By: gusjarvis 25 Sep 2011, 11:07 AM EDT
Msg. 1038696 of 1038704
(Reply to 1038693 by rosencrantz2010)
rosen, I asked fryar to back it and haven't received an answer yet
at least I sent in a package of evidence to hopefully get him to take our case and support the request to go after all the records that are hidden. Given all involved want them hidden, this would be over if we obtained them imo.
I have talked to several lawyers in Canada, one family friend in Vancouver, he inquired for us, and said it is a mess down there and don't quit your day job. He wouldn't take the case.
We are currently about to talk to a couple lawyers to see if they will simply subpoena the evidence we ask for a fee, nothing else as we would go pro se from there. Just getting the records would end this imo. I will let you know what they say.
But this has gone on long enough, we clearly have enough evidence to show the sec aided this fraud, or they ran a sting and are illegally withholding our money, either way that is violating our rights, and all shareholders should take action. But they will do the usual, believe the bullchit that floats around and hope for the best.
.........................
By: gusjarvis 25 Sep 2011, 10:39 AM EDT
Rating: Msg. 1038691 of 1038703
EVIDENCE ADDED TO THE COMPLAINT AGAINST LESLIE HAKALA
I am adding further evidence to support my request for release of records in the CMKX case, as concealing those records is concealing crimes that were committed by SEC staff. Evidence entered to your Commission clearly show the SEC subpoenaed the fraud records of insiders of CMKX, then not only allowed the fraud to continue, but okayed every fraudulent share sale by the known perpetrators.
At the same time, the SEC was fully aware of the the massive sale of unregistered or counterfeit shares by several other brokers. The SEC allowed all those trades to continue for years and the money to be stolen, while they watched very closely per Bill Frizzell.
It is clear that there needs to be an outside agency come in immediately to represent the victims in this case, one which was aided and abetted by the SEC. The SEC clearly is not unbiased due to their direct participation in the fraud itself.
I look forward to immediate action on behalf of all victims, and include this additional evidence to support my request for public release of hidden CMKX documentation and records. Specifically the phone records of NevWest Securities and the SEC, and phone records between Leslie Hakala and Roger Glenn. As well as all trading records and other records already requested.
CMKM Diamonds, Inc. Files Motion to Add Wells Fargo in Lawsuit
March 3, 2010
A “Motion for Leave to File Second Amended Complaint” was filed Friday 2-26-2010 to the CMKM Diamonds, Inc. petition in Case # A-538649 asking the Court to allow the Company to add Wells Fargo, Stacy Ewing, Securities Transfer Agents Medallion Program (STAMP), First Global Stock Transfer, LLC, and Helen Bagley as Doe and Roe Defendants. Wells Fargo was one of the depository institutions for John Edwards at the time Edwards was selling illegally obtained stock. Our investigation has revealed that an officer of Wells Fargo assisted Edwards in obtaining medallion guaranteed signature stamps on a large number of blank documents. These documents were then used as supporting documents given to our transfer agent to have stock issued and in some cases transferred to Edwards, or companies under his control. Edwards Illegal activities occurred at a time that our own transfer agent was receiving cash payments described as loans. Banking records indicate that Edwards also maintained investment accounts at Wells Fargo during this time period. STAMP is a program approved by the Securities Transfer Association that enables participating financial institutions to guarantee signatures. The Medallion programs ensure that the individual signing the certificate or stock power is in fact the registered owner as it appears on the stock certificate or stock power. The failure of Wells Fargo and STAMP to train and supervise those individuals that administer the medallion signature stamps made it possible for John Edwards and others to dilute the company and obtain several hundred billion illegally issued shares to be sold to the public. By comparing the average trading price on the day these illegally issued shares were transferred into the Edwards' accounts, shares so transferred and ultimately sold by Edwards totaled an estimated $57 million dollars.
EVIDENCE THE SEC WAS FULLY AWARE OF THAT FRAUD MENTIONED ABOVE, AND NOT ONLY ALLOWED IT TO CONTINUE, BUT ACTUALLY OKAYED EACH SHARE SALE BY THE PERPETRATORS IN CMKX. HOW DID THE INSIDERS OF CMKX EVEN HAVE SEC CIVIL ACTIONS AGAINST THEM WHEN THE SEC OKAYED THEIR SHARE SALES.
From: <
Subject: Evidence: Dave indicated there are phone records..
To: whitem@sec.gov
Cc: coxc@sec.gov, kotzd@sec.gov
Date: Monday, November 10, 2008, 7:58 PM
Preponderance of the evidence? Phone records would be a problem IMO.
JF.
Here is an earlier cmkm discussion (May 08 on Norris's blog) The threaded discussion includes Floyd addressing D.P. by name.
norris.blogs.nytimes.com/2008/04/....%20patch&st=cse From Dave:
With regards to CMKX, the SEC was fully aware of John Edwards laundering money (unloading unregistered shares) through various accounts at NevWest YEARS before the SEC took action. The evidence is in the phone records of NevWest who contacted the SEC each time Edwards came in with a cert to sell through a different account. Instead of taking action they told NevWest to sell the stock effectively aiding in the fraud of Edwards. Today they fault NevWest for doing so taking no responsibility themselves.
Regarding USXP, Altomare had failed to respond to the SEC’s request for proof for years as well. He only unloaded the majority of shares here at the end. Had the SEC taken control on the initial failures to respond these last bit of injured investors would have been saved.
Personally, I didn’t lose any money in either stock so despite your claims, I was not scammed. I did take responsibility.
My concern has been global on this issue, being just as concerned about the scam artists that use this issue to con people, as I have been about any individual issue. I have been very vocal in this area.
I am also concerned at the speed in which the SEC responds to allegations of fraud. Clearly history has proven that the SEC sits on acts of fraud collecting the evidence far too long which is why most major cases of fraud are initiated by others (State regulators). In the case of USXP and CMKX the SEC is responsible for the victims of billions of unregistered shares sold into this market because they knew it was happening and did nothing.
Those are the facts whether you like to hear them or not.
— Dave
QUOTES FROM MARK FAULK CEO OF CMKM DIAMONDS:
“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 REGARDING THE SEC’S COMPLICITY IN THE CRIME:
“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 certificates 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.html ragingbull.quote.com/mboard/boards.cgi?board=CMKI