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Shareholders' Corner
“Shareholders’ Corner” features updates from the CMKM Diamonds, Inc. CEO.
4-9-09
In early October, 2008, CMKM Diamonds, Inc. signed paperwork prepared by the attorney for Entourage Mining Ltd. to allow for negotiations to settle ongoing lawsuits to take place. The parties agreed to keep the details of any and all negotiations confidential until an agreement is finalized. Currently, CMKM is waiting for Entourage Mining to uphold and fulfill their end of the proposed agreement. It has come to our attention that a small and very inaccurate piece of these negotiations has possibly been made public by one of the parties. CMKM Diamonds, Inc. has in the past and will continue to uphold their part of the confidentiality agreement.
Parallel to negotiations with Entourage Mining Ltd., CMKM Diamonds, Inc. 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.
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3-25-09
The Company has had numerous inquiries from shareholders about the status of certain CMKM Diamonds, Inc. stock. The Company's viewpoint on this issue was addressed in the 9-2-08 Shareholders' Corner update:
There has been a lot of speculation and concern about whether certain shareholders are bonafide. With over 50,000 shareholders, it is impossible to say at this time with any degree of certainty whether or not individual certs are bonafide. Determining who are our actual shareholders are and who holds bonafide shares is a process that unfortunately will take considerable time, and could ultimately involve regulators and/or a legal process. However, as the Company has stated many times, we will do everything within our power to assure that anyone who purchased shares in good faith is bonafide. If you have bought shares in good faith from your broker, and have received a certificate for those shares from our transfer agent, then most likely your shares are bonafide.
Because of ongoing concern about this issue, I sent an email to the SEC detailing questions about shares of CMKM Diamonds, Inc. stock held by our shareholders. Both my email and their response is reposted below. I'll keep everyone updated on any further information and/or clarification we receive from the SEC. As always, all shareholders should be aware of their right to seek legal advice from their own attorney on any issue pertaining to their CMKM Diamonds, Inc. stock:
The company has been receiving numerous inquiries from our shareholders about the status of their shares of CMKM Diamonds stock. Some of the answers to these questions might seem obvious, but I do not feel comfortable in making assumptions when it comes to the SEC's position on issues pertaining to stock. We would greatly appreciate some guidance from the SEC on this matter. I guess the best way to address this is to simply lay out the questions that shareholders have submitted (condensed and paraphrased for the sake of expediency), and ask you to address them as best you can:
In the case of CMKM Diamonds, Inc., company officers and insiders, according to the SEC, approved the issuance of hundreds of billions of unrestricted shares "based on obviously incomplete and suspicious, and in some cases, forged documentation" (Item 35). In general, are shares issued and sold into the market through allegedly fraudulent means such as those cited in the CMKM example considered to be unrestricted and/or registered shares once they are purchased in good faith by shareholders from brokers, especially those who have applied for and received stock certificates through their brokers from the transfer agent?
Are shares originally issued through fraudulent means (as referenced in the prior question) subsequently purchased by shareholders in good faith and held in electronic form at their brokers considered to be unrestricted and/or registered shares?
At what point do said affected shares become registered and/or unrestricted shares?
Are the "up to 622 billion shares of purportedly unrestricted stock" (Item 4) issued by former company insiders in an "unregistered distribution" (Item 4), as cited by the SEC in Case 2:08-cv-00437, part of the 703 billion issued and outstanding shares, or are they above and beyond that number?
Again, I would appreciate any guidance on this issue from the SEC, so that we can respond properly to shareholders' inquiries.
Feel free to call me if you have any questions, or if we can assist you in your ongoing efforts to help us find justice in the ongoing CMKM Diamonds, Inc. investigations. As always, we are willing to cooperate in any way possible.
Sincerely,
Mark Faulk
CEO, CMKM Diamonds, Inc.
This is the response I received today from SEC attorney Leslie Hakala:
Thanks for your email. Answering your last question: The 622 billion shares that we alleged were improperly issued are included within the 703 billion issued and outstanding shares.
Unfortunately, we can’t give legal advice to investors, so we are not comfortable responding to the other questions. I have, however, passed the questions on to others in our Washington headquarters, and will let you know if they can provide any guidance.
Regards,
Leslie
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2-23-09
Since October of 2006, CMKM Diamonds CEO (now Chairman of the Board) Kevin West and Corporate Counsel Bill Frizzell have supplied documents and other evidence in an effort to assist federal and criminal agencies investigating fraud committed against the Company and its shareholders. As CEO, I have vowed to continue those efforts, and have recently taken a more public stance in pushing for justice in this matter. Judging from the positive response from the Criminal Task Force, we firmly believe that the considerable efforts of the Company and its shareholders have been a positive influence on those who are investigating this monumental fraud.
The following email was sent to selected representatives of the DOJ, FBI, IRS, SEC, and FINRA. We will continue to update those agencies as additional signatures are added, and send them a written copy of the petition in a couple of weeks. We encourage all shareholders to sign the petition and to distribute it to your mailing lists so that we can show the Criminal Task Force that we are fully committed to justice:
First of all, I would like to thank the Criminal Task Force investigating CMKM Diamonds, Inc. (CMKX) for their hard work on what I know is a very complex and sometimes confusing case. Current management of CMKM Diamonds, Inc. is absolutely anxious to continue to contribute in any way possible to see that justice is served. I am including a link to a petition asking the "DOJ, FBI, and IRS to act immediately to issue criminal indictments against any and all individuals who conspired to defraud 50,000 CMKX shareholders of over $250 million." It has already been signed by more than 1,200 individuals in a little over a week, the vast majority of them CMKX shareholders/victims. While we want your focus to remain 100% on moving forward with indictments, please keep these people and all of the 50,000 shareholders in mind while you move forward with your investigation. Thank you again for your efforts.
Mark Faulk, CEO
CMKM Diamonds, Inc.
Link to CMKM Diamonds Plea For Justice Petition:
http://www.petitiononline.com/CMKX/petition.html
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2-8-09
CMKM Diamonds, Inc. has recently taken a number of steps to encourage the Department of Justice, Federal Bureau of Investigation, and the Internal Revenue Service to finally issue indictments and commence criminal proceedings against former CEO Urban Casavant and insider John Edwards and their cohorts, who blatantly stole $250 million from the Company and its shareholders.
Over the last two weeks, CMKM and its shareholders have contacted hundreds of public officials, including congressmen, federal regulators, criminal agencies, and people within President Obama’s administration. Although our letter was addressed to President Obama, our hope was that anyone in a position of authority would hear our plea for justice. One CMKX shareholder, a United States Air Force pilot who was just one of dozens of soldiers who were ruthlessly targeted in this massive fraud, worded it this way in his email to public officials: “The SEC, DOJ, FBI, etc. have dragged out this case for years and have no sense of urgency”.
While the Company cannot say for certain whether or not there was any “sense of urgency” in the past, we can confirm that the Company and its shareholders’ efforts have not fallen on deaf ears. Of particular significance was a single email directed to 20 people within the DOJ, FBI, IRS, SEC, and FINRA, containing the CMKM Plea for Justice, along with an introductory email, which said, in part:
I am aware of a joint Task Force consisting of the DOJ, FBI, and the IRS, assisted by the SEC, that has been investigating this massive fraud for the past few years. I know that our criminal agencies are overworked and underfunded, but this fraud is a travesty. These shareholders have been waiting for years to see criminal charges filed against those who blatantly stole hundreds of millions of dollars from them. Current management at CMKM Diamonds has in the past assisted the various agencies in their efforts, but I would like to extend that offer once again, We have hundreds of thousands of pages of bank account records, transfer agent records, and trading records, as well as other evidence that might be helpful to your efforts. Please contact me if I can be of assistance, and I would appreciate a reply so that I can at least be assured that this investigation has not been abandoned.
And please......PUT THESE CRIMINALS IN PRISON!!
When that email was sent out, the Company received a phone call from a member of the Task Force less than two hours later, asking us to assist them in their investigation. We are doing everything within our power to help them expedite their investigation, and will continue to do so. It is my belief that they are continuing their efforts with a renewed sense of urgency.
While we provide assistance to the Task Force, we believe it is in the best interest of CMKM Diamonds and its shareholders to continue to encourage a swift conclusion to the investigation, while at the same time being careful not to impede their progress. This is why we have followed up our letter by posting a petition to the DOJ, FBI, and IRS Task Force investigating CMKM Diamonds. Inc (CMKX). We intend to send them a preliminary copy as soon as we reach a thousand signatures, but we hope to have many more in the near future. We encourage all shareholders and other advocates for justice in our financial system to sign the petition and help us distribute it to others who might join our fight.
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). All recognized victims on the list have certain rights as specified in the “Help for Victims of Crime” brochure published by the Department of Justice, including “The right to proceedings free from unreasonable delay”. We have included a list of all shareholders who we have been able to identify through the cert pull conducted in late 2005 and 2006. Although this list is incomplete, it will give the FBI (during the investigation phase) and the DOJ (once charges have been filed) a starting point in contacting victims in the CMKM Diamonds, Inc. fraud case.
As we move forward with our civil lawsuits and other company business, CMKM Diamonds, Inc. will also continue to work with all federal agencies to ensure that all those who conspired to steal an estimated $250 million are punished to the fullest extent of the law. I would like to thank our Advisory Committee, Board of Directors, Corporate Counsel, and our dedicated shareholders for their untiring efforts in this cause.
Mark Faulk, CEO
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01-29-09
The Company has been following up on reports that a DTCC official has told several shareholders that a monetary fund is or was at one time set aside for distribution to CMKM Diamonds, Inc. shareholders. As stated before, we have absolutely no knowledge or evidence of any such fund ever having been collected or distributed on behalf of our shareholders. Any reports that information regarding any such fund, monies, or payout originated from anyone with CMKM Diamonds are totally inaccurate. However, because several shareholders have reported that they have had conversations with the DTCC, I contacted the DTCC official in question in an effort to confirm or refute those reports. According to that official, while he did have conversations with several individuals concerning CMKM Diamonds (CMKX), the only thing he talked about was a stock distribution to CMKM Diamonds shareholders, and he denied ever discussing any cash or monetary payout or planned distribution. He also said that while he was told not to discuss the issue any further, he wasn't certain whether or not there was an actual court order. This is in direct contradiction to a number of conversations I have had with CMKM shareholders, at least some of whom I believe to be very trustworthy. We will continue to collect information on this issue, and welcome any further evidence that might help to either substantiate or refute this story. A transcript of my conversation with the referenced DTCC official (minus the hellos and goodbyes), is available for viewing on the Company website.
Our Letter to the President has gone out to numerous elected officials and the media, and we continue to add new recipients to the list on a regular basis. To add your respectful comments of support to the original recipients, go to:
Contact the President - http://www.whitehouse.gov/contact/
Senate Banking Committee - Contact form - http://banking.senate.gov/public/index.cfm?FuseAction=Contact.Form
Senate Banking Committee - Contact individual members - http://banking.senate.gov/public/index.cfm?FuseAction=Information.Membership
Senate Finance Committee - Contact individual members - http://finance.senate.gov/sitepages/committee.htm
Contact your Congressmen - https://writerep.house.gov/writerep/welcome.shtml
Please remember that our main goals in sending this letter are to encourage our elected officials to help us ensure that criminal charges are filed against those who have defrauded CMKM Diamonds, Inc. and it's shareholders, and to hold our regulatory agencies accountable for their failure to protect shareholders. Feel free to provide a link to the original letter that has been sent to everyone on the recipients list.
On a totally unrelated topic, I want to make it clear that there is, and always has been, only one CMKM Diamonds, Inc. The Certificate of Conversion, readily available on the Company website, clearly show that CMKM Diamonds, Inc. was legally moved from Nevada to Texas in April of 2007:
The name of the converting entity is CMKM DIAMONDS, INC., a Nevada Corporation.
The Jurisdiction of the Converting Entity is Nevada.
The date of formation of the Converting Entity is April 18, 2002.
And from the same document:
The Converting Entity named above is converting to a Domestic Entity as a Texas Corporation. The name of the Converting Entity is CMKM DIAMONDS, INC., a Texas Corporation.
Our shareholders have been a valuable source of information, but we have also had to deal with an unending stream of rumors. If anyone has relevant information backed by firsthand conversations with public officials or verifiable evidence, we will try to follow up on that information, as we have with the DTCC. We do not have time to pursue secondhand information or rumors, nor will we respond to baseless rumors or threats. If anyone has actual evidence that is pertinent to moving the Company forward or that affects the shareholders as a whole, I hope that they would share that evidence with us in writing so that we might utilize it to the benefit of all CMKM shareholders and the company. As always, we welcome honest inquiries relevant to our Company's activities.
There will be a CEO Chat on Friday, January 30, 2009 from 9-10AM Central Time, which will air live on Toginet.com. As always, I will take questions during the show at 1-877-864-4869.
As we move forward as a Company, we will continue to base our decisions on what we believe is best for ALL shareholders.
Thank you for your continued support.
Mark Faulk, CEO
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01-24-09
I would like to thank CMKM Diamonds shareholders for their input concerning our Letter to the President. Because of your suggestions, and because many of the public official contact forms require messages less than 10,000 characters, I have posted a revised version on the Company website here. This is the version that the Company is sending out to public officials in hopes of encouraging our elected officials and criminal and regulatory agencies to finally seek justice against those who have defrauded CMKM Diamonds, Inc. and its shareholders. The original, more detailed version is still available for shareholders who wish to send it to media or other interested parties.
I have personally pushed for reform in our financial system for the past five years, and believe that through the unwavering diligence of our shareholders and other market reform advocates, CMKM can truly become a symbol of justice served instead of justice denied. May it be the first step to a fair and honest system that protects all investors equally and restores trust and integrity to our financial markets.
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12-9-08
CMKM Diamonds, Inc. has on many occasions addressed the ongoing problem of misinformation being spread to shareholders through internet message boards and chat rooms. While we have attempted to keep shareholders updated as to the Company's progress on a regular basis, there is still a great deal of misinformation on the boards. This needs to stop! It serves no positive purpose whatsoever, and in fact can be distracting and even detrimental to Company efforts to move forward.
Our Corporate Counsel Bill Frizzell emailed this response to one such rumor. He both addresses the misinformation and gives shareholders a general update of our recent and upcoming efforts. I am posting it here with his permission:
I took a call from a shareholder who calls himself Scott Grimes last week. He said he had not talked to me in several months and he thought he would just check in. Scott told me that he knew we had 1,400,000 acres of diamond claims or something to that effect. I reminded him that most of the acreage had lapsed and we no longer had 1,400,000 acres of claims. This is a pretty well known fact. I told him that there were a small number of claims still being held by Entourage and that it only took one claim to have a diamond claim with some value. I absolutely never said that these claims would make anybody rich. I have never told any shareholder that these claims or this stock will ever make anyone rich. I do not comment about stock values or ROI or how much someone will make off of their ownership of CMKM stock. If Scott Grimes or anyone else states that I have said the shareholders of CMKM will be rich, they are telling an absolute lie. I told Scott these next couple of weeks will be very interesting and I am excited about a lot of things going on in CMKM. I did not say 'something big was going to happen in the next two weeks'.
We have many things going on in our lawsuits that will be tremendously beneficial to the company. I have many things to do in our lawsuits before the year end. I was not specific as to what I was referring to. I am very excited about the success of our lawsuits and I look forward to continuing the work we have begun. I regret there are some shareholders who are continuously being misled by the rumors and lies that are spread by fellow shareholders. I am fully aware of my obligations to keep company business confidential. Though I did not discuss any matter of a confidential nature, these innocent remarks to a shareholder clearly caused more harm than the good that was intended by speaking in such an open manner. I will avoid this situation in the future.
Bill Frizzell
Again, we fully intend to share information with our shareholder base as it becomes available. However, the spreading of unsubstantiated rumors or misinformation is counterproductive and irresponsible. It is in the shareholders' best interest to ignore these individuals and instead look for real information from our numerous updates.
Thank you,
Mark Faulk, CEO
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11-18-08
A quick note to dispel recent rumors. The phrase of the week is "patently false".
First of all, concerning the recent judgment in the Rutherford lawsuit, our attorney in Las Vegas contacted the plaintiff's attorney's office and spoke with his assistant. Here is our attorney's response on the issue:
"Just called his assistant and confirmed it was not against CMKM Diamonds (only against Casavant and CMKXtreme). They said they have not received the judgment back from the court yet, which is why it has not showed up on the system to date. The online docket will often say 'All Parties' under docket entries, but that does not mean the judgment applies to all parties, just that all parties may be affected. The only Motion for Default Judgment on file (filed in May) does not include CMKM Diamonds. The electronic documents on the court's system do not yet include the recent prove up documents."
In the unlikely event the company is incorrectly named in the final default judgment, a motion to set aside the default will be promptly filed. The company’s attorney has appeared at all required settings and is prepared to defend the company against the claims made by Jay Rutherford.
Now on to the "patently false" part of the update:
Kevin West is the Chairman of the Board of CMKM Diamonds. Information posted on the message boards that he has "moved on" are patently false. Although it is true that Kevin is working primarily out of his own office, he is actively involved in all Company decisions and is in close contact with me on a daily basis. Any rumors to the contrary are patently false.
I was NOT chosen by Bill Frizzell to succeed Kevin West as CEO of CMKM Diamonds, Inc. In fact, Frizzell was not even notified of the decision until after the Board of Directors and former CEO Kevin West had offered me the position. Frizzell is the Corporate Counsel, and as such, has no involvement in the hiring or firing of Company employees.
My work with CMKM is NOT for the intention of promoting my book. If anything, I took the job against the advice of many of my closest associates and friends, who felt that it would be detrimental to my efforts to remain an objective voice for reform of our stock markets. I did it because I believed (and still believe) that I can do some good for the Company and its shareholders. Those who bash the Company and claim that we are involved out of greed or our own personal gain are entirely misguided.
My recent involvement with a project that I hope will bring widespread exposure not just to the plight of CMKM Diamonds but to the issue of stock market fraud in general is not in any way related to The Owners Group Inc. (TOGI) or to Fuego Entertainment. Anything posted implying that is patently false. It is an independent project that I was approached about because of my five years as an (entirely unpaid) advocate for stock market reform. After reading my book on the topic, the producers decided to include the CMKX story in the documentary, along with the story of my efforts on behalf of reforming our financial markets in general. Frankly, it is becoming increasingly difficult for me to make the case to the film's producers that the CMKX shareholders are victims when in fact many shareholders have attacked even those who are trying to help them.
In fact, TOGI is not in any way related or involved with CMKM Diamonds. It is a fact that Bill Frizzell was originally approached by John Martin in an attempt to help CMKX shareholders before the SEC delisting hearing, and it is a fact that both are themselves CMKX shareholders, but to imply that somehow TOGI is involved with CMKM is ludicrous and patently false. They provide an outlet to air our monthly CEO Chat radio shows, completely free of charge, but that is the extent of their involvement. Period.
There has been much discussion about moneys paid to those currently working for the Company. This issue has been addressed several times, but I'll cover it once more. I have not received a single penny to date from CMKM Diamonds, Inc. The salary I was offered was $10,000 per month, but I have voluntarily deferred that salary for the time being. In fact, I'll go a step further. Because much of the groundwork has already been laid through the considerable efforts of Kevin West and Bill Frizzell, the position of CEO is not at this time, in my opinion, a full time position. Therefore, any compensation I receive will be pro-rated based on the amount of time required to perform the job. This is my personal decision, and does not reflect upon any future employment agreements with others who may or may not become involved with the Company.
Board of Directors and Advisory Committee members receive absolutely no payment or compensation of any kind. They have chosen to assist the Company on an entirely voluntary basis. As an active employee and Chairman of the Board, Kevin West is entitled to a partial salary.
In any event, no shareholders' money originally invested in CMKM Diamonds, Inc. is being used to pay any salaries, bills, or other costs related to running the Company. The over $250 million dollars originally invested in CMKM Diamonds, Inc. was stolen by former Company officers and insiders. On more than one occasion, on a single day, Urban Casavant gave himself and family members millions of dollars of shareholders' money. John Edwards, David DeSormeau, and many others enriched themselves to obscene degrees using the Company and shareholders' money as well. To imply that there is any comparison between the formerly involved con artists, who defrauded CMKM and its shareholders, and current individuals who are attempting to recoup money stolen from the Company is ridiculous and patently false.
My efforts for the Company will continue, as will the efforts of Kevin West, Bill Frizzell, our Board of Directors, Advisory Committee, and anyone else who has assisted the Company. The Company is moving forward. Results take time, especially when it comes to legal efforts. I am as frustrated as anyone about that simple fact, but nonetheless, it is a fact. Those who not support us are entitled to their opinions, but I repeat: this Company is moving forward. Any outlandish assumptions or misinformation that emanates from outside the Company should be assumed to be patently false unless directly confirmed by the Company itself.
The next CEO Chat will be Friday, December 5, 2008, from 9-10 AM CST at www.toginet.com All archived shows will be accessible via the CMKM Radio Player. Please send your inquiries and comments to questions@cmkmdiamondsinc.com
Mark Faulk, CEO
CMKM Diamonds, Inc.
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11-03-08
Thanks to those who either submitted written questions or called into the CEO Chat from October 31, 2008. For those who have not yet listened to the show, it is available on the CMKM Radio Player on the Company website. One caller asked about progress in collecting information against the brokers. We have uncovered substantial irregularities in trading involving CMKM Diamonds. Any information that has not been released is because we are still in the process of collecting evidence on those issues. After we have completed our investigation, we will weigh our legal options.
In response to another caller's suggestion, we absolutely want our shareholders who have requested but never received their shares in certificate form to continue to pressure their brokers to DELIVER THEIR CERTIFICATES. The Company will provide a future update with a specified place to send in copies of certificates that were not previously sent into the Task Force in 2006.If you own shares of CMKM Diamonds, or of any company for that matter, you have a right to have those shares delivered to you in certificate form.
Our third caller asked about a business plan. Until we have a substantial amount of monies or assets, and not knowing what those assets or monies are, it is impossible to put together a long-term business. When the time comes, we intend to bring in people who are highly-qualified to assist us in forming our business plan. In the near term, we are doing everything possible to recoup monies that were stolen from the Company and its shareholders.
I am currently involved in a project that should bring both the story of CMKM Diamonds and the broader issue of fraud in our financial system to a national audience. It is my belief that any exposure of this massive fraud against CMKM and its shareholders will benefit the Company in its efforts to recoup lost monies and demand justice against those who perpetrated this crime.
Below is a list of questions that were addressed on the radio show, along with several that we didn't have time to answer. For expanded commentary, please listen to the broadcast. The next CEO Chat will be from 9-10 PM CST on Friday, December 5th, on Toginet.com. As a disclaimer, Toginet is providing the broadcast and sponsoring the audio player on the website free of charge.
Thanks again,
Mark Faulk, CEO
QUESTION: I would like to sell my certed shares to the brokers that are looking for them to cover. Will you please have them contact me or give me their contact info?
ANSWER: We do not have specific brokers asking to buy shares. We have had many unusual emails and requests from brokers. Regardless, it is not the Company's job to connect buyers with sellers even if we were contacted by brokers looking for shares, which has not happened. As CEO, I am required to do what's best for the Company and the shareholders' as a whole.
Q: Who is the majority shareholder in CMKX?
A: No individual or entity owns over 10 billion shares of CMKX stock.
Q: What is the O/S and A/S?
A: The O/S (Outstanding Shares) is 703,518,875,000. The A/S (Authorized Shares) is 800 billion.
Q: Who voted you into the CEO position?
A: The Board of Directors.
Q: Who is paying your salary and what is your salary?
A: I have received no salary to date, because I am working on a separate project in New York and because I don't want to be a drain on the Company's finances. At full salary, I am entitled to a salary of $10,000 per month.
Q: If the naked short issue gets resolved by being proven to be true, does any government entity pay a fee to the share holder for this violation of trust, or is our only recourse to collect back what is owed by the crooks that set us up?
A: It is highly unlikely that the SEC or any other agency will pay a fee to shareholders, but the Company will do everything within its power to recoup money stolen from shareholders.
Q: When, if ever, do you expect Urban Casavant and the other insiders that perpetrated this CRIME against us, to face indictments and prosecution? To me, the greatest crime of all is that all of them are apparently not going to suffer real, criminal punishment for what they did to us.
A: I do expect criminal charges to be filed, but I'm very disappointed that it hasn't happened already.
Q: CMKM Diamonds was purchased as an investment. So far the investment has been terrible: price has dropped to the par value, no dividends, no trading, lots of illegal activity, failure to delivers, etc. What can I expect for a return and when?
A: I can't answer that, all I can say is that we are moving forward. As I have said, this is at least for now primarily a legal play.
Q: We moved from Westbank, British Columbia to Surprise, Arizona last summer and wanted to know how we can update our address with the company. We have our certs from the official pull a couple of years ago and want to make sure we get updated information when it arises.
A: That information is on the homepage of the company website.
Q: What is CMKM's TIN (Tax ID Number) and the status of filing our tax forms with the IRS for periods 2004 through 3rd quarter 2008?
A: No company gives out their Tax ID Number. The company has filed both its 2006 and 2007 taxes. There is currently no income, so quarterly filings aren't required.
Q: When does CMKM's contract expire with the T/A, 1st Global? Is it this year? Does CMKM plan on extending that contract or moving to another T/A?
A: That contract expires at the end of November, at that time our Board of Directors will address that issue.
Q: What is the status of the Entourage lawsuit against CMKM? Is this matter currently in settlement talks?
A: We can' t comment on current litigation. We will update shareholders' on that lawsuit and all Company activities as we have definite developments.
Q: Have any of the defendants named in the 9/5/08 Texas lawsuit been served?
A: They haven't been served yet but we're moving forward on the lawsuit.
Q: Is the company able to request a TRO on Mrs. Casavant's home since it was discovered she was recently trying to sell it?
A: The house is mortgaged to the hilt and has no equitable value.
Q: What is the status of the Eaton NC lawsuit against CMKM? Is this matter currently in settlement talks?
A: We have responded to the lawsuit, and that document is available on the Company website. Attorneys are talking, but we are not currently in official settlement talks.
Q: Why hasn't a default judgment request been filed against Urban Casavant by the company? He was served via publication back in July.
A: It will be filed in the very near future.
Q: Will the board bylaws be made available soon for the shareholders to review?
A: The by-laws haven't change since 2002 in Cybermark, and have been posted on the internet many times.
Q: This statement that was posted yesterday on the website bothers me: "On the other hand, if anyone has constructive ideas as to how to move the company forward in a positive way". Does this statement imply that CMKM has no business plan to get us back to trading and now you’re looking for ideas? Isn't this the job of the advisory committee to get the company to move forward in a positive way?
A: I asked shareholders for ideas because I want all shareholders to know that we value their input.
Q: Who is Steven Brewer? What is his relationship to CMKX? Is he on the board of directors of CMKX?
A: The Company has never advised Steve Brewer on any transactions involving CMKM stock, nor is he affiliated with the company in any way. Since Urban Casavant became CEO, the Company has had absolutely no business involvement with Steven Brewer whatsoever. He is not on the BOD, the Advisory Committee, nor does he have any input into company business. I cannot answer questions involving any connection between Steven Brewer and TOGI.
Q: Can you give us an indication to when we might be back to trading? An indication to when we, as a company/shareholders, will have this behind us?
A: Any answer I give would be purely speculative, and I really don't want to mislead shareholders by speculating on something that can't realistically be answered at this time.
Q: It has come to my attention that there were possibly as many as two SEC Confidential Informants involved with CMKM Diamonds as early as 2002 or 2003. One possibly being within the Transfer Agent's office and the other possibly being Mr. Turino. If this is indeed fact, then how do you explain allowing CMKX shareholders to be in the current position that they are in? You had two or more confidential informants? Yet YOU DID ABSOLUTELY NOTHING to stop us from getting looted? First you allowed Insiders to dump unregistered shares on us and at the same time you allowed other's to naked short our company into oblivion? How do you folks intend to provide Justice to the CMKX Shareholders who were so gravely injured?
A: I have no evidence that the SEC or any other government agency had informants involved with CMKM Diamonds. If anyone has evidence to substantiate this, please send it to the Company. The Company does have documentation that the SEC was gathering information about irregularities within the company at least as early as May of 2004, well before the bulk of the shares were dumped into the market.
Q: The Company is now being influenced and financed by a group of Private Investors.
A: The Company is NOT being influenced or financed by a group of private investors. The Frizzell Law Firm or Bill Frizzell has received personal loans from certain individuals to help finance the lawsuits.
Q: You fail to tell us who these Private Investors are.
A: They have loaned money to Bill Frizzell, NOT to the company, therefore it is not company business.
Q: You fail to tell us how much money these Private Investors have invested.
A: A total of less than $500,000 has been expended to date, but our agreement is with Bill Frizzell, not private investors.
Q: You fail to tell us how much money these Private Investors will take/gain/pocket from the hard-earned money that the original group of injured, blighted, lied-to, and abused shareholders laid out for the original company -- If you can get your fat-little hands on it.
A: They will be repaid with a reasonable interest from collected monies. All repaid loans will come from Bill Frizzell's contingency fee.
Q: While you were in New York and probably a few blocks or a cab ride or bus away from Roger Glenn's office… did you meet up with him and ask him questions and if not WHY? I would think this would be your 1st priority while in New York being you called him a Crook several times on the radio show.
A: I have contacted Roger Glenn by phone from my radio show, and he hung up on me. I think that says it all. I stand by all prior comments that I have made about Roger Glenn.
Q: When will we be able to read all 191 pages of RG's deposition...?
A: Those depositions were taken by the SEC. It would be their decision to release them to the general public.
Q: Has John T. Moran III responded to any requests for documentation including any work on the interpleader?
A: Moran has refused to turn over any documents pertaining to CMKM Diamonds or the interpleader. The Company filed a complaint with the Nevada Bar Association that included compelling evidence and documentation of misconduct by John T. Moran III. The Bar Association declined to even open a file on the complaint. To our knowledge, other than a 2 page document that Kevin West put together for the interpleader, the Company has no evidence that ANY other work was conducted on behalf of the Company in regards to the interpleader.
Q: When will we have an annual shareholders’ meeting?
A: It would cost well in excess of $100,000 just to send out proxies to all shareholders, and possibly much more.
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10-27-08
This coming Friday, October 31, from 9-10 AM CST, we will be conducting another CEO Chat on Toginet.com. First of all, my apologies for the technical problems in recording and for the disorganization of the first radio show. I was in a hotel room in New York and extremely sick, and the format was still a work in progress. For the next show, I've taken into consideration concerns and suggestions made by shareholders and made a few changes to the show's format.
We will take written questions from shareholders until midnight on Wednesday, and will begin answering written questions immediately at the beginning of the show. We will take callers' questions and comments for the second half of the show, with a time limit of 3 minutes per call, so everyone will have a chance to have their questions answered. I will NOT answer questions that have been addressed before by either myself or by Kevin West on the company website, nor will I respond to questions that do not directly involve CMKM Diamonds, Inc. Please keep your inquiries on topic.
I know this has been a long and frustrating experience for CMKM shareholders, but this is not a situation that can be resolved overnight. Considering the irrefutable fact that Kevin West took over a company whose prior management defrauded its own shareholders of an estimated $250 million, and that the former CEO left only $558 in the bank, I believe a great deal has been accomplished in keeping this company alive. THIS COMPANY IS AND WILL CONTINUE TO MOVE FORWARD, but it takes time. I hope shareholders can be patient and respectful of the effort expended by those who are working on their behalf.
On the other hand, if anyone has constructive ideas as to how to move the company forward in a positive way, we are always open to those ideas. Please submit your ideas, comments, and questions to questions@cmkmdiamondsinc.com or call in to next Friday's show at 1-877-864-4869.
Thank you,
Mark Faulk
CEO, CMKM Diamonds
Note: Due to technical problems with the recording facility, the October 3rd CEO Chat was inadvertently not recorded. Therefore, we are unable to post the show on the CMKM Diamonds Radio player. We sincerely apologize for the inconvenience.
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9-26-08
A quick note to answer a couple of concerns from shareholders. In reference to information sent out by Bud Burrell, Bud was a middleman to put that info into the hands of certain officials in the hope that the CMKX situation will continue to receive the attention it deserves. In light of the national events of the last couple of weeks, it is crucial that our story be heard by the right people. Any official documents were sent directly to the person who requested them, but the information should never have been leaked publicly. Bud nor anyone else not directly involved in investigations has knowledge of any individual's or companies' names that are a focus of our investigations.
It would be beyond detrimental to our investigation to release any detailed information to anyone not directly involved in either researching or investigating potential claims that CMKM might take against those who defrauded the Company and its shareholders. There are two choices here, either release ALL information to shareholders to be publicly reposted on message boards and compromise our legal position, or do what is best for the Company. Given those choices, I will always take the course of action that is best for CMKM Diamonds, Inc., which in turn is ultimately what will best benefit the Company's shareholders.
On a separate note, I am currently in New York, and will be available only on a limited basis for the next few days. I have received numerous phone calls about recent events, and I apologize if I haven't had time to return some calls. Things are very hectic, and the Company is making excellent progress in its efforts, but this is a marathon, not a sprint. Please be patient with us as we concentrate our efforts on the task at hand.
The CEO Chat is still scheduled for 9-10 AM CST on Friday, October 3, 2008. Please send your comments and questions to questions@cmkmdiamondsinc.com and I will address them as best I can at that time.
Mark Faulk,
CEO
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9-20-08
To the Shareholders of CMKM Diamonds:
The response to my appointment as Company CEO has been for the most part very positive, and for that I am grateful and appreciative. I will be very aggressive in my efforts to move the Company forward, and to that effect, we have already begun preliminary talks with a number of attorneys with the intention of expanding our legal team. This will allow us to broaden our legal efforts as we take on those who have defrauded the Company and its shareholders.
Chairman and former CEO Kevin West and Company Counsel Bill Frizzell have always been transparent and honest in their dealing with the shareholders. I find it difficult to comprehend the backlash to their efforts. Up to now, they have made considerable progress with very little help and even less resources. With the new Board of Directors, Advisory Committee, CEO, and soon-to-be-expanded legal team, this Company is clearly making every effort to move forward. I would ask that shareholders show some degree of patience so that we can concentrate on the considerable task at hand.
In my first radio address to the CMKM shareholders, I said that I plan to conduct monthly radio shows in order to address shareholders' concerns and answer questions. There will be a Media Player imbedded on the Company website, where the latest show will play continually, and where earlier CEO Chat shows can be accessed as well. I will spend the first half of each show discussing the month's events with co-host DeWayne Reeves, and will take calls from shareholders and listeners during the second half of the show. The next CEO Chat will be October 4, 2008, and will air live from 9-10 AM CST on Toginet.com.
You may have noticed that I have chosen to discontinue the FAQ Updates. This is for a number of reasons. We will continue to address shareholders' concerns and questions on this forum and on my monthly CEO Chat, as well as in regular Corporate Updates and Press Releases. Shareholders can either send their questions and concerns to questions@cmkmdiamondsinc.com or call in to my monthly CEO Chat.
There has been a lot of speculation and concern about whether certain shareholders are bonafide. With over 50,000 shareholders, it is impossible to say at this time with any degree of certainty whether or not individual certs are bonafide. Determining who are our actual shareholders are and who holds bonafide shares is a process that unfortunately will take considerable time, and could ultimately involve regulators and/or a legal process. However, as the Company has stated many times, we will do everything within our power to assure that anyone who purchased shares in good faith is bonafide. If you have bought shares in good faith from your broker, and have received a certificate for those shares from our transfer agent, then most likely your shares are bonafide.
Now for the question that never seems to go away. To the best knowledge of CMKM Diamonds, Inc. and anyone employed by the Company, there is no trust fund, money, or settlement in existence anywhere waiting to be distributed to CMKM (CMKX) shareholders. If anyone believes that they have evidence of any outside entity who can confirm otherwise, I believe it their duty as a CMKM shareholder to contact the Company immediately and pass that evidence or information to us so that we can convey it our shareholders. The Company has made this request several times in the past, but to date, has received not one single shred of anything remotely resembling evidence of any kind. Otherwise, any rumors on the boards should be considered to be nothing but baseless rumors or lies. For your own well being, ignore them.
Other concerns:
- The Company is in the process of working towards recovering assets and/or monies from the John Edwards' judgment. We will provide Corporate Updates as progress is made on that, and all our legal fronts.
- As I stated on my first CEO Chat show, the cost of an official shareholders' meeting or a full vote of the shareholders make it impossible to do at this time.
- The names of all Board of Directors are public. However, by agreement with those who have volunteered their time and energy to assist the Company, the names of individuals on the Advisory Committee will not be publicly revealed.
I am also involved in a major documentary about financial fraud (tentatively scheduled to be completed in late 2008 or early 2009), of which the CMKX story will be a central part. In light of recent events concerning rampant financial fraud in the broader market, I will continue to push for the CMKX story to be conveyed to a larger audience. The tide has turned, and we will no longer be ignored.
Until next time,
Mark Faulk
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