Post by ewe2667613 on May 12, 2010 19:29:07 GMT -5
INTERIM COMPLAINT AGAINST THE CURRENT CMKM MANAGEMENT: KEVIN WEST, CURRENT CHAIRMAN/CEO/PRESIDENT OF CMKM DIAMONDS, INC., (CMKM); BILL FRIZZELL, ATTORNEY FOR CMKM; AND MARK FAULK, FORMER CEO/PRESIDENT OF CMKM.
CMKM Diamonds, Inc.
615 S. Broadway
Tyler, TX 75701
Bill Frizzell
Frizzell Law Firm
Texas Bar No. 07484500
602 S. Broadway
Tyler, Texas 75701
Tel. (903) 595-1921
Fax(903) 595-4383
The COALITION is filing this INTERIM COMPLAINT with the Texas State Securities Board against the current CMKM management and a grievance with the State Bar of Texas against Bill Frizzell.
www.ssb.state.tx.us/Inspections_And_Compliance/File_A_Complaint.php
www.texasbar.com/Template.cfm?Sec....tentDisplay.c f
COALITION EVIDENCE AGAINST THE CURRENT CMKM MANAGEMENT
***AFTER ENDURING MORE THAN THREE YEARS OF FEEBLE/INEPT ACTIONS, INACTIONS/NEGLIGENCE, AND POSSIBLE MALFEASANCE OF THE CURRENT CMKM MANAGEMENT, PRO-ACTION CMKM SHAREHOLDERS HAVE BECOME FED UP, HAVE UNITED, AND HAVE FORMED THE CMKX SHAREHOLDERS COALITION FOR JUSTICE (COALITION) FOR THE PURPOSE OF UNCOVERING THE TRUTH PERTAINING TO CMKM DIAMONDS, INC., (CMKM), OF COERCING THE PERPETRATORS TO COMPENSATE THE MEMBERS OF THE COALITION FOR THE HARM THAT HAS BEEN PERPETRATED AGAINST THEM, OF MAKING CERTAIN THAT SAID PERPETRATORS ARE HELD ACCOUNTABLE FOR THEIR MALFEASANCE, AND IN EXPOSING THE US GOVERNMENT AND THE US FINANCIAL MARKETS IN GENERAL AS BEING INEPT AND CORRUPT. FURTHERMORE, THE COALITION INTENDS TO FILE LAWSUITS, COMPLAINTS, GRIEVANCES, AND LEGAL NOTICES AGAINST ANY AND ALL PERPETRATORS, WHICH INCLUDES, BUT IS NOT LIMITED TO, THE SECURITIES AND EXCHANGE COMMISSION, THE DEPOSITORY TRUST AND CLEARING CORPORATION, HEDGE FUNDS, BROKERAGE FIRMS, MARKET MAKERS, BANKS, THE PREVIOUS CMKM MANAGEMENT, AND THE CURRENT CMKM MANAGEMENT.
On 4-23-10, the COALITION sends a REQUIREMENT LETTER to the current CMKM management REQUIRING that the current CMKM management sends in a PACKET, certified mail, to the COALITION, within 30 days of receipt of said certified letter, ALL of its responses to the REQIREMENTS listed in the REQUIREMENT LETTER. A copy of said REQUIREMENT LETTER is filed with this INTERIM COMPLAINT.
As of the date of filing this INTERIM COMPLAINT, 5-10-10, The COALITION has not received a response from the current CMKM management, does not expect to receive a response, and therefore feels that filing this INTERIM COMPLAINT is prudent.
When the 30 days have expired, the COALITION will file a more-detailed Complaint.
The COALITION further feels that the nonresponse of the current CMKM management points to the following obvious explanations:
1. the current CMKM management is uninterested in assisting the COALITION in exposing and taking ACTION against the perpetrators who/that were involved in the NSS of CMKM's stock;
2. the current CMKM management is uninterested in assisting the COALITION in making certain that said perpetrators are held accountable for their malfeasance;
3. The current CMKM management is uninterested in assisting the Coalition in coercing the perpetrators to compensate the members of the COALITION for the harm that has been perpetrated against them;
4. the current CMKM management has no plausible explanations for its impotence which has led to a deluge of contradictions, inconsistencies, and discrepancies in its PRs, CEO Updates, and FAQs;
5. the current CMKM management appears to have an agenda that is not conducive to the benefit of CMKM shareholders.
6. the current CMKM management might in fact be aiding and abetting and protecting the very perpetrators who/that were involved in the NSS of CMKM's stock;
7. the current CMKM management is uninterested in assisting the COALITION in exposing the US government and the US financial markets in general as being inept and corrupt.
***CURRENT CMKM MANAGEMENT APPEARS TO HAVE A NEFARIOUS AGENDA AND MIGHT IN FACT BE AIDING AND ABETTING/PROTECTING THE VERY PERPETRATORS THAT/WHO WERE INVOLVED IN THE NSS OF CMKM'S STOCK AS EVIDENCED BY ITS STATEMENTS AND ALLEGED EXAMINATION/INVESTIGATION THAT CONTRADICTS CURRENT LITIGATION AND MITIGATES THE SEVERITY OF THE NSS OF CMKM STOCK.
CASE IN POINT #1
FACTS
The current CMKM management repeatedly alleges that their examination shows "There is no trust fund or any money set aside for shareholders" and their "investigation confirms that there has never been a fund set aside for the shareholders" which contradicts Bivens Action, Civil Action No. 10-00031, David Anderson, Lt. Col, et al, vs. Christopher Cox, et al, Complaint for Declatory Judgment and for Damages for Violation of Civil Rights, 1-4-10, United States District Court, Central District of California (hereinafter referred to as the "Bivens Action"), filed by A. Clifton Hodges, Esq., Hodges and Associates.
viewer.zoho.com/docs/paKdda
FAQ Session #2: August 23, 2007
Q) Are the company's current activities delaying or hindering ANY payment to shareholders from any other source?
A) THERE IS NO TRUST FUND OR ANY MONEY SET ASIDE FOR SHAREHOLDERS. [emphasis added by author] There have been rumors of payouts and distributions to shareholders since 2003. AFTER A THOROUGH EXAMINATION OF BANK ACCOUNTS OF ALL COMPANY ACCOUNTS AND WITH THE ASSISTANCE OF A FORENSIC ACCOUNTANT, THERE IS NO EVIDENCE OF ANY FUNDS AVAILABLE FOR THE DISTRIBUTION TO THE SHAREHOLDERS. OUR INVESTIGATION CONFIRMS THAT THERE HAS NEVER BEEN A FUND SET ASIDE FOR THE SHAREHOLDERS. [emphasis added by author]
IF THERE IS ANY FACTUAL EVIDENCE OF ANY ASSETS BELONGING TO THE COMPANY OR ANY EVIDENCE OF ANY FUNDS EARMARKED FOR THE SHAREHOLDERS, YOU ARE ENCOURAGED TO CONTACT MR. WEST AND THE COMPANY WILL CONDUCT A FULL INVESTIGATION. [emphasis added by author]
FAQ Session #7: November 14, 2007
Q) Are there any payouts for stock holders, or do we lose the money we invested? I hear rumors of payouts, but have no reason to believe them.
A) This question and several just like it have been answered many times in the past months. THE COMPANY KNOWS OF NO FUNDS THAT HAVE EVER BEEN SET ASIDE FOR PAYMENT TO SHAREHOLDERS. [emphasis added by author] For more information, please read the documents found on the Company website including the questions already asked and answered in this FAQ section.
FAQ Session #15: July 19, 2008
Q) Is it true that CMKM has a new Board of Directors, the SEC has held our funds for two years and that Maheu was brought in by Citibank?
A) There is not one ounce of truth to such rumors. CMKM has one board member and one officer and that is Kevin West. THE SEC HAS NEVER HELD ANY FUNDS FOR CMKM AS A COMPANY OR FOR ITS SHAREHOLDERS. [emphasis added by author] Bob Maheu was not brought in by Citibank or any other corporation.
www.cmkmdiamondsinc.com/faq_index.html
BIVENS ACTION
Paragraph 33
During the period from November, 2004 throujgh April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada mineral claims to three Chinese domiciled corporation with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the confirmation of such sales were placed into a FROZEN TRUST [emphasis added by author] for disbursal at a later time.
Paragraph #34
During the period from March 2004 through August 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, NEGOTIATED A SETTLEMENT [emphasis added by author] with the illigitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange of a U.S. Government promise of no prosecution for such sales, THE WRONGDOERS EACH PROMISED TO PAY NEGOTIATED AMOUNTS TO A FROZEN TRUST FOR DISBURSAL AT A LATER TIME. [emphasis added by author]
Paragraph #35
Plaintiffs are herin informed and believe, and based thereon alleged, that other MONEYS HAVE BEEN COLLECTED FOR THE BENEFIT OF THE SHAREHOLDERS OF CMKM, DIAMONDS INC. FROM THE DEPOSITORY TRUST CLEARING CORPORATION, FROM THE UNITED STATES GOVERNMENT, AND FROM THE SALE OF ADDITIONAL ASSETS [emphasis added by author] including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs are herein further informed and believe, and based thereon allege, that said MONEYS, COLLECTED FOR THE BENEFIT OF SHAREHOLDERS HAVE ALSO BEEN PLACED IN A TRUST OR ARE OTHERWISE NOW HELD BY THE DEPOSITORY TRUST AND CLEARING CORPORATION AND THE UNITED STATES TREASURY. [emphasis added by author]
Paragraph #36
Plaintiffs are herein informed and believe, and based thereon allege, that at all times mentioned, THE SECURITIES AND EXCHANGE COMMISSION RESERVED UNTO ITSELF THE SOLE AND ABSOLUTE DISCRETION TO DETERMINE WHEN MONEYS COLLECTED PURSUANT TO THE SCHEME SET FORTH ABOVE COULD AND WOULD BE RELEASED FOR DISTRIBUTION. [emphasis added by author]
QUESTIONS
Why has the current CMKM management failed to issue a public statement concerning the landmark Bivens Action, Civil Action No. 10-00031, David Anderson, Lt. Col, et al, vs. Christopher Cox, et al, Complaint for Declatory Judgment and for Damages for Violation of Civil Rights, 1-4-10, United States District Court, Central District of California (hereinafter referred to as the "Bivens Action"), filed by A. Clifton Hodges, Esq., Hodges and Associates?
Is the current CMKM management's failure to issue a public statement concerning said Bivens Action an indication that it wants to keep a low profile?
Does the current CMKM management want to keep a low profile because said Bivens Action exposes it as being inept, corrupt, or both?
What did the current CMKM management's alleged examination and investigation into a TRUST FUND set aside for CMKM shareholders consist of?
Is the current CMKM management aware that the findings of its alleged examination and investigation THAT THERE HAS NEVER BEEN A FUND SET ASIDE FOR THE SHAREHOLDERS contradict the Plaintiffs in said Bivens Action who allege that MONEYS FROM SALES AND SETTLEMENTS WERE PLACED IN FROZEN TRUSTS FOR DISBURSAL AT A LATER TIME?
How does/will the current CMKM management reconcile that contradiction?
Is the current CMKM management aware that its statement that THE SEC HAS NEVER HELD ANY FUNDS FOR CMKM AS A COMPANY OR FOR ITS SHAREHOLDERS contradicts Plaintiffs in said Bivens Action who allege THE SECURITIES AND EXCHANGE COMMISSION RESERVED UNTO ITSELF THE SOLE AND ABSOLUTE DISCRETION TO DETERMINE WHEN MONEYS COLLECTED PURSUANT TO THE SCHEME SET FORTH ABOVE COULD AND WOULD BE RELEASED FOR DISTRIBUTION?
How does/will the current CMKM management reconcile that contradiction?
Now that the current CMKM management is aware the Plaintiffs in said Bivens Action allege MONEYS FROM SALES AND SETTLEMENTS WERE PLACED IN FROZEN TRUSTS FOR DISBURSAL AT A LATER TIME, is the current CMKM management going to conduct a full investigation?
Could the current CMKM management be breaching its fiduciary duties by failing to conduct an adequate examination and investigation into a TRUST FUND SET ASIDE AND MADE AVAILABLE FOR DISTRIBUTION TO CMKM SHAREHOLDER?
Could the current CMKM management be attempting to cover up said breaches by failing to issue a public statement concerning said Bivens Action?
END OF QUESTIONS
CASE IN POINT #2
FACTS
The current CMKM management repeatedly refers to the illegal NSS of CMKM's stock (which denotes fraud, punitive, and RICO damages) as FAILURES TO DELIVER (which merely denotes bookkeeping errors) which contradicts said Bivens Action and the viewpoint of Bill Frizzell BEFORE he became CMKM attorney.
FAQ Session #12: April 16, 2008
Q) Is the naked short or fails to deliver in CMKX a dead issue?
A) The Company believes that a significant FAILURE TO DELIVER [emphasis added by author] problem still exists in our stock. We are devoting enormous efforts to rebuilding and restructuring the company with the ultimate goal of being a traded security once again
FAQ Session #6: October 30, 2007
Q) Do we have undeniable proof that NSS has taken place and what is the count at this point in time?
A) The Company does have proof that there are FAILURES TO DELIVER [emphasis added by author] in CMKM stock. Until our shareholder audit is complete, we will not have a count as to how many shares or brokerage houses are involved.
FAQ Session #2: August 23, 2007
Q) What is the status of Susanne Trimbath's evaluation of the Naked Short Position of the Company thus far?
Susanne Trimbath continues her work on our shareholder audit. The naked short situation and the DELIVERY FAILURES [emphasis added by author] are not a primary concern of management at this time. Keeping the Company alive and returning to trading status is the focus of our work.
www.cmkmdiamondsinc.com/faq_index.html
Excerpt from Bill Frizzell's 4/25/05 email to Owners Group members (BEFORE he became CMKM attorney):
"The company is (and has been) concerned about possible NAKED SHORTING [emphasis added by author] of company stock. A plan for assessing the NAKED SHORT [emphasis added by author] position has been discussed. I cannot go into detail about the plan at this point. I can confirm that actions are contemplated which will identify the NAKED SHORT [emphasis added by author]position which may exist..."
Excerpt from Bill Frizzell's 9-30-05 email to Owners Group members (BEFORE he became CMKM attorney):
"...We proved a huge NAKED SHORT [emphasis added by author] position in this company a long time ago...By my estimates there are at least a trillion and a half shares that have been sold in CMKX stock. When all shares (including foreign and obo accounts) are added to the mix, the total could exceed two trillion shares."
Excerpt from Bill Frizzell's 5-31-06 letter to NASD (BEFORE he became CMKM attorney):
"The Task Force has now received certs in the name of certain brokerage companies. Our investigation reveals a potentially huge NAKED SHORT [emphasis added by author] position in at least two of the very companies that have sent us certs.
BIVENS ACTION
Paragraph #31
During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “PHANTOM” [emphasis added by author] shares of CMKM Diamonds Inc., was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.
Paragraph #32
At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in NAKED SHORT SELLING [emphasis added by author] of CMKM Diamonds Inc. stock and cellar boxing the company..."
Paragraph #34
During the period from March 2004 through August 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, negotiated a settlement with the illigitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in NAKED SHORT SELLING [emphasis added by author] of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange of a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a FROZEN TRUST for disbursal at a later time. [emphasis added by author]
QUESTIONS
What has occurred since the current CMKM management's inception on 3-30-07 to cause the current CMKM management to begin refering to the illegal NSS of CMKM's stock (which implies fraud, punitive, and RICO damages) as FAILURES TO DELIVER (which implies mere book keeping errors)?
Has the current CMKM management entered into an illegal agreement with the perpetrators--the DTCC, the SEC, the brokers, the bankers, the market makers--to cover up the illegal NSS of CMKM's stock and replace it with the legal FAILURES TO DELIVER?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it has failed to take any appropriate ACTION such as the Bivens Action?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it pursues low-return lawsuits against the previous CMKM management instead of pursuing high-return lawsuits against the the DTCC, the SEC, the brokers, the bankers, and the market makers?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it has failed to bring CMKM to trade again, which, if done correctly, would force the naked short sellers to cover their positions and increase the price per share of CMKM stock?
END OF QUESTIONS
***BOTH THE PREVIOUS CMKM MANAGEMENT AND THE CURRENT CMKM MANAGEMENT COULD HAVE BREACHED CMKM'S BYLAWS AND VIOLATED NRS 78.310-78.330 FOR FAILING TO CALL AN ANNUAL SHAREHOLDER MEETING.
CASE IN POINT
FACTS
According to the Ninth Cause of Action in Civil Action No. 2:07-cv-00215-RCJ-LRL, Hurd vs. CMKM Diamonds, Inc., 2-19-07, United States District Court for the District of Nevada, the previous CMKM management is guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting
Therefore the current CMKM management is also guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting since its inception on 3-30-07.
According to the bylaws of CMKM:
1. Article I specifies that a shareholder meeting must take place annually;
2. Article II specifies that the term of each director shall expire on the day of the succeeding annual shareholder meeting.
In a 3-30-07 PR, Urban Casavant announces that he steps down as "Chairman of the Board, sole Director, President, Secretary and Treasurer of CMKM Diamonds, Inc." due to "health issues" and appoints Kevin West, current interim CEO and a person with neither apparent business nor mining background "to take over at the helm."
www.thefreelibrary.com/CMKM+Diamo....rs.-a0161290289
In a 3-30-07 PR, Kevin West, CMKM Chairman of the Board, announces that "the first order of new business was to hire the Frizzell Law Firm..." "...in a quest to recover monies and assets that belong to the shareholders of this Company."
www.cmkmdiamondsinc.com/news_index.html
Because Urban Casavant apparently breaches CMKM's bylaws, his appointment of Kevin West "to take over at the helm" is NULL AND VOID; and Kevin West's subsequent hiring of Bill Frizzell is NULL AND VOID; and because the current CMKM management has failed to call an annual shareholder meeting since its inception on 3-30-07, every decision it has made since then is NULL AND VOID.
QUESTIONS
Does the current CMKM management know the dates of the annual shareholder meetings of the previous CMKM management?
Is the current CMKM management aware that if the previous CMKM management had failed to call an annual shareholder meeting, Urban Casavant's appointment of Kevin West "to take over at the helm" and Kevin West's subsequent hiring of Bill Frizzell are both NULL AND VOID?
Has the the current CMKM management called an annual shareholder meeting since its inception on 3-30-07?
Is the current CMKM management aware that if it has failed to call an annual shareholder meeting since its inception, every decision it has made since then is NULL AND VOID?
Could the current CMKM management be breaching its fiduciary duties by failing to notify CMKM shareholders that the previous CMKM management had failed to call an annual shareholder meeting?
Could the current CMKM management be breaching its fiduciary duties by failing to call an annual shareholder meeting since its inception on 3-30-07?
Could the current CMKM management be covering up said breaches?
END OF QUESTIONS
SUMMATION
The COALITION uses available facts in its INTERIM COMPLAINT to paint a very disturbing picture:
The current CMKM management has apparently entered into an illegal contract with one or more of the perpetrators -- the SEC, the DTCC, hedge funds, brokerage firms, market makers -- to the detriment of its fellow CMKM shareholders, the very people to whom it owes a fiduciary duty.
Furthermore, the current CMKM management is also guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting since its inception on 3-30-07.
The COALITION is confident that when the Texas State Securities Board and the State Bar of Texas investigate the current CMKM management, it will uncover evidence that corroborates the INTERIM COMPLAINT.
The COALITION respectfully requests the following:
1. The appropriate agency ousts the current CMKM management and appoints a temporary Receiver until an annual shareholder meeting is called and bona fide CMKM shareholders get a chance to vote for each director;
2. The State Bar of Texas disbars Bill Frizzell for violating the Oath of Attorney;
3. The appropriate agencies file civil charges against each member of the current CMKM management;
4. The appropriate agencies file criminal charges against each member of the current CMKM management;
CMKX Shareholders Coalition for Justice
101-1865 Dilworth Drive
Suite 169
Kelowna, British Columbia, Canada
V1Y 9T1
CMKM Diamonds, Inc.
615 S. Broadway
Tyler, TX 75701
Bill Frizzell
Frizzell Law Firm
Texas Bar No. 07484500
602 S. Broadway
Tyler, Texas 75701
Tel. (903) 595-1921
Fax(903) 595-4383
The COALITION is filing this INTERIM COMPLAINT with the Texas State Securities Board against the current CMKM management and a grievance with the State Bar of Texas against Bill Frizzell.
www.ssb.state.tx.us/Inspections_And_Compliance/File_A_Complaint.php
www.texasbar.com/Template.cfm?Sec....tentDisplay.c f
COALITION EVIDENCE AGAINST THE CURRENT CMKM MANAGEMENT
***AFTER ENDURING MORE THAN THREE YEARS OF FEEBLE/INEPT ACTIONS, INACTIONS/NEGLIGENCE, AND POSSIBLE MALFEASANCE OF THE CURRENT CMKM MANAGEMENT, PRO-ACTION CMKM SHAREHOLDERS HAVE BECOME FED UP, HAVE UNITED, AND HAVE FORMED THE CMKX SHAREHOLDERS COALITION FOR JUSTICE (COALITION) FOR THE PURPOSE OF UNCOVERING THE TRUTH PERTAINING TO CMKM DIAMONDS, INC., (CMKM), OF COERCING THE PERPETRATORS TO COMPENSATE THE MEMBERS OF THE COALITION FOR THE HARM THAT HAS BEEN PERPETRATED AGAINST THEM, OF MAKING CERTAIN THAT SAID PERPETRATORS ARE HELD ACCOUNTABLE FOR THEIR MALFEASANCE, AND IN EXPOSING THE US GOVERNMENT AND THE US FINANCIAL MARKETS IN GENERAL AS BEING INEPT AND CORRUPT. FURTHERMORE, THE COALITION INTENDS TO FILE LAWSUITS, COMPLAINTS, GRIEVANCES, AND LEGAL NOTICES AGAINST ANY AND ALL PERPETRATORS, WHICH INCLUDES, BUT IS NOT LIMITED TO, THE SECURITIES AND EXCHANGE COMMISSION, THE DEPOSITORY TRUST AND CLEARING CORPORATION, HEDGE FUNDS, BROKERAGE FIRMS, MARKET MAKERS, BANKS, THE PREVIOUS CMKM MANAGEMENT, AND THE CURRENT CMKM MANAGEMENT.
On 4-23-10, the COALITION sends a REQUIREMENT LETTER to the current CMKM management REQUIRING that the current CMKM management sends in a PACKET, certified mail, to the COALITION, within 30 days of receipt of said certified letter, ALL of its responses to the REQIREMENTS listed in the REQUIREMENT LETTER. A copy of said REQUIREMENT LETTER is filed with this INTERIM COMPLAINT.
As of the date of filing this INTERIM COMPLAINT, 5-10-10, The COALITION has not received a response from the current CMKM management, does not expect to receive a response, and therefore feels that filing this INTERIM COMPLAINT is prudent.
When the 30 days have expired, the COALITION will file a more-detailed Complaint.
The COALITION further feels that the nonresponse of the current CMKM management points to the following obvious explanations:
1. the current CMKM management is uninterested in assisting the COALITION in exposing and taking ACTION against the perpetrators who/that were involved in the NSS of CMKM's stock;
2. the current CMKM management is uninterested in assisting the COALITION in making certain that said perpetrators are held accountable for their malfeasance;
3. The current CMKM management is uninterested in assisting the Coalition in coercing the perpetrators to compensate the members of the COALITION for the harm that has been perpetrated against them;
4. the current CMKM management has no plausible explanations for its impotence which has led to a deluge of contradictions, inconsistencies, and discrepancies in its PRs, CEO Updates, and FAQs;
5. the current CMKM management appears to have an agenda that is not conducive to the benefit of CMKM shareholders.
6. the current CMKM management might in fact be aiding and abetting and protecting the very perpetrators who/that were involved in the NSS of CMKM's stock;
7. the current CMKM management is uninterested in assisting the COALITION in exposing the US government and the US financial markets in general as being inept and corrupt.
***CURRENT CMKM MANAGEMENT APPEARS TO HAVE A NEFARIOUS AGENDA AND MIGHT IN FACT BE AIDING AND ABETTING/PROTECTING THE VERY PERPETRATORS THAT/WHO WERE INVOLVED IN THE NSS OF CMKM'S STOCK AS EVIDENCED BY ITS STATEMENTS AND ALLEGED EXAMINATION/INVESTIGATION THAT CONTRADICTS CURRENT LITIGATION AND MITIGATES THE SEVERITY OF THE NSS OF CMKM STOCK.
CASE IN POINT #1
FACTS
The current CMKM management repeatedly alleges that their examination shows "There is no trust fund or any money set aside for shareholders" and their "investigation confirms that there has never been a fund set aside for the shareholders" which contradicts Bivens Action, Civil Action No. 10-00031, David Anderson, Lt. Col, et al, vs. Christopher Cox, et al, Complaint for Declatory Judgment and for Damages for Violation of Civil Rights, 1-4-10, United States District Court, Central District of California (hereinafter referred to as the "Bivens Action"), filed by A. Clifton Hodges, Esq., Hodges and Associates.
viewer.zoho.com/docs/paKdda
FAQ Session #2: August 23, 2007
Q) Are the company's current activities delaying or hindering ANY payment to shareholders from any other source?
A) THERE IS NO TRUST FUND OR ANY MONEY SET ASIDE FOR SHAREHOLDERS. [emphasis added by author] There have been rumors of payouts and distributions to shareholders since 2003. AFTER A THOROUGH EXAMINATION OF BANK ACCOUNTS OF ALL COMPANY ACCOUNTS AND WITH THE ASSISTANCE OF A FORENSIC ACCOUNTANT, THERE IS NO EVIDENCE OF ANY FUNDS AVAILABLE FOR THE DISTRIBUTION TO THE SHAREHOLDERS. OUR INVESTIGATION CONFIRMS THAT THERE HAS NEVER BEEN A FUND SET ASIDE FOR THE SHAREHOLDERS. [emphasis added by author]
IF THERE IS ANY FACTUAL EVIDENCE OF ANY ASSETS BELONGING TO THE COMPANY OR ANY EVIDENCE OF ANY FUNDS EARMARKED FOR THE SHAREHOLDERS, YOU ARE ENCOURAGED TO CONTACT MR. WEST AND THE COMPANY WILL CONDUCT A FULL INVESTIGATION. [emphasis added by author]
FAQ Session #7: November 14, 2007
Q) Are there any payouts for stock holders, or do we lose the money we invested? I hear rumors of payouts, but have no reason to believe them.
A) This question and several just like it have been answered many times in the past months. THE COMPANY KNOWS OF NO FUNDS THAT HAVE EVER BEEN SET ASIDE FOR PAYMENT TO SHAREHOLDERS. [emphasis added by author] For more information, please read the documents found on the Company website including the questions already asked and answered in this FAQ section.
FAQ Session #15: July 19, 2008
Q) Is it true that CMKM has a new Board of Directors, the SEC has held our funds for two years and that Maheu was brought in by Citibank?
A) There is not one ounce of truth to such rumors. CMKM has one board member and one officer and that is Kevin West. THE SEC HAS NEVER HELD ANY FUNDS FOR CMKM AS A COMPANY OR FOR ITS SHAREHOLDERS. [emphasis added by author] Bob Maheu was not brought in by Citibank or any other corporation.
www.cmkmdiamondsinc.com/faq_index.html
BIVENS ACTION
Paragraph 33
During the period from November, 2004 throujgh April, 2005, CMKM Diamonds, Inc. negotiated the sale of some of its Saskatchewan, Canada mineral claims to three Chinese domiciled corporation with the advice and consent, inter alia, of the Securities and Exchange Commission. Proceeds from the confirmation of such sales were placed into a FROZEN TRUST [emphasis added by author] for disbursal at a later time.
Paragraph #34
During the period from March 2004 through August 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, NEGOTIATED A SETTLEMENT [emphasis added by author] with the illigitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange of a U.S. Government promise of no prosecution for such sales, THE WRONGDOERS EACH PROMISED TO PAY NEGOTIATED AMOUNTS TO A FROZEN TRUST FOR DISBURSAL AT A LATER TIME. [emphasis added by author]
Paragraph #35
Plaintiffs are herin informed and believe, and based thereon alleged, that other MONEYS HAVE BEEN COLLECTED FOR THE BENEFIT OF THE SHAREHOLDERS OF CMKM, DIAMONDS INC. FROM THE DEPOSITORY TRUST CLEARING CORPORATION, FROM THE UNITED STATES GOVERNMENT, AND FROM THE SALE OF ADDITIONAL ASSETS [emphasis added by author] including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs are herein further informed and believe, and based thereon allege, that said MONEYS, COLLECTED FOR THE BENEFIT OF SHAREHOLDERS HAVE ALSO BEEN PLACED IN A TRUST OR ARE OTHERWISE NOW HELD BY THE DEPOSITORY TRUST AND CLEARING CORPORATION AND THE UNITED STATES TREASURY. [emphasis added by author]
Paragraph #36
Plaintiffs are herein informed and believe, and based thereon allege, that at all times mentioned, THE SECURITIES AND EXCHANGE COMMISSION RESERVED UNTO ITSELF THE SOLE AND ABSOLUTE DISCRETION TO DETERMINE WHEN MONEYS COLLECTED PURSUANT TO THE SCHEME SET FORTH ABOVE COULD AND WOULD BE RELEASED FOR DISTRIBUTION. [emphasis added by author]
QUESTIONS
Why has the current CMKM management failed to issue a public statement concerning the landmark Bivens Action, Civil Action No. 10-00031, David Anderson, Lt. Col, et al, vs. Christopher Cox, et al, Complaint for Declatory Judgment and for Damages for Violation of Civil Rights, 1-4-10, United States District Court, Central District of California (hereinafter referred to as the "Bivens Action"), filed by A. Clifton Hodges, Esq., Hodges and Associates?
Is the current CMKM management's failure to issue a public statement concerning said Bivens Action an indication that it wants to keep a low profile?
Does the current CMKM management want to keep a low profile because said Bivens Action exposes it as being inept, corrupt, or both?
What did the current CMKM management's alleged examination and investigation into a TRUST FUND set aside for CMKM shareholders consist of?
Is the current CMKM management aware that the findings of its alleged examination and investigation THAT THERE HAS NEVER BEEN A FUND SET ASIDE FOR THE SHAREHOLDERS contradict the Plaintiffs in said Bivens Action who allege that MONEYS FROM SALES AND SETTLEMENTS WERE PLACED IN FROZEN TRUSTS FOR DISBURSAL AT A LATER TIME?
How does/will the current CMKM management reconcile that contradiction?
Is the current CMKM management aware that its statement that THE SEC HAS NEVER HELD ANY FUNDS FOR CMKM AS A COMPANY OR FOR ITS SHAREHOLDERS contradicts Plaintiffs in said Bivens Action who allege THE SECURITIES AND EXCHANGE COMMISSION RESERVED UNTO ITSELF THE SOLE AND ABSOLUTE DISCRETION TO DETERMINE WHEN MONEYS COLLECTED PURSUANT TO THE SCHEME SET FORTH ABOVE COULD AND WOULD BE RELEASED FOR DISTRIBUTION?
How does/will the current CMKM management reconcile that contradiction?
Now that the current CMKM management is aware the Plaintiffs in said Bivens Action allege MONEYS FROM SALES AND SETTLEMENTS WERE PLACED IN FROZEN TRUSTS FOR DISBURSAL AT A LATER TIME, is the current CMKM management going to conduct a full investigation?
Could the current CMKM management be breaching its fiduciary duties by failing to conduct an adequate examination and investigation into a TRUST FUND SET ASIDE AND MADE AVAILABLE FOR DISTRIBUTION TO CMKM SHAREHOLDER?
Could the current CMKM management be attempting to cover up said breaches by failing to issue a public statement concerning said Bivens Action?
END OF QUESTIONS
CASE IN POINT #2
FACTS
The current CMKM management repeatedly refers to the illegal NSS of CMKM's stock (which denotes fraud, punitive, and RICO damages) as FAILURES TO DELIVER (which merely denotes bookkeeping errors) which contradicts said Bivens Action and the viewpoint of Bill Frizzell BEFORE he became CMKM attorney.
FAQ Session #12: April 16, 2008
Q) Is the naked short or fails to deliver in CMKX a dead issue?
A) The Company believes that a significant FAILURE TO DELIVER [emphasis added by author] problem still exists in our stock. We are devoting enormous efforts to rebuilding and restructuring the company with the ultimate goal of being a traded security once again
FAQ Session #6: October 30, 2007
Q) Do we have undeniable proof that NSS has taken place and what is the count at this point in time?
A) The Company does have proof that there are FAILURES TO DELIVER [emphasis added by author] in CMKM stock. Until our shareholder audit is complete, we will not have a count as to how many shares or brokerage houses are involved.
FAQ Session #2: August 23, 2007
Q) What is the status of Susanne Trimbath's evaluation of the Naked Short Position of the Company thus far?
Susanne Trimbath continues her work on our shareholder audit. The naked short situation and the DELIVERY FAILURES [emphasis added by author] are not a primary concern of management at this time. Keeping the Company alive and returning to trading status is the focus of our work.
www.cmkmdiamondsinc.com/faq_index.html
Excerpt from Bill Frizzell's 4/25/05 email to Owners Group members (BEFORE he became CMKM attorney):
"The company is (and has been) concerned about possible NAKED SHORTING [emphasis added by author] of company stock. A plan for assessing the NAKED SHORT [emphasis added by author] position has been discussed. I cannot go into detail about the plan at this point. I can confirm that actions are contemplated which will identify the NAKED SHORT [emphasis added by author]position which may exist..."
Excerpt from Bill Frizzell's 9-30-05 email to Owners Group members (BEFORE he became CMKM attorney):
"...We proved a huge NAKED SHORT [emphasis added by author] position in this company a long time ago...By my estimates there are at least a trillion and a half shares that have been sold in CMKX stock. When all shares (including foreign and obo accounts) are added to the mix, the total could exceed two trillion shares."
Excerpt from Bill Frizzell's 5-31-06 letter to NASD (BEFORE he became CMKM attorney):
"The Task Force has now received certs in the name of certain brokerage companies. Our investigation reveals a potentially huge NAKED SHORT [emphasis added by author] position in at least two of the very companies that have sent us certs.
BIVENS ACTION
Paragraph #31
During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “PHANTOM” [emphasis added by author] shares of CMKM Diamonds Inc., was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.
Paragraph #32
At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in NAKED SHORT SELLING [emphasis added by author] of CMKM Diamonds Inc. stock and cellar boxing the company..."
Paragraph #34
During the period from March 2004 through August 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, negotiated a settlement with the illigitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in NAKED SHORT SELLING [emphasis added by author] of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange of a U.S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a FROZEN TRUST for disbursal at a later time. [emphasis added by author]
QUESTIONS
What has occurred since the current CMKM management's inception on 3-30-07 to cause the current CMKM management to begin refering to the illegal NSS of CMKM's stock (which implies fraud, punitive, and RICO damages) as FAILURES TO DELIVER (which implies mere book keeping errors)?
Has the current CMKM management entered into an illegal agreement with the perpetrators--the DTCC, the SEC, the brokers, the bankers, the market makers--to cover up the illegal NSS of CMKM's stock and replace it with the legal FAILURES TO DELIVER?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it has failed to take any appropriate ACTION such as the Bivens Action?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it pursues low-return lawsuits against the previous CMKM management instead of pursuing high-return lawsuits against the the DTCC, the SEC, the brokers, the bankers, and the market makers?
Is the illegal agreement in which the current CMKM management has apparently entered the reason that it has failed to bring CMKM to trade again, which, if done correctly, would force the naked short sellers to cover their positions and increase the price per share of CMKM stock?
END OF QUESTIONS
***BOTH THE PREVIOUS CMKM MANAGEMENT AND THE CURRENT CMKM MANAGEMENT COULD HAVE BREACHED CMKM'S BYLAWS AND VIOLATED NRS 78.310-78.330 FOR FAILING TO CALL AN ANNUAL SHAREHOLDER MEETING.
CASE IN POINT
FACTS
According to the Ninth Cause of Action in Civil Action No. 2:07-cv-00215-RCJ-LRL, Hurd vs. CMKM Diamonds, Inc., 2-19-07, United States District Court for the District of Nevada, the previous CMKM management is guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting
Therefore the current CMKM management is also guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting since its inception on 3-30-07.
According to the bylaws of CMKM:
1. Article I specifies that a shareholder meeting must take place annually;
2. Article II specifies that the term of each director shall expire on the day of the succeeding annual shareholder meeting.
In a 3-30-07 PR, Urban Casavant announces that he steps down as "Chairman of the Board, sole Director, President, Secretary and Treasurer of CMKM Diamonds, Inc." due to "health issues" and appoints Kevin West, current interim CEO and a person with neither apparent business nor mining background "to take over at the helm."
www.thefreelibrary.com/CMKM+Diamo....rs.-a0161290289
In a 3-30-07 PR, Kevin West, CMKM Chairman of the Board, announces that "the first order of new business was to hire the Frizzell Law Firm..." "...in a quest to recover monies and assets that belong to the shareholders of this Company."
www.cmkmdiamondsinc.com/news_index.html
Because Urban Casavant apparently breaches CMKM's bylaws, his appointment of Kevin West "to take over at the helm" is NULL AND VOID; and Kevin West's subsequent hiring of Bill Frizzell is NULL AND VOID; and because the current CMKM management has failed to call an annual shareholder meeting since its inception on 3-30-07, every decision it has made since then is NULL AND VOID.
QUESTIONS
Does the current CMKM management know the dates of the annual shareholder meetings of the previous CMKM management?
Is the current CMKM management aware that if the previous CMKM management had failed to call an annual shareholder meeting, Urban Casavant's appointment of Kevin West "to take over at the helm" and Kevin West's subsequent hiring of Bill Frizzell are both NULL AND VOID?
Has the the current CMKM management called an annual shareholder meeting since its inception on 3-30-07?
Is the current CMKM management aware that if it has failed to call an annual shareholder meeting since its inception, every decision it has made since then is NULL AND VOID?
Could the current CMKM management be breaching its fiduciary duties by failing to notify CMKM shareholders that the previous CMKM management had failed to call an annual shareholder meeting?
Could the current CMKM management be breaching its fiduciary duties by failing to call an annual shareholder meeting since its inception on 3-30-07?
Could the current CMKM management be covering up said breaches?
END OF QUESTIONS
SUMMATION
The COALITION uses available facts in its INTERIM COMPLAINT to paint a very disturbing picture:
The current CMKM management has apparently entered into an illegal contract with one or more of the perpetrators -- the SEC, the DTCC, hedge funds, brokerage firms, market makers -- to the detriment of its fellow CMKM shareholders, the very people to whom it owes a fiduciary duty.
Furthermore, the current CMKM management is also guilty of mismanagement for breaching CMKM's bylaws and violating NRS 78.310-78.330 by failing to call an annual shareholder meeting since its inception on 3-30-07.
The COALITION is confident that when the Texas State Securities Board and the State Bar of Texas investigate the current CMKM management, it will uncover evidence that corroborates the INTERIM COMPLAINT.
The COALITION respectfully requests the following:
1. The appropriate agency ousts the current CMKM management and appoints a temporary Receiver until an annual shareholder meeting is called and bona fide CMKM shareholders get a chance to vote for each director;
2. The State Bar of Texas disbars Bill Frizzell for violating the Oath of Attorney;
3. The appropriate agencies file civil charges against each member of the current CMKM management;
4. The appropriate agencies file criminal charges against each member of the current CMKM management;
CMKX Shareholders Coalition for Justice
101-1865 Dilworth Drive
Suite 169
Kelowna, British Columbia, Canada
V1Y 9T1