Wall Street Fails To Deliver ... Sirius News

Add this video, too:

Please review the videos.....No wonder all our gains in 2001 wiped out last week...

www.youtube.com/watch?v=CeH5seFDNng

www.cmkxshareholder.com/CMKX/Blog/Entries/2011/7/31_Wall_Street_Fails_To_Deliver.html

Naked Shorting: 11-14 Congress tells SEC to stop it now:
www.sec.gov/comments/s7-19-07/s71907-330.pdf

Ex-SEC Chairman Chris Cox on naked short selling:
www.youtube.com/watch?v=50dp5YvEbrQ

Please ban
Naked Short Selling,
Massive Shorting,
High Frequency Trading and
Dark Pool Trades

I believe Fed QEs are only feeding the above criminals and they love it. They waited until the market hit the top when Fed QEs ended, they shorted the market to the ground just like last 2 weeks and wiped out all our gains in 2011. 401K is down 30% last 2 weeks!

I appreciate what richard is doing. But that accent is brutal to listen to

>"< BUMP >"<

=^ .". ^=™

Still very interesting! And important!

=^ .". ^=

Meow!

Interesting observations... regarding the CMKX saga ....

siriusnews
Fish Head
Re: Wall Street Fails To Deliver Video and Article
« Reply #24 Yesterday at 11:30pm »
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WHY THIS IS IMPORTANT

As the recent article "SEC Builds New Tips Machine to Catch the Next Madoff" suggests, the Securities and Exchange Commission (SEC) appears to have corrected the mistakes it made in the Madoff debacle and is currently implementing an efficient new system to handle the tips and complaints it receives concerning potential frauds.

But unfortunately for the rest of the investors the SEC is mandated to protect, the SEC only appears interested in correcting its past mistakes and implementing changes after it has been exposed as being grossly negligent and possibly criminally complicit, and therefore is subsequently forced to change, as was the case in the Madoff debacle.

Otherwise, the SEC only seems interested in protecting well-connected people and the entities they represent, the larger securities firms, its cronies, and in covering up for its gross negligence and possible criminal complicity as evidenced infra.

***The SEC and SEC Enforcement Division Attorneys, John M. McCoy, Molly M. White, and Leslie Hakala (hereinafter the SEC Enforcement Division Attorneys will collectively be referred to as "SEC Attorneys") are grossly negligent and possibly criminally complicit for breaching their mandated duties -- which are to oversee the securities markets, enforce the federal securities laws, and protect investors -- pertaining to Civil Action No. 08-CV-0437, Securities and Exchange Commission vs. CMKM Diamonds, Inc. et al, Complaint, 4-7-08, United States District Court, District of Nevada (Civil Action), which pertains to the pump and dump fraud (fraud) of the previous CMKM management (fraudsters); the SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for causing said fraud to continue and perpetuate, and therefore they contributed to the losses suffered by CMKM victims; furthermore, the SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for causing said Civil Action to be rife with contradictions, inconsistencies, and discrepancies, all of which ultimately render it incomplete, inaccurate, and inadequate.

1. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their disregard of the findings of their investigations and for their disregard of the red flag pertaining to said fraud:

In a fax dated 5-26-03, from Lindsey S. McCarthy, staff attorney for the SEC, to 1st Global Stock Transfer, McCarthy mentions James Kinney, a subsequent defendant in said Civil Action, which proves the SEC and the SEC Attorneys were aware of James Kinney's suspicious activities pertaining to CMKM five years before they filed said Civil Action against him.

In 2-8-05, the SEC and the SEC Attorneys investigate the involvement of Silver State Bank in CMKM's pump and dump fraud, which proves they were aware of the pump and dump fraud more than three years before they filed said Civil Action.

The SEC and the SEC Attorneys were aware of a twentyfold increase in the average trading volume in CMKM stock from 8-03 to 4-05, which proves they was aware of the suspicious activities almost five years before they filed said Civil Action.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would not have disregarded the findings of their own investigations and the red flag, both of which caused the fraud to continue and perpetuate; instead, they would have regarded the pertinent evidence which would have reasonably led to their charging and prosecuting the fraudsters in a timely manner.

2. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for making allegations in said Civil Action that contradict the sworn testimonies of the infra deposers at their SEC depositions:

In said Civil Action, the SEC and the SEC Attorneys allege that "To divert attention from their own dumping of CMKM shares, Casavant persuaded CMKM's investors that the reported high trading volume in CMKM stock reflected extensive "naked short selling" rather than ordinary stock dilution."

According to the sworn testimony of former CMKM Attorney Donald Stoecklein at his 1-24-06 SEC Deposition, Donald Stoecklein testifies that Jim DeCosta, a naked short expert from Oregon with 25 years experience, told both current CMKM Attorney Bill Frizzell and him that a 14 to 1 short position exists in CMKM stock.

Furthermore, Donald Stoecklein testifies that they obtained a NOBO list from Automatic Data Processing and the number of CMKM shares on that NOBO list exceeded the number of CMKM shares on the list of First Global Stock Transfer, which in turn means that naked short sellers exist.

According to the sworn testimony of Bill Frizzell at his 1-06-06 SEC Deposition, Bill Frizzell testifies repeatedly that CMKM was illegally naked shorted.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have subpoenaed Jim DeCosta for his evaluation of the short position that exists in CMKM's stock and subpoenaed Automatic Data Processing for CMKM's NOBO list, both of which could have reasonably led to the discovery that "the reported high trading volume in CMKM stock" could have "reflected extensive "naked short selling"" in addition to "ordinary stock dilution;" and they would have subsequently added the illegal naked short sellers as defendants in said Civil Action or filed a new civil action against them and prosecuted them on behalf of CMKM victims.

3. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for making allegations in said Civil Action in which discrepancies exist:

In said Civil Action, the SEC and the SEC Attorneys allege "Over a twenty-month period, CMKM improperly issued up to 622 billion shares of purportedly unrestricted stock based on both written authorizations and attorney opinion letters."

Furthermore, the SEC and the SEC Attorneys allege that "Using approximately 34 different brokerage accounts at NevWest, Edwards sold almost 260 billion shares of CMKM stock from March 2003 through May 2005, generating proceeds in excess of $53.3 million."

Unfortunately for the SEC and the SEC Attorneys, the discrepancy between 622 billion shares and 260 billion shares leaves approximately 362 billion purportedly registered/unrestricted CMKM shares that they fail to account for in said Civil Action.

Because John Edwards was the only defendant in said Civil Action who utilized accounts at NevWest to sell his unregistered/restricted shares, the SEC and the SEC Attorneys obviously can't account for those 362 billion purportedly registered/unrestricted CMKM shares without implicating the larger securities firms such as Knight Trading Group, Ameritrade, E-Trade, and Jeffries and Company.

Moreover, NevWest is not a self-clearing firm. Instead, it must clear its certs through clearing firms such as Wells Fargo and Dain Rauscher that have a contractual relationship with the Depository Trust and Clearing Corporation.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have accounted for the entire 622 billion shares, which could have reasonably led to the discovery that the larger securities firms and clearing firms were implicated in the fraud; and they would have subsequently added them as defendants in said Civil Action or filed a new civil action against them and prosecuted them on behalf of CMKM victims.

4. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their disregard of the findings of their investigation regarding the involvement of Silver State Bank in said fraud:

Mark Faulk, former CMKM CEO, wrote an article entitled, "Silver State Bank: What’s Deposited in Vegas Doesn’t Stay in Vegas."

Excerpts from said article:

"In yet another bizarre development in the saga of CMKM Diamonds, better known as CMKX, one of the largest financial frauds in history, Andrew McCain, the son of presumptive Republican presidential candidate John McCain, resigned from the Board of Directors of Henderson, Nevada based Silver State Bank, the bank where hundreds of millions of dollars was deposited as it was stolen from CMKX shareholders.

"But a little diamond mining company from Canada that turned out to be the biggest penny stock fraud in history might become a major problem for McCain’s campaign as well. Insiders with CMKX defrauded over 50,000 shareholders of in excess of $250 million. A large portion of that money was run through a single Silver State Bank branch in Las Vegas. In all, former CMKX CEO Urban Casavant and reputed mastermind John Edwards (no, not that John Edwards) opened over 100 bank accounts at Silver State, and ran tens of millions of dollars through the bank."

John Smith, columnist for the Las Vegas Review Journal, submitted on 2-8-05, a column entitled, "Company dangles lure of diamonds, but transactions hook SEC."

Excerpts from said column:

"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."

According to the sworn testimony of Donald Stoecklein in his 01-24-06 SEC Deposition, Donald Stoecklein testifies that Silver State Bank was the object of criminal proceedings.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have regarded the findings of their own investigation, which could have reasonably led to the discovery that Silver State Bank and possibly Andrew McCain were implicated in said fraud; and they would have subsequently added them as defendants in said Civil Action or filed a new civil action against them and prosecuted them on behalf of CMKM victims.

5. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their failure to investigate the allegations of the "two broker dealer customers of Jefferies:"

According to the "Jeffferies Letter," dated 5-6-05, Jefferies and Company failed to report certain trades in CMKM in 3-04, which amounted to 111 billion CMKM shares, and involved "two broker dealer customers of Jefferies" who requested that trades in CMKM be settled "Ex-Clearing," which are trades that are cleared outside a clearing house and therefore are unreported. The "two broker dealer customers of Jefferies" allege they were long sellers.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have investigated the allegations of the "two broker dealer customers of Jefferies," which could have reasonably led to the discovery that the "two broker dealer customers of Jefferies" were illegal "naked short sellers" rather than "long sellers;" and they would have subsequently added Jefferies and Company and the "two broker dealer customers of Jefferies" as defendants in said Civil Action or filed a new civil action against them and prosecuted them on behalf of CMKM victims.

6. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their disregard of the sworn testimony of D. Roger Glenn at his SEC depositions:

The SEC and the SEC Attorneys take the sworn testimony of D. Roger Glenn in two depositions pertaining to the fraud that was perpetrated by the fraudsters.

According to the sworn testimony of D. Roger Glenn at his 07-19-06 SEC Deposition, D. Roger Glenn testifies that he worked as an Enforcement Division Attorney for the SEC in 1980 and 1981.

D. Roger Glenn further testifies that only Urban Casavant requested that he prepare opinion letters.

D. Roger Glenn's testimony was a lie because Helen Bagley, owner of First Global Stock Transfer (CMKM's transfer agent) also requested that he prepare opinion letters.

D. Roger Glenn further testifies that he wrote an opinion letter that authorized Nevada Minerals to receive 2.7 billion nonrestricted shares of CMKM stock that should have been issued on 9-8-02.

D. Roger Glenn's testimony was a lie because Nevada Minerals wasn't even incorporated until 12-19-03.

CMKM waived its attorney/client privilege. Bill Frizzell, attorney for CMKM, was present at the 10-23-07 SEC Deposition of D. Roger Glenn.

According to the sworn testimony of D. Roger Glenn at his 10-23-07 SEC Deposition, D. Roger Glenn testifies that First Global Stock Transfer would return as CMKM's transfer agent again only if Helen Bagley didn't have to deal with Brian Dvorak, whom she allegedly disliked. D. Roger Glenn testified that she had no concerns about the validity of Dvorak's opinion letters.

D. Roger Glenn's testimony was a lie as evidenced by the following letter, dated 7-29-04, from Helen Bagley to D. Roger Glenn:

"I have enclosed several legal opinions that were done by Mr. Dvorak for CMKM Diamonds, Inc. I would appreciate if you would review these opinions and give First Global Stock transfer a letter to the fact that these opinions are valid. This was a point I made to Mr. Casavant when we accepted back CMKM Diamonds that we would want your approval on any of Mr. Dvorak's letters."

Despite the following red flags:

Helen Bagley alleges Brian Dvorak was issuing CMKM shares without authorization;

D. Roger Glenn admits in his testimony that he never had another client neglect to issue shares for over 2 years;

Alan Treffry, a CMKM shareholder, alleges fraud;

CMKM was issuing shares to 300 people to whom it had neglected to issue shares two years previously;

D. Roger Glenn felt it was unnecessary to check the validity of the documentation that Brian Dvorak used to write his opinion letters, never contacted the recipients of the share issuances to validate the issuances, never felt that CMKM could have been lying about the share issuances.

According to the sworn testimony of Donald Stoecklein in his 01-24-06 SEC Deposition, Donald Stoecklein testifies that Brian Dvorak lacked a basis for his opinion letters.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have regarded the sworn testimony of D. Roger Glenn at his SEC depositions, which could have reasonably led to the discovery that D. Roger Glenn was implicated in the fraud; and they would have subsequently added him as a defendant in said Civil Action and prosecuted him on behalf of CMKM victims.

7. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for making allegations in the infra Summary Judgments pursuant to said Civil Action that contradict the infra Regional Triaxial Aeromagnetic Survey Assessment Work Report (Drilling Report) and the expert evaluation of N. Ralph Newson, M.Sc., P. Eng., P.Geo., (Newson):

On 6-24-09, the SEC and the SEC Attorneys file Motion for Summary Judgment Against Defendant John Edwards (#991), Motion for Summary Judgment Against Defendant Daryl Anderson (#102), and Motion for Summary Judgment Against Defendants Kathleen and Anthony Tomasso (Summary Judgments) pursuant to said Civil Action.

In said Summary Judgments, the SEC and the SEC Attorneys allege, "CMKM provided investors with phony maps and fabricated videos of alleged mineral claims in North and South America."

On 5-16-05, CMKM announces in a PR that it possesses the Drilling Report prepared by William Jarvis (Jarvis) on the Fort a la Corne Diamond Project pertaining to CMKM's valuable mineral claims in Saskatchewan, Canada.

The Drilling Report was commissioned for CMKM by 101047025 Saskatchewan Ltd. Jarvis was asked to report on and make recommendations for the kimberlite exploration program. The scope of work completed includes:

1. a review of the Geological setting as it relates to kimberlite and diamond exploration;

2. an examination of the geological and data provided by the CMKM;

3. a review of published geological reports and maps;

4. a visit to the area of the concession.

The following are excerpts from the Drilling Report by Newson on the Fort a la Corne Diamond Project:

"Drilling results and additional ground magnetic and gravity surveys have shown the best known kimberlite bodies to be bedded, and to have a very different shape from most known kimberlite bodies. In most of the well-known diamond mines in Africa, for example, and in those in the NWT in Canada, the upper portions of the kimberlites bodies have been eroded, leaving only the feeder pipe, which has a "carrot" shape, getting smaller in diameter with depth. However, in the Fort à la Corne swarm, the tops of the kimberlitic volcanic edifices are completely preserved, and they are shaped more or less like a soup bowl, with two larger horizontal dimensions, and one smaller vertical dimension. Several of these have an inferred geological resource (based on a few holes and on geophysical modeling) in excess of 100 million tonnes, one has nearly a billion tons, and one group of five which are close together, or perhaps coalescing, contain about 2 billion tons of kimberlite. There are thus huge volumes of kimberline within a few hundred metres of the surface." [emphases added by author]

"The Fort à la Corne swarm of kimberlitic bodies is the largest swarm known in the world, and some of the bodies are the largest known such bodies in the world." [emphases added by author]

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have subpoenaed both Jarvis and Newson and investigated the Drilling Report, all of which could have reasonably led to the discovery that the maps were not "phony," the videos were not "fabricated," and the mineral claims were not "alleged;" and they would have subsequently secured and validated CMKM's valuable mineral claims on behalf of CMKM shareholders.

***The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for breaching their mandated duties pertaining to Grand Jury Superseding Indictment 2-09-CR-00132-RLH-RJJ, United States of America vs. John M. Edwards et al, 5-27-09, United States District Court, District of Nevada, and Second Superseding Indictment 2-09-CR-00132-RLH-RJJ, United States of America vs. John M. Edwards et al, 3-24-10, United States District Court, District of Nevada, both of which pertain to said fraud. Their gross negligence and possible criminal complicity cause said Superseding Indictments to be rife with contradictions, inconsistencies, and discrepancies, all of which ultimately render them incomplete, inaccurate, and inadequate.

1. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their failure to provide the Grand Jury with the following names to subpoena -- Jim DeCosta, and Broadridge -- and with the 1-24-06 SEC Deposition of Donald Stoecklein and the 1-06-06 SEC Deposition of Bill Frizzell, all of which pertain to CMKM's being illegally naked shorted;

In its said Grand Jury Superseding Indictment, the Grand Jury charges that: "...To create the appearance of an active and established market for CMKM stock, and to disguise the fact that the conspirators were virtually the only sellers of CMKM stock..."

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have provided the Grand Jury with the supra names to subpoena and said depositions to investigate, all of which could have reasonably led to the discovery "that the conspirators were" not "virtually the only sellers of CMKM stock...;" and the Grand Jury would have subsequently added the illegal naked short sellers, the larger securities firms, and clearing firms as defendants in said Superseding Indictment and the United States Department of Justice, District of Nevada (DOJ), would be prosecuting them on behalf of CMKM victims; or the DOJ would have filed a new criminal action against them and would be prosecuting them on behalf of CMKM victims.

2. The SEC and the SEC Attorneys are grossly negligent and possibly criminally complicit for their failure to provide the Grand Jury with the sworn testimony of D. Roger Glenn at his SEC depositions in which they caught him telling numerous lies:

In its Second Superseding Indictment, the Grand Jury lists additional defendants, but fails to list D. Roger Glenn as a defendant.

If the SEC and the SEC Attorneys had performed their mandated duties with even a modicum of due care, they would have provided the Grand Jury with the sworn testimony of D. Roger Glenn at his SEC depositions, which could have reasonably led to the discovery that D. Roger Glenn was implicated in said fraud; and the Grand Jury would have subsequently added D. Roger Glenn as a defendant in its Second Superseding Indictment, and the DOJ would be prosecuting him on behalf of CMKM victims