***NSS Cover Rules According to SEC*** Email

[imSINGLEruRICH]

swmiller3
DIAMOND JEDI MASTER
***NSS Cover Rules According to SEC***
« Thread Started on Today at 2:26pm »

I sent an email to the SEC and asked them if a delisted company can still have their NSS covered without trading on any market.

Here is the answer. It came from Ann Sulzberg (SEC)......

"If a security's registration has been revoked by the SEC, then no broker-dealer can effect a transaction in the security (even if there is buying and selling among the holders of the securities). Shares should not settle through NSCC’s CNS system(Continuous Net Settlement System) and should be removed from the threshold list. In short, there are no Regulation SHO closeout requirements for fails in securities which are not on the threshold list."


.......In other words, shorty does not have to cover our NSS since we are delisted and no longer on the threshold list. We must get back to trading status if we are to stand a chance of making shorty cover the NSS now that the Grandfather Clause has been shut down.

If you will remember, Kevin touched on this in his Sept. 6 FAQ.

So there it is folks. I have received 2 emails from the SEC in the last 2 weeks. The first one talked about stockholder rights with a delisted stock....which according to the law, we pretty much do not have any rights. And the second concerns the NSS being covered for a delisted stock...and the answer to that is, shorty doesn't have to cover a delisted stock that is no longer trading or on the threshold list.

This is not my opinion, but instead comes straight from the SEC.

My best to you all!

To add to this........

My feeling is, since shorty no longer had to cover our NSS after we were delisted, then that means shorty has known since 2005 (when we were delisted) that they were safe. So, IMO, either UC made a deal with shorty "before" we were delisted and UC has been sitting on the money for almost 2 years.....or there was no deal struck and shorty has known for almost 2 years that he was free and clear (as far as CMKX is concerned).

IMO


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[soonerlew]

Hello Canoe, SWMiller, and Anyone who is interested,

Good to hear from you.

The SHO/FINRA Rule 3210 Threshold Security List covers both reporting and non-reporting securities for Pink Stock Companies. Urban Casavant informed the SEC if CMKX was revoked or suspended that CMKX would trade as a non-reporting Pink Stock. CMKM Diamonds as we know had Donald Stoecklein and his staff, one of the best knowledgeable Federal Securities Attorneys. CMKX was revoked, but still settled the NSS or the FTD prior, during, and after the cert pull. Though the NSS problem is being downplayed now, it wasn’t before and at the beginning of the cert pull. Payments for the certs were collected, that is the main reason why we are not on the Threshold List, imo. We know there were transactions after the revocation.

Unfortunately there are many NSS and FTD shares outside the U.S.. The overseas shares are difficult to settle because of the jurisdiction. The CMKX NSS and FTD got out of hand. The SEC is investigating this stock and Urban to make sure all was done properly on CMKM’s part of the house. We had a remarkable team representing the company and the Bona Fide Stockholders. No one abandoned us; we are still here, as well as the barometer, the bashers. Everybody worked too hard to just let the guilty parties off the hook. The certs were covered. I believe the brunt of the work was accomplished by October 20, 2005. What was left was the mopping up procedures. This excerpt from the SEC filing explains the excuse for the key figures departure. Notice the portion which explains Mr. Maheu has agreed to lend his assistance to CMKM and its stockholders as a consultant, trustee, or in any other capacity as needed during the winding up of CMKM’s affairs.

“On October 20, 2005, Mr. Robert A. Maheu notified CMKM of his resignation as a member and Co-Chairman of the Board of Directors. His resignation was effective as of 10:00 a.m. on October 20, 2005. CMKM believes it is in the best interest for the company to accept Mr. Mahue’s resignation as a director due to CMKM’s current lack of funds to continue its operations and in anticipation of a distribution to CMKM stockholders of the anticipated receipt of the Entourage stock, whereby Mr. Maheu has agreed to lend his assistance to CMKM and its stockholders as a consultant, trustee, or in any other capacity as needed during the winding up of CMKM’s affairs. Additionally, Mr. Maheu has agreed to waive his rights to any past financial obligations due him from CMKM.”

www.secinfo.com/$/SEC/Filings.asp?CIK=1092299&Find=maheu&Page=All&List=Hits&Show=Each



Regulation SHO/FINRA Rule 3210 Threshold Security List
A threshold security is any equity security that has a significant fail to deliver position for at least five business days. The threshold qualifications are different for SEC reporting issuers and non-SEC reporting issuers. This difference is largely due to the fact that reliable outstanding share information in not universally available for non-SEC reporting issuers.
Regulation SHO defines threshold securities as any equity security of an issuer that is registered under Section 12, or that is required to file reports pursuant to Section 15(d) and where, for five consecutive settlement days:
there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; and
the level of fails is equal to at least one-half of one percent of the issuer's total shares outstanding


FINRA Rule 3210 defines threshold securities as any equity security of an issuer that is not an SEC reporting security and, for five consecutive settlement days, has:
aggregate fails to deliver at a registered clearing agency of 10,000 shares or more; and
a reported last sale during normal market hours (9:30 a.m. to 4 p.m., ET) for the security on that settlement day that would value the aggregate fail to deliver position at $50,000 or more.
A security ceases to be a threshold security if it does not exceed the specified level of fails for five consecutive settlement days.www.pinksheets.com/pink/marketactivity/reg_sho_list.jsp


All the best,
BHollenegg

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[soonerlew]

Howdy BHollenegg

Very interesting thoughts. I am also of the opinion that SHORTY has paid but obviously we have not been taken care of. Not yet.

As far as the threshold list.

SHO went into effect Jan 2005 at which time NO non reporting issue would qualify for the Threshold List under regulation SHO.

CMKX was revoked Oct 2005.

Rule 3210 wasn't approved until April 2006 with an effective date of July 2006. Well after CMKX revocation.

I haven't seen in the rule where it specifies whether it also covers revoked stocks or only those that are actually trading. However 3210 can be eliminated for the first year and a half of SHO at which time CMKX NEVER would have qualified as a Threshold Security. Thats the reason CMKX never made the threshold list. It never qualified. I may be wrong after 3210 but I doubt with it's revocation and non-trading status that CMKX would qualify even then.

IMO this whole SHO joke AND the Grand Father Clause was just a ruse. A delay by the SEC to enable shorty to cover over time because there is no way that the SEC could have pulled their ass out of the fire and fix this over night. They used SHO/GFC to help themselves and shorty, knowing full well it would be repealed at a future date.

There are a hundred other different opinions on this. Just pay us and make them all moot.

take care Bob

canoe





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