OT: Don Stoecklein ,what has he been up to ?

[JoeRockss]

Don Stoecklein ,what has he been up to

gangusgreen
DIAMOND JEDI WARLORD
Member since: November 2005
I am going to shoot them varmits!
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Post by gangusgreen on 23 hours ago

The current president, Donald Stoecklein, first showed up in 2010. Initially brought in as a securities and exchange specialist, Stoecklein has since taken the lead on the rail line. Stoecklein also has somewhat of a checkered past. He has been warned by the Securities and Exchange Commission as well as accused of wrongdoing in a stock scam involving CMKM Diamonds.

www.sandiegoreader.com/news/2014/jul/18/ticker-sort-grateful-deads-casey-jones/#

I got this alert because of CMKX being mentioned ,weird read . Gangus




Trouble ahead, trouble behind
1 1 Uncovered document tells of desert railway drug-smuggling bust in 2010
By Dorian Hargrove, July 18, 2014

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Email Story alerts Letter to Editor Pin it Would officials at Metropolitan Transit System knowingly lease a public asset to a company that was penalized for smuggling drugs across the border? It appears so.

According to a “Notice of Penalty” obtained by the Reader, in August 2010, Carrizo Gorge Railway was slapped with a $1.6 million dollar fine after Customs and Border Protection officers discovered 202 pounds of marijuana stashed in an empty railcar. Carrizo Gorge Railway has since changed its name and is now known as Pacific Imperial Railroad; however, the principals for that company have remained the same.

"On August 23, 2010, Carrizo Railway Inc. manifested railcars BNSF 469335 and BNSF 473568 as empty railcars entering the U.S through the Otay Mesa Railyard. Inspection by CBP officers revealed 91.8 kilograms of Marijuana concealed in the bottom of the hoppers," reads the Notice of Penalty received on October 4, 2010.

The appearance of the penalty for smuggling drugs across the border comes one day after the Metropolitan Transit System board of directors discussed the item during their monthly meeting.

During that meeting, despite numerous allegations of fraud and no progress on getting the rail line up and running, officials and boardmembers at Metropolitan Transit System stood their ground, describing the principals as "entrepreneurs" and patting themselves on the back for entering into a $1-million-a-year lease with Pacific Imperial Railroad for rights to use a portion of the binational railroad, the 70-mile-stretch of track running from Division to Plaster City.

"[Pacific Imperial’s] principals are entrepreneurs," said Metropolitan Transit System chief Paul Jablonski at the July 17 meeting. "The contract is in good standing."

Jablonski celebrated the fact that the transit system is now making money on what is and has been an inoperable line. Boardmembers such as county supervisor Ron Roberts gave his support to Jablonski, criticizing a member of the public for questioning Jablonski's judgement.

"I am insulted by the words used in the press and insulted by the accusation that [Paul Jablonski's] job would be in danger because of some press coverage. For years, we have made no money on the Desert Line and nothing has happened despite lots of promises. $1.5 million helps our budget and I have a strong interest in seeing the payments continue. I hope they’re successful; I wouldn’t even recognize them if they were here. They are investing real money in MTS, and I hope this continues despite claims made without substantial evidence. We have an existing contract. Others can be cavalier about the finances, but we can’t. Karen [Landers] and [Jablonski] have done a tremendous job on this issue."

The new information regarding the smuggling of weed across the border, however, has never been mentioned. It is unclear if Jablonski or anyone else at MTS were aware of the incident.

Regardless of whether the MTS chief was aware of the drug bust, they have been made aware of what appears to be shady histories for those running Pacific Imperial Railroad, the same people who took part in the takeover of Carrizo Gorge Railway in 2007.

Charles McHaffie, the ringleader, has been named in dozens of lawsuits, including several for scamming investors of the railroad, namely Gina Seau and Mark Arabo and colleagues. McHaffie was also slapped with a fine by the San Diego Ethics Commission for his involvement in an illegal political action committee.

The current president, Donald Stoecklein, first showed up in 2010. Initially brought in as a securities and exchange specialist, Stoecklein has since taken the lead on the rail line. Stoecklein also has somewhat of a checkered past. He has been warned by the Securities and Exchange Commission as well as accused of wrongdoing in a stock scam involving CMKM Diamonds

And then there was onetime CEO and attorney James Warner. Earlier this week, Warner admitted to stashing $100,000 in drug money for a client. Just two months before the drug bust at Otay Mesa, Warner served as general counsel for Carrizo Gorge Railway, according to shareholder minutes from a April 26, 2010, meeting. Following his involvement in the railway, Warner went on to specialize in medical marijuana law. He also was named in a lawsuit brought by Gina Seau for allegedly scamming her out of $2.5 million.

In recent weeks, MTS has come under fire in the media as well as from congressmen Duncan Hunter and Jeff Denham, both of whom sent letters expressing concern about MTS' handling of the line.

After learning of the drug bust, Hunter's spokesperson Joe Kasper had the following to say:

"This whole situation is proving that at times, the truth can actually be stranger than fiction. Quite often, where there’s smoke, there’s fire and it’s the Congressman’s concern that based on initial findings alone, [Pacific Imperial Railroad] needs to be seriously scrutinized — which MTS should have done but appears not to have taken much interest in doing. What needs to be put forward by MTS is [the railroad’s] qualifications to run the Desert Line, the solvency of [the railroad] and its list of assets beyond three rail cars, in order to prove they are in this for the right reason. The Desert Line is a public asset and MTS should care about more than collecting modest revenue off a lease — especially with the potential the Line presents."

Officials from MTS issued this response in time for publication: "MTS is generally aware of an incident several years ago regarding smuggling of drugs onto a train originating in Mexico and crossing the US Border at San Ysidro, where US Customs and Border Protection (CBP) officers discovered the contraband during the inspection process. MTS has no knowledge of the outcome of that case, except that the CBP inspection process worked as intended and detected the smuggling attempt. There is a risk of smuggling at all international border crossings. CBP applies significant resources for prevention and detection efforts along the San Diego-Mexico border. MTS cooperates with CBP’s efforts by giving CBP officers access to MTS property for inspections and patrols.

"In addition, the Desert Line lease agreement requires Pacific Imperial Railroad to submit an anti-smuggling and customs enforcement plan that fully complies with federal laws prior to any freight operations commencing. In compliance with that contract requirement, PIR has been in contact with CBP regarding the inspections process and requirements for the start of Desert Line operations. MTS expects there will be a continuing dialogue between PIR and CBP about how to best ensure a safe and reliable binational freight line."

Donald Stoecklein responded, "[Carrizo Gorge Railway] and [Pacific Imperial Holdings] preceded PIR. PIR only acquired the left over assets of [Carrizo Gorge Railway] in 2011. I have no knowledge of that [drug bust]. When did it occur??"

Evidence suggests that Stoecklein was present at board meetings in the months preceding the bust.

I am awaiting word from Customs and Border Protection on the investigation and whether the fine has been paid.

[JoeRockss]

diamondcg
Mod Squad
Posts: 10,605
20 hours agoseagull likes this.
Post by diamondcg on 20 hours ago

Interesting, he was president of the Ethics Committee , and a shaded past with CMKM

diamondcg






snifferpup
Mod Squad
16 hours agoRoughCut and seagull like this.
Post by snifferpup on 16 hours ago

The only warning I'm aware of to Don Stocklein was what Bill Frizzell stated what happened in camera with the SEC officials warning not to try a market cover based in counterfeit securities.........................................I'm also unaware of an accusation of wrongdoing in CMKM Diamonds Inc..........................If someone can show me were these 2 things happened officially, that would enlighten me like a 4 inch T-Bone steak~

He has been warned by the Securities and Exchange Commission as well as accused of wrongdoing in a stock scam involving CMKM Diamonds.







RoughCut
DIAMOND JEDI WARLORD
14 hours agoportrush, flyingj and 5 more like this.

Agreed Pup, this is the first I've read or heard about this "accusation" and I certainly don't think its off-topic.

So another of the insiders/associates of CMKX is getting negative public exposure. Add this Stoecklein report by the San Diego Reader to the list of insiders charged with "conspiracy to commit fraud" in the criminal case, with one already pleading guilty, and the shareholders appear to the public as victims of a classic penny stock pump and dump scam.

Look a little further and the record civil suit of 3.87 trillion dollars was not even covered by the mainstream media and was later dismissed and the appeal not heard by the SC. And the attorney who brought the suit wrote letters to the Queen of England, the Chinese Leaders, and others for help. And Rolling Stone financial writer Matt Taibbi, who wrote negative articles about the largest and most powerful banks in the world, stated CMKX was one subject he would not write about.

There are other items but you get my drift. We appear in print and the internet to be a scam. Well what about the message boards and paltalk rooms about CMKX one might ask? And what if they disappeared I ask? Where are the arguments about the sting now with nothing to refer to? I am a little paranoid after 10 years of this I admit but it sure don't look good to me with the direction this is going...unless.

I am hoping we are getting close to a quiet private payout with signed NDA. There are not many out there who would believe us anyway. I know a huge payout would alert a lot of people to something but cover stories could be written or we just might get smaller payouts over years.

Folks, we have been kept around for 10 friggin years for something --- I chose to believe its for good and not bad.

[John Winston Lennon O'Boogie]

Slow day for some old News..

Dean Heller, Shelley Berkley Spar Over Diamond Scam
Posted: 08/16/2012 9:00 am Updated: 08/16/2012 11:24 pm

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.Follow: Elections 2012, Video, CMKM Diamonds, Dean Heller, Dean Heller CMKM, Shelley Berkley, Nevada Senate 2012, Nevada Senate Race, Shelley Berkley Ethics, Politics News . WASHINGTON -- Sen. Dean Heller (R-Nev.) probably never thought driving a pal's race car in 2004 could prove a campaign liability. But the joyride seems to have sparked the latest attack in Nevada's Senate race, in the form of a TV ad from his Democratic opponent, Rep. Shelley Berkley.

The spot, released late last week and roundly condemned by the Heller campaign, features Heller -- who was Nevada's secretary of state before moving to Congress in 2007 -- boasting of the job he did cracking down on fraud. It then notes that a diamond mine company allegedly carried out a $64 million fraud scheme under Heller's watch, and that Heller got a campaign donation from one of the players.

The company was called CMKM Diamonds Inc., and was found liable for selling some 800 billion shares of stock for fractions of a penny each -- nearly all of them unregistered and ultimately worthless. The firm's founder, Urban Casavant, and nine others ended up getting indicted in 2009 and 2010 by a federal grand jury in Nevada. Casavant, from Canada, is now a fugitive, the FBI said. Others also are fugitives; at least one was overseas, fighting extradition. The trial is set for January.

CMKM Diamonds, which had claimed to be digging for gems in Canada's Saskatchewan province, was also known as CMKX, the sponsor of the CMKXtreme racing series.

That's where Heller's race car ride comes in. On Oct. 30, 2004, as Heller's campaign explained it, Heller took the opportunity offered by an acquaintance, Matt Daly, to drive in the ASA Speed Truck Challenge at the Las Vegas Motor Speedway's “Bullring.” Heller, an experienced racer, knew Daly from the circuit in Northern Nevada.

The event was sponsored by CMKX, which also had its logo on Daly's cars and reportedly invested heavily in Daly's "Go Fast" racing and sports drink companies. CMKM used its race sponsorships to build credibility and left thousands of NASCAR fans with worthless investments, according to federal documents. Heller knew nothing of CMKM, his campaign said, and was simply at the race to "have fun" driving his friend's car, according to an interview he gave at the time.

But by the time Heller drove in CMKM's race, the firm, which registered in Nevada in 2002, was attracting the attention of authorities and was the subject of intense debate in online investor forums. One stock analysis site, the StockPatrol.com, was raising questions, some of them directed at Heller's office. Such questions are apparently routinely handled by staffers, although Stock Patrol reported the office was swamped with requests about the company.


Just four days before Heller had his Vegas racing debut, Canadian officials suspended trading of CMKM.

There is no indication that Heller was aware of the furor around the company. Though Heller had long sought to beef up his office's role in policing securities, such investigations are generally handled by the state attorney general. Corporate registrations in Nevada also number in the tens of thousands every year, and are handled almost automatically.

Still, the company was trading billions of shares a day, and blasted out press releases touting Heller's participation in the race. Some saw that as proof that the company was legit. Others, including Heller opponents, eventually saw it as possible evidence that Heller wasn't doing his job. Heller, according to his campaign, knew nothing about CMKM and never heard that his name was being used to promote the company.

"Dean Heller had absolutely no idea about these materials until this nonsense was being shopped around to reporters by Democratic operatives," the campaign said in a statement. "If he had, as soon as he had found out, he would have immediately asked for a cease and desist."

That wasn't the only brush Heller had with CMKM. After the U.S. Securities Exchange Commission began investigating the firm -- suspending its trading in March 2005 -- Heller scheduled a meeting in April with Urban Casavant at a Vegas hotel, listing it on his calendar as a meeting with "Urban."

Heller's campaign said neither the former secretary nor four members of his staff could recall the meeting or Casavant.

However, according to court records from the SEC case against CMKM, a lawyer for the company, Don Stoecklein, does recall a sit-down Heller held with Casavant and several others, including Bob Maheu, a Nevada legend who once served as Howard Hughes' right-hand man and had recently joined the board of CMKM.

They were looking for help sorting out the complicated issue of who actually owned the company and the billions of stock shares that were sold under the Nevada registration. According Stoecklein's sworn deposition, Heller declined to offer any advice to Casavant, saying "the problem may be far greater than the state wanted to get involved in at that point."

Stoecklein also said Heller did not know Casavant.

It is unclear whether the hotel meeting and the meeting with Maheu, Casavant, Stoecklein and at least one other person are the same, or two separate encounters.



"While Dean Heller does not remember this meeting, court transcripts show that Dean Heller did not have a relationship with the individual in question," Heller's campaign said. "Senator Heller was never contacted or questioned during the SEC investigation because he had no involvement or relationship with the company."

The Berkley campaign's ad points out one more connection -- $4,200 in contributions given to Heller in June 2005 by a man named Rendal Williams, who ran a company called U.S. Canadian Minerals Inc. Berkley's ad calls him a co-conspirator, although Williams was not indicted. His firm was mentioned in great detail in the indictment, however, which alleged it was a "shell" for CMKM that before January 2004 had been known as E-Bait Inc.

The indictment was not filed, however, until nearly four years after the contributions, and Heller's camp was especially angered by the co-conspirator line.

"Obviously, Shelley Berkley’s lies about Medicare are not working, so now she is inventing new ones," said Heller spokeswoman Chandler Smith in a statement. "Congresswoman Berkley is a desperate politician whose ambitions are being destroyed by her own ethics problems. This is a story that Shelley Berkley has been trying to sell to reporters for months, but no one would buy it because there were no facts to support her allegations. So now she has resorted to running a blatantly false negative attack in a desperate attempt to create more fiction."

Berkley herself is embroiled in an ethics probe, and some observers beyond the Heller campaign see her ad as attempt to tar Heller, a Mormon who teaches Sunday school, with ethics issues.

Noted Nevada political scribe Jon Ralston saw the issue in a similar light, hammering a fellow columnist at his paper for taking the charges seriously, saying in his morning political email that it was "drawing a still-tenuous connection between Sen. Dean Heller and a fraudster. Really? Because a bad guy invested in a company owned by a guy who Heller raced for, this is a scandal?" He added that the link was "ridiculous."

Though the CMKM probe was big enough that Heller might have known about it, no one pointed to evidence that he actually did. The only person who said he thought Heller should have known is Mark Faulk, a reporter who literally wrote the book on CMKM, and as a result served for a year as the company's CEO during the attempts to clean up the mess in the aftermath of the SEC charges.

"I would agree that it's probably overreaching to say there's evidence that Heller knew about the fraud at CMKM Diamonds. It's not overreaching to say he should have known," Faulk said.



Heller's campaign vehemently disagreed. Regardless, Heller probably wishes he was never photographed racing a souped-up truck with the CMKM logo on it and touted in a press release that could later be used against him.

Michael McAuliff covers Congress and politics for The Huffington Post. Talk to him


www.huffingtonpost.com/2012/08/16/dean-heller-shelley-berkley-diamond-scam_n_1776794.html