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Post by imSINGLEruRICH on Oct 13, 2009 22:52:54 GMT -5
scruffy2
DIAMOND JEDI WARLORD
From Gus:
ok it is go time my friends, here is my letter to the fbi, I will name the agent later. It is a demand list form cmkx shareholders who are united in this cause. We will put omega's last paper on the net very soon, it is absolutely amazing and is the main evidence in our case in particular. I have sent in time lines of our case and some evidence as well but most is put together with the paper we are introducing. It will be used as evidence in a pro se case if need be, but I am trying to contact a well known lawyer to take our case as it parallels one of his current cases. I have also emailed matt taibbi of rolling stone to do our story so I encourage others to email him and ask to run our story, it will give us the exposure we need. It focuses not only on cmkx if he writes it but will focus on our fight we are doing right now.
Here is my letter to the special agent of the fbi, I want a version of this letter to be a first pr, with different evidence gathered put in further prs including our actions. Full disclosure to the world as that is the problem here, secrecy. In our company itself the secrecy has been a joke and pissed me off to no end, we will do the opposite of that, we will put it in their face, out in the open.
Back this up by grouping together with cmkx shareholders, but lets contact shareholders from other companies to join the group demanding answers and accountability, and prison sentences.
Spread the word, the time is now for the blitz, the coordinators are getting contacted to get ready in different states and different provinces.
It is game on, put your foot in their azz:
To special agent .... of the fbi,
I represent a large group of CMKX shareholders. I contacted you several times by phone a few weeks ago and as per our last conversation you asked us to mail in our evidence and documents regarding the SEC's fraud in our case. To expedite the matter we have decided to email you a package of evidence showing the SEC colluded with wall street firms to counterfeit the stock market and CMKX in particular. The evidence is clear the SEC has committed RICO felonies and colluded with wall street firms. The DTC, who is run by those same wall street firms (who had Bernie Madoff on their board of directors and all the firms who are in the John O'Quinn massive multi trillion dollarclass action) knew of the size and scope of the fraud and facilitated it through their stock borrow system. And the federal reserve who is owned by the some of the very same firms who committed the RICO felonies, some of which they printed money for to cover their fraud.
You will see the evidence directly from the SEC, in their own words, that the size of the counterfeit stock in the OTC market alone was in the trillions, those shares were illegally grandfathered by the sec so the counterfeiters didn't have to cover those naked shorts sales. The meeting to create this illegal clause was done by the SEC and the same brokers who committed the crimes. We will show you that the treasury market is counterfeited into the trillions of dollars and again covered up by the SEC. Those RICO crimes were also covered up by the Federal Reserve by printing trillions of dollars to buy to buy the fake treasuries.
Direct evidence proves the SEC colluded with wall street firms to hide their massive RICO crimes, ie Global Links (the sec hid Etrade's counterfeiting as they did in our case), Eagletech, the Madoff case, Gary Aguirre's case, and hundreds of others. In Eagletech's case RICO crimes were already proven in their criminal case and crime family members went to jail, of course those on wall street that colluded with those crime families got off completely and the SEC went after Eagletech and de-registered them like CMKX and hundreds of other victims. The SEC completely cover up this crime and actually had the evidence of the RICO felonies but did nothing, Eagletech had to go after the criminals themselves. We will show how the SEC continued to allow this counterfeiting to continue even after they said it was a crisis in 2005, they even went to the lengths of protecting the exact same firms who committed these crimes from the crime they committed, naked shorting or counterfeiting. The SEC banned naked shorting of those firms.
We will show that the SEC denied the share holders lawyer Bill Frizzell from entering evidence that clearly showed that Ameritrade, Etrade, TDWaterhouse, and other brokers committed counterfeiting of CMKX stock into the hundreds of billions. The SEC blamed only Nevwest who facilitated the crimes of the masterminds John Edwards and Urban Casavant. Nevwest themselves said they were singled out although hundreds of billions of shares were sold by other brokers. Nevwest and John Edwards and Urban Casavant only stole 64 million dollars out of 250 million dollars that was stolen, so 190 million was stolen by the other firms but they are not indicted by the DOJ or in any SEC actions. Their crimes were completely covered up by the regulators as is their modus operandi.
We will show that Nevwest, who facilitated the insiders counterfeiting crimes, phoned in each cert from John Edwards to FINRA and the SEC and the sales went through, aided and abetted by ex SEC lawyer Roger Glenn. We also show evidence he colluded with Leslie Hakala the SEC enforcement attorney in CMKX's case. We will show that judge Brenda Murray was bias in our case and the Gary Aguirre case.
Our case is easy to prove, the evidence is clear. It is also very easy to prove that counterfeiting of the stock market including treasuries and other financial instruments is in the multiple trillions, and was facilitated by the SEC, DTC, brokers, hedge funds, and the Federal Reserve. Given the overwhelming evidence in our case and other cases we have a list of demands as a group and as a group of companies that are victims of the systematic counterfeiting of the stock market:
THESE ARE OUR DEMANDS:
This group of CMKX shareholders is now demanding a special prosecutor be named in our case to look into the RICO crimes committed by the SEC, the DTC, and those they colluded with. One that is independent and international, and not appointed by the government.
We call for a complete accounting of counterfeit shares in the market, all derivatives included as they are counterfeit as well. We demand a complete accounting of the grandfathered shares, and an investigation into the collusion that took place to make that illegal clause.
We demand to know the owners of the federal reserve, in particular any owner who received federal reserve money in the bail out, and in particular who received money that was printed to cover counterfeit stock, bonds, treasuries, or any other financial instrument.
We demand a full scale investigation into the news agencies who aided and abetted this fraud. Evidence by Patrick Byrne clearly shows collusion with certain journalists and wall street. He has 8000 emails showing massive collusion of hedge funds, journalists, the SEC, and others. Those hedge fund managers who clearly committed crimes are still not indicted and still counterfeit the companies on the stock market, ie Fairfax, Dendreon, Overstock, and hundreds of others.
In closing, the evidence is crystal clear, wall street firms have counterfeited the stock market in to the trillions, the DTC said, per Susan Trimbath, that they spill more than that when she addressed the issue in 1993 at a DTC meeting she attended. They simply admit they steal 1% of the trades as they fail, that money is in the trillions and has been shown to be money laundered off shore by crime families working with wall street firms. In fact it has already been proven. It is no different than your bank keeping 1% of all daily transactions. There were well over 1.5 quadrillion dollars in transactions last year, 1% of that is 1.5 trillion dollars stolen just last year, that is a lot of spillage. That is a RICO felony, and we clearly show it was aided and abetted by the SEC and others.
We look forward to your reply and expect immediate action.
The CMKX Shareholders Coalition for Justice.
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Post by imSINGLEruRICH on Oct 13, 2009 23:19:26 GMT -5
scruffy2 DIAMOND JEDI WARLORD Oh blow it! 14 posts it is... 1. Here is the first part of our evidence we are handing in, I will send you a series of emails that adds to this including a very comprehensive paper particularly focusing on cmkx itself. Here is a time line of the fraud and obvious sec collusion in the fraud itself and its' cover-up: �From late 2003 until the company was revoked in late 2005, criminals in control of CMKM Diamonds, Inc. sold over 703 billion shares of stock to unsuspecting shareholders in the largest penny stock fraud in history. It was the most shares ever sold in a single company. Corporate insiders were aided and abetted in their crimes by high-powered attorneys, accountants, transfer agents, major banking institutions, brokerage houses, and clearing firms. It occurred right under the noses of the SEC and NASD (now FINRA), both agencies ignoring dozens of blatant warning signs, allowing the scam to go on far longer than it should have.� � Documents clearly show that a SEC investigation into CMKX was well underway as early as May of 2004, while the fraud was still underway, and before hundreds of billions of shares were sold to investors. While the Saskatchewan Financial Services Commission first halted Canadian trading in the company on October 26, 2004, CMKX continued to trade in the U.S. for another full year. Incredibly, some individuals involved in the scam continued to fraudulently sell stock for years after the company's stock was revoked.� �ex-SEC attorney D. Roger Glenn (who wrote opinion letters allowing over 300 billion shares of stock to be dumped into the market)� And the most damaging quote: �A single brokerage firm, NevWest Securities, utilizing clearing firm Computer Clearing Services (now owned by Penson Worldwide, Inc.) helped John Edwards trade over 250 billion shares of CMKX stock totaling over $53 million. Almost two years after the fact, the NASD (now FINRA) charged NevWest with "failing to file Suspicious Activity Reports (�SAR�), or cease trading in multiple accounts owned and controlled" by Edwards. In what has become the norm in securities fraud cases, NevWest received little more than a slap on the wrist for their part in the scam, eventually paying a token fine of just $100,000 �without admitting or denying the allegations of the Complaint". More troubling still are the phone records from NevWest, which show that they contacted the SEC each time Edwards came in with CMKX certs to sell, many of which were clearly forged and fraudulent, some even "signed" by an individual who had been deceased for months. Instead of taking action to halt the obvious fraud against innocent shareholders, the SEC and NASD (FINRA) ignored the evidence and dozens of other red flags, allowing the scheme to continue unabated, costing unsuspecting buyers of CMKX stock hundreds of millions of dollars.� www.cmkmdiamondsinc.com/letter_index.htmlHere is a timeline of important events that show the SEC knew of the fraud. With the prior quotes from CMKM�s ceo that show the sec were contacted every time John Edwards the mastermind brought in a cert it is clear the sec aided and abetted this fraud and ignored the most red flagged stock ever. Cmkx traded more than the entire market most days with the sec and nasd watching daily and contacted daily. From August 2003 to April 2005, the average trading volume in CMKM was about 20xs more than it was the previous eight months. www.sec.gov/litigation/aljdec/id291bpm.htmA fax dated 5-26-03, from Lindsey S. McCarthy, staff attorney for the Securities and Exchange Commission, to 1st Global Stock Transfer that mentions James Kinney, a defendant in the subsequent Civil Action No. 08- CV 0437 of 4-7-08, United States District Court for the District of Nevada, proves that the SEC was aware of James Kinney's suspicious activities pertaining to CMKM five years BEFORE filing said civil action against him. www.cmkmdiamondsinc.com/justice/sec_ltr_bagley_5-26-04.pdfA letter signed by an SEC staff attorney and faxed to CMKX transfer agent Helen Bagley on May 26, 2004 requested documents from 1st Global Transfer pertaining to purported mastermind John Edwards, CEO Urban Casavant and others involved in the CMKX scam. On March 26, 2008, a copy of the SEC fax to 1st Global and an accompanying letter detailing possible negligence in the SEC's handling of the CMKX fraud was supplied to SEC Inspector General David Kotz and to the General Accounting Office. www.cmkmdiamondsinc.com/letter_index.htmlimmediately after the SEC was fully aware of the fraud inside CMKX Roger Glenn was brought into give CMKX credibility and facilitated the majority of illegal share sales. All those sales the were illegal and were done with the sec's full involvement and they were contacted each time a cert was brought in. Roger gave his opinion letters which was well known to sell the share raises: June 4, 2004 - . . . that, "hiring Edwards & Angell, LLP, and specifically Mr. Glenn, is the best thing that we could have done for the company and the shareholders. The fact that Mr. Glenn began his illustrious career with the Securities and Exchange Commission is a further feather in the company's hat. We would like to thank all of our shareholders for their patience as we have moved towards this moment and as we move forward from here as a team." 2.NOTE: JUNE 2004 WAS ALSO IMPORTANT AS IT WAS WHEN THE INFAMOUS GRANDFATHER CLAUSE WAS ADOPTED. THIS IS A VITAL AREA AS THE GRANDFATHER CLAUSE ITSELF PROVES THE SEC COLLUDED WITH WALL STREET FIRMS TO HIDE THE MAGNITUDE OF THE RICO FRAUD. SO ROGER WAS BROUGHT IN TO HIDE THE LARGEST COUNTERFEITED STOCK EVER CMKX, AND THE SEC GRANDFATHERED THE AGED FAILS TO HIDE THE MULTI TRILLION DOLLAR SIZE OF THE COUNTERFEIT POOL OF STOCK. THIS FROM DAVID PATCH IS AT THE HEART OF OUR CASE AS THE SEC ILLEGALLY ALLOWED BROKERS TO COVER THEIR FAILS OVER TIME INSTEAD OF THE LAW AND PREVENTED SHORT SQUEEZES IN STOCKS WHICH IS ILLEGAL FOR THEM TO DO. AT THE SAME TIME THE SEC WOULD NOT ALLOW OUR EVIDENCE OF COUNTERFEITING AND WARNED BILL FRIZZELL NOT TO CAUSE A SHORT SQUEEZE, WHICH WAS OUR RIGHT. PROOF OF THE SEC AIDING AND ABETTING THE FRAUD FROM DAVID PATCH WHO WILL BE SUBPOENAED: SEC memo on Grandfather Clause to DE Patch Dear Mr. Patch: Your March 31, 2005, letter to Congressman John F. Tierney, was sent to the Chairman by Congressman Tierney via letter dated June 20, 2005. The correspondence was forwarded to the Division of Market Regulation for a response. In your letter, you expressed your concerns regarding abusive naked short selling. On April 11, 2005, which was after you sent your letter to Congressman Tierney, the staff of the Division of Market Regulation posted on the Commission's website a document entitled "Key Points About Regulation SHO." This document is available athttp://www.sec.gov/spotlight/keyregshoissues.htm. This document provides a detailed response to many of the concerns expressed in your letter. For example, it appears from your letter that you misunderstand "grandfathering" under Regulation SHO. Regulation SHO does not require the close-out of fails to deliver that existed before a stock became a threshold security (known as "grandfathered" securities) because the Commission was concerned about creating volatility through short squeezes if existing positions had to be closed out quickly. DAVID PATCH COMMENTS ON THE EMAIL: now this is the best part from patch, our case in part: NOTE: "This is an e-mail I received 7/27/05 from the SEC in response to an inquiry by Congressman John Tierney. Note that the SEC has admitted here that teh intent of the grandfather clause was to prevent short squeezes. That is outside of the jurisdictional authorities of the SEC and could be considered aiding and abetting fraud." NOW THIS IS VITAL, AS ANNETTE WAS SAYING THERE WAS NO PROBLEM AND PEOPLE WHO COMPLAINED ABOUT NAKED SHORTING JUST WANTED THEIR STOCKS TO GO UP THE SEC WAS ADMITTING THE MASSIVE COUNTERFEITING PROBLEM THAT WAS IN THE TRILLIONS OF DOLLARS, HERE IS THEIR OWN WORDS: Speech by SEC Commissioner: Remarks Before the 34th Annual SIFMA Operations Conference by Commissioner Paul S. Atkins U.S. Securities and Exchange Commission Kissimmee, Florida April 30, 2007 "Other recent rulemakings by the SEC can be neatly described by a single, four letter word that is the source of many nightmares for securities operations professionals � the word is "FAIL." Fail is an especially appropriate word to describe the substance of one of these rulemakings, and the process and theory of others. The first rulemaking is the pending proposal to amend Regulation SHO, and thus relates to the noun form of the word "fail" � as in a "fail to deliver." I am happy to report that the amendments under consideration by the Commission would, if adopted, help reduce the number of aged fails to deliver. These amendments would eliminate the now-notorious "grandfather" exception from Reg. SHO and would limit the scope of the options market maker exception." "I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street. In September 2005, the Federal Reserve Board and other regulators including the SEC called together 14 major OTC derivatives dealers to address these operational issues." THIS IS DIRECTLY FROM ANDREW HILL THE PR PERSON FOR CMKX SHOWING THE SEC COLLUDED WITH ROGER GLENN WHO WAS NOT INDICTED AND WORKED PRIOR WITH THE SEC: What I specifically remembered today was a phone call one day from a very upset Roger Glenn (I think it was Summer/04 time frame) over something I had said which had made it�s way to the message boards and forums. I cannot recall what it was that Glenn was upset with me over. However, I remember he said he was calling me because Leslie Hakala�s office had phoned him. Glenn told me he was working very hard on getting CMKX reporting again and my comments did not help matters. I immediately called Urban and asked him what the heck was |
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Post by imSINGLEruRICH on Oct 13, 2009 23:21:40 GMT -5
3. going on with Glenn and that I did not appreciate his phone call and his tone toward me. Urban said to not worry about it and he would discuss with Glenn. Wish I could remember what he was upset over..perhaps it will come to me later. The significance though is the clear fact the SEC was VERY aware of many aspects of CMKX at the time, ie mid 2004, but took no action at that time to visibly protect shareholder interests or future potential shareholders from investing. Very strange unless one accepts it is all part of the SCRIPT? I think so folks. Oaks (aimho) The SEC knew all about CMKX via Roger Glenn� Some things have come to mind today that I want to tell you all about. This happens at times for me when I am mulling CMKX over, once again....LOL We know Glenn was utilized to write further opinion letters to increase the authorized and outstanding. I know that Glenn had been in discussion with Leslie Hakala�s SEC office and this absolutely confirms to me the SEC was fully aware of the enormous outstanding shares, etc., but did nothing to halt trading at that time or visibly intercede in any way. The question is WHY? Then Maheu comes aboard but I have never been entirely sure how or who brought Maheu into the CMKX picture, but it is very possible it could have been the SEC(?). Then there was a change of securities counsel from Glenn to Stoecklien with very little by way of official explanation via the PR at that time. Feb/05 saw a FUNDAMENTAL SHIFT when Stoecklein immediately resubmitted the Form 15 to put CMKX back into reporting status. As the SEC was obviously aware of CMKX during Glenn�s involvement, one has to wonder why the reporting status was not reinstated prior to Feb/05? Why did Stoecklien do this vs Glenn doing it? If the SEC was involved, it is logical to conclude the SEC did not want it done until then? Via Glenn the SEC knew many things about CMKX. Jump forward to the bizarre Hearing, the delisting decision, appeal period, and then BOOM, please DELIST CMKX...and I am CONVINCED more than ever� THE SEC IS and HAS BEEN SCRIPTING CMKX MATTERS FOR A VERY VERY LONG TIME. I still say bona fide CMKX SHAREHOLDERS are going to� WIN� just like Urban Casavant told me. Oaks (aimho) THIS IS FROM MARK FAULK SHOWING THE SEC HAD THE FRAUD RECORDS BEFORE OK�ING THE SALE HUNDREDS OF BILLIONS OF SHARES ILLEGALLY. IT ALSO SHOWS THAT THE SILVER STATE BANK SHOULD HAVE BEEN CHARGED WITH AIDING AND ABETTING MONEY LAUNDERING AS THEY ALLOWED THE FRAUD TO CONTINUE LONG AFTER IT WAS KNOWN: Silver State Bank has not been charged in the CMKM Diamonds case, although they did fire an employee named Patricia DeCosta, who approved most of the transactions. That on or about the 5th day of September 2004 the bank was served with a subpoena with regard to accounts maintained at the branch plaintiff supervised. Certain executives of defendants (Silver State Bancorp, Silver State Bank) owned stock in companies controlled by the subject of the subpoena and became disconcerted when the bank was served with the aforementioned subpoena. Seeking a scapegoat the bank terminated plaintiff claiming she had not processed a suspicious activity report in a timely manner. Plaintiff was unable to timely process the SAR due to the fact that she was undergoing a �serious health condition�, which required her to take leave from her employment.� The fact remains that Silver State Bank never filed a single Suspicious Activities Report (SARS) while 50,000 CMKX shareholders lost their entire investments. www.faulkingtruth.com/Articles/BlogFest/1097.htmlHERE IS FROM NEVWEST SHOWING REGULAR CONTACT WITH THE SEC AND NASD AFTER SEPT 2004, AND A MARK FAULK INTRODUCTION: Response from NevWest Securities detailing regular contacts with SEC and NASD: cmkmdiamondsinc.com/justice/santos_reply.pdfTHE LAWYERS THAT COMMITTED THE FRAUD IN CMKX AND SGGM WERE EX-SEC LAWYERS THEY AND THE SEC WERE COMPLICIT IN THE CRIMES AND AIDED AND ABETTED THE SALE OF HUNDREDS OF BILLIONS OF SHARES, WORKED TOGETHER IN THE COMPLETE FRAUDULENT SGGM TRANSACTIONS ALONG THE SILVER STATE BANK AND WELLS FARGO, AND ALLOWED THE MONEY LAUNDERING TO JUST HAPPEN WHILE THEY WATCHED: Jonathan Katz, Secretary of the S. E. C., revoked St. George�s (SGGM) registration and granted CMKM Diamonds request to be revoked on the same day and at the same time, with CMKM document number 34-52694 followed by SGGM document number 34-52695 CMKM SGGM Key Personnel SEC connections: Roger Glenn was Federal Securities Counsel for CMKM, worked over 19 years with the SEC. Donald Stoecklein was Federal Securities Counsel for CMKM, from Stoecklein Security Law 4. Institute, provided information to Jonathan Katz, Secretary of Security Exchange Commission, on The Final Rule, which covers investor protection, naked shorting, shell company mergers and reporting. Stoecklein�s input is referenced numerous times in The Final Rule authored by Jonathan Katz. William B. Haseltine, was President of SGGM, presently has own law firm specializing in Federal Securities, worked for over 19 years with the SEC (Finance) and with Jonathan Katz: Mr. Haseltine, who joined SGGM in April 2005 as President, stated his priorities were to get the company current and compliant with all the SEC Filings plus finalize and close out all deals with other mining companies. Then Mr. Haseltine, who as an attorney for over 19 years, an attorney schooled on paying attention to the most minute detail, an attorney who worked as a counsel in the SEC Finance Department under SEC Secretary Jonathan Katz, an attorney who did some legal work for SGGM prior to accepting the appointment as President of SGGM www.sec.gov/comments/s7-08-08/s70808-231.pdfAND HERE IS THE SGGM'S TRANSACTIONS, NOTE THEY ARE MADE AFTER THE SEPT 5TH SILVER STATE BANK SUBPOENAS, THEY ARE MADE AFTER THE SEC AND SILVER STATE BANK ARE FULLY AWARE OF THE FRAUD: cmkmdiamondsinc.com/justice/sggm_cmkm_money_tranx.pdfTHIS IS FROM THE LAS VEGAS JOURNAL REVIEW IN FEB. 2005 RIGHT AFTER THE SUBPOENAS WERE SERVED TO THE SILVER STATE BANK, IT WASN�T EVEN A SECRET URBAN COMMITTED MASSIVE FRAUD AND BOB MAHEU SAID HE HAD A KIND OF PARTNERSHIP WITH THE GOVERNMENT WHILE WORKING WITH URBAN CASAVANT KNOWING THIS EVIDENCE. BUT THEY WWERE ALLOWED TO CONTINUE TO RUN THIS COMPANY AND STEAL TENS OF MILLIONS OF DOLLARS AND SELL HUNREDS OF BILLIONS OF SHARES ILLEGALLY, ALTHOUGH PHONED INTO THE SEC. BUY THE WAY 64 MILLION DOLLARS IS EXACTLY WHAT THE JUDGEMENT WAS FOR THE DEFENDANTS IN THE SEC�S CASE AGAINST CMKX INSIDERS. FROM FEB. 2005 LAS VEGAS JOURNAL REVIEW: "More recently, the company announced that former Howard Hughes aide Robert Maheu had become a member of its board of directors. A nationally recognized authority on security issues, Maheu has credibility in many circles." "I became interested in CMKM recently, and it appears I'm not alone. The Securities and Exchange Commission is downright fascinated with CMKM and has begun to probe the company's numerous Southern Nevada business transactions. The SEC has subpoenaed bank records related to CMKM's local transactions, an institutional source confirms. The company maintained nearly 100 accounts at a local branch of Silver State Bank alone. A bank employee who handled CMKM's accounts is no longer employed after suspicious activity involving a continuing circle of cashier's checks was uncovered. By one informed estimate, CMKM is suspected of moving up to $64 million through its Silver State accounts." www.reviewjournal.com/lvrj_home/2005/Feb-08-Tue-2005/news/25821561.htmlRIGHT AFTER THE NEWS OF THE FRAUD HIT THE INTERNET AND SHAREHOLDERS HEARD URBAN AND JOHN EDWARDS AND OTHERS COMMITTED MASSIVE FRAUD IN COLLUSION WITH THE SEC THE SEC GOES AFTER THE COMPANY FOR UNRELATED INFRACTIONS AND DISALLOWS THE SHAREHOLDERS LAWYER BILL FRIZZELL FROM PRESENTING CLEAR EVIDENCE OF THE COUNTERFEITING IN CMKX FROM INSIDERS AND OTHER BROKERS WHO HAVE GOTTEN OFF COMPLETELY IN CMKX'S CASE AND IN EVERY OTHER CASE AS THE SEC IS DOES NOT PROTECT INVESTORS THEY PROTECT WALL STREET FIRMS THEY ARE IN BED WITH. HERE IS THE NOBO LISTS SHOWING HUNDREDS OF BILLIONS OF COUNTERFEIT SHARES SOLD BY OTHER BROKERS, MAY 25TH 2005: ameritrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2137bill's follow up letter to ameritrade: fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2138etrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2154schwab letter fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2180tdwaterhouse canada fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2197Las Vegas, NV - March 4, 2005 - Commencing at 9:30 a.m. EST yesterday, trading of the common stock of CMKM Diamonds, Inc. (Pink Sheets-CMKX) was temporarily suspended by the Securities and Exchange Commission ("SEC"). This temporary suspension will expire on March 16th at 11:59 p.m. EST and trading in CMKX is anticipated to resume on March 17, 2005. xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=3331089AND AT THE SAME TIME YOU HAVE THE SEC GOING AFTER ANOTHER VICTIM, EAGLETECH: The Commission on February 15, 2005 filed an Administrative Proceeding against Eagletech for delinquency in filing its financial reports. Administrative Law Judge James T. Kelly on June 7, 2005 ruled that Eagletech's shares be de-registered for its delinquency
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Post by imSINGLEruRICH on Oct 13, 2009 23:24:17 GMT -5
5. By: PR Newswire Feb. 9, 2006 04:32 PM PLANTATION, Fla., Feb. 9 /PRNewswire-FirstCall/ -- Eagletech Communications Inc. (OTCPK: EATC), today announces that its CEO Rodney E. Young will appear before the five Commissioners of the Securities and Exchange Commission for Oral Arguments to challenge the Regulation SHO 'Grandfather' clause. Eagletech will argue that 'Grandfathering' is a violation of the Constitution's 5th Amendment -- an illegal taking of shareholder property. Oral Arguments are scheduled for February 13, 2006 in a public meeting at the SEC Washington, DC headquarters, 100 F Street NE, at 10:00AM in Auditorium (Room L-002). Eagletech will hold an open press conference immediately following outside the building where a press kit will be distributed to members of the media and other interested parties. The Commission on February 15, 2005 filed an Administrative Proceeding against Eagletech for delinquency in filing its financial reports. Administrative Law Judge James T. Kelly on June 7, 2005 ruled that Eagletech's shares be de-registered for its delinquency. Eagletech alleged in its Affirmative Defenses that the SEC itself was a contributor to its delinquency when in 2002 the agency blatantly ignored the Company's three complaints that it was the victim of illegal Death Spiral Financing and Naked Short Selling schemes. The complaint of U.S. Congressman Peter Deutsch on the Company's behalf to the SEC Office of Legislative Affairs also failed to receive a response. Judge Kelly's Initial Decision stated, "Eagletech contends that ... (by) 'grandfathering' all pre-regulation SHO delivery failures ... naked short sellers ... will never have to purchase shares to cover their naked short positions. This policy argument should be addressed to the Commission." Mr. Young will describe evidence of securities manipulation to the Commission that was provided to him from SEC files under the discovery rules in this proceeding. Mr. Young states, "This is a very emotional issue to an incalculable number or shareholders, who believe they have become 'acceptable collateral damage' to the SEC. There are many who believe this is an attempt to sweep billions of illegal delivery failures and potentially trillions of dollars of investor losses under the rug forever, using the Reg. SHO 'Grandfathering' clause passed by the SEC." NOW REMEMBER EARLIER JUST BEFORE THIS EAGLETECH ATTEMPT THE SEC GOT TOGETHER WITH THE FEDERAL RESERVE TO CLEAR THESE TRILLIONS OF DOLLARS IN COUNTERFEIT SHARES. THAT SAYS THE FEDERAL RESERVE PRINTED MONEY TO COVER RICO CRIMES SO ARE ALSO IN COLLUSION WITH THE SEC AND BROKERS, SOME WHO IN FACT OWN THE FEDERAL RESERVE SHOWING EVEN GREATER COLLUSION: In September 2005, the Federal Reserve Board and other regulators including the SEC called together 14 major OTC derivatives dealers to address these operational issues." LAS VEGAS -- On March 16, 2005 THE EVIDENCE SHOWS THE SEC AIDED AND ABETTED THIS FRAUD AND COLLUDED WITH THE CRIMINAL INSIDERS OF CMKX, THEY ALSO COLLUDED TO COVER UP THE CRIME "We only want to comply with federal regulations and do what is right for our stockholders. If the Commission deems it in our stockholders best interest to forbid us from providing information through filings with the Commission, we will comply," stated Urban Casavant, president of CMKX. Replying to the Commission's administrative proceeding is a high priority for CMKX's management, which plans to take the following actions. CMKX is not allowing these regulatory issues to divert management's attention from its primary operational goals of claiming new land and continuing its drilling activities. The future of CMKX lies in the continued development of its assets. Consistent with this statement, Urban Casavant added, "Creating stockholder value is a primary concern to us. We have some very positive operational things happening, both in Canada and in Ecuador, and are extremely optimistic about the future of our operations." www.allbusiness.com/government/go..../5053564-1.htmlNOTE: MARCH 9TH 2005 GLOBAL LINKS GOES IN FRONT OF THE BANKING COMMITTEE HEARING, AND THE COMMITTEE ASKS THE SEC TO LOOK INTO THE OBVIOUS COUNTERFEITING. THE SEC INSTEAD COVERS UP THE FRAUD INCLUDING EDTRADE PER MARK FAULK. MAY 2 2005 THE SEC SEEKS TO EXCLUDE ALL EVIDENCE OF NAKED SHORTING, ALTHOUGH THEY KNOW AS THEY HAVE THE RECORDS CMKX WAS THE MOST COUNTERFEITED STOCK IN HISTORY, THEY ALSO KNOW OF THE FRAUD URBAN AND JOHN EDWARDS DID BUT SAY NOTHING OF IT IN THE HEARING, HIDING IT FROM THE SHAREHOLDERS: fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2191MAY 10TH 2005: THE SEC AS WITH THE ILLEGAL GRANDFATHER CLAUSE ILLEGALLY PREVENTS CMKX AND ITS' SHAREHOLDERS LAWYER FROM INTRODUCING COUNTERFEITING EVIDENCE AND MAKES SURE THE BROKERS WHO COUNTERFEITED CMKX WOULD NOT HAVE TO PAY THE COST OF A SHORT SQUEEZE, THE NORMAL WAY THE MARKET WORKS: FROM OMEGA'S PAPER: The meeting prior to the Securities and Exchange Commission Administrative Hearing of 5-10-05 for CMKM consisted of Andrew Petillion, Branch Chief of Enforcement at the Pacific Regional Office, Leslie Hakala, Enforcement Division Attorney for the Securities and Exchange Commission, D. Roger Glenn, former CMKM securities counsel and former Enforcement Division Attorney for the Securities and Exchange Commission, Robert Maheu, CoChairman of CMKM, Donald Stoecklein, CMKM securities counsel, and Bill Frizzell, CMKM shareholder/attorney/Owners Group representive for CMKM shareholders. Excerpt from Bill Frizzell's 9-30-05 email to Owners Group members: "...We proved a huge naked short 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 6. shares. Have a good weekend." According to Bill Frizzell, Andrew Petillion warns: "By the way, if this is an orchestrated short squeeze against the brokerage houses to make the stock price go up, we will come after those who are responsible. We would not look kindly on a cert pull because it would cause market manipulation." MAY 25TH 2005, BILL FRIZZELL�S LETTERS TO THE BROKERS WHO MASSIVELY COUNTERFEITED CMKX STOCK, INLCUDING ETRADE WHO�S FRAUD IN THE GLOBAL LINKS CASE WAS COVERED UP IN THE GLOBAL LINKS FRAUD. THESE LETTERS REPRESENT HUNDREDS OF BILLIONS OF SHARES AND WERE EXCLUDED FROM THE CMKX HEARING BY THE SEC TO COVER THEIR FRAUD: ameritrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2137bill's follow up letter to ameritrade: fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2138etrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2154schwab letter fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2180tdwaterhouse canada fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2197JUNE 2ND 2005, FROM BILL FRIZZELL THE SHAREHOLDERS LAWYER: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, June 2, 2005 The ultimate outcome of everyone�s investment hinges not on naked shorting or SEC actions, but on the true evaluation of the company assets. We have some information about these assets, but we need more. The more I find out about the company, the more I become concerned that neither the company nor the SEC wanted you to know about the evaluation of the assets at the Administrative Hearing. NOTE: THE SEC PURPOSELY MISLEAD INVESTORS BY LEAVING OUT EVIDENCE OF VALUE, AGAIN SHOWING THE COVER UP AND THEFT OF OUR ASSETS POSSIBLY JUNE 9TH 2005 THE SEC TOTALLY DENIES THE SHAREHOLDERS LAWYER THE RECORDS THAT PROVE THE FRAUD, THE SEC�S JUDGE BRENDA MURRAY WITH THE SEC�S RECORDS SHOWING THE FRAUD AND THEIR DATA SHOWING THE MASSIVE COUNTEFEITING OF CMKX STOCK DIDN�T ALLOW VERY MATERIAL EVIDENCE THE SHAREHOLDERS DESERVED TO KNOW. THE SEC ALSO LEFT OUT ALL INFORMATION THEY HAD ON THE SILVER STATE BANK MONEY LAUNDERING AND FRAUD. THEY ALSO PURPOSELY LEFT OUT EVIDENCE OF VALUATION. THEY ALSO AT THIS TIME CONTINUED TO ALLOW TENS OF BILLIONS OF SHARES GET SOLD A WEEK, WHILE THEY WERE CONTACTED ON EACH CERT: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, June 9, 2005 We have received a total rejection of the FOIA request which was made through the SEC. I am preparing an appeal of that request as provided by statute. It is necessary to pursue all administrative remedies before filing suit. I should have the appeal finished tomorrow and will post it along with the rejection letter. fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2120JULY 12TH 2005 THE SEC DECISION ON THE AMDINISTRATION HEARING, PROOF THE SEC COLLUDED WITH DON STOECKLEIN AND URBAN CASAVANT IN THE FRAUD, AS WELL AS BOB MAHEU. All WERE INSTRUMENTAL IN FACILITATING THE FRAUD IT APPEARS. ALSO THE SEC AFTER SEEING THIS EVIDENCE AND THE MOUNTAIN OF EVIDENCE THEY ALREADY HAD CONTINUED TO ALLOW BILLIONS OF SHARES TO GET SOLD A DAY, EVERYDAY, MORE THAN THE ENTIRE MARKET MANY DAYS : On March 4, 2005, CMKM Diamonds announced that, effective March 1, 2005, it had relocated its executive offices to 5375 Procyon Street, Suite 101, Las Vegas, Nevada. (Div. Ex. 53.) However, as of April 6, 2005, this address was occupied only by a �hot rod� shop. (Div. Ex. 55.) �Debbie� at the Securities Law Institute, which is owned by CMKM Diamond�s counsel, reported in an e-mail sent on April 6, 2005, that a shareholder had visited the site, discovered this fact, and reported it on the company�s Web site. �Debbie� advised that �You might want to call Urban [Casavant] or Michael and have them �move in� and talk to the owner of the hot rod shop and also tell Andy what to tell shareholders when they call.� (Div. Ex. 55.) Donald J. Stoecklein (Stoecklein), current counsel for CMKM Diamonds, owns the Securities Law Institute in Las Vegas, Nevada, which assists approximately forty-two public companies in their periodic reporting obligations, including CMKM Diamonds. (Tr. 315-16.) Donald Stoecklein and Debbie Amigone, from Stoecklein Security Law Institute, contributed comments and recommendations to Jonathan Katz, Secretary of Security Exchange Commission, on The Final Rule, which covers investor protection, naked shorting, SHO, shell company mergers and reporting.
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Post by imSINGLEruRICH on Oct 13, 2009 23:26:21 GMT -5
7. Robert Maheu (Maheu) has known Stoecklein for a number of years and is part of a team assembled by Stoecklein, which Maheu believes will clear up past mistakes and will result in compliance going forward. (Tr. 285-86, 296.) THEN JUDGE BRENDA MURRAY REVOKES CMKX: IT IS ORDERED THAT, pursuant to Section 12(j) of the Securities Exchange Act of 1934, the registration of each class of securities of CMKM Diamonds, Inc., is hereby REVOKED. This Initial Decision shall become effective in accordance with and subject to the provisions of Rule 360 of the Commission's Rules of Practice, 17 C.F.R. � 201.360. BEFORE: Brenda P. Murray, Chief Administrative Law Judge www.sec.gov/litigation/aljdec/id291bpm.htmNOTE: AS SHOWN IN THE PRIOR EVIDENCE REPORT BRENDA P. MURRAY WAS THE SAME JUDGE IN THE GARY AGUIRRE CASE THAT SHOWED PREJUDICE, WITH COMMENT FROM MARK MITCHELL OF DEEPCAPTURE. IN CMKX'S CASE SHE DIDN'T ALLOW EVIDENCE THAT SHOWED CMKX WAS MASSIVELY COUNTERFEITED BY MANY BROKERS, COMPLETELY AS ALWAYS COVERING UP WALL STREET'S CRIMES: A few weeks later the SEC inspector general issued a 191-page report vindicating Gary Aguirre. The otherwise detailed report conspicuously failed to mention the naked short selling component of Aguirre�s investigation, but it contained many of the same findings that the Senate had described. The report, compiled over many months, concluded that Mack�s interference with Aguirre�s investigation raised �serious questions about the impartiality and fairness� of the SEC. The inspector general recommended that disciplinary action be taken against Aguirre�s supervisors, including SEC Director of Enforcement Linda Thomsen. But last Friday, having spent no more than a few days reviewing the evidence, an SEC administrative judge declared that the SEC did not mishandle the Aguirre case, and that no disciplinary action would be taken. As Bogdanich�s story in The New York Times makes clear (though in not so many words), the ruling stinks to high hell. For one, it remains unclear why in the world an SEC judge, as opposed to an independent court, is ruling on this matter. For another, it seems that the judge, Brenda Murray, was not even acting in the capacity of a judge. Rather, she issued her not-guilty verdict in the capacity of �an individual� who was asked by the SEC executive director to evaluate the inspector general�s findings. In other words, there is good evidence that the leaders of our nation�s market regulator are as corrupt as Banana Republic cops on the brothel beat � that they have engaged in a cover-up that might have helped rock the very foundations of the American financial system � but this evidence will be evaluated in no court. There will be no legal proceeding whatsoever. Instead, an �individual� at the SEC, as a favor to the SEC executive director, says the SEC did no wrong�and that�s it � end of story. The Senate investigators concluded that they were �deeply troubled� by the SEC�s failure to look into Aguirre�s claims. �At worst,� the Senate report said, �the picture is colored with overtones of a possible cover-up.� As part of this cover-up, the SEC eventually claimed that although Aguirre had been fired, the commission had nonetheless pressed forward with its �insider trading� investigation, finding no evidence that Pequot or Mack and committed any violations. However, the SEC has yet to reveal whether its rank-and-file were allowed to complete their investigation into the naked short selling that had the greater potential to �seriously injure the financial markets.� SEC leaders remained uninterested in the crime until this past summer. Data for June showed that �failures to deliver� (phantom stock sold by naked short sellers) had peaked at more than 2 billion shares � an all time record. www.deepcapture.com/tag/john-mack/JULY 22ND 2005, THE DTCC DENIES BILL FRIZZELL HIS FOIA REQUEST: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, July 22, 2005 FOIA I have filed a FOIA request for certain DTCC records that we are entitled to receive. Our request has been denied. I have appealed that denial. I frankly expect the appeal will be denied. I plan to appeal that denial by filing suit in District Court. The law requires that we exhaust all administrative remedies before suit can be filed so I must continue my work though the administrative process before filing suit. Naked Shorting We have proven without question that certain parties have sold CMKX when such stock was not available. Our proof indicates to me there are at least a trillion shares outstanding and possibly as much as two or three trillion shares. We are making inroads with some influential politicians to investigate naked shorting and take action to see that this problem is corrected. We are knowledgeable of many bulk (billions) trades that occurred through certain companies that are clearly not retail customers. The ultimate outcome of everyone�s investment hinges not on naked shorting or SEC actions, but on the true evaluation of the company assets. We have some information about these assets, but we need more. The more I find out about the company, the more I become concerned that neither the company nor the SEC wanted you to know about the evaluation of the assets at the Administrative Hearing. OCT 28TH 2005 CMKX IS REVOKED BY JUDGE MURRAY A YEAR LATER NEVWEST ON SEPT 26 2006 WAS CHARGED WITH VIOLATING THE NASD�S ANTI-MONEY LAUNDERING RULE, THE SAME NEVWEST THAT CONTACTED THE SEC EVERY TIME JOHN EDWARDS BROUGHT IN A CERT NOW MATTER HOW FRAUDULENT OR FORGED. NO OTHER BROKERS WERE CHARGED THOUGH THE SEC KNEW EXACTLY WHO COUNTERFEITED CMKX STOCK OTHER THAN NEVWEST. THIS IS FROM MARK FAULK AND SHOWS THE COVER UP OF THE SEC OF OTHER BROKERS WHO SOLD CMKX, IN PARTICULAR AMERITRADE AND ETRADE: 8.NevWest President Sergey Rumyantsev said today that �in our perception, we believe that we have fail-safes in effect that go far above and beyond the industry standards. We feel completely wronged in this particular case.� Rumyantsev also questioned the NASD�s action against their company, saying that �we were singled out, why were we the only one charged when hundreds of billions of shares were sold by other brokers?� Another source close to the story echoed Rumyantsev�s sentiments, citing the serious problems with other major brokerage firms, including Ameritrade and Etrade, and the long and drawn out process of trying to issue stock certificates to bonafide shareholders, many of whom have still not received stock certificates over a year after the company initiated a cert pull in an attempt to determine if there were more shares sold than actually existed. This source asked whether the other offending brokers had filed Suspicious Trading Reports in relation to the well-over a trillion shares that many people claim were fraudulently sold to unsuspecting shareholders. Why has it taken so long for regulatory agencies to take action against those who defrauded over 50,000 shareholders, and why hasn�t the SEC taken any action whatsoever? It was reported last week in a court document involving John Edward�s wife Diana Lee Flaherty�s own stock fraud trial that Edwards himself is still under investigation for stock fraud, and there are unconfirmed reports of a major sting operation targeting dozens of others involved in the CMKX scandal. In the broader sense, the sheer scope of this scam, and the reported massive selling of counterfeit stock into the market that accompanied it, raises serious questions as to the system of checks and balances that protects our stock market. This reporter is certain that this is only the beginning, and that ultimately, many more people will be brought to justice in this case. Let�s just hope that the investigations don�t stop there, and that the major brokers are held responsible for their part in this financial train wreck, and that the SEC itself is made to answer for their ineptitude and failure to �protect investors and maintain the integrity of the securities market. www.faulkingtruth.com/Articles/Commentary/1065.htmlOCT 30TH 2007 KEVIN SAYS THE CERT PULL WAS JUST USED TO GIVE URBAN MORE TIME TO STEAL MORE MONEY FROM CMKX SHAREHOLDERS. THE CERT PULL ENDED ALMOST TWO YEARS SINCE THE SEC GAINED ACCESS TO THE FRAUD RECORDS AND MONEY LAUNDERING RECORDS FORM THE SILVER STATE BANK: Q) What was Urban's motivation for a cert pull? Why would Urban have funded this? It just makes no sense, if he was planning to ditch us. From the picture you give us, he never had any money set aside for us, and must have known for a while that eventually he would have to close shop. He obviously thought there was some advantage either to us or to him of a cert pull, and I cannot fathom what it would have been. The company will not try to guess at the motives of prior management. The evidence suggests additional time was needed to convert Company funds to personal use. It appears there were plans to put the company into bankruptcy by certain legal advisers and insiders. As for Urban funding the cert pull, the Company can tell you that �out of pocket expenses only� were paid and it was a difficult task recovering those expenses from Urban. www.cmkmdiamondsinc.com/faq_index.htmlAPRIL 30TH 2007: THE SEC WHO SAID TO THE PUBLIC THAT NAKED SHORTING AND FAILURES TO DELIVER WE INSIGNIFICANT, BUT GRANDFATHERED AGED FAILS SO THEY WOULDN�T DISRUPTE THE MARKET IF THOSE COUNTERFEIT SHARES HAD TO BE COVERED BECAUSE THE PROBLEM WAS SO BIG. ANNETTE NAZARETH SEC COMMISSIONER SAID IT WAS JUST THOSE THAT WANTED THEIR STOCKS TO GO UP THAT COMPLAINED OF THIS NON ISSUE, BUT THE SEC ACTUALLY KNEW THE REAL SIZE OF THE PROBLEM, IT WAS IN THE TRILLIONS AND IS TOTALLY COVERED UP. THE FACT THAT THERE ARE TRILLIONS OF DOLLARS IN COUNTERFEIT STOCK ON THE MARKET IS IN ITSELF PROOF THIS IS A RICO FELONY. THIS IS REMARKS BEFORE THE 34TH ANNUAL SIFMA OPERATIONS CONFERENCE: Other recent rulemakings by the SEC can be neatly described by a single, four letter word that is the source of many nightmares for securities operations professionals � the word is "FAIL." Fail is an especially appropriate word to describe the substance of one of these rulemakings, and the process and theory of others. The first rulemaking is the pending proposal to amend Regulation SHO, and thus relates to the noun form of the word "fail" � as in a "fail to deliver." I am happy to report that the amendments under consideration by the Commission would, if adopted, help reduce the number of aged fails to deliver. These amendments would eliminate the now-notorious "grandfather" exception from Reg. SHO and would limit the scope of the options market maker exception. The decision to propose the amendments to Reg. SHO was based upon a thorough and extended review of empirical data on fails collected by the SEC staff after implementation of Reg. SHO in 2004. In a time when the SEC has come under intense scrutiny for shortcomings in our rulemaking processes, this thoughtful, coordinated approach was truly a breath of fresh air. It exemplifies the expectations of Congress when it placed on us the burden to consider whether our actions will "promote efficiency, competition, and capital formation." Unfortunately, proactive regulatory thinking does not characterize all that the SEC does, and that is where the verb form of the word "fail" comes in � as in the SEC failed to do its job properly and was slapped down by the courts. These are mainly the regulatory missteps that the SEC made before the arrival of Chairman Cox. I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street.
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Post by imSINGLEruRICH on Oct 13, 2009 23:28:44 GMT -5
9. In September 2005, the Federal Reserve Board and other regulators including the SEC called together 14 major OTC derivatives dealers to address these operational issues. The focus at that time was on OTC credit derivatives. Of course, the SEC does not necessarily have jurisdiction over OTC credit derivatives, but the firms subject to SEC supervision through our Consolidated Supervised Entity program are dealers in that market, and so it was important for the SEC be involved in overseeing the cleanup process. www.sec.gov/news/speech/2007/spch043007psa.htmMARCH 27TH 2008, THIS IS FROM AL HODGES A PROMINENT ATTORNEY: CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Subject: File No. S7-08-08 From: A. Clifton Hodges, Esq. Affiliation: Attorney March 27, 2008 www.sec.gov/comments/s7-08-08/s70808-151.htmTo The SEC Commission and Financial Industry at Large: Naked shorts in the United States = �counterfeit shares.� The case of CMKX represents the greatest �counterfeit shares� fraud in the UNITED STATES. CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull physical stock certificates out of brokerages, and out of street name, to trap those whom had committed fraud. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES� Naked short selling is a case of short selling the shares without first arranging a borrow. The Securities Exchange Act of 1934 stipulates a settlement period up to three business days before a stock needs to be delivered, generally referred to as �T+3 delivery�. The SECs public position as of the Spring of 2005 was that naked shorting did not exist. With enactment of Regulation SHO, the subsequent elimination of the SHO grandfather exemption, and now the promulgation of this rule, the SEC has finally admitted the error of its ways. The Depository Trust and Clearing Corporation has also been criticized for its approach to naked short selling. DTCC has been sued with regard to its alleged participation in naked short selling, and the issue of DTCC�s possible involvement has been taken up by Senator Robert Bennett and discussed by the NASAA and in articles�disagreed with by DTCC�in the Wall Street Journal and Euromoney Magazine. Robert J. Shapiro, former undersecretary of commerce for economic affairs, has, however, found that naked short selling has cost investors $100 billion and driven 1,000 companies into the ground. Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns. It is in fact, institutional fraud further, counterfeiting of securities is a crime of U.S. Constitutional magnitude. This criminal conduct, once asserted by the SEC not to exist, has destroyed many, many companies, lives and opportunities. But now the word is out on naked shorting it must be stopped, and all whom conspired put in jail. This naked shorting fraud rule must be passed - NOW. Sincerely, A. Clifton Hodges JULY 16TH 2008, THE SEC DOES THE UNTHINKABLE, THEY BAN NAKED SHORTING ON THE FIRMS THAT FACILITATED THE NAKED SHORTING AND WERE THE FIRMS THAT WERE THE DEFENDANTS IN RICO CASES THAT ALREADY PROVED THEY COMMITTED THES CRIMES AND LAUNDERED THE MONEY OFFSHORE WITH CRIME FAMILIES. THE SEC FOLLOWED THEIR TYPICAL PATTERN OF PROTECTING THE CRIMINALS, AND CONTINUING ALLOWING THE MADOFF EXCEMTION TO MARKET MAKERS ALTHOUGH THEY ARLEADY KNOW IT IS USED TO FACILITATE COUNTERFEITING, AND GRANDFATHERING THOSE COUNTERFEIT SHARES SO THOSE CRIMINALS THEY PROTECT GET AWAY WITH THIS RICO FELONY: SEC Executive Order to Protect Facilitators of Fraud SEC Executive Order to Protect Facilitators of Fraud - July 16, 2008 David Patch In a bold move yesterday on Capital Hill Chris Cox, Chairman of the Securities and Exchange Commission announced before a Senate sub-Committee that the SEC would be instituting an executive order regarding the short sale execution in the markets of our banking institutions. Chairman Cox announced that the executive order would require that all short sales in a select and limited list of equities would require a pre-borrow to be exercised prior to trade execution. Under normal circumstances a locate of a share to borrow is all that is required when initiating an effort to engage in a short sale. The need to borrow the stock only commences once the short sale was executed. In other circumstances the Commission has granted market makers additional exemptions allowing the execution of �naked short sales� to be exercised where neither a locate nor a borrow transpire. Under these limited exceptions the trade enters into what will become a fail to deliver status to the equity purchaser until such time as that market maker buys in the naked short. While this may sound complicated and cumbersome it must be recognized that under Securities Law all trades must be executed with the intent of three-day settlement. When such trades fail to settle within this timeframe it is implied that the broker-dealers who engaged in this contract to trade will take all appropriate steps to settle out the trade including the action of buying in that client. Outside of the exemptions to market participants creating liquidity no other trading entity is granted the right to sell what can not settle. Jakab Spencer of the Wall Street Journal responded back to concerns I had with the tone of his article addressing this issue. According to his sources who he identifies as market professional �One reason for rising failures [naked shorts] is that activity by both long/short hedge funds and by institutional and even mutual 130/30 funds has increased substantially in recent years and has led to increased net short interest.� Nope sorry, none of these trading entities qualify for exemption for trade settlement regardless of level of trading activity they choose to engage in. But ironically these are the very institutions the Chairman has chosen to protect from further abuses. Institutions have become the facilitators to naked short selling and yet financial institutions are the only public companies protected under this executive order. www.investigatethesec.com/drupal-5.5/?q=node/335 10.LAS VEGAS -- On March 16, 2005 THE EVIDENCE SHOWS THE SEC AIDED AND ABETTED THIS FRAUD AND COLLUDED WITH THE CRIMINAL INSIDERS OF CMKX, THEY ALSO COLLUDED TO COVER UP THE CRIME "We only want to comply with federal regulations and do what is right for our stockholders. If the Commission deems it in our stockholders best interest to forbid us from providing information through filings with the Commission, we will comply," stated Urban Casavant, president of CMKX. Replying to the Commission's administrative proceeding is a high priority for CMKX's management, which plans to take the following actions. CMKX is not allowing these regulatory issues to divert management's attention from its primary operational goals of claiming new land and continuing its drilling activities. The future of CMKX lies in the continued development of its assets. Consistent with this statement, Urban Casavant added, "Creating stockholder value is a primary concern to us. We have some very positive operational things happening, both in Canada and in Ecuador, and are extremely optimistic about the future of our operations." www.allbusiness.com/government/go..../5053564-1.htmlNOTE: MARCH 9TH 2005 GLOBAL LINKS GOES IN FRONT OF THE BANKING COMMITTEE HEARING, AND THE COMMITTEE ASKS THE SEC TO LOOK INTO THE OBVIOUS COUNTERFEITING. THE SEC INSTEAD COVERS UP THE FRAUD INCLUDING EDTRADE PER MARK FAULK. MAY 2 2005 THE SEC SEEKS TO EXCLUDE ALL EVIDENCE OF NAKED SHORTING, ALTHOUGH THEY KNOW AS THEY HAVE THE RECORDS CMKX WAS THE MOST COUNTERFEITED STOCK IN HISTORY, THEY ALSO KNOW OF THE FRAUD URBAN AND JOHN EDWARDS DID BUT SAY NOTHING OF IT IN THE HEARING, HIDING IT FROM THE SHAREHOLDERS: fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2191MAY 10TH 2005: THE SEC AS WITH THE ILLEGAL GRANDFATHER CLAUSE ILLEGALLY PREVENTS CMKX AND ITS' SHAREHOLDERS LAWYER FROM INTRODUCING COUNTERFEITING EVIDENCE AND MAKES SURE THE BROKERS WHO COUNTERFEITED CMKX WOULD NOT HAVE TO PAY THE COST OF A SHORT SQUEEZE, THE NORMAL WAY THE MARKET WORKS: FROM OMEGA'S PAPER: The meeting prior to the Securities and Exchange Commission Administrative Hearing of 5-10-05 for CMKM consisted of Andrew Petillion, Branch Chief of Enforcement at the Pacific Regional Office, Leslie Hakala, Enforcement Division Attorney for the Securities and Exchange Commission, D. Roger Glenn, former CMKM securities counsel and former Enforcement Division Attorney for the Securities and Exchange Commission, Robert Maheu, CoChairman of CMKM, Donald Stoecklein, CMKM securities counsel, and Bill Frizzell, CMKM shareholder/attorney/Owners Group representive for CMKM shareholders. Excerpt from Bill Frizzell's 9-30-05 email to Owners Group members: "...We proved a huge naked short 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. Have a good weekend." According to Bill Frizzell, Andrew Petillion warns: "By the way, if this is an orchestrated short squeeze against the brokerage houses to make the stock price go up, we will come after those who are responsible. We would not look kindly on a cert pull because it would cause market manipulation." MAY 25TH 2005, BILL FRIZZELL�S LETTERS TO THE BROKERS WHO MASSIVELY COUNTERFEITED CMKX STOCK, INLCUDING ETRADE WHO�S FRAUD IN THE GLOBAL LINKS CASE WAS COVERED UP IN THE GLOBAL LINKS FRAUD. THESE LETTERS REPRESENT HUNDREDS OF BILLIONS OF SHARES AND WERE EXCLUDED FROM THE CMKX HEARING BY THE SEC TO COVER THEIR FRAUD: ameritrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2137bill's follow up letter to ameritrade: fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2138etrade fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2154schwab letter fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2180tdwaterhouse canada fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2197JUNE 2ND 2005, FROM BILL FRIZZELL THE SHAREHOLDERS LAWYER: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, June 2, 2005
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Post by imSINGLEruRICH on Oct 13, 2009 23:30:53 GMT -5
11. The ultimate outcome of everyone�s investment hinges not on naked shorting or SEC actions, but on the true evaluation of the company assets. We have some information about these assets, but we need more. The more I find out about the company, the more I become concerned that neither the company nor the SEC wanted you to know about the evaluation of the assets at the Administrative Hearing. NOTE: THE SEC PURPOSELY MISLEAD INVESTORS BY LEAVING OUT EVIDENCE OF VALUE, AGAIN SHOWING THE COVER UP AND THEFT OF OUR ASSETS POSSIBLY JUNE 9TH 2005 THE SEC TOTALLY DENIES THE SHAREHOLDERS LAWYER THE RECORDS THAT PROVE THE FRAUD, THE SEC�S JUDGE BRENDA MURRAY WITH THE SEC�S RECORDS SHOWING THE FRAUD AND THEIR DATA SHOWING THE MASSIVE COUNTEFEITING OF CMKX STOCK DIDN�T ALLOW VERY MATERIAL EVIDENCE THE SHAREHOLDERS DESERVED TO KNOW. THE SEC ALSO LEFT OUT ALL INFORMATION THEY HAD ON THE SILVER STATE BANK MONEY LAUNDERING AND FRAUD. THEY ALSO PURPOSELY LEFT OUT EVIDENCE OF VALUATION. THEY ALSO AT THIS TIME CONTINUED TO ALLOW TENS OF BILLIONS OF SHARES GET SOLD A WEEK, WHILE THEY WERE CONTACTED ON EACH CERT: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, June 9, 2005 We have received a total rejection of the FOIA request which was made through the SEC. I am preparing an appeal of that request as provided by statute. It is necessary to pursue all administrative remedies before filing suit. I should have the appeal finished tomorrow and will post it along with the rejection letter. fbruhm.proboards.com/index.cgi?board=tick&action=display&thread=2120JULY 12TH 2005 THE SEC DECISION ON THE AMDINISTRATION HEARING, PROOF THE SEC COLLUDED WITH DON STOECKLEIN AND URBAN CASAVANT IN THE FRAUD, AS WELL AS BOB MAHEU. All WERE INSTRUMENTAL IN FACILITATING THE FRAUD IT APPEARS. ALSO THE SEC AFTER SEEING THIS EVIDENCE AND THE MOUNTAIN OF EVIDENCE THEY ALREADY HAD CONTINUED TO ALLOW BILLIONS OF SHARES TO GET SOLD A DAY, EVERYDAY, MORE THAN THE ENTIRE MARKET MANY DAYS : On March 4, 2005, CMKM Diamonds announced that, effective March 1, 2005, it had relocated its executive offices to 5375 Procyon Street, Suite 101, Las Vegas, Nevada. (Div. Ex. 53.) However, as of April 6, 2005, this address was occupied only by a �hot rod� shop. (Div. Ex. 55.) �Debbie� at the Securities Law Institute, which is owned by CMKM Diamond�s counsel, reported in an e-mail sent on April 6, 2005, that a shareholder had visited the site, discovered this fact, and reported it on the company�s Web site. �Debbie� advised that �You might want to call Urban [Casavant] or Michael and have them �move in� and talk to the owner of the hot rod shop and also tell Andy what to tell shareholders when they call.� (Div. Ex. 55.) Donald J. Stoecklein (Stoecklein), current counsel for CMKM Diamonds, owns the Securities Law Institute in Las Vegas, Nevada, which assists approximately forty-two public companies in their periodic reporting obligations, including CMKM Diamonds. (Tr. 315-16.) Donald Stoecklein and Debbie Amigone, from Stoecklein Security Law Institute, contributed comments and recommendations to Jonathan Katz, Secretary of Security Exchange Commission, on The Final Rule, which covers investor protection, naked shorting, SHO, shell company mergers and reporting. Robert Maheu (Maheu) has known Stoecklein for a number of years and is part of a team assembled by Stoecklein, which Maheu believes will clear up past mistakes and will result in compliance going forward. (Tr. 285-86, 296.) THEN JUDGE BRENDA MURRAY REVOKES CMKX: IT IS ORDERED THAT, pursuant to Section 12(j) of the Securities Exchange Act of 1934, the registration of each class of securities of CMKM Diamonds, Inc., is hereby REVOKED. This Initial Decision shall become effective in accordance with and subject to the provisions of Rule 360 of the Commission's Rules of Practice, 17 C.F.R. � 201.360. BEFORE: Brenda P. Murray, Chief Administrative Law Judge www.sec.gov/litigation/aljdec/id291bpm.htmNOTE: AS SHOWN IN THE PRIOR EVIDENCE REPORT BRENDA P. MURRAY WAS THE SAME JUDGE IN THE GARY AGUIRRE CASE THAT SHOWED PREJUDICE, WITH COMMENT FROM MARK MITCHELL OF DEEPCAPTURE. IN CMKX'S CASE SHE DIDN'T ALLOW EVIDENCE THAT SHOWED CMKX WAS MASSIVELY COUNTERFEITED BY MANY BROKERS, COMPLETELY AS ALWAYS COVERING UP WALL STREET'S CRIMES: A few weeks later the SEC inspector general issued a 191-page report vindicating Gary Aguirre. The otherwise detailed report conspicuously failed to mention the naked short selling component of Aguirre�s investigation, but it contained many of the same findings that the Senate had described. The report, compiled over many months, concluded that Mack�s interference with Aguirre�s investigation raised �serious questions about the impartiality and fairness� of the SEC. The inspector general recommended that disciplinary action be taken against Aguirre�s supervisors, including SEC Director of Enforcement Linda Thomsen. But last Friday, having spent no more than a few days reviewing the evidence, an SEC administrative judge declared that the SEC did not mishandle the Aguirre case, and that no disciplinary action would be taken. As Bogdanich�s story in The New York Times makes clear (though in not so many words), the ruling stinks to high hell. For one, it remains unclear why in the world an SEC judge, as opposed to an independent court, is ruling on this matter. For another, it seems that the judge, Brenda Murray, was not even acting in the capacity of a judge. Rather, she issued her not-guilty verdict in the capacity of �an individual� who was asked by the SEC executive director to evaluate the inspector general�s findings. In other words, there is good evidence that the leaders of our nation�s market regulator are as corrupt as Banana Republic cops on the brothel beat � that they have engaged in a cover-up that might have helped rock the very foundations of the American financial system � but this evidence will be evaluated in no court. There will be no legal proceeding whatsoever. Instead, an �individual� at the SEC, as a favor to the SEC executive director, says the SEC did no wrong�and that�s it � end of story. 12.The Senate investigators concluded that they were �deeply troubled� by the SEC�s failure to look into Aguirre�s claims. �At worst,� the Senate report said, �the picture is colored with overtones of a possible cover-up.� As part of this cover-up, the SEC eventually claimed that although Aguirre had been fired, the commission had nonetheless pressed forward with its �insider trading� investigation, finding no evidence that Pequot or Mack and committed any violations. However, the SEC has yet to reveal whether its rank-and-file were allowed to complete their investigation into the naked short selling that had the greater potential to �seriously injure the financial markets.� SEC leaders remained uninterested in the crime until this past summer. Data for June showed that �failures to deliver� (phantom stock sold by naked short sellers) had peaked at more than 2 billion shares � an all time record. www.deepcapture.com/tag/john-mack/JULY 22ND 2005, THE DTCC DENIES BILL FRIZZELL HIS FOIA REQUEST: FRIZZELL LAW FIRM 305 S. Broadway, Suite 302 Tyler, Texas 75702 (903)595-1921 E-Mail jmartin@cmkxownersgroup.com Dear Group Members, July 22, 2005 FOIA I have filed a FOIA request for certain DTCC records that we are entitled to receive. Our request has been denied. I have appealed that denial. I frankly expect the appeal will be denied. I plan to appeal that denial by filing suit in District Court. The law requires that we exhaust all administrative remedies before suit can be filed so I must continue my work though the administrative process before filing suit. Naked Shorting We have proven without question that certain parties have sold CMKX when such stock was not available. Our proof indicates to me there are at least a trillion shares outstanding and possibly as much as two or three trillion shares. We are making inroads with some influential politicians to investigate naked shorting and take action to see that this problem is corrected. We are knowledgeable of many bulk (billions) trades that occurred through certain companies that are clearly not retail customers. The ultimate outcome of everyone�s investment hinges not on naked shorting or SEC actions, but on the true evaluation of the company assets. We have some information about these assets, but we need more. The more I find out about the company, the more I become concerned that neither the company nor the SEC wanted you to know about the evaluation of the assets at the Administrative Hearing. OCT 28TH 2005 CMKX IS REVOKED BY JUDGE MURRAY A YEAR LATER NEVWEST ON SEPT 26 2006 WAS CHARGED WITH VIOLATING THE NASD�S ANTI-MONEY LAUNDERING RULE, THE SAME NEVWEST THAT CONTACTED THE SEC EVERY TIME JOHN EDWARDS BROUGHT IN A CERT NOW MATTER HOW FRAUDULENT OR FORGED. NO OTHER BROKERS WERE CHARGED THOUGH THE SEC KNEW EXACTLY WHO COUNTERFEITED CMKX STOCK OTHER THAN NEVWEST. THIS IS FROM MARK FAULK AND SHOWS THE COVER UP OF THE SEC OF OTHER BROKERS WHO SOLD CMKX, IN PARTICULAR AMERITRADE AND ETRADE: NevWest President Sergey Rumyantsev said today that �in our perception, we believe that we have fail-safes in effect that go far above and beyond the industry standards. We feel completely wronged in this particular case.� Rumyantsev also questioned the NASD�s action against their company, saying that �we were singled out, why were we the only one charged when hundreds of billions of shares were sold by other brokers?� Another source close to the story echoed Rumyantsev�s sentiments, citing the serious problems with other major brokerage firms, including Ameritrade and Etrade, and the long and drawn out process of trying to issue stock certificates to bonafide shareholders, many of whom have still not received stock certificates over a year after the company initiated a cert pull in an attempt to determine if there were more shares sold than actually existed. This source asked whether the other offending brokers had filed Suspicious Trading Reports in relation to the well-over a trillion shares that many people claim were fraudulently sold to unsuspecting shareholders. Why has it taken so long for regulatory agencies to take action against those who defrauded over 50,000 shareholders, and why hasn�t the SEC taken any action whatsoever? It was reported last week in a court document involving John Edward�s wife Diana Lee Flaherty�s own stock fraud trial that Edwards himself is still under investigation for stock fraud, and there are unconfirmed reports of a major sting operation targeting dozens of others involved in the CMKX scandal. In the broader sense, the sheer scope of this scam, and the reported massive selling of counterfeit stock into the market that accompanied it, raises serious questions as to the system of checks and balances that protects our stock market. This reporter is certain that this is only the beginning, and that ultimately, many more people will be brought to justice in this case. Let�s just hope that the investigations don�t stop there, and that the major brokers are held responsible for their part in this financial train wreck, and that the SEC itself is made to answer for their ineptitude and failure to �protect investors and maintain the integrity of the securities market. www.faulkingtruth.com/Articles/Commentary/1065.htmlOCT 30TH 2007 KEVIN SAYS THE CERT PULL WAS JUST USED TO GIVE URBAN MORE TIME TO STEAL MORE MONEY FROM CMKX SHAREHOLDERS. THE CERT PULL ENDED ALMOST TWO YEARS SINCE THE SEC GAINED ACCESS TO THE FRAUD RECORDS AND MONEY LAUNDERING RECORDS FORM THE SILVER STATE BANK: Q) What was Urban's motivation for a cert pull? Why would Urban have funded this? It just makes no sense, if he was planning to ditch us. From the picture you give us, he never had any money set aside for us, and must have known for a while that eventually he would have to close shop. He obviously thought there was some advantage either to us or to him of a cert pull, and I cannot fathom what it would have been.
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Post by imSINGLEruRICH on Oct 13, 2009 23:32:43 GMT -5
13.The company will not try to guess at the motives of prior management. The evidence suggests additional time was needed to convert Company funds to personal use. It appears there were plans to put the company into bankruptcy by certain legal advisers and insiders. As for Urban funding the cert pull, the Company can tell you that �out of pocket expenses only� were paid and it was a difficult task recovering those expenses from Urban. www.cmkmdiamondsinc.com/faq_index.htmlAPRIL 30TH 2007: THE SEC WHO SAID TO THE PUBLIC THAT NAKED SHORTING AND FAILURES TO DELIVER WE INSIGNIFICANT, BUT GRANDFATHERED AGED FAILS SO THEY WOULDN�T DISRUPTE THE MARKET IF THOSE COUNTERFEIT SHARES HAD TO BE COVERED BECAUSE THE PROBLEM WAS SO BIG. ANNETTE NAZARETH SEC COMMISSIONER SAID IT WAS JUST THOSE THAT WANTED THEIR STOCKS TO GO UP THAT COMPLAINED OF THIS NON ISSUE, BUT THE SEC ACTUALLY KNEW THE REAL SIZE OF THE PROBLEM, IT WAS IN THE TRILLIONS AND IS TOTALLY COVERED UP. THE FACT THAT THERE ARE TRILLIONS OF DOLLARS IN COUNTERFEIT STOCK ON THE MARKET IS IN ITSELF PROOF THIS IS A RICO FELONY. THIS IS REMARKS BEFORE THE 34TH ANNUAL SIFMA OPERATIONS CONFERENCE: Other recent rulemakings by the SEC can be neatly described by a single, four letter word that is the source of many nightmares for securities operations professionals � the word is "FAIL." Fail is an especially appropriate word to describe the substance of one of these rulemakings, and the process and theory of others. The first rulemaking is the pending proposal to amend Regulation SHO, and thus relates to the noun form of the word "fail" � as in a "fail to deliver." I am happy to report that the amendments under consideration by the Commission would, if adopted, help reduce the number of aged fails to deliver. These amendments would eliminate the now-notorious "grandfather" exception from Reg. SHO and would limit the scope of the options market maker exception. The decision to propose the amendments to Reg. SHO was based upon a thorough and extended review of empirical data on fails collected by the SEC staff after implementation of Reg. SHO in 2004. In a time when the SEC has come under intense scrutiny for shortcomings in our rulemaking processes, this thoughtful, coordinated approach was truly a breath of fresh air. It exemplifies the expectations of Congress when it placed on us the burden to consider whether our actions will "promote efficiency, competition, and capital formation." Unfortunately, proactive regulatory thinking does not characterize all that the SEC does, and that is where the verb form of the word "fail" comes in � as in the SEC failed to do its job properly and was slapped down by the courts. These are mainly the regulatory missteps that the SEC made before the arrival of Chairman Cox. I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street. In September 2005, the Federal Reserve Board and other regulators including the SEC called together 14 major OTC derivatives dealers to address these operational issues. The focus at that time was on OTC credit derivatives. Of course, the SEC does not necessarily have jurisdiction over OTC credit derivatives, but the firms subject to SEC supervision through our Consolidated Supervised Entity program are dealers in that market, and so it was important for the SEC be involved in overseeing the cleanup process. www.sec.gov/news/speech/2007/spch043007psa.htmMARCH 27TH 2008, THIS IS FROM AL HODGES A PROMINENT ATTORNEY: CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Subject: File No. S7-08-08 From: A. Clifton Hodges, Esq. Affiliation: Attorney March 27, 2008 www.sec.gov/comments/s7-08-08/s70808-151.htmTo The SEC Commission and Financial Industry at Large: Naked shorts in the United States = �counterfeit shares.� The case of CMKX represents the greatest �counterfeit shares� fraud in the UNITED STATES. CMKM DIAMONDS, INC. suffered THE LARGEST NAKED SHORT IN HISTORY. Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull physical stock certificates out of brokerages, and out of street name, to trap those whom had committed fraud. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES� Naked short selling is a case of short selling the shares without first arranging a borrow. The Securities Exchange Act of 1934 stipulates a settlement period up to three business days before a stock needs to be delivered, generally referred to as �T+3 delivery�. The SECs public position as of the Spring of 2005 was that naked shorting did not exist. With enactment of Regulation SHO, the subsequent elimination of the SHO grandfather exemption, and now the promulgation of this rule, the SEC has finally admitted the error of its ways. The Depository Trust and Clearing Corporation has also been criticized for its approach to naked short selling. DTCC has been sued with regard to its alleged participation in naked short selling, and the issue of DTCC�s possible involvement has been taken up by Senator Robert Bennett and discussed by the NASAA and in articles�disagreed with by DTCC�in the Wall Street Journal and Euromoney Magazine. Robert J. Shapiro, former undersecretary of commerce for economic affairs, has, however, found that naked short selling has cost investors $100 billion and driven 1,000 companies into the ground. Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns. It is in fact, institutional fraud further, counterfeiting of securities is a crime of U.S. Constitutional magnitude. This criminal conduct, once asserted by the SEC not to exist, has destroyed many, many companies, lives and opportunities. But now the word is out on naked shorting it must be stopped, and all whom conspired put in jail. This naked shorting fraud rule must be passed - NOW. Sincerely, A. Clifton Hodges 14. JULY 16TH 2008, THE SEC DOES THE UNTHINKABLE, THEY BAN NAKED SHORTING ON THE FIRMS THAT FACILITATED THE NAKED SHORTING AND WERE THE FIRMS THAT WERE THE DEFENDANTS IN RICO CASES THAT ALREADY PROVED THEY COMMITTED THES CRIMES AND LAUNDERED THE MONEY OFFSHORE WITH CRIME FAMILIES. THE SEC FOLLOWED THEIR TYPICAL PATTERN OF PROTECTING THE CRIMINALS, AND CONTINUING ALLOWING THE MADOFF EXCEMTION TO MARKET MAKERS ALTHOUGH THEY ARLEADY KNOW IT IS USED TO FACILITATE COUNTERFEITING, AND GRANDFATHERING THOSE COUNTERFEIT SHARES SO THOSE CRIMINALS THEY PROTECT GET AWAY WITH THIS RICO FELONY: SEC Executive Order to Protect Facilitators of Fraud SEC Executive Order to Protect Facilitators of Fraud - July 16, 2008 David Patch In a bold move yesterday on Capital Hill Chris Cox, Chairman of the Securities and Exchange Commission announced before a Senate sub-Committee that the SEC would be instituting an executive order regarding the short sale execution in the markets of our banking institutions. Chairman Cox announced that the executive order would require that all short sales in a select and limited list of equities would require a pre-borrow to be exercised prior to trade execution. Under normal circumstances a locate of a share to borrow is all that is required when initiating an effort to engage in a short sale. The need to borrow the stock only commences once the short sale was executed. In other circumstances the Commission has granted market makers additional exemptions allowing the execution of �naked short sales� to be exercised where neither a locate nor a borrow transpire. Under these limited exceptions the trade enters into what will become a fail to deliver status to the equity purchaser until such time as that market maker buys in the naked short. While this may sound complicated and cumbersome it must be recognized that under Securities Law all trades must be executed with the intent of three-day settlement. When such trades fail to settle within this timeframe it is implied that the broker-dealers who engaged in this contract to trade will take all appropriate steps to settle out the trade including the action of buying in that client. Outside of the exemptions to market participants creating liquidity no other trading entity is granted the right to sell what can not settle. Jakab Spencer of the Wall Street Journal responded back to concerns I had with the tone of his article addressing this issue. According to his sources who he identifies as market professional �One reason for rising failures [naked shorts] is that activity by both long/short hedge funds and by institutional and even mutual 130/30 funds has increased substantially in recent years and has led to increased net short interest.� Nope sorry, none of these trading entities qualify for exemption for trade settlement regardless of level of trading activity they choose to engage in. But ironically these are the very institutions the Chairman has chosen to protect from further abuses. Institutions have become the facilitators to naked short selling and yet financial institutions are the only public companies protected under this executive order. www.investigatethesec.com/drupal-5.5/?q=node/335
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Post by imSINGLEruRICH on Oct 13, 2009 23:35:18 GMT -5
scruffy2
DIAMOND JEDI WARLORD
Re: We've got Lift-off Folks!Gus should have the materials to us by this evening, so we have a bit of time to organize who we want to send this stuff to. My personal list so far includes (just need to collect email addresses): Gary Matsumoto - Bloomberg - Bill Moyers - PBS Dave Patch Bob O'Brian Kevin West Mark Faulk Bud Burrell President Obama Jon Stewart I'll dig those out and add them to the list but please feel free to add your favourites here as well! taskforceviking
Recommended send list:www.deepcapture.com/about-deep-capture/pbyrne@deepcapture.com mmitchell@deepcapture.com jbagley@deepcapture.com Max Keiser: max@maxkeiser.com Attention Matt Tiabbi: editors@rollingstone.com Others: SchapiroM@sec.gov, investorprotection@kaufman.senate.gov, hakalal@sec.gov, senator@shelby.senate.gov, cgurien@dtcc.com, rbgordon@dtcc.com, MathewLewis@dtcc.com, cpoisella@dtcc.com, cbrosnahan@dtcc.com, rwalowitz@dtcc.com, cstark@dtcc.com, jtaylor@dtcc.com, nwood@dtcc.com, bmoskovic@dtcc.com, lmacumber@dtcc.com, snugent@dtcc.com, jsmith@dtcc.com, jtaylor@dtcc.com, kotzd@sec.gov, abryan@dtcc.com, sthomas@dtcc.com, lschmitt@dtcc.com, khuzamir@sec.gov, whitem@sec.gov, cchilds@dtcc.com, NSCCAA@DTCC.com, ime@ieinhornlaw.com, mdzarnoski@gordonsilver.com, ucasavant@shaw.ca, forhall@aol.com, ttomasso@ncfgcomm.com, chaptak@embarqmail.com, seanharan@paulhastings.com, michaelbakst@ruden.com, enk@kleinattomeys.com, dgriffith@kesler-rust.com jfarn
DIAMOND MINER This distro. is a good one~ Make the title of the communication worthy of their attention. My last one was "Indict the regulators?" "David Patch" <idpatch@comcast.net>To: OIG@SEC.GOV, "U.S. Securities and Exchange Commission" <oiea@sec.gov>, bressmanb@sec.gov, charyn.aldred@ci.irs.gov, "Scott (Mark Udall)Prestidge" <Scott_Prestidge@MarkUdall.senate.gov>, "Zane (Bennet)Kessler" <Zane_Kessler@bennet.senate.gov>, Jason.Cole@mail.house.gov, schapirom@sec.gov, kotzd@sec.gov, khuzamir@sec.gov, grupp55@yahoo.com, whitem@sec.gov, hakalal@sec.gov, "Bill Frizzell" <bfrizzell@tyler.net>... moreCc: dennis@hodgesandassociates.com, Al@hodgesandassociates.com, "Jay Adobe" <jay_adobe@yahoo.com>, kwest@cmkmdiamondsinc.com, kotzd@sec.gov, JSmith@reviewjournal.com, G.R.Blakey.1@nd.edu, "Terry Lenzner" <TLenzner@igint.com>, info@faulkingtruth.com, "drichardson@igint.com" <drichardson@igint.com>, wynnp@sec.gov... more cmkxdiamonds
DIAMOND JEDI WARLORDcorpcsf@wellsfargo.com, help@sec.gov, cgurien@dtcc.com, rbgordon@dtcc.com, MathewLewis@dtcc.com, hakalal@sec.gov, SchapiroM@sec.gov, cpoisella@dtcc.com, cbrosnahan@dtcc.com, rwalowitz@dtcc.com, cstark@dtcc.com, jtaylor@dtcc.com, nwood@dtcc.com, bmoskovic@dtcc.com, lmacumber@dtcc.com, snugent@dtcc.com, jsmith@dtcc.com, jtaylor@dtcc.com, hakalal@sec.gov, kotzd@sec.gov, abryan@dtcc.com, sthomas@dtcc.com, lschmitt@dtcc.com, khuzamir@sec.gov, whitem@sec.gov, cchilds@dtcc.com, NSCCAA@DTCC.com, feedback@foxbusiness.com, gettingreal@cnbc.com, investforsuccess@cnbc.com, headhoncho@cnbc.com, moneymakingmonday@cnbc.com, sectorwatch@cnbc.com, stockstowatch@cnbc.com, newinvestor@cnbc.com, behindthewheel@cnbc.com, wakeupcall@cnbc.com, squawk@cnbc.com, morningcall@cnbc.com, powerlunch@cnbc.com, powerguest@cnbc.com, streetsigns@cnbc.com, closingbell@cnbc.com, kudlow@cnbc.com, madmoney@cnbc.com, dennismillershow@nbc.com, donny@cnbc.com, afterhours@cnbc.com, Questions@cftc.gov, oig@cftc.gov, esc@dtcc.com, oreilly@foxnews.com, me@glennbeck.com, stu@glennbeck.com, pbyrne@deepcapture.com, mmitchell@deepcapture.com, jbagley@deepcapture.com, max@maxkeiser.com
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Post by imSINGLEruRICH on Oct 14, 2009 11:05:57 GMT -5
cmkxdiamonds
DIAMOND JEDI WARLORD
Re: From Gus--Omegas letter done-were off and runn
« Reply #97 Today at 10:48am »
we need to get this info to various sources outside of this country because the highups in this country are crooked as hell and will dismiss this action like they have everything else....we need some new contacts like the bbc who love to tell real stories of america or whoever we can thing of outside the us then maybe we can push some buttons...
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Post by enoughalready on Oct 14, 2009 11:12:12 GMT -5
fox news
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Post by imSINGLEruRICH on Oct 15, 2009 16:00:22 GMT -5
thanks scruffy
Gus posting on Tramp's board:
ok lots of complaints of unprofessional and
« Thread Started Today at 8:43am »
Ya that is right it is. Omega's work is awesome with a few typos, my work shows the fraud but is just a mess.
To me that is my point, I am an average guy who works with mental health/mentally challenged habitual violent offenders. I am the last guy who should be leading this crusade and that shows sometimes.
But that was my whole point, the average guy doesn't do anything because of just that, they are scared to look stupid. Well I don't give a crap.
I am going to bring this evidence in a lawsuit very soon whether it is professional or not, whether others join me or not, whether the fbi takes us seriously or not, whether the courts laugh at me, whether one more news person doesn't take our story, or whether one more lawyer says no to me because we don't take case on contingency and cmx hahahaha.
I don't give a crap, I will finish my work I started one way or another, whether it goes anywhere or just here. I will put my foot in their azz and I hope you all join me for real. I hope that especially those that are unprofessional, and those that think this is pointless join. You are the ones I need. I need your support to move forward with our demands in cmkx alone, and so the average person gets heard for once. That is my theme when I contact anyone like matt taibbi to take our story, not cmkx itself.
A case will come of our evidence once some friends clean it up for me and it is ready to put into court looking more professional. Going forward I have many volunteers ready to help with editing, proof reading, pr writing, and other services including building a website possibly down the road.
If you are waiting for this corrupt system to pay us then that is fine, I do believe we will get some money down the road. If you are sick of the bullchit and the corrupt system treating us like serfs then fight back.
I put a letter into howard elisofon yesterday asking him to be our lawyer, after talking to him on the phone he asked me to convince him. There are those that will listen even if they don't come through, I will phone them all. Howard will get back to our group soon with an answer, but maybe it will be yes.
There will be a specific list of demands coming out for cmkx in particular I will be asking for in my pro se lawsuit soon if I can't obtain a lawyer. I will pr that lawsuit, and we will see what happens.
Remember there are many fake posters on the boards who will sabotage this work. I was told years ago by one of them that plays more than one character that it is tough to do, must be tough on the soul. Just don't let anyone talk you out of action because of hope something is coming or out of despair because it looks hopeless. Take control of your investment.
We will be heard!
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Post by imSINGLEruRICH on Oct 16, 2009 19:00:19 GMT -5
ty...scruffy2
Note from Gus -
The key point in the overall picture is this, I have shown the meeting notes from the sec, they knew the size of the fraud was massive and had to hide it from the public, they grandfathered the fraud illegally with the same brokers who committed the fraud. We can prove that ourselves, I did in a couple hours on the net in one night. Our case is going to be simple, that is the problem with most, they got too complicated. This statement from bud burrell is dead on and we can prove it:
As Bud Burrell asserts in a recent interview: "Regulation SHO is a Fraud. They [SEC} Grandfathered failures to deliver after they looked at the failures at the systemic level they realized they could not force all the failures to settle in the market place without essentially wiping out the Brokerage industry and the Hedge Funds. The List was fraudulent did not list all the stocks that had these persistant FTD's."
the sec admits but is right right here, case closed, you can't just make up a law that goes against the constitution because the size of the fraud was so big:
I can't leave the topic of "fails" without touching on one more highly important issue currently facing the Commission. This goes back to the meaning of "fail" as a noun. The SEC has recently been involved in a very proactive (some might even say prudential) exercise with respect to the issue of fails in the OTC derivatives markets. In response to reports of widespread documentation problems in those markets, the SEC has joined forces with other regulators, most notably the Federal Reserve Board and Britain's FSA, to encourage OTC market participants to clean up years of incomplete and inaccurate trade documentation. The need to act was clear. From all reports, the backlog of unconfirmed trades, which essentially are fails, and the widespread and unchecked use of novations in the credit derivatives markets had crippled risk management efforts and set the stage for a massive meltdown in certain default scenarios. Given the multi-trillion dollar aggregate notional amounts of the contracts involved, it was easy to see that the OTC derivatives dealers and their counterparties had created an operational problem similar in scope to the late 1960's back-office crisis on Wall Street.
by faulk:
When the SEC released Regulation SHO in June of 2004 a special “grandfather clause” was drafted into the regulation allowing for all outstanding settlement failures to be immune from the mandatory closeout provisions of the new rule. While this contradicts the bylaws passed down by Congress in the Exchange Act of 1934, the SEC claimed this clause would prevent any possible buy-side volatility associated with the covering of large blocks of fails. The SEC never considered nor addressed sell side volatility in the rule-making provisions.
by rod young:
14 In June of 2004 the SEC announced proposed Regulation SHO to take effect six months later in January 2005. A threshold list of company’s failing 3 day delivery would be established. Non Reporting issues would not appear on the threshold list (Pink Sheet stocks), not a mention of Grandfathering. In July 2004 the SEC announced to the media that they were “preemptively targeting shell companies ripe for manipulation for de-registration” (1300 now Pink Sheet companies almost all manipulated by illegal Naked Short Selling from the OTCBB or NASDAQ). How convenient, the most abused companies in history exempted from the new rule purported to stop such abuse, not because of the lack of transparency cited but because it sweeps the SEC’s culpability in using their own words “delivery failures greater than a company’s total public float” under the rug forever!
and most important to our case from rod:
18 Which brings us back to the subject of this appeal before the Commission; every shareholder of any Company in America who purchased shares and can not get delivery has a cause of action against the SEC as an agency of the U.S. Federal Government for violation of their 5th Amendment Constitutional property rights. An action brought as a Constitutional Tort under the ‘Federal Tort Claims Act’ in multiple Federal District Courts across the country is governed by the State eminent domain law where the shareholder’s property was taken (your home state). There is a multitude of case law in every state in the Union covering illegal inverse taking of property by Governments and their agencies. The governments successful defense using the discretionary exemption from Tort Claims in most cases since the 1947 case ‘Elizabeth Dalehite, et al. v. United States’ does not apply here. The SEC does not have discretion to suspend the settlement process (Grandfathering), even temporarily as they claim. The bottom line is they are vulnerable here. An agency with a strained budget, 1,500 mostly inexperienced attorneys, that brings 500 new enforcement actions per year would crack under the burden of 50 or 100 or 500 Constitutional Tort cases brought against it. The real benefit of such cases would be court ordered discovery of the short selling data that the SEC routinely denies shareholders, issuers and the media, under FOIA (Freedom of Information Act). The first survival of a motion to dismiss could alter the landscape.
We are going to keep it simple
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Post by imSINGLEruRICH on Oct 17, 2009 14:51:07 GMT -5
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Post by imSINGLEruRICH on Oct 18, 2009 12:52:04 GMT -5
omegapoint
DIAMOND JEDI
Re: Update From Gus & Omega - Omega's Paper Added
« Reply #182 Yesterday at 6:30pm »
I should have clarified the following from the outset:
1. My Paper has already been emailed to the FBI; and the FBI has already confirmed that it has received it. Otherwise, I would NOT have given permission to scruffy2 to post it;
2. I will NEVER allow any ACTION that I take be posted BEFORE I have taken the appropriate ACTION.
So all of the posters who post that I should tone it down, make it shorter, take out the part about the current CMKM management, and on and on and on and on are just wasting their time.
To all of those posters I say: write your own paper, take your own action.
To all of those posters who want to be involved in this ACTION, feel free to add any relevant information that gusjarvis and I might have overlooked.
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