Post by sittingtight on Sept 8, 2011 3:57:15 GMT -5
Questions and more Questions?
?
why is it that there is not a well written concern to "We the People provides you with a new way to petition the federal government to take action on a range of issues."
www.whitehouse.gov/wethepeople
10,000 plus should be suficiant I would believe...
even if we where to use this.....
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
?why is it that there is not a well written concern to "We the People provides you with a new way to petition the federal government to take action on a range of issues."
www.whitehouse.gov/wethepeople
10,000 plus should be suficiant I would believe...
even if we where to use this.....
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