Post by imSINGLEruRICH on Feb 18, 2007 3:14:11 GMT -5
swather
DIAMOND MINER
Re: CMKM CIM is intereSTING..
« Reply #11 on Today at 12:11am »
In view of what bhollenegg has posted, I think it is time to review what "Tony, The Fly on the Wall" had to say last April 26/06. very interesting..........
Thread Started on Apr 23, 2006, 2:48am »
After talking to a few of my friends on how nice it would be to be a "fly on the wall" in Bob Maheu's office and find out what is really happening to CMKX. So, I decided to call a friend of mine "Frankie the wall fly". Frankie and I go a long way back......
Frankie, how are you doing man?
Hey, swather, what's up?
Frankie, I need a favour. Find out what is going on with CMKX.
Ah, swather, I can't. It is really hush, hush. But, I hear it is really big.
Frankie, ya, ya, I've heard that already. You owe me one ever since I scraped you off the fly swatter and nursed you back to health.
Ok, ok....I'll give my buddy, Tony the Fly a call. He moved to Washington after we were buddies hanging out around the pizza parlors in Brooklyn. He fell for all those SEC lawyer chicks in Washington.
Two weeks later, Tony called me. I hear you are interested in CMKX?
Yes, I said anxiously.
Well, sit down and listen......here is the whole story.
Several years ago, around 2001 I believe, The DoJ, Dept. of Justice, were completely pissed off at what was going on with the naked shorting in the markets and the subsequent theft from the financial markets of trillions of dollars. They knew these naked shorters ranged from large off-shore hedge funds to small groups of wealthy traders selling though brokers located outside the country in places such as Canada. Also, some of the major Wall St. brokers were carrying on massive naked shorting operations. It was massive fraud being carried on right under the nose of the SEC, DTCC, US Gov't officials, and Congress.
The DoJ wanted something done but they were not sure of the best way to get it done. It had to be done very quietly but efficiently.
The DoJ decided to call in Bob Maheu, probably the most experienced individual there was who could carry out such an operation.....the recovery of $trillions.
Many meetings were held with Bob Maheu until it was finally decided he would have complete control over the operation.
Bob went to his colleagues and discussed how they should put together this operation. It was decided that the only possible way they could recover all this money and not risk financial ruin nor loss of confidence in the market was to put together a good old fashion sting operation.
Impossible said his partners. Listen replied Bob. If we had a company that could attract a lot of buyers and naked short sellers at the same time, we could pull this off. It would be beautiful.
Again, impossible they said. We would need a company with billions of shares outstanding and the only companies that have that many o/s are worthless pink sheet companies, not companies of any value. Also, we would need a company with such a hot product that it would attract thousands of buyers in order to attract the naked shorters at the same time. It just doesn't happen. There is no company out there that meets all this criteria. Meeting ends with no decision.
A few weeks later, Maheu runs into his distant relative Urban Casavant. Urban tells Maheu that he is in Vegas trying to buy out a shell company. Urban explains about all these diamond claims he now controls in the Fort A La Corne area of Saskatchewan which is now the hottest diamond field in the world.
Maheu is overwhelmed and light bulbs are flashing in his head. Is this what he has been looking for?
Maheu sets up a meeting with Urban at his office with all his partners. They explain to Urban about what the DoJ wants and how Maheu has a free hand in carrying out the project. After a few weeks, Urban meets with Maheu and agrees to go along under certain conditions. Not only must Urban make a lot of money, but he wants his family and close friends to make money also. Urban is worried that all the money that can be made off the diamonds may be lost in this DoJ operation.
Maheu assures Urban that everyone will make millions in the end because they are going after $trillions. The agreement is made. Why did Maheu go after Urban's shell?
1/ potentially billions and even trillions of shares could be traded since it was a shell pink sheet stock.
2/ with the diamonds, properly promoted and with the FALC area becoming a hot area, it could attract thousands of buyers to the stock....something that was very important in order to get the number of traded shares thus naked short shares up into the billions and hopefully trillions.
3/ the stock could easily be shown to be a classic "pump and dump". This was important in order to attract the naked short sellers who hit the "pump and dumps" very hard.
With the agreement now in place, it is time to begin the "sting operation". But first, UC wanted to make sure everything was in place share wise. In the early months of 2003, Urban had the printing presses going and issued billions of shares to his close family, distant relatives, close friends, not so close friends, business friends, and anyone else that may have met him. Everthing was now ready to go.
Bob Maheu along with Urban's help was now ready for the operation to go into full swing.....he needed pumpers to spread the word on the chat sites and on RB. CMKX even acquired an IR person who hit the airwaves as well as the chat sites. The pump was on.
Next, Maheu felt that more visibility was required for those not on computers could see the company name. But what was the best method....newspaper ads, too expensive. NASCAR, to expensive and name not shown large enough. golf, tennis or any other sporting event, not satisfactory. Drag racing....hmmmm. It would allow for a cheap sponsorship in comparison, allow Urban to hang out with the car and shareholders, it would allow selected pumpers to hang out and disperse the "latest rumors".
The pump was on and the buyers were buying and the naked shorts were selling. Everything was shaping up.
The next move was to bring on one of the best people in securities law to set up the closure. Maheu brought in Roger Glenn to set the traps. First of all, he fed the naked shorts some more food to chew on by having Urban issue, in Aug/2004, 300 billion more shares. The naked shorts were being sucked in up to their eyeballs thinking this was a classic "pump and dump".
Aug., 2004.......a policy meeting with the DoJ had to be arranged but it had to be at a location where DoJ, Maheu, Roger Glenn, and supporting officials could not be identified.....Saskatoon, Saskatchewan was selected as the meeting place. A strategy was adopted for closing the noose.
1/ dividends of shares CMKX held in other companies would be given out to shareholders.
2/ a policy of non conforming with SEC rules would be adopted forcing the SEC lawyers to seek a revoking of CMKX's registration. This had to happen in order to lock the naked shorts into their position. They could not be allowed to escape through market action. Maheu was out for blood.
3/ Since the SEC and the DTCC were no involved with the DoJ (except, possibly, at the very top levels of the SEC), all actions of the company must make it appear to be a classic "pump & dump". This included the not issuing of any news or any SEC filings. Maheu wanted the appearance of a full fledged scam taking place.
However, shareholders have been getting restless because of the lack of news. Maheu could not explain what is going on for fear of tipping their hand. He could not give good news for fear of having naked shorters back off and he didn't want to give shareholders bad news for fear of losing the needed buying pressure required for the naked shorter's selling. A party was held in Oct/04 hoping to raise spirits. The opposite happened with a lot more questions being asked.
The old pumpers UC used were losing their effectiveness. 2005 was a year of "turmoil" for the company where bashers were coming on strong. The pumping at the drag races was losing its effect. A new pumper was hired to hit the chat sites and try to keep the shareholders calm. The new pumper was able to keep some spirits high while others just got more upset. Maheu needed to get the closure part of the sting underway.
2005, the SEC goes to court and begins the revocation process, just what Maheu was looking for. In the end, Maheu request revocation closing the book on the naked shorts.
Now, the negotiations. With the DoJ along side, Maheu has some power behind him.......
But Tony, what about these ridiculous numbers I have heard for a settlement?
Well swather, lets put it this way.....there is one hedge fund located in the Cayman Islands that controls over $1 trillion in assets. That one alone has a lot of cash available to it and there are several thousand hedge funds out there let alone the large brokerage firms that carried out a policy of naked shorting. Yes, there is a lot of money out there......Just wait, the end is now near.
Thanks Tony (the wall fly)
not proof read....hope it reads ok
This is all in my opinion on what has happened to CMKX
Page 2
Frankie, are you out there? Give me a shout..
Frankie, world calling Frankie...
Swather, you again....what do you want this time?
Tell Tony to call me asap, will you..
Tony is a hard one to get a hold of....he's following that SEC lawyer chic around, you know the one....she gave you CMKX types a rough time at last July's court hearing....well, apparently she leaves a lot of left over lunches, a regular buffet for Tony.
Ya, ya,....just have him call..
ok, ok
To-day, Tony finally called..
Tony, I'm getting a lot of calls in the last few days. What's going on?
Well, swather. As I told you before, this whole thing is a good old fashion sting operation set up by Bob Maheu in order to trap the naked shorts. He was called in by the DoJ to do something about the drainage of $trillions of dollars from the US financial Markets.
Now, as I explained in my last report to you, UC and CMKX were to be the vehicle through which the sting would be preformed. UC and Maheu worked out a deal which would make UC and friends very wealthy with little cost to UC.
Ok, Ok, Tony. I know all that. You explained it in you last report. The confusing part is all the shares and what is to happen. If there is a naked short, what happens next? How can it be proved to keep the SEC happy?
Swather, ok, you want to know about all those shares.
Well, first of all, CMKX doesn't have to prove anything to anybody, not the SEC and not the DTCC......no-one...nobody..
You got that Swather?
But I thought that was what the cert pull was really about, Entourage and prove the naked short.
Surprise, surprise....the cert pull was to keep angry and restless shareholders occupied while negotiations went on. You must have heard the word on PalTalk and RB about some people trying to start a class action lawsuit and many others just upset that there was no news. Maheu has his hands tied. He could not let the word come out that he and the DoJ were in negotiation for a naked short settlement running into the "big bucks" category. The potential damage to the financial markets could be huge as well as the lawsuits issued. This had to be treated with kids gloves....very gently.
So, to divert attention away from the restless, Maheu had to create a diversionary tatic....pull the certs
Well Tony, what about all those shares and the share count? Are we naked shorted or what? and, if so, by how much?
Well swather, you have level 2 trading platform with "time of sales"?
Yes.
Did you watch all of your buy orders go through?
Yes, always..
Did you ever see the full amount go through?
Mostly but not all the time. When I placed a ten million share buy order, often only four or five million shares would go through on the "time of sales".
Correct swather. There is a hugh "off board" market for CMKX shares and not all shares would be shown. Sometimes, the "off board" market would be greater that the official market with billions traded daily. These "off board" trades could be such things as an "in house" trade where the broker just fills the order from his so called inventory long or an "in house" naked short or it can be an "off board" trade between two MMs.
So swather, these off board trades is where the real action was located and where the naked shorter really got caught.
The naked shorters were watching all the buying on the regular market and sold heavily into in. But, there were also firm bids in the off board market.
From who? From Urban. Urban was being financed by Bob Maheu who was being financed by the DoJ. Urban had all the money he needed from the DoJ to buy as much stock as he could find without tipping the market. Don't forget, Urban really didn't have that much money available to him and everyone knew it including the bad guys UC met along the way. That's why Urban was so perfect for the sting.
So, when the pump began in mid 2003, Urban entered the market and quietly began buying shares, both on board and off board. When the pump went big time in 2004 and Roger Glenn came on board, the trading was unbelievable. Urban bought and bought, particularly during the run up in June/04. The naked shorting was particularly strong during the following price fall.
So swather, during the three years of the sting operation, Urban and Bob Maheu were able to buy "trillions" of naked shorted shares with the funds advanced by the DoJ. How many? I don't know. They could have bought 3 trillion, 5 trillion 10 trillion, I just don't know.
So, Tony, what is going to happen to all these naked shorted shares? Is UC going to issue legal shares to legitimize the naked shorted shares?
Well swather, this is where the squeeze gets to be a lot of fun. Don't forget, this is really a DoJ operation. Do you remember what happened in late 1979 when terrorists in Iran seized a large group of Americans and refused to release them. What happened to Iran as punishment?
Iron had it's American assets seized by the American Government or really the DoJ.
That's right swather.
All naked shorters, regardless of who they are, whether off-shore or American, are under threat of having all their US holdings seized by the DoJ. They are forced to the table to negotiate, whether they came peacefully or had to be dragged in. These negotiations have not been easy with the large number of companies and their teams of lawyers involved.
Tony, and what will happen to all those naked shorted shares that Urban bought?
swather, once the deal with the naked shorters is finished and funds handed over, the naked shorted trades with UC with simply be canceled as if they did not exist.
Well Tony, why doesn't the DoJ just keep the money? You know how gov'ts are....any chance they could make money from the public, they will jump at the chance.
Correct swather, but in this case, Maheu and to a lesser extent Urban, made a deal with the DoJ that the shareholders would get the money. Since CMKX was going to be a diamond company in the first place, Maheu and UC made sure that the DoJ wasn't then going to turn around and screw the CMKX shareholders.
So swather, do you understand why Maheu has not been able to say anything? With so many lawyers and so many naked shorters involved, Maheu could not let a single word slip out as far as how negotiations are going.
And that is why the cert pull is such a beautiful cover. With the daily count, people's attention was diverted to the cert count away from Maheu. Potentially damaging class action law suits were placed on hold until the cert pull was over. The cert pull cover was so important to the final negotiations.
Tony, then what about CMKX? What will happen to it?
Swather, the company is just a shell now. Once the Entourage shares are passed out to shareholders, there is nothing left in it. What UC does with it is a good question now. Whether it becomes a holding company for a large position in CIM is a good question right now. We will have to wait until everything else settles first.
As for the bad guys, it appears they got a get out of jail free card by turning in their certs. I also believe that Urban received big bucks for not receiving any benefit of any settlement that may have been made by Bob Maheu against the naked shorters. This could leave the o/s smaller then expected.
As far as any settlement figure, that is hard to determine. If there is as much as 10 trillion shares naked shorted and the settlement calls for 0.05/share penalty, that would be $500 billion spread among 500 billion shares for example equals $1.00/share to shareholders.
Any other combination is also quite possible because nothing is known for sure.
The big play will be CIM. Urban, once he saw the naked short playing on CMKX, he diverted all the good holdings to CIM to be safe. He will IPO CIM away from naked shorters where he can build a good company free from all the bad guys. And UC will make it very profitable for CMKX shareholders to come with him into CIM.
So, swather, that's basically it. We now are just waiting for Maheu to finish all this. If you look at everything that has happened during the past 3 years and think of it in terms of this sting that Maheu has pulled off, everything will become much cleared to you. Why certain things happened. Why events happened such as the failure to pay for certain projects such as the American Mine project. They were all just necessary parts to the total plan, a sting operation carried out by the master himself.
swather....good night. I've got to get back to my lawyer chic.
Thanks Tony....
Of course this story is all just my humble opinion as to what may have happened based on the events of the past three years with CMKX. I hope you enjoyed reading it as much as I enjoyed speculating on CMKX
millionaires.proboards86.com/index.cgi?board=main&action=display&thread=1171764321
DIAMOND MINER
Re: CMKM CIM is intereSTING..
« Reply #11 on Today at 12:11am »
In view of what bhollenegg has posted, I think it is time to review what "Tony, The Fly on the Wall" had to say last April 26/06. very interesting..........
Thread Started on Apr 23, 2006, 2:48am »
After talking to a few of my friends on how nice it would be to be a "fly on the wall" in Bob Maheu's office and find out what is really happening to CMKX. So, I decided to call a friend of mine "Frankie the wall fly". Frankie and I go a long way back......
Frankie, how are you doing man?
Hey, swather, what's up?
Frankie, I need a favour. Find out what is going on with CMKX.
Ah, swather, I can't. It is really hush, hush. But, I hear it is really big.
Frankie, ya, ya, I've heard that already. You owe me one ever since I scraped you off the fly swatter and nursed you back to health.
Ok, ok....I'll give my buddy, Tony the Fly a call. He moved to Washington after we were buddies hanging out around the pizza parlors in Brooklyn. He fell for all those SEC lawyer chicks in Washington.
Two weeks later, Tony called me. I hear you are interested in CMKX?
Yes, I said anxiously.
Well, sit down and listen......here is the whole story.
Several years ago, around 2001 I believe, The DoJ, Dept. of Justice, were completely pissed off at what was going on with the naked shorting in the markets and the subsequent theft from the financial markets of trillions of dollars. They knew these naked shorters ranged from large off-shore hedge funds to small groups of wealthy traders selling though brokers located outside the country in places such as Canada. Also, some of the major Wall St. brokers were carrying on massive naked shorting operations. It was massive fraud being carried on right under the nose of the SEC, DTCC, US Gov't officials, and Congress.
The DoJ wanted something done but they were not sure of the best way to get it done. It had to be done very quietly but efficiently.
The DoJ decided to call in Bob Maheu, probably the most experienced individual there was who could carry out such an operation.....the recovery of $trillions.
Many meetings were held with Bob Maheu until it was finally decided he would have complete control over the operation.
Bob went to his colleagues and discussed how they should put together this operation. It was decided that the only possible way they could recover all this money and not risk financial ruin nor loss of confidence in the market was to put together a good old fashion sting operation.
Impossible said his partners. Listen replied Bob. If we had a company that could attract a lot of buyers and naked short sellers at the same time, we could pull this off. It would be beautiful.
Again, impossible they said. We would need a company with billions of shares outstanding and the only companies that have that many o/s are worthless pink sheet companies, not companies of any value. Also, we would need a company with such a hot product that it would attract thousands of buyers in order to attract the naked shorters at the same time. It just doesn't happen. There is no company out there that meets all this criteria. Meeting ends with no decision.
A few weeks later, Maheu runs into his distant relative Urban Casavant. Urban tells Maheu that he is in Vegas trying to buy out a shell company. Urban explains about all these diamond claims he now controls in the Fort A La Corne area of Saskatchewan which is now the hottest diamond field in the world.
Maheu is overwhelmed and light bulbs are flashing in his head. Is this what he has been looking for?
Maheu sets up a meeting with Urban at his office with all his partners. They explain to Urban about what the DoJ wants and how Maheu has a free hand in carrying out the project. After a few weeks, Urban meets with Maheu and agrees to go along under certain conditions. Not only must Urban make a lot of money, but he wants his family and close friends to make money also. Urban is worried that all the money that can be made off the diamonds may be lost in this DoJ operation.
Maheu assures Urban that everyone will make millions in the end because they are going after $trillions. The agreement is made. Why did Maheu go after Urban's shell?
1/ potentially billions and even trillions of shares could be traded since it was a shell pink sheet stock.
2/ with the diamonds, properly promoted and with the FALC area becoming a hot area, it could attract thousands of buyers to the stock....something that was very important in order to get the number of traded shares thus naked short shares up into the billions and hopefully trillions.
3/ the stock could easily be shown to be a classic "pump and dump". This was important in order to attract the naked short sellers who hit the "pump and dumps" very hard.
With the agreement now in place, it is time to begin the "sting operation". But first, UC wanted to make sure everything was in place share wise. In the early months of 2003, Urban had the printing presses going and issued billions of shares to his close family, distant relatives, close friends, not so close friends, business friends, and anyone else that may have met him. Everthing was now ready to go.
Bob Maheu along with Urban's help was now ready for the operation to go into full swing.....he needed pumpers to spread the word on the chat sites and on RB. CMKX even acquired an IR person who hit the airwaves as well as the chat sites. The pump was on.
Next, Maheu felt that more visibility was required for those not on computers could see the company name. But what was the best method....newspaper ads, too expensive. NASCAR, to expensive and name not shown large enough. golf, tennis or any other sporting event, not satisfactory. Drag racing....hmmmm. It would allow for a cheap sponsorship in comparison, allow Urban to hang out with the car and shareholders, it would allow selected pumpers to hang out and disperse the "latest rumors".
The pump was on and the buyers were buying and the naked shorts were selling. Everything was shaping up.
The next move was to bring on one of the best people in securities law to set up the closure. Maheu brought in Roger Glenn to set the traps. First of all, he fed the naked shorts some more food to chew on by having Urban issue, in Aug/2004, 300 billion more shares. The naked shorts were being sucked in up to their eyeballs thinking this was a classic "pump and dump".
Aug., 2004.......a policy meeting with the DoJ had to be arranged but it had to be at a location where DoJ, Maheu, Roger Glenn, and supporting officials could not be identified.....Saskatoon, Saskatchewan was selected as the meeting place. A strategy was adopted for closing the noose.
1/ dividends of shares CMKX held in other companies would be given out to shareholders.
2/ a policy of non conforming with SEC rules would be adopted forcing the SEC lawyers to seek a revoking of CMKX's registration. This had to happen in order to lock the naked shorts into their position. They could not be allowed to escape through market action. Maheu was out for blood.
3/ Since the SEC and the DTCC were no involved with the DoJ (except, possibly, at the very top levels of the SEC), all actions of the company must make it appear to be a classic "pump & dump". This included the not issuing of any news or any SEC filings. Maheu wanted the appearance of a full fledged scam taking place.
However, shareholders have been getting restless because of the lack of news. Maheu could not explain what is going on for fear of tipping their hand. He could not give good news for fear of having naked shorters back off and he didn't want to give shareholders bad news for fear of losing the needed buying pressure required for the naked shorter's selling. A party was held in Oct/04 hoping to raise spirits. The opposite happened with a lot more questions being asked.
The old pumpers UC used were losing their effectiveness. 2005 was a year of "turmoil" for the company where bashers were coming on strong. The pumping at the drag races was losing its effect. A new pumper was hired to hit the chat sites and try to keep the shareholders calm. The new pumper was able to keep some spirits high while others just got more upset. Maheu needed to get the closure part of the sting underway.
2005, the SEC goes to court and begins the revocation process, just what Maheu was looking for. In the end, Maheu request revocation closing the book on the naked shorts.
Now, the negotiations. With the DoJ along side, Maheu has some power behind him.......
But Tony, what about these ridiculous numbers I have heard for a settlement?
Well swather, lets put it this way.....there is one hedge fund located in the Cayman Islands that controls over $1 trillion in assets. That one alone has a lot of cash available to it and there are several thousand hedge funds out there let alone the large brokerage firms that carried out a policy of naked shorting. Yes, there is a lot of money out there......Just wait, the end is now near.
Thanks Tony (the wall fly)
not proof read....hope it reads ok
This is all in my opinion on what has happened to CMKX
Page 2
Frankie, are you out there? Give me a shout..
Frankie, world calling Frankie...
Swather, you again....what do you want this time?
Tell Tony to call me asap, will you..
Tony is a hard one to get a hold of....he's following that SEC lawyer chic around, you know the one....she gave you CMKX types a rough time at last July's court hearing....well, apparently she leaves a lot of left over lunches, a regular buffet for Tony.
Ya, ya,....just have him call..
ok, ok
To-day, Tony finally called..
Tony, I'm getting a lot of calls in the last few days. What's going on?
Well, swather. As I told you before, this whole thing is a good old fashion sting operation set up by Bob Maheu in order to trap the naked shorts. He was called in by the DoJ to do something about the drainage of $trillions of dollars from the US financial Markets.
Now, as I explained in my last report to you, UC and CMKX were to be the vehicle through which the sting would be preformed. UC and Maheu worked out a deal which would make UC and friends very wealthy with little cost to UC.
Ok, Ok, Tony. I know all that. You explained it in you last report. The confusing part is all the shares and what is to happen. If there is a naked short, what happens next? How can it be proved to keep the SEC happy?
Swather, ok, you want to know about all those shares.
Well, first of all, CMKX doesn't have to prove anything to anybody, not the SEC and not the DTCC......no-one...nobody..
You got that Swather?
But I thought that was what the cert pull was really about, Entourage and prove the naked short.
Surprise, surprise....the cert pull was to keep angry and restless shareholders occupied while negotiations went on. You must have heard the word on PalTalk and RB about some people trying to start a class action lawsuit and many others just upset that there was no news. Maheu has his hands tied. He could not let the word come out that he and the DoJ were in negotiation for a naked short settlement running into the "big bucks" category. The potential damage to the financial markets could be huge as well as the lawsuits issued. This had to be treated with kids gloves....very gently.
So, to divert attention away from the restless, Maheu had to create a diversionary tatic....pull the certs
Well Tony, what about all those shares and the share count? Are we naked shorted or what? and, if so, by how much?
Well swather, you have level 2 trading platform with "time of sales"?
Yes.
Did you watch all of your buy orders go through?
Yes, always..
Did you ever see the full amount go through?
Mostly but not all the time. When I placed a ten million share buy order, often only four or five million shares would go through on the "time of sales".
Correct swather. There is a hugh "off board" market for CMKX shares and not all shares would be shown. Sometimes, the "off board" market would be greater that the official market with billions traded daily. These "off board" trades could be such things as an "in house" trade where the broker just fills the order from his so called inventory long or an "in house" naked short or it can be an "off board" trade between two MMs.
So swather, these off board trades is where the real action was located and where the naked shorter really got caught.
The naked shorters were watching all the buying on the regular market and sold heavily into in. But, there were also firm bids in the off board market.
From who? From Urban. Urban was being financed by Bob Maheu who was being financed by the DoJ. Urban had all the money he needed from the DoJ to buy as much stock as he could find without tipping the market. Don't forget, Urban really didn't have that much money available to him and everyone knew it including the bad guys UC met along the way. That's why Urban was so perfect for the sting.
So, when the pump began in mid 2003, Urban entered the market and quietly began buying shares, both on board and off board. When the pump went big time in 2004 and Roger Glenn came on board, the trading was unbelievable. Urban bought and bought, particularly during the run up in June/04. The naked shorting was particularly strong during the following price fall.
So swather, during the three years of the sting operation, Urban and Bob Maheu were able to buy "trillions" of naked shorted shares with the funds advanced by the DoJ. How many? I don't know. They could have bought 3 trillion, 5 trillion 10 trillion, I just don't know.
So, Tony, what is going to happen to all these naked shorted shares? Is UC going to issue legal shares to legitimize the naked shorted shares?
Well swather, this is where the squeeze gets to be a lot of fun. Don't forget, this is really a DoJ operation. Do you remember what happened in late 1979 when terrorists in Iran seized a large group of Americans and refused to release them. What happened to Iran as punishment?
Iron had it's American assets seized by the American Government or really the DoJ.
That's right swather.
All naked shorters, regardless of who they are, whether off-shore or American, are under threat of having all their US holdings seized by the DoJ. They are forced to the table to negotiate, whether they came peacefully or had to be dragged in. These negotiations have not been easy with the large number of companies and their teams of lawyers involved.
Tony, and what will happen to all those naked shorted shares that Urban bought?
swather, once the deal with the naked shorters is finished and funds handed over, the naked shorted trades with UC with simply be canceled as if they did not exist.
Well Tony, why doesn't the DoJ just keep the money? You know how gov'ts are....any chance they could make money from the public, they will jump at the chance.
Correct swather, but in this case, Maheu and to a lesser extent Urban, made a deal with the DoJ that the shareholders would get the money. Since CMKX was going to be a diamond company in the first place, Maheu and UC made sure that the DoJ wasn't then going to turn around and screw the CMKX shareholders.
So swather, do you understand why Maheu has not been able to say anything? With so many lawyers and so many naked shorters involved, Maheu could not let a single word slip out as far as how negotiations are going.
And that is why the cert pull is such a beautiful cover. With the daily count, people's attention was diverted to the cert count away from Maheu. Potentially damaging class action law suits were placed on hold until the cert pull was over. The cert pull cover was so important to the final negotiations.
Tony, then what about CMKX? What will happen to it?
Swather, the company is just a shell now. Once the Entourage shares are passed out to shareholders, there is nothing left in it. What UC does with it is a good question now. Whether it becomes a holding company for a large position in CIM is a good question right now. We will have to wait until everything else settles first.
As for the bad guys, it appears they got a get out of jail free card by turning in their certs. I also believe that Urban received big bucks for not receiving any benefit of any settlement that may have been made by Bob Maheu against the naked shorters. This could leave the o/s smaller then expected.
As far as any settlement figure, that is hard to determine. If there is as much as 10 trillion shares naked shorted and the settlement calls for 0.05/share penalty, that would be $500 billion spread among 500 billion shares for example equals $1.00/share to shareholders.
Any other combination is also quite possible because nothing is known for sure.
The big play will be CIM. Urban, once he saw the naked short playing on CMKX, he diverted all the good holdings to CIM to be safe. He will IPO CIM away from naked shorters where he can build a good company free from all the bad guys. And UC will make it very profitable for CMKX shareholders to come with him into CIM.
So, swather, that's basically it. We now are just waiting for Maheu to finish all this. If you look at everything that has happened during the past 3 years and think of it in terms of this sting that Maheu has pulled off, everything will become much cleared to you. Why certain things happened. Why events happened such as the failure to pay for certain projects such as the American Mine project. They were all just necessary parts to the total plan, a sting operation carried out by the master himself.
swather....good night. I've got to get back to my lawyer chic.
Thanks Tony....
Of course this story is all just my humble opinion as to what may have happened based on the events of the past three years with CMKX. I hope you enjoyed reading it as much as I enjoyed speculating on CMKX
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