hodges leter to the ny attorney general

[kenshin7]

E-Mail: [e-mail]

For: David A. Markowitz, Esq.
Special Deputy Attorney General
for Investor Protection

Attorney General of the State of New York
120 Broadway, 23rd Floor
New York, NY 10001

Dear Ms. Brown:

Thank you for speaking with me earlier today and explaining that Mr. Markowitz was out for the rest of the day. We discussed briefly the nature of my request and you suggested that I forward the appropriate information to your attention via e-mail for Mr. Markowitz’s review on his return Monday, March 1, 2010. The information is as follows:

• I am a California trial attorney with some 40 years experience in State and Federal Court, as well as other jurisdictions.

• In January of this year I filed a Bivens Class Action against the five sitting SEC Commissions and five past SEC Commissioners seeking some 3.87 Trillion Dollars in damages for the taking of property by unconstitutionally withholding consent to distribute such sums as had previously been collected for the benefit of 50,000 + shareholders of CMKM Diamonds, Inc.; a conformed copy of the complaint is attached.

• The SEC Office of General Counsel has agreed to accept service on behalf of the sitting Commissioners; the other commissioners are currently being served.

• The weight of opinion is that this litigation will not be allowed to proceed into the discovery stages and/or to trial; there is mounting evidence that a distribution of funds to the shareholders is on the near horizon.

• I am advised that a portion of trust funds previously ear-marked for distribution to support the U.S. Domestic Settlement Fund Program currently in process were distributed to the United States Treasury facility in New York City on December 31, 2009 through and with the assistance of the New York Federal Reserve Bank in New York City.

• I am advised that these trust funds totaled 4.2 Trillion Dollars and were paid into the U.S. Treasury as and for taxes due to be paid from the trust(s) upon distribution of the trust assets.

• I am further advised that pursuant to Federal Banking Regulations, New York State Banking Regulations, and the Martin Act, inter alia, the transferred funds could be held without return for a maximum period of time under any circumstances for forty-five days or until midnight February 14, 2010.

• I am further advised that the U.S. Treasury has not remitted these funds, is still possessed of these funds and more importantly the trust(s) assets have not been distributed.

• The above circumstances, upon proof, demonstrate serious criminal violations of the statutes referred to above.

• I represent, at least as the Class Counsel, a number of New York residents who are beneficiaries of these trust(s) and are among the 50,000 + shareholders. I know many of these people on a personal basis in addition to being their counsel of record and can attest to their severe and continuing damage suffered and being suffered as a result of the non-distribution and non-receipt of the afore mentioned trust assets; some of them are also anxious to visit you in person and describe their continuing outrage.

Demand is hereby made that your office initiate, at the earliest possible time, an investigation into the criminal activities of those persons within your jurisdiction whom have contributed to and otherwise facilitated these criminal acts. I would be happy to discuss these facts with you at your early convenience. Please feel free to contact me directly at: [phone]. Thank you in advance for your prompt attention to this matter.

A. Clifton Hodges (CSBN 046803)
HODGES AND ASSOCIATES
4 East Holly Street, Suite 202
Pasadena, CA 91103-3900

Tel: [phone]
Fax: [phone]
E-Mail: [e-mail]