication and transparency to the shareholders. I hope you will support that effort, and welcome it. 

I hope that each of you enjoy the remainder of the holidays to the fullest! Let’s all hope and pray that 2012 is the year that the tide turns for CMKM Diamonds, Inc. I assure you that we will be working diligently on your behalf to make that happen. Happy New Year, and God bless!

Steve Kirkpatrick 

December 12, 2011

To All CMKM Shareholders:

It is with a tremendous amount of excitement that I introduce myself to you, the shareholders of CMKM Diamonds, Inc.  My name is Steve Kirkpatrick, and I am thankful and proud to serve you as the new President and Chairman of the Board of CMKM. I, too, am a shareholder of CMKM, and it is my strong desire to bring to you a well-deserved return on your investment in this company.

I want to express a heartfelt “thank you” to Mr. Jim Lowden, Mr. Kevin West, and Mr. Bill Frizzell for the diligent efforts these men have made to move the company forward under difficult circumstances. These are men of integrity, and I can assure you that, without each one of their contributions, it is doubtful that CMKM would have survived to this point. They all have been instrumental in helping me get “up to speed” with the many details involved in this transition. They are truly “unsung heroes” in ways that may come to light in the days ahead.

I do not personally know any of the former Board members, but want to thank them for their time of service to CMKM. I wish them well with their future endeavors.

Please allow me to address some of the issues that may be on your minds:

COMMUNICATION FROM MANAGEMENT
I will make a diligent effort to keep the shareholders informed and updated on a regular basis from this day forward. I will use the company website for written updates. However, I believe the shareholders want and deserve a forum that will allow you to ask legitimate questions, and get answers. Over the next few days, I will make contact with one or two of the Pal Talk rooms in an effort to set up a live forum for me to talk with shareholders. I hope to have the session recorded so that shareholders will be able to listen at a later date. If this medium proves to be effective, perhaps it can be used on a regular basis as important events occur.

As company finances improve, I will host webinar events online that will be recorded and archived on the company website. Also, I have had calls from owners/moderators of various boards offering communication options. I will research these opportunities as well.

Please be aware that I do not and never have posted on any of the “boards”. 
It is important for shareholders to understand that I will not have the answers to every question. Public discussion of certain topics could compromise our position with regard to ongoing litigation or collection efforts. Some topics serve no value in moving the company forward. I will, however, provide honest feedback on subjects that are open to discussion.

SHAREHOLDER MEETING PLANS
As has been stated before by CMKM management, the only reason that a shareholder meeting has not been planned or held is the sheer lack of the funds needed to host such a meeting. I hope to provide enough feedback to the shareholders to fill the “void” until such time that funds to hold a meeting are available.

NEW BOARD OF DIRECTORS
As you know, all previous Board members have resigned. I am in the process of assembling a group to sit on the Board of CMKM. Unfortunately, in order to get quality professionals to sit on a corporate board, the company needs to be able to cover the Board with liability insurance. Many of the people I have in mind for the Board have significant assets, and will not join the Board without the insurance coverage. The Board will be selected, and will be on “standby” until the funds are available to insure them.

I have discussed the Board positions with several highly qualified individuals, and have commitments from two so far. I want a diverse group with the business and life experience to truly help me move this company forward. I will keep you informed on this process.

AL HODGES AND THE BIVENS LAWSUIT
I spoke with Mr. Al Hodges recently. I assured Mr. Hodges that I would help any way possible if he needs anything from company management to move his case forward. However, the Hodges case is a totally separate issue from the operation of CMKM Diamonds, Inc.

I believe Al Hodges is an honorable man and a very good attorney. From what I can gather, he has put his entire law practice and professional reputation on the line for this lawsuit. I am convinced Mr. Hodges truly believes he will prevail. I wish him the best.

However, the position of CMKM Diamonds, Inc. is neutral with regard to the Hodges effort. I can assure you that company management has no “inside” information to share.

COMPANY HEADQUARTERS
The company headquarters will be moved from Tyler, Texas in the near future. When the relocation is complete, I will update you with all the facts.

2010 TAX RETURN
As you have seen, the 2010 tax return has been released on the company website for your review. I am sure many of you have questions about the return. I will discuss the return with our accounting firm, and will be as prepared as possible to answer questions during the first Pal Talk session.
If you are not familiar with how to “read” a corporate tax return, then you may become confused or make incorrect judgments about the “numbers”. I hope each shareholder will get the real facts before making incorrect assumptions.

SHORT-TERM PLANS
There is much work to be done. However, a quick look at the 2010 tax return will help you understand my most pressing priority. The company has assets, but no operating cash at the present time. We have significant liabilities that need to be paid soon. The task of converting real estate assets into cash is underway. I was in Clayton, Georgia on Friday, 12/9/11 interviewing agents to list and sell the land we own there. I hope to sell the land rapidly for enough cash to pay all current liabilities in full. 
There are several parcels of land that can be acquired through judgments – it will take time to convert those to cash. We have many millions of dollars judgments in favor of CMKM against several individuals, but many, if not most of those judgments are uncollectable.

There are other potential sources of cash on the horizon, but to discuss them in this forum could compromise our position and ability to collect funds.

 LONG TERM GOALS
The following list outlines goals I hope to accomplish over the next two or three years:
1. Test 1010 core samples.
2. Return CMKX stock to trading status.
3. Form “New Corp” to work or sell off 1010 claims, giving CMKM shareholders a pro-rata stake in the “New Corp”.
4. Ultimately, provide a good and well-deserved return on investment to all bona-fide CMKM shareholders.
These goals are realistic and attainable, but not guaranteed.

SUMMARY
As I stated in my opening paragraph, I am truly excited about the potential CMKM holds. I believe in the potential enough to spend my time and energy without cash compensation at this time. I know what needs to be done, and I know how to do what needs to be done. However, I am not a “miracle worker”. I will put the work into the company that is necessary, but the company needs some good things to happen for a change.
The negative verdict in the Glenn case was a major setback for CMKM. We had a very good case, but, as we have seen in recent years – a good case doesn’t always insure a positive verdict in court.

What we have as CMKM shareholders is a company that has been damaged severely by many illegal activities in years past, but is still alive and has a good chance of becoming a profitable venture.

There are many misconceptions about CMKM due to its past history. However, let me assure each of you that I know of no conspiracies, mystery “money men”, or anything else of that nature. I hope to address these issues in more detail in the near future.

We have a much better chance for success if we are unified as shareholders. I ask for your support, and if you believe in prayer – pray for this company and for me as I lead the effort. I assure you that I will conduct business honorably and diligently. I look forward to working on your behalf in the days ahead.

God bless!
Steve Kirkpatrick

Shareholder update 12.9.2011

To all CMKM shareholders,

The management team of CMKM has changed. The company’s statement earlier this year read as follows: 

“The goal of this management is to build a company one step at a time. It is of the opinion of the company that a round table team of shareholders be assembled with approximately 7 individuals. These individuals will assist the company in their past knowledge and their ideas moving forward. It is important that these individuals have a good standing with our shareholders”

Please be advised that the company received several responses to the quest for the round table group and for the CEO position. 

October 31, 2011 Tom Stevenson and Stan Polsom resigned their positions as Directors of the Company leaving Roger Summers as the sole remaining Director. 

November 17,  2011, Mr. Summers signed a resolution to bring new management onboard to bring in a fresh new perspective. 

November 18,  2011 Mr. Steve Kirkpatrick accepted the position as the new President and Chairman of the Board. Please join the Company in welcoming Mr. Steve Kirkpatrick.  Mr. Kirkpatrick was one of the people who applied for the position of CEO earlier this year and brings with him a wealth of business contacts and experience that he will utilize in moving the Company forward. 

December 6,  2011, Mr. Summers tendered his resignation as a Director of CMKM. 

The Company would like to sincerely thank Mr. Tom Stevenson; Mr. Stan Polsom, and Mr. Roger Summers who unselfishly and freely gave of their time to CMKM. It is because of these Men and the Company’s management that CMKM is prepared to move forward. 

The Shareholders of CMKM Diamonds will be happy to know that Mr. Kirkpatrick is motivated to continue the growth of the company, the communication between company and shareholders will be better than it has ever been using the new technologies and social media.
Mr. Kirkpatrick will be personally addressing the shareholders through an update on this website by early next week. 

The Company's 2010 Tax Return can be found HERE
 
 

Shareholder update 9.08.11

Dear Fellow CMKM Shareholders, 

I spoke with many of you last Friday on my first day on the job for you. I came away  flooded with emotion. After hearing of your concerns, situations, welcoming your tough questions as well as your kind remarks and well wishes, I came away from every call with a feeling of solidarity that I had never felt before. Thank you. 

To be a CMKM shareholder is an honorable thing. Well shall prevail.  I hereby commit to you to try and be a conduit between our company and its shareholders. I feel it is important for me to state that our current CMKM Management and Board of Directors are to commended for their honesty, integrity and dedication to not only our company  but to our shareholder base as well. 

I recently met most of them while in Las Vegas last month attending the recent trial. When that case went to the jury, I believe we all felt we had presented our case well and we were optimistic of a positive outcome. Although no monetary judgment was awarded by the jury from defendants Roger Glenn or Edwards Angell Palmer and Dodge, the Company did prevail with a combined $70 million judgment from defendants Urban Casavant, Ginger Gutierrez and James Kinney. 

My wife, Carol, and I attended the hearing for a total of 5 days and following is my perception of the individuals that represented CMKM at the Las Vegas hearing:  Mr. Jim Lowden sat at the plaintiff's table projecting a very distinguished, relaxed and confident persona as the President of the Company. Attorney Bill Frizzell and his team gave it their all and looked as if they were absolutely exhausted when it was over. In my opinion, it was a job well done. Thank you, Bill. Two of the CMKM Directors, Tom Stephenson and Stan Polsom, were in attendance and added further strengthening to our case as an ongoing concern. I would like to add that I have in the past met all three Directors of CMKM and would represent to you that Mr. Stephenson, Mr. Polsom and Mr. Summers are among the most honorable men I have ever had the pleasure of meeting. I can state without a shadow of doubt that there exists a very healthy relationship complete with a necessary check and balance system between the Board of Directors and the Officers of the Company. Finally, in my opinion, Kevin West is the unsung hero of the group although he always insists that he has done nothing on his own and that it always is and has been a team effort. He is a warm, friendly and outgoing person who is also well spoken, knowledgeable and passionate. My hat is off to all of them. I look forward to the potential of what the Company is trying to accomplish for all shareholders in the days, weeks, months and years ahead.

As for the future, it should be noted that our Company faces many obstacles and difficult decisions. As stated above, I personally believe that we are in capable hands. The Company intends to release their unaudited 2010 financials in the coming months. 

Call Me, Steve Walker 903-253-0510
Fridays 10am to 6pm Central Time*

New Hours:
* starting October 4, the call line will be open Tuesdays and Thursdays from 10am-2pm CST.
  The last Friday call in date is September 30, 2011.

All that is necessary for the triumph of evil is that good men do nothing.

    Edmund Burke
 
 

Shareholder update 8.11.11 

To the shareholders of CMKM:

We are happy to announce that Steve Walker has signed an agreement with the Company to provide Investor Relations services. With a background in sales and marketing, Steve Walker has been a Golf Professional for over 30 years. While moonlighting as a day trader, he became involved in CMKM in January 2003. This life altering event, led him to stock market reform, to which he remains passionate and devoted to today. In taking on this exciting new challenge for CMKM,  Steve says " my objective is to help reunite CMKM shareholders, so together we can all move forward, as the company emerges from past problems and readies itself for a bright and prosperous future. It is now our time CMKM shareholders, so let's get together and show the world how strong we really are. I want to thank Jim, Kevin, Bill and the Board of Directors for all their tireless efforts and for giving me an opportunity to be a part of the future of CMKM Diamonds. We cannot change the past, but we can change the future. I stand ready for the task, please join me." The investor relations hotline is 903-253-0510 and will be open to receive calls from 10am to 6pm Central time on Fridays starting September 2nd. New dates and times for the hotline will be updated as needed.  Please note that this line will not have voice mail at this time and only live calls between the above mentioned times will be taken. 

As you may already be aware, the Company representatives will be in Las Vegas for trial currently scheduled to begin on or about August 17th. The case going to trial involves our claims against Urban Casavant, Ginger Gutierrez, James Kinney, Attorney Roger Glenn and his former law firm Edwards, Angell, Palmer and Dodge.  The case will be presided over by Judge Elizabeth Gonzales.  The present calendar call for this case is August 15, 2011.  The Company expects jury selection to begin on August 17th and opening arguments and testimony will begin following jury selection.  Casavant, Gutierrez and Kinney have defaulted.  Glenn and his law firm are disputing all claims being made by the Company.  The judge has summoned 100 jurors.  Each of the jurors has filled out 20 page questionnaires containing questions specific to this case. The courtroom is small with less than 50 seats to accommodate the public. 

The Board of Directors is in the process of bringing the Corporation’s bylaws current and is working to amend them to make sure that we are in full compliance with our commitment to the shareholders and ensuring their rights are upheld in the State of Texas where we are domiciled. Once amended, the bylaws will be updated to the website. The Board of Directors and Company Executives remain committed to protecting the interests of the company and the shareholders as a whole. 

While reviewing the current corporate bylaws, the Board of Directors made the determination that the position of CEO as advertised is not required.  The Board mandated the position of CEO be changed to President. After reviewing the resumes submitted for the leadership position of the Company, the Directors came to the conclusion that the best possible candidate for the job is already on board. That said the Directors are very pleased to announce that Mr. James Lowden has agreed to accept a permanent role as President of the Company.  "The Board of Directors is extremely pleased that Mr. Lowden has agreed to accept our offer to join the team for the long term and would like to sincerely thank him for all of his efforts.  Mr. Lowden possesses the necessary business acumen, professional experience and a keen eye for detail that our company requires to be successful. As the company moves forward, we are extremely confident that Mr. Lowden will provide the continued leadership, knowledge, and consistent determined work ethic he has demonstrated during his tenure with the company.  Please join us in welcoming Mr. Lowden to our team”. 

The Company would like to extend its gratitude to the other candidates that applied for the CEO / President position.  The response from our request for candidates was very reassuring that there are people committed to assisting us in making our company successful. 

The Board of Directors has asked former officer and Director Kevin West back to take on the role Vice President of the Company to assist Mr. Lowden in their continued efforts moving the company forward. Both Gentlemen work well together and through these combined efforts have been able to stand the company back on its feet.  This team is desirous to see the growth of CMKM.  Mr. West stated, “I am humbled and honored to be asked back by the Board of Directors. I feel rested and excited to once again be doing my part to help the Company move forward”. 

The shareholder meeting that was fully intended to be accomplished by June of this year has had to once again be put on hold. The Directors of the Company wish to make known to the shareholders that the lack of proper funding is the “only” reason that there has not been a shareholder’s meeting since new management took over in 2007. With over 50,000 shareholders of record, including over 10% with international mailing addresses, the hard costs of a meeting at this time is not possible. Even with discounted rates being offered to the Company, the “minimum” costs of printed, third party mailed and received proxy statements plus envelopes and other hard costs stand at $175,000. On top of these costs, there will have to be a meeting venue, security and refreshments to accommodate hundreds and perhaps even thousands of shareholders wanting to attend in person. This puts the minimum cost to hold an annual shareholder meeting somewhere between $190,000 and $250,000 for one meeting with the same or even higher costs annually thereafter. That said, the Company would need to have enough cash in the bank to not only hold the meeting, but to continue to sustain running the Company for at least the next several months at which time another shareholder meeting would need to be planned, funded and held.  As you can see, the costs of these meetings are very prohibitive at this time because of the extreme size of our shareholder base. 

On February 26th of this year, the Company announced its desire to create a round table team of approximately 7 individuals. Since that time the Company has received fewer resumes than positions needed from shareholders interested in a possible place on this team. We would like to extend the resume intake period for another 90 days. After this period, depending on the number of resumes, the Company will give a final review and recommendation to the Board of Directors for the seven members to be placed. 

CMKM and 101047025 Saskatchewan LTD still have a valid agreement in place with the remaining claims from the Fort a la Corne area.  This agreement calls for the development of a New Corp for the exploration and possible development of these claims. The Board of Directors of CMKM have already endorsed the agreement to move forward with the plans for this venture and are patiently waiting for all of the pieces on the Company side of things to fall into place. 

Once again, the Company would like inform the shareholders that we believe in the success of CMKM Diamonds Inc. and will continue to work for the best interest of the all shareholders.
 
 

Friday, April-15-11 

Shareholders;

We the undersigned are directors of CMKM Diamonds Inc.  We do not believe that the board of directors for CMKM Diamonds Inc. have been in any way negligent or derelict in any of the duties to inform and protect shareholders in any matters. 

Firstly, your demand letter states that you would like to be informed of “funds purported to exist” in the Bivens  lawsuit that has been before the courts brought by certain shareholders or on behalf of certain shareholders through attorney  A. Clifton Hodges. 

You spoke to the fact that Mr. Hodges testified under oath in the court proceedings.   On this point we must respectfully disagree.  Mr. Hodges was speaking on behalf of his client(s) and as such was not under oath.  Lawyers are allowed to advocate for their client based on facts they believe to be true.  Mr. Hodges was in fact arguing a side of the case, and as such is not “testifying” as you have misstated in your letter.   “The case brought by Mr. Hodges was dismissed by the Court and is now on appeal.” Mr. Hodges is pursuing the matter on appeal at this time. The company has no obligation nor would it be a wise use of resources to attempt to get involved in this matter.  In fact spending valuable company resources and time on something that has never been validated by our own extensive investigation would, in the opinion of the board, be irresponsible. This company has always had an open line of communication with Mr. Hodges.  The company has requested on multiple occasions from Mr. Hodges any such tangible evidence, including but not limited to any pertinent documentation which.  For reasons known only to Mr. Hodges, the company has not received any documented evidence of any trust that is “purported” to exist.  The company has NO knowledge of any type of trust fund and has no evidence that such a trust has ever existed. 

Shareholders have received transparency of everything this board has been doing since it’s inception.   The Company has posted on the Word Wide Web evidence from our many litigation activities that the company is pursuing in order to restore money to the company bank accounts.   This is being done for the benefit of all shareholders.  The Company has stated and restated our goal of being a viable and fully legally compliant company in the future. With in the last calendar year the Company built the financial records from recovered data that was thought lost at one time, filed all taxes for pertinent previous years and posted the information on our company website for the shareholders to see. 

With all due respect to the writers of the demand letter to the company, you are misinformed on some of your “facts”.   It is stated that the concerns of shareholders are “unanswered and ignored”.  This is quite simply not factual.  The company website has court filed documents on it that show where the company is spending it’s resources.  This is done with great consideration and care in fulfilling our duties to shareholders. 

The board at this time finds that the request to pursue action against Mr. Hodges to be misguided and unwise.  The case before the court as mentioned above was dismissed.  The company has asked for evidence and received none.  There is no meritable action that we can find to take at this time There are simply no accounts, trusts, funds and settlement damages that the company can find to pursue.  We have stated and restated this several times in the past. We are hopeful for all shareholders and this company that a compensation fund of some type does exist and that Mr. Hodges is successful in the pursuit of this matter based on the information he possesses and wishes to keep confidential. If the company can assist in that endeavour it stands ready to assist Mr. Hodges and his shareholder clients. 

Demanding that we pursue something that does not appear to exist would be irresponsible and would cause the company to expend valuable resources in the process.  We have instructed management to obtain a copy of any trust agreement holding funds for shareholder regardless of the source, this management has not found evidence any agreement has ever been in existence.  In response to the accusation that the Board is in breach of its fiduciary duty, please see the financial statements posted on our company website. 

It should also be noted that the Frizzell Law Firm is NOT an officer of the company.  Mr Frizzell is a contingency attorney that the company hired to perform litigation against the former insiders and associate of the company in order to recover assets that were illegally taken from the company and it’s shareholders.  You are requested not to contact his office for information about the company’s affairs. The company is diligently working on searching for a Public Relations officer that will be available to answer general shareholder questions.  A basic set of protocols and appropriate contact methods will be posted to our website as soon as this process is completed.  The company is also reviewing data received from candidates for the CEO position that is vacant and will inform shareholders when a suitable candidate is chosen. 

The Board hereby recognizes the demand to answer the shareholders letter and as evidenced by the date stamp on this letter we have complied with said demand. Please continue to monitor our website at http://www.cmkmdiamondsinc.com for further litigation progress and company updates. 

The CMKM Diamonds, Inc. Board of Directors
 
 

February 26, 2011 

To The Shareholders CMKM: 

It is with regret that we received the resignation of Mr. Kevin West. Mr. West was a tireless worker for and on behalf of the shareholders of CMKM Diamonds Inc. When Mr. West was asked to take the position of CEO and President, the company was at best in terrible shape. No money, no records, no set list of assets, in fact there was nothing but 50,000 disgruntled shareholders all expecting that he could perform a miracle for them. Well, he did. He kept the company doors open and proceeded to expose and rectify some of the unscrupulous activities of the past. 

Mr. West used his best efforts to make certain things happened. It was Kevin's desire that the corporation would one day be on a solid foundation of accountability. Most importantly that accurate records exist so that every shareholder could be accounted for and the information the transfer agent needed was correct and noted. Much of this has been accomplished and the company's financial records are now becoming an asset and not a liability. 

Mr. West believes it is time to hand the reins to someone else. He has accomplished a lot of what he has set out to do. He will agree to continue to help the company as it moves forward. 

As reported in earlier updates, CMKM reached another milestone this past year. Using all of the information that was available to the company and with the assistance of the company's accounting firm, CMKM has filed tax returns dating all the way back to 2002. 2010 is being prepared and will be filed within a couple of weeks. We would like to thank Mr. West for his efforts and guidance. 

In view of this news, the Board of Directors has asked Mr. James Lowden to assume control while we begin the search for an able replacement. If any of the shareholders would like to apply, Please send your resumes to P.O. Box 9575, Tyler, Texas 75711. We will only except resumes by mail. 

Disclaimer: Please be advised that compensation for this position is negotiable based on the business experience of the applicant. The person selected for this position may be asked to accept stock in lieu of salary or may be asked to allow the company to defer his salary pending the sale of certain company assets or until other revenues are realized by the company. 

The current Board of Directors realizes the frustrations expressed by certain shareholders on the lack of information available from company management. For this reason, we have asked Mr. Lowden to come up with a plan to appoint a shareholder committee that we can communicate with. Matters such as the plan for a shareholder meeting and other aspects of company business could be discussed with such a committee. We have asked Mr. Lowden to report to us of his ideas in this regard. We will report to you through a company update on the official company web site as we make decisions in this regard. 

The Board of Directors

February 26, 2011

To the Shareholders of CMKM Diamonds Inc.

The goal of this management is to build a company one step at a time. It is of the opinion of the company that a round table team of shareholders be assembled with approximately 7 individuals. These individuals will assist the company in their past knowledge and their ideas moving forward. It is important that these individuals have a good standing with our shareholders. Please submit your information in writing and reference Round Table Member. If you are not selected we still need your support. 

"The company cannot be specific at this time about matters such as compensation, benefits and overall job requirements. But we encourage those interested to send a short letter with their resume. We will address those issues in the coming weeks." 

Update Information: 

CMKM will have the 2010 tax returns completed on or before March 15, 2011 

LEGAL: Refer to the Litigation update Dec 2010. 

NewCo: The NEW CO, J/V agreement with 1010 is still a valid opportunity for our company. 1010 and CMKM have worked together throughout the year to develop a business plan however at this time, the Company has been unable to provide the large amount of funds needed to move this venture forward. Mr. Koch has continued to secure the claims that hold potential value for the NEW Co and ultimately the sake of the shareholders. We are very confident in our partnership.

As earlier stated by CMKM, after a complete investigation into the matters being litigated by Mr. Hodges, the company does not believe any legal action is necessary or would be appropriate. Our position regarding the matter has been clearly set out in our updates to the shareholders. We have no evidence to validate his claims. 

Shareholders, please understand that your questions and concerns are important; it is impossible to answer all of the emails and phone calls. I watched Kevin spend entire days on the phone and responding to emails only to see him exhausted at day's end and still be the object of criticism. I pray each of you understand that CMKM is at its absolute healthiest place it has ever been. Although there is not regular and ongoing revenue for the company at this time, CMKM has proper accounting, a few pieces of Real Property, Judgments from past events, and some very positive legal cases moving forward. 

It is with great regret that Mr. Kevin West resigned from CMKM after the years of hard work he has put in. Please let us not lose sight of his goal for the company. 

Please submit your questions in writing and they will be responded to in a timely manor 

James E. Lowden
CMKM Diamonds Inc.
P.O. Box 9575
Tyler, Texas 75711
 
 

December 31, 2010 

Dear shareholders,
Another year has come to a close and we would like to wish you and your families the very best in 2011.
While the Company has been quiet for the last few months, please know that we are still working daily on litigation and other Company matters moving forward. Although shareholders are understandably focused upon a return on their investment, there has been much that has taken place behind the scenes to help revive and put a foundation under a Company that was left for dead several years ago. In this past year, outside of litigation matters to be updated below,  there have been two major corporate accomplishments that have been underway for a very long time…. 1. For the first time in the history of CMKM Diamonds, Inc, all tax periods dating back to year 2002 have been prepared and filed;  2. The company has interviewed and selected a new transfer agent. Even though it is not something that can be measured by shareholders, please be advised that the Company has incurred hundreds of man-hours of time that went into the finalization of just these two projects alone. 

Many questions are coming to the Company regarding the issue of a fund to be paid out to shareholders. The Company has publicly stated its position on this matter several times in the past and continues to stick by that position; after several years and countless hours of investigation into the matters surrounding the past history of this Company and the possession of hundreds of thousands of pages of documents, the Company has not come across one document indentifying a trust fund held on behalf of the Company or its shareholders. 

Many have asked about my position on the matters that Al Hodges is working on. I continue to stand by my previous statements of June 25, 2010. I personally believe that Mr. Hodges is looking out for the best interests of the shareholders and that he believes, without any doubt, in the information that he has shared with you. I have spoken with Mr. Hodges in the last two weeks and although he still cannot share details with me or the Company, I am of the personal opinion that he is still 100% confident in his facts and has not wavered in those beliefs. I have let him know that I am just a phone call away if my help should be needed. 

The NEW CO, J/V agreement with 1010 is still a valid opportunity for our company.  1010 and CMKM have worked together throughout the year to develop a business plan however at this time, the Company has been unable to provide the large amount of funds needed to move this venture forward.  Mr. Koch has continued to secure the claims that hold potential value for the NEW Co and ultimately the sake of the shareholders. 

Please see the litigation update provided by the Frizzell Law Firm to the Company below. 

Very sincerely, 

Kevin M West
CEO / President
 
 

December 31, 2010 

To:  CMKM Management 

Re:   Litigation Update 

Desormeau Suit – Work continues on many fronts in this lawsuit.  Enormous amounts of due diligence, private investigation and legal work have been expended in our effort to collect the $33,000,000 judgment which was obtained by the company in July of 2008.  I reported in my litigation update in May of this year of the recovery by CMKM of properties in Georgia and Virginia.  As of this date CMKM has not accepted any offers on either property.  The real estate market for these valuable properties is not favorable as is the case in most parts of the country. CMKM management is currently considering contracts with new listing agents and has some real estate brokers in the area providing feedback to the company. 

In September of 2009 thanks to some good work by one of our shareholder volunteer researchers, the company was informed that a property which we had once identified as a property belonging to John Edwards had recently sold in Las Vegas.  This office has developed quite a database of information on properties purchased by John Edwards and held through the names of various fictitious entities and trusts.  Upon learning of the sale of that property, we began an investigation into the trail of funds following the sale.  Since these funds belonged to John Edwards, they were subject to our judgment.  We have known for quite some time that John Edwards has historically used lawyers’ trust accounts to purchase properties. 

As our investigation developed into this transaction, it was apparent to us that Mr. Edwards was using a particular lawyer and law firm and its trust account to conduct business with third parties.  We noticed two lawyers in Las Vegas for depositions and requested that they turn over all files, documents and records of business dealings and investments of John Edwards.  The lawyers informed me when they appeared for the deposition that they gathered the documents we requested but due to their confidential relationship with their client they could not turn them over to us without a court order.  We reached an agreement where the lawyers would prepare a privilege log and we would ask Judge Delaney to review the logs and decide if the documents identified were discoverable. Judge Delaney ultimately ruled in our favor on August 18, 2010 and turned over to us each and every document which was being withheld by the Mr. Edwards’ attorneys.   It took nearly 8 months and numerous court appearances in Las Vegas by Kevin West, myself and our Las Vegas counsel and the filing of several briefs to obtain this ruling. 

These documents contained a wealth of material about Mr. Edwards’ business dealings.  We found evidence of investments in other countries.  I am confident you can understand why I must be rather vague about the matters we uncovered in these documents.  We obtained a flow chart which I will provide for the company to post in the document section of the company web site which came from these documents showing some projects related to investments of Mr. Edwards.  I have dedacted certain names of companies and individuals for obvious reasons.  We are still in the process of investigating the matters learned of in the documents obtained from John Edwards’ lawyers. 

Based on information obtained in these privilege logs your company chose to secure counsel in the UK.  We have hired a top firm to assist us in our investigations in the UK.  Company management spent a great deal of time searching out the right law firm and gathering the requested information to obtain their services.  Mr. Edwards has been incarcerated in London since September of 2009 and has engaged counsel in the UK as well. 

Our collection work continues in foreign jurisdictions as it is clear Mr. Edwards made large investments and moved money outside of the U.S.. 
 

We have recently located properties in Nevada, Florida and California which we have proven belongs to Mr. Edwards.  Post judgment collection activities have begun including hiring local counsel in the locales where the properties are located. The company will customarily file a Lis Pendens in the respective locale of the property and then proceed with litigation to have the property legally seized subject to our judgment. Such activities are in progress at this time. Again, for obvious reasons, I am choosing not to specifically identify the properties until we have the appropriate legal proceedings in process to protect your company’s interests. 

Once again I was notified by one of shareholders that Can Cal Resources Ltd. had made an SEC filing indicating that it had defaulted on a note the company had with two John Edwards’ entities.  The note was secured by 120 acres of land in San Bernadino County, California and originated in 2000. All properties belonging to John Edwards, regardless of how the property is held or when it was acquired is subject to the judgment obtained by your company.  Can Cal has recently devoted resources to testing the land to ascertain the land’s potential for mineral development.  The officers presently running Can Cal were not in control in 2000 when the note was made with John Edwards.  Can Cal has asserted they are unable to contact Mr. Edwards but are desirous of working out an amicable settlement with CMKM.  Pursuant to those discussions I began appropriate legal proceedings to consummate an agreement with Can Cal.  I filed a garnishment proceeding in a local Texas District Court on July 20, 2010 which would have allowed the company to receive a negotiated amount of money and execute a full release of the note to Can Cal.  Because the property and the debt are not in Texas, this Texas garnishment proceeding would only be a viable venue if the parties reach an amicable settlement.  Discussions at one time were amicable and a settlement amount was agreed to.  A hearing date was set in a Tyler court to get Court approval of the agreement. Company management invested many hours in getting information to Can Cal and in discussing the ways to resolve this matter amicably.   A significant amount of money and legal time was spent with Can Cal attorneys to substantiate the claim of the company.  Can Cal for various reasons withdrew from these negotiations and we are renewing our efforts to collect on this note. 

Your company will in short order dismiss the Garnishment action mentioned above.  Our rights to collect on this note are not in jeopardy because of this dismissal. We are now proceeding in Nevada and California to assert CMKM’s rights to a turnover order of the note.  Plans are being made to seize the property upon failure of Can Cal to pay the note owing to Mr. Edwards. 

After extensive meetings a new plan is underway to aggressively pursue the many properties that we have found and to further our investigation into the information we have obtained about the assets of John Edwards.  We have the right to conduct post judgment discovery in every state of the United States to aid us in enforcing our judgment.  The procedures on how we conduct this discovery vary somewhat from state to state.  Your company is in the process of engaging counsel in the various states to help us.  Two firms have already been engaged.   This post judgment discovery allows us to send out sworn interrogatories to individuals and companies and to take sworn depositions of people who may have information which would lead us to assets which might be subject to our judgment.  We have five individuals in three different states targeted for these depositions.  These individuals are people we know have had business dealings with Mr. Edwards and we believe they have information which will assist us as we pursue collection of our judgment. 

Casavant/Glenn Suit – Discovery is ongoing in the Casavant/Glenn suit.  If this is the first update you have read, you might want to go to the company web site (www.cmkmdiamondsinc.com) to see what transpired prior to May of this year in this case. Since my last update, your company has received a second set of interrogatories and we have responded to those interrogatories.  Your company has sent its first request for production of documents to Glenn’s attorneys.  Glenn has produced a number of documents pursuant to our request and has made various objections to some of the requests.  Your company has recently sent a Request for Admissions to Glenn which includes over 100 requests.  Request for Admissions is a discovery tool designed to narrow the contested issues in a law suit.  Rules allow the parties thirty days to respond to most discovery including a Request for Admission. 

A deposition of one board member was taken this year with our Las Vegas counsel representing the company and the board member.  We participated in the deposition  of   Neil Levine, the CPA that withdrew from representing the company on the day of the administrative hearing in 2005.  This deposition took place in Mr. Levine’s attorney’s office in New York City on October 20, 2010.  The deposition was an all day deposition.  We participated in the deposition of Don Stoecklein in his office in San Diego on October 28, 2010.  This deposition was an all day deposition.  We participated in the deposition of Mark Faulk in a law office in Oklahoma City on September 16, 2010.  This was an all day deposition.  An enormous amount of work goes into preparation for these depositions.  Mr. West was previously deposed as company representative by Mr. Glenn’s attorney.  His deposition as a fact witness will be taken in January. 

Your company has hired an expert to testify on behalf of the company.  Our expert will give his opinion on certain matters at issue in this litigation.  Your expert will be given information pertaining to the legal work done by Mr. Glenn and his firm.  He will then give his opinion regarding the work.  Experts are commonly used in cases of this sort.  The courts allow expert testimony when a matter is being litigated that might be above the common understanding of a lay person. It would be helpful to a lay juror to have information from an expert in some of the issues being tried in this lawsuit.  Mr. Glenn has already announced the name of their expert witness.  We expect to offer our witness up for a deposition and we expect to depose their expert.  I will also be deposing Mr. Glenn but we have not yet scheduled that deposition as of this date. 

A scheduling order has been put in place by the trial court.   This case will be called for trial on August 1, 2011.  I expect this case to be tried sometime during the month of August. 

A protective order has been agreed to by the parties and signed by the Judge which cloaks many discovery documents with confidentiality by agreement.  I think this scheduling order is a matter of public record.  If it is, I will allow company management to post it in the document section of the company web site. 

Declaratory Judgment Suit in Tyler--Service issues are being resolved due to Mr. Edwards being incarcerated in London.  Once service has been obtained, this matter will proceed. 

Al Hodges’ Bivens Suit – I will only make a brief comment on the Al Hodges litigation.  The company has made its position very clear on several occasions.  I reiterated the company’s position in my update this past May.  Please reread my comments if there is any misunderstanding of my position and that of the company.  There is an open line of communication between Mr. Hodges’ office, your company and my office. If any help or assistance is needed by Mr. Hodges from me or the company, Mr. Hodges knows we stand ready to do whatever is needed.  Having said that, a lengthy in-depth investigation by myself and your company has been ongoing into related matters since March of 2007. Your company management has met with Mr. Hodges.  We have received the same information most of you have received about this matter. The company’s position has not changed.  Mr. Hodges has been relentless in his pursuit of the monies identified in his lawsuit.  He is firm in his belief that he will eventually be able to obtain the funds he believes are being held in trust for the shareholders. 

Communication to Shareholders – I feel compelled once again to ask you to use your common sense and be patient with the officers and directors of your company as this litigation proceeds.  The law is clear that when I discuss company plans which involve litigation with the officers and directors, those discussions are privileged and not discoverable.  When your officers and directors communicate with third parties, whether in my presence or not, that communication is no longer privileged.  Discovery requests have been filed with us seeking communications between all parties involved and shareholders.  I do not allow the officers and directors to go online or engage in conversations with shareholders about the details of the company business.  The cases we are litigating are very important to this company. 

Thanks and Best Wishes For 2011 – I want to thank the many shareholders who have tirelessly contributed their time and efforts to the cause of this company. I am very much aware that this update will not excite the masses out there who are in daily anticipation of the funds being sought by Mr. Hodges.   Should his efforts come to fruition, I will be as happy as any shareholder alive.   But I am proud of the legal work that has been done for this company. We will continue to exert our time, money and efforts until these matters are all resolved and this company is back to trading.  I have confidence that our hard work and efforts will be rewarded in the end.  Have a safe and Happy New Year. 
                                                                                                            Sincerely,
                                                                                                                    Bill Frizzell
 
 

September 17, 2010 

CMKM Diamonds, Inc. is very happy to announce the completionof the form 1120 Internal Revenue Income Tax Returns for years 2002, 2003,2004,2005,2006,2007,2008,and 2009. 

Using the subpoena power granted by the District Court of Clark County Nevada, we have been able to recover all of CMKM bank records from various banks accounts known to us that the prior management used in years 2002 -2005. After intensive work by the Company’s accounting firm, 4 years of financials have been prepared based on the information we could gather. Current Management had already filed years 2006-2008 on time. However, after completing the previous years, the new financial data obligated the Company to restate years 2006, 2007 and 2008. Each of these IRS filings have been filed in addition to the most current year filing for 2009.

One of our main goals has always been to establish a foundation that would one day support the Company’s efforts to return to trading status. Filing these returns has moved the Company one step closer to that goal. 

The Company is happy to now make available to shareholders the financial statements of the combined 2002 – 2009 Balance Sheet and the combined 2002 – 2009 P&L Statement. (Click HERE to be directed to those statements) Please understand that these statements contain the combined numbers from all of the financial data available for the full eight years. We have made notations on several of the entries to make them more understandable. Many of the minor settlements that are shown were made under non-disclosure agreements between the parties. CMKM is devoting substantial time and resources in its ongoing attempt to collect on all judgments obtained by the Company through its litigation.

The United States Department of Justice has brought a criminal indictment against John M. Edwards, Urban Casavant, Helen Bagley, Brian Dvorak, Ginger Gutierrez and James Kinney alleging that they conspired to commit, and did commit, securities fraud involving the issuance and sale of CMKM stock. The United States Attorney for the District of Nevada has posted information regarding this criminal case on its website at http://www.usdoj.gov/usao/nv/victim_witness/case_updates.html

Federal prosecutors will periodically update this information to notify shareholders and victims of significant events in that case and the status of those proceedings. Shareholders and victims of this alleged scheme are invited to visit the website for additional information and instructions.