Owner
Post by Franko10 ™ on Jan 3, 2008 11:19:20 GMT -5
Early Formation of CMKM
In 2002, Urban Casavant ("Casavant") accumulated over 1,000,000 acres of mineral claims in and around Saskatchewan, Canada. To raise funds to develop these claims, Casavant came to Las Vegas, Nevada. Casavant met a group of penny-stock promoters led by individuals named John Edwards and Gary Walters. Edwards and Walters promised to raise $100,000,000 for Casavant to develop the mineral claims.
In order to facilitate this plan, in or around the end of 2002, Edwards and his group of investors procured a publicly traded shell company and merged the shell with Casavant's company. The shell company had little or no assets and carried an enormous amount of convertible debt with non-dilution provisions. The stock of the resulting new company (CMKI later to become CMKM Diamonds, Inc.) began public trading in November of 2002. Casavant began promoting his stock to penny stock investors with the help of John Edwards and his crew of experienced penny-stock promoters.
The true facts regarding the shell company and its converted debt were never conveyed to shareholders of the company by management through its public filings, as required by law.
Casavant Promises "One Million Millionaires"
Casavant began promoting the sale of stock in his new company (hereafter "CMKM") through various means. Shareholders were told that promising kimberlite pipes had been discovered on the CMKM mineral lands. Casavant and company management also issued press releases telling the shareholders that CMKM had acquired zinc claims, uranium finds, and gold mines in South America. Casavant and CMKM claimed to have a goal of producing "one million millionaires."
At this time CMKM stock sold at a fraction of a penny. One could invest $100 and buy 1,000,000 shares of stock. Rumors abounded that a major buyout of CMKM was forthcoming because of its huge diamond discoveries and skillful acquisitions being made by company management - a major buyout promising $1.54 a share to its shareholders was being touted throughout the investment community. Casavant and the company management refused to deny these rumors and in fact encouraged them. According to the promises and press releases issued or condoned by Casavant, individuals investing $100 to purchase stock at $0.0001 per share would become overnight millionaires when the huge merger took place. Casavant was aware of these rumors but made no efforts to deny or correct them. The result of the company's decision to fuel and/or permit such rumors to continue was a stock-buying frenzy by the public during 2004 and beyond.
Hundreds of Billions of Shares Sold into the Market
During this stock-buying frenzy, and as a direct result of the promotional scheme devised and implemented by Casavant and his cohorts, billions of shares of CMKM stock were being sold into public markets. Over a two-and-a-half year period, CMKM dumped over 700 billion shares into the marketplace. This scheme was perpetrated by Casavant along with highly paid lawyers and insiders of the company, including defendants Williams, Kinney, Gutierrez, and Dvorak.
From the period January 2, 2003, through May 3, 2005, the public purchased more than $200 million of CMKM stock either from the company or through its agents.
Casavant and Prior Company Management Loot the Company
Rather than use the funds raised through the sale of stock for the benefit of the company, Casavant and the other defendants used the funds for their own personal purposes. The funds were channeled into accounts held by entities such as the UAJC 2005 Irrevocable Trust. Some of the funds were used to purchase real estate in the Spanish Trails development of Las Vegas, including a $3.5 million home located at 90 Innisbrook, Las Vegas, Nevada. CMKM is informed and believes that Casavant used funds obtained from CMKM in order to purchase the Innisbrook property, along with several other pieces of real estate.
Other company funds were used by Casavant to pay his personal gambling debts at local casinos, in particular the Venetian hotel. Cashiers checks, checks payable to cash and huge payments made to credit cards from company funds were customary methods of paying the gambling debts of Mr. Casavant
CMKM's new management has recently obtained many company resolutions that were passed which allowed 703 billion shares to be dumped into the market. The resolutions demonstrate that billions of shares were transferred to friends and families of company management and insiders. Bank records confirm proceeds of a portion of these sales came back to the company, but these funds were then invested in projects beneficial only to Casavant, company management, and company insiders personally.
Casavant and former company management touted through press releases that CMKM had invested millions of dollars in joint ventures for the benefit of the company. Former CMKM management informed the company's shareholders of their company's ownership of zinc mines and royalties, gold mines, and other mining and exploration companies (USCA, GEMM, SGGM). Those investments and/or joint ventures no longer exist. Casavant and former company management have not provided any explanation for the loss of these other investments except to say there were no funds available to maintain those investments.
CMKM's new management has recently discovered that CMKM had been forced to close their accounts at three major banking institutions in Las Vegas in 2003 and 2004, due to banking irregularities. Banking records (only a small portion of which has been made available to current management) show that millions of dollars were transferred in and out of banks by wire transfers, cashiers checks and checks made out to cash.
CMKM is informed and believes that over 33 bank accounts were opened by the company or its related affiliate companies. These activities were ongoing while the company was issuing press releases painting a favorable picture of the companies' finances to the public. In fact, the funds obtained by the company were being taken out of the company and being invested in personal projects of Casavant and his associates.
CMKM hired Dave Desormeau in November 2002 as its chief financial officer. As CFO, Desormeau transferred company stock through a maze of third-party companies. New management has discovered a letter from Desormeau to Casavant dated April 5, 2004 demanding $1,500,000 for "his work in the past three years," including "time spent working on forming corporations" and completing "real estate transactions" such as those referenced above. When these demands were made, Desormeau had already sold approximately 20 billion shares of CMKM stock through his company, Business Works. Following this letter, the company transferred an additional 40 billion shares of stock to Business Works. These shares were immediately sold into the market place.
CMKM's new management has located invoices showing purported purchases of equipment and vehicles with corporate funds. No equipment or vehicles are now owned by the company with no explanation for their disappearance.
CMKM has also recently located a trust account held by a Canadian law firm, which has been used to receive and send several million dollars to various CMKM insiders and to pay other personal expenses. For example, $932,180 was sent by wire transfer to the UAJC 2005 Irrevocable Trust from this account on January 31, 2005. These funds were company funds being held in this trust account. This wire was sent just two weeks after the opening of the UAJC 2005 Irrevocable Trust account.
In 2004, it became public knowledge that the SEC was seeking administrative action against CMKM for its failure to file financial reports. The company made several major press releases announcing the hiring of Roger Glenn, a former SEC attorney and CPA, with a major law firm in New York City, to "help the company become fully reporting again." (Press Release through Business Wire June 4, 2004 and June 16, 2004.) On June 14, 2004, the price of the last trade was .0010 indicating a 10 fold increase in the share price. The announcement of Mr. Glenn's involvement alone caused a major spike in stock sales at a time when company management was engaged in self-dealing and investing in the stock market, real estate and other ventures.
In fact, Mr. Glenn did nothing to help the company resolve its SEC problems. It has been discovered in the last few weeks that Mr. Glenn actually wrote legal opinions authorizing billions of free trading stock and assisting the company to increase its authorized shares from 500 billion to 800 billion shares. The only information released to the public about Mr. Glenn was his hiring to help with the SEC reporting problems.
Similarly, the company made a major press release touting the appointment of successful businessman Bob Maheu to the Board of Directors. Mr. Maheu was quoted as saying "we .... anticipate working with the SEC to ensure our compliance with all federal regulations." A large retainer was paid to Mr. Maheu by the company, yet no beneficial action came as a result of Mr. Maheu's hiring. Many shareholders increased their purchases of CMKM stock based on the news of Mr. Maheu's appointment to the board of directors. In 2005, the SEC revoked the registration of CMKM stock for the company's failure to file fmancials.
Casavant Resigns
On March 29, 2007, Casavant resigned as sole officer and director of CMKM and appointed Kevin West as Chairman of the Board of Directors and also appointed West to be the president, vice president, secretary, and treasurer of CMKM. On March 29, 2007, CMKM had only $558.50 in its corporate bank account.
At the time of Casavant's resignation, CMKM was, and is, the named defendant in three separate lawsuits brought by a shareholder, by an alleged creditor, and by two prior joint venture partners. CMKM had no attorneys actively defending CMKM in the lawsuits on March 29, 2007.
West was informed by Casavant that there were no assets owned by CMKM with the exception of 45,000,000 shares of Entourage Mining (ETGMF) common stock which is to be distributed to shareholders per agreement with Entourage Mining. Entourage stock currently trades at .20 per share. This block of stock represents approximately 50% of the ownership of Entourage.
There are presently in excess of 50,000 shareholders of CMKM stock. The cost of distributing share certificates to its shareholders will be exceed $250,000. An interpleader action was recommended to CMKM in 2005 by atask force appointed to identify its 50,000 shareholders. The task force recommended seeking help of the courts in identifying all of the bona fide shareholders of the company due to the refusal of certain major brokerage houses to issue stock certificates to CMKM shareholders.
West was left with no funds to begin an interpleader action or to distribute Entourage shares to its shareholders. Based on representations by Casavant to Mr. West, the company has no other assets. Accordingly, even if the company found the resources to file an interpleader action and distribute the Entourage shares, there would be no assets remaining in the company after the distribution of Entourage stock.
Following Casavant's resignation a few weeks ago, Mr. West flew to Canada to inspect the core samples that purportedly supported the early promotion of CMKM stock. Records now available to CMKM indicate that several million dollars was purportedly paid to a drilling company in Canada. Core samples exist as evidenced by photos in the attached Exhibit G. Casavant continues to maintain the opinion that the kimberlite formations existing on the claims owned by the company (now in the hands of Entourage) will yield the largest and most prolific diamond field ever discovered.
New management plans to return CMKM to trading status and work with Entourage in the development of the remaining mining claims. The waste of corporate assets, self-dealing, and malfeasance of Casavant, former CMKM management and insiders may prevent such occurrence, however, unless corporate funds are recouped from Casavant and his associates.
The Disappearance of Company Funds
Although the company has received millions of dollars from the sale of securities during the preceding several years, those funds are now gone. The question remains, where did the millions of dollars invested in this company go? In 2002, the shell which eventually became CMKM was current in reporting its audited financials. From the third quarter of 2002 until the present, however, CMKM has never filed nor had prepared any company financials, audited or otherwise. No corporate income tax returns have ever been filed for the company since 2002.
Upon receiving the appointment as Chairman of the Board on March 29, 2007, Kevin West immediately contacted one of Casavant's personal attorneys and requested all company files. On or about April 7, 2007, Mr. West received 7 boxes of company records. Upon review of those records, CMKM has learned that among other purchases, company management either directly or through specially created limited liability companies, corporations or trusts purchased the following real estate with corporate funds:
a. 90 Innisbrook Avenue, Las Vegas, NV ($3,500,000) (SpanishTrails)
b. 30 Princeville Lane, Las Vegas, NV ($775,000) (Spanish Trails)
c. Durango Trails Office Park, Building T ($748,325) (across the street from the Spanish Trails subdivision)
d. 7146 Mission Hills Drive Las Vegas, NV ($349,000) (Spanish Trails)
CMKM is informed and believes that Casavant and his associates have purchased other real estate holdings purchased with company funds.
Casavant and his associates formed P.A. Holdings, Inc. as a vehicle to use company funds to invest in outside ventures and fund certain select company activities. The company was formed by Casavant and Attorney Brian Dvorak. Casavant signed all checks on the P.A. Holdings account. Brian Dvorak is listed on state incorporation records as holding all offices of the corporation. The registered agent for P.A. Holdings, Inc. is Globalwide Investment Company, LLC., an LLC owned by Brian Dvorak.
CMKM is informed and believes that money was funneled through P.A. Holdings, Inc. to fund CMKXtreme, the UAJC 2005 Irrevocable Trust and a host of other companies and ventures. P.A. Holdings, Inc. had no revenues and no discernible business operations but received in deposits millions of dollars. Several deposits have been traced to sales of CMKX stock. During the brief span from July through August 2004, P.A. Holdings, Inc. received over $14,000,000 in deposits, but the checks accompanying these bank statements have never been produced by prior management. These funds came during the time that CMKM stock sales were at an all time high following the announcement that Roger Glenn was on board to solve all the problems with the SEC. The address for P.A. Holdings, Inc. was 30 Princeville Lane in Spanish Trails, per the September 2004 bank statement. All property purchased in Spanish Trails are residential properties, and there are no businesses in Spanish Trails.
Casavant and his associates formed UAJC 2005 Irrevocable Trust with corporate funds and or funds derived from the sale of corporate stock. Through this trust, real estate has been purchased, stocks are traded on an ongoing basis, and other investments have been made. Casavant refers to this trust as his personal trust account. DefendantMike Williams is the purported trustee of such trust and is charged with making investment decisions on behalf of the trust. This trust was created and run by Casavant.
The millions of dollars used to fund this trust magically appeared when stock sales were at the highest in CMKM history. CMKM had no revenues and had no offices at that time. The trustee of this trust, Mike Williams, is known to be a business partner that was given billions of shares of CMKM stock but had no official position with the company other than serving as a financial advisor to Mr. Casavant.
The UAJC 2005 Irrevocable Trust entered into a contract to purchase four office buildings in 2005. A specially created limited liability company "Four Vegas Properties, LLC." was created to purchase the buildings. The trust had no assets but was formed solely to purchase the four buildings by the UAJC 2005 Irrevocable Trust. A check was tendered for $1,000,000 dollars to secure the property. Casavant used the address of CMKM as the address for these buildings on public filings.
A lawsuit resulted from the attempted purchase of these buildings with corporate funds. In that suit in July 2006, Mike Williams testified in a deposition there was in excess of $8,000,000 dollars and more in the UAJC Trust account. Casavant and Williams have personally received substantial sums from a settlement with the building owner over the purchase of such buildings. No funds have been turned over to the company resulting from such purchase.
Mike Williams is the trustee on the UAJC 2005 Irrevocable Trust and is thus a fiduciary to the corporation. Mr. Williams was the subject of a press release at one point naming him as a director of CMKM. Mr. Williams has received billions of shares of CMKM stock through his MDW and GRW Irrevocable Trust and his company Lifeline Entertainment for reasons unknown to current management. No documents have been made available to new management explaining such stock transfers. Mr. Williams claims to be the investment advisor to Casavant.
With millions in cash coming from stock sales, company management began to invest heavily in the stock market. Investments were made in penny stocks belonging to other company insiders such as Broadband Wireless, Inc., which belonged to Mike Williams. Another $3,000,000 was invested in or loaned to a company named Crystallix. Crystallix stock was bought and sold heavily in Casavant's personal stock trading account. In or around May 2005, Casavant made an additional $1,000,000 loan to Crystallix bringing the total loaned to $3,000,000. When he was asked about that loan, Casavant indicated that it was his personal money and it is all taken care of.
New management has also recently located check stubs indicating loans or purchases of stock totaling $2,250,000 in Conversion Services International, Inc. (CSII). These checks were written on a CMKXtreme account on or about February of 2005.
CMKM also invested $ 1,000,000 of company funds in Mobile Wireless Security in July 2004. There has been no accounting of this advance or loan or purchase made by CMKM.
New management has also discovered a wire transfer indicating a purported purchase of eight diesel trucks from GMC in Canada. The wire totaled $371,100.86 made payable to Owens and Sweitzer. As of the date of this lawsuit, CMKM has been unsuccessful in locating the vehicles that were purportedly purchased.
It is also clear that Casavant and his associates directed the expenditure of millions of dollars of company money on joint venture agreements with companies like USCA, GEMM, SGGM and Golden Arch Resources. The company intends to pursue any recoveries it may have for any failed investments it has with these and other companies.
In 2002, Urban Casavant ("Casavant") accumulated over 1,000,000 acres of mineral claims in and around Saskatchewan, Canada. To raise funds to develop these claims, Casavant came to Las Vegas, Nevada. Casavant met a group of penny-stock promoters led by individuals named John Edwards and Gary Walters. Edwards and Walters promised to raise $100,000,000 for Casavant to develop the mineral claims.
In order to facilitate this plan, in or around the end of 2002, Edwards and his group of investors procured a publicly traded shell company and merged the shell with Casavant's company. The shell company had little or no assets and carried an enormous amount of convertible debt with non-dilution provisions. The stock of the resulting new company (CMKI later to become CMKM Diamonds, Inc.) began public trading in November of 2002. Casavant began promoting his stock to penny stock investors with the help of John Edwards and his crew of experienced penny-stock promoters.
The true facts regarding the shell company and its converted debt were never conveyed to shareholders of the company by management through its public filings, as required by law.
Casavant Promises "One Million Millionaires"
Casavant began promoting the sale of stock in his new company (hereafter "CMKM") through various means. Shareholders were told that promising kimberlite pipes had been discovered on the CMKM mineral lands. Casavant and company management also issued press releases telling the shareholders that CMKM had acquired zinc claims, uranium finds, and gold mines in South America. Casavant and CMKM claimed to have a goal of producing "one million millionaires."
At this time CMKM stock sold at a fraction of a penny. One could invest $100 and buy 1,000,000 shares of stock. Rumors abounded that a major buyout of CMKM was forthcoming because of its huge diamond discoveries and skillful acquisitions being made by company management - a major buyout promising $1.54 a share to its shareholders was being touted throughout the investment community. Casavant and the company management refused to deny these rumors and in fact encouraged them. According to the promises and press releases issued or condoned by Casavant, individuals investing $100 to purchase stock at $0.0001 per share would become overnight millionaires when the huge merger took place. Casavant was aware of these rumors but made no efforts to deny or correct them. The result of the company's decision to fuel and/or permit such rumors to continue was a stock-buying frenzy by the public during 2004 and beyond.
Hundreds of Billions of Shares Sold into the Market
During this stock-buying frenzy, and as a direct result of the promotional scheme devised and implemented by Casavant and his cohorts, billions of shares of CMKM stock were being sold into public markets. Over a two-and-a-half year period, CMKM dumped over 700 billion shares into the marketplace. This scheme was perpetrated by Casavant along with highly paid lawyers and insiders of the company, including defendants Williams, Kinney, Gutierrez, and Dvorak.
From the period January 2, 2003, through May 3, 2005, the public purchased more than $200 million of CMKM stock either from the company or through its agents.
Casavant and Prior Company Management Loot the Company
Rather than use the funds raised through the sale of stock for the benefit of the company, Casavant and the other defendants used the funds for their own personal purposes. The funds were channeled into accounts held by entities such as the UAJC 2005 Irrevocable Trust. Some of the funds were used to purchase real estate in the Spanish Trails development of Las Vegas, including a $3.5 million home located at 90 Innisbrook, Las Vegas, Nevada. CMKM is informed and believes that Casavant used funds obtained from CMKM in order to purchase the Innisbrook property, along with several other pieces of real estate.
Other company funds were used by Casavant to pay his personal gambling debts at local casinos, in particular the Venetian hotel. Cashiers checks, checks payable to cash and huge payments made to credit cards from company funds were customary methods of paying the gambling debts of Mr. Casavant
CMKM's new management has recently obtained many company resolutions that were passed which allowed 703 billion shares to be dumped into the market. The resolutions demonstrate that billions of shares were transferred to friends and families of company management and insiders. Bank records confirm proceeds of a portion of these sales came back to the company, but these funds were then invested in projects beneficial only to Casavant, company management, and company insiders personally.
Casavant and former company management touted through press releases that CMKM had invested millions of dollars in joint ventures for the benefit of the company. Former CMKM management informed the company's shareholders of their company's ownership of zinc mines and royalties, gold mines, and other mining and exploration companies (USCA, GEMM, SGGM). Those investments and/or joint ventures no longer exist. Casavant and former company management have not provided any explanation for the loss of these other investments except to say there were no funds available to maintain those investments.
CMKM's new management has recently discovered that CMKM had been forced to close their accounts at three major banking institutions in Las Vegas in 2003 and 2004, due to banking irregularities. Banking records (only a small portion of which has been made available to current management) show that millions of dollars were transferred in and out of banks by wire transfers, cashiers checks and checks made out to cash.
CMKM is informed and believes that over 33 bank accounts were opened by the company or its related affiliate companies. These activities were ongoing while the company was issuing press releases painting a favorable picture of the companies' finances to the public. In fact, the funds obtained by the company were being taken out of the company and being invested in personal projects of Casavant and his associates.
CMKM hired Dave Desormeau in November 2002 as its chief financial officer. As CFO, Desormeau transferred company stock through a maze of third-party companies. New management has discovered a letter from Desormeau to Casavant dated April 5, 2004 demanding $1,500,000 for "his work in the past three years," including "time spent working on forming corporations" and completing "real estate transactions" such as those referenced above. When these demands were made, Desormeau had already sold approximately 20 billion shares of CMKM stock through his company, Business Works. Following this letter, the company transferred an additional 40 billion shares of stock to Business Works. These shares were immediately sold into the market place.
CMKM's new management has located invoices showing purported purchases of equipment and vehicles with corporate funds. No equipment or vehicles are now owned by the company with no explanation for their disappearance.
CMKM has also recently located a trust account held by a Canadian law firm, which has been used to receive and send several million dollars to various CMKM insiders and to pay other personal expenses. For example, $932,180 was sent by wire transfer to the UAJC 2005 Irrevocable Trust from this account on January 31, 2005. These funds were company funds being held in this trust account. This wire was sent just two weeks after the opening of the UAJC 2005 Irrevocable Trust account.
In 2004, it became public knowledge that the SEC was seeking administrative action against CMKM for its failure to file financial reports. The company made several major press releases announcing the hiring of Roger Glenn, a former SEC attorney and CPA, with a major law firm in New York City, to "help the company become fully reporting again." (Press Release through Business Wire June 4, 2004 and June 16, 2004.) On June 14, 2004, the price of the last trade was .0010 indicating a 10 fold increase in the share price. The announcement of Mr. Glenn's involvement alone caused a major spike in stock sales at a time when company management was engaged in self-dealing and investing in the stock market, real estate and other ventures.
In fact, Mr. Glenn did nothing to help the company resolve its SEC problems. It has been discovered in the last few weeks that Mr. Glenn actually wrote legal opinions authorizing billions of free trading stock and assisting the company to increase its authorized shares from 500 billion to 800 billion shares. The only information released to the public about Mr. Glenn was his hiring to help with the SEC reporting problems.
Similarly, the company made a major press release touting the appointment of successful businessman Bob Maheu to the Board of Directors. Mr. Maheu was quoted as saying "we .... anticipate working with the SEC to ensure our compliance with all federal regulations." A large retainer was paid to Mr. Maheu by the company, yet no beneficial action came as a result of Mr. Maheu's hiring. Many shareholders increased their purchases of CMKM stock based on the news of Mr. Maheu's appointment to the board of directors. In 2005, the SEC revoked the registration of CMKM stock for the company's failure to file fmancials.
Casavant Resigns
On March 29, 2007, Casavant resigned as sole officer and director of CMKM and appointed Kevin West as Chairman of the Board of Directors and also appointed West to be the president, vice president, secretary, and treasurer of CMKM. On March 29, 2007, CMKM had only $558.50 in its corporate bank account.
At the time of Casavant's resignation, CMKM was, and is, the named defendant in three separate lawsuits brought by a shareholder, by an alleged creditor, and by two prior joint venture partners. CMKM had no attorneys actively defending CMKM in the lawsuits on March 29, 2007.
West was informed by Casavant that there were no assets owned by CMKM with the exception of 45,000,000 shares of Entourage Mining (ETGMF) common stock which is to be distributed to shareholders per agreement with Entourage Mining. Entourage stock currently trades at .20 per share. This block of stock represents approximately 50% of the ownership of Entourage.
There are presently in excess of 50,000 shareholders of CMKM stock. The cost of distributing share certificates to its shareholders will be exceed $250,000. An interpleader action was recommended to CMKM in 2005 by atask force appointed to identify its 50,000 shareholders. The task force recommended seeking help of the courts in identifying all of the bona fide shareholders of the company due to the refusal of certain major brokerage houses to issue stock certificates to CMKM shareholders.
West was left with no funds to begin an interpleader action or to distribute Entourage shares to its shareholders. Based on representations by Casavant to Mr. West, the company has no other assets. Accordingly, even if the company found the resources to file an interpleader action and distribute the Entourage shares, there would be no assets remaining in the company after the distribution of Entourage stock.
Following Casavant's resignation a few weeks ago, Mr. West flew to Canada to inspect the core samples that purportedly supported the early promotion of CMKM stock. Records now available to CMKM indicate that several million dollars was purportedly paid to a drilling company in Canada. Core samples exist as evidenced by photos in the attached Exhibit G. Casavant continues to maintain the opinion that the kimberlite formations existing on the claims owned by the company (now in the hands of Entourage) will yield the largest and most prolific diamond field ever discovered.
New management plans to return CMKM to trading status and work with Entourage in the development of the remaining mining claims. The waste of corporate assets, self-dealing, and malfeasance of Casavant, former CMKM management and insiders may prevent such occurrence, however, unless corporate funds are recouped from Casavant and his associates.
The Disappearance of Company Funds
Although the company has received millions of dollars from the sale of securities during the preceding several years, those funds are now gone. The question remains, where did the millions of dollars invested in this company go? In 2002, the shell which eventually became CMKM was current in reporting its audited financials. From the third quarter of 2002 until the present, however, CMKM has never filed nor had prepared any company financials, audited or otherwise. No corporate income tax returns have ever been filed for the company since 2002.
Upon receiving the appointment as Chairman of the Board on March 29, 2007, Kevin West immediately contacted one of Casavant's personal attorneys and requested all company files. On or about April 7, 2007, Mr. West received 7 boxes of company records. Upon review of those records, CMKM has learned that among other purchases, company management either directly or through specially created limited liability companies, corporations or trusts purchased the following real estate with corporate funds:
a. 90 Innisbrook Avenue, Las Vegas, NV ($3,500,000) (SpanishTrails)
b. 30 Princeville Lane, Las Vegas, NV ($775,000) (Spanish Trails)
c. Durango Trails Office Park, Building T ($748,325) (across the street from the Spanish Trails subdivision)
d. 7146 Mission Hills Drive Las Vegas, NV ($349,000) (Spanish Trails)
CMKM is informed and believes that Casavant and his associates have purchased other real estate holdings purchased with company funds.
Casavant and his associates formed P.A. Holdings, Inc. as a vehicle to use company funds to invest in outside ventures and fund certain select company activities. The company was formed by Casavant and Attorney Brian Dvorak. Casavant signed all checks on the P.A. Holdings account. Brian Dvorak is listed on state incorporation records as holding all offices of the corporation. The registered agent for P.A. Holdings, Inc. is Globalwide Investment Company, LLC., an LLC owned by Brian Dvorak.
CMKM is informed and believes that money was funneled through P.A. Holdings, Inc. to fund CMKXtreme, the UAJC 2005 Irrevocable Trust and a host of other companies and ventures. P.A. Holdings, Inc. had no revenues and no discernible business operations but received in deposits millions of dollars. Several deposits have been traced to sales of CMKX stock. During the brief span from July through August 2004, P.A. Holdings, Inc. received over $14,000,000 in deposits, but the checks accompanying these bank statements have never been produced by prior management. These funds came during the time that CMKM stock sales were at an all time high following the announcement that Roger Glenn was on board to solve all the problems with the SEC. The address for P.A. Holdings, Inc. was 30 Princeville Lane in Spanish Trails, per the September 2004 bank statement. All property purchased in Spanish Trails are residential properties, and there are no businesses in Spanish Trails.
Casavant and his associates formed UAJC 2005 Irrevocable Trust with corporate funds and or funds derived from the sale of corporate stock. Through this trust, real estate has been purchased, stocks are traded on an ongoing basis, and other investments have been made. Casavant refers to this trust as his personal trust account. DefendantMike Williams is the purported trustee of such trust and is charged with making investment decisions on behalf of the trust. This trust was created and run by Casavant.
The millions of dollars used to fund this trust magically appeared when stock sales were at the highest in CMKM history. CMKM had no revenues and had no offices at that time. The trustee of this trust, Mike Williams, is known to be a business partner that was given billions of shares of CMKM stock but had no official position with the company other than serving as a financial advisor to Mr. Casavant.
The UAJC 2005 Irrevocable Trust entered into a contract to purchase four office buildings in 2005. A specially created limited liability company "Four Vegas Properties, LLC." was created to purchase the buildings. The trust had no assets but was formed solely to purchase the four buildings by the UAJC 2005 Irrevocable Trust. A check was tendered for $1,000,000 dollars to secure the property. Casavant used the address of CMKM as the address for these buildings on public filings.
A lawsuit resulted from the attempted purchase of these buildings with corporate funds. In that suit in July 2006, Mike Williams testified in a deposition there was in excess of $8,000,000 dollars and more in the UAJC Trust account. Casavant and Williams have personally received substantial sums from a settlement with the building owner over the purchase of such buildings. No funds have been turned over to the company resulting from such purchase.
Mike Williams is the trustee on the UAJC 2005 Irrevocable Trust and is thus a fiduciary to the corporation. Mr. Williams was the subject of a press release at one point naming him as a director of CMKM. Mr. Williams has received billions of shares of CMKM stock through his MDW and GRW Irrevocable Trust and his company Lifeline Entertainment for reasons unknown to current management. No documents have been made available to new management explaining such stock transfers. Mr. Williams claims to be the investment advisor to Casavant.
With millions in cash coming from stock sales, company management began to invest heavily in the stock market. Investments were made in penny stocks belonging to other company insiders such as Broadband Wireless, Inc., which belonged to Mike Williams. Another $3,000,000 was invested in or loaned to a company named Crystallix. Crystallix stock was bought and sold heavily in Casavant's personal stock trading account. In or around May 2005, Casavant made an additional $1,000,000 loan to Crystallix bringing the total loaned to $3,000,000. When he was asked about that loan, Casavant indicated that it was his personal money and it is all taken care of.
New management has also recently located check stubs indicating loans or purchases of stock totaling $2,250,000 in Conversion Services International, Inc. (CSII). These checks were written on a CMKXtreme account on or about February of 2005.
CMKM also invested $ 1,000,000 of company funds in Mobile Wireless Security in July 2004. There has been no accounting of this advance or loan or purchase made by CMKM.
New management has also discovered a wire transfer indicating a purported purchase of eight diesel trucks from GMC in Canada. The wire totaled $371,100.86 made payable to Owens and Sweitzer. As of the date of this lawsuit, CMKM has been unsuccessful in locating the vehicles that were purportedly purchased.
It is also clear that Casavant and his associates directed the expenditure of millions of dollars of company money on joint venture agreements with companies like USCA, GEMM, SGGM and Golden Arch Resources. The company intends to pursue any recoveries it may have for any failed investments it has with these and other companies.
