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Post by Franko10 ™ on Mar 8, 2005 5:31:04 GMT -5
Update: CMKM Diamonds, Inc. - In the Public Interest
Investigative Reports
March 7 2005
In the wake of an SEC order temporarily suspending trading in its securities, CMKM Diamonds, Inc. (Pink Sheets: CMKX) has moved quickly to line up on the side of the angels - though cynics might say they are simply playing the angles. See CMKM Diamonds, Inc. - No Value, No Trades. In a March 4, 2005 press release responding to the trading suspension, CMKM invokes the SEC's own words to suggest that the Company and the regulator have a common interest - protecting shareholders.
To that end, CMKM says that it has taken a step toward protecting investors and maintaining "the integrity of the securities markets" by retaining Robert Maheu "to assist….in its compliance efforts." Mr. Maheu, it seems, is a man of many talents. He served as assistant to Howard Hughes for 17 years, yet never met his boss, a power hungry man who, in relatively lucid moments, used money and power to influence and control people and government. Only a week ago, Maheu revealed on CBS's "60 Minutes" that he delivered $50,000 in cash on behalf of Hughes to Richard Nixon's close friend, Charles "Bebe" Rebozo, after Nixon won the presidency in 1968. It was half of a $100,000 payment that Maheu described as a "political contribution" - but that some observers believe was calculated to buy favorable treatment for Hughes' airline and hotel businesses. Senate investigators later discovered that the money was used for a pool table and putting green at Nixon's Key Biscayne, Florida home.
There are suggestions that the man who will assist CMKM in its compliance efforts has been involved in other clandestine activities as well. Reports suggest that Maheu played a key role in CIA efforts to assassinate Cuban leader, Fidel Castro in 1960, recruiting several notorious underworld figures for the plot.
Now Maheu serves as one half of the CMKM Board of Directors - and the man charged with assuring that the public receives accurate information about the Company. Urban Casavant, CMKM's sole officer, is the only other director. A third individual purportedly will join the CMKM Board once the Company obtains Directors and Officers insurance – a process that may be complicated by the SEC action.
According to Maheu, CMKM has been "aggressively gathering the essential information needed to comply with our public disclosure obligations," but will not let "these regulatory matters impede our primary focus of creating stockholder value through the mining and development of our mineral assets." Maheu did not say whether he actually has seen the Company's "mineral assets," or if, as with Hughes, he is taking their existence on faith.
CMKM, which has not filed public reports since mid-2003, recently acknowledged that it had erred by filing a Form 15 in July 2003, attempting to terminate its reporting responsibilities. The original Form 15 suggested that the Company had no more than 300 shareholders – the threshold for reporting. An Amended Form 15, filed on February 17, 2005, revealed that CMKM actually had 698 shareholders of record at the time. See CMKM Diamonds, Inc. - The Spin We're In. CMKM is obligated to correct its faulty reporting status by bringing all of its reports up-to-date within 60 days – by April 19th – but that seems unlikely. The Company warns that "due to the overwhelming number of reports that need to be filed, coupled with the necessary financial statement preparation…[it] will not be able to comply with the 60-day requirement."
The Company does not believe that its delinquent filing status prompted the SEC's trading halt. In its March 4th press release, CMKM stated that it had provided documentation to the SEC in connection with an inquiry into another public company – suggesting that this had prompted the SEC action. Whatever the reason, regulators are unlikely to be pleased to learn that CMKM does not expect to file the tardy reports within the prescribed time.
On the other hand, CMKM says that it plans to file Forms 8-K "in the upcoming weeks" reflecting important company developments. The Company insists that its "top priority [is] to uncompromisingly disclose all material corporate information as soon as it becomes available" – despite its failure to disclose such information for almost two years. The Company's March 4, 2005 press release opens the window on that disclosure revealing that CMKM has issued has over 703 billion shares of common stock (of 800 billion authorized) and presently has more than 2000 shareholders. The Company also revealed that it had moved its executive offices to 5375 Procyon St., Suite 101, Las Vegas, NV.
One final thought: In the March 4th press release, CMKM's CEO Urban Casavant pointed out that "[t]he SEC did not provide us with any notice of the temporary trading halt" – as though the Commission had somehow flaunted the rules. We have heard that note sounded before, by other companies confronted with similar suspensions. Their point is not well taken. The SEC does not notify a company or its management of an impending suspension because it does not want to run the risk that someone will use that information to profit by buying or selling shares before the suspension becomes effective and public.
By remaining silent until the suspension takes effect, the SEC simply is serving the public interest – and isn't that precisely what CMKM now says it wishes to do?
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
www.stockpatrol.com/article/key/cmkm3605
Investigative Reports
March 7 2005
In the wake of an SEC order temporarily suspending trading in its securities, CMKM Diamonds, Inc. (Pink Sheets: CMKX) has moved quickly to line up on the side of the angels - though cynics might say they are simply playing the angles. See CMKM Diamonds, Inc. - No Value, No Trades. In a March 4, 2005 press release responding to the trading suspension, CMKM invokes the SEC's own words to suggest that the Company and the regulator have a common interest - protecting shareholders.
To that end, CMKM says that it has taken a step toward protecting investors and maintaining "the integrity of the securities markets" by retaining Robert Maheu "to assist….in its compliance efforts." Mr. Maheu, it seems, is a man of many talents. He served as assistant to Howard Hughes for 17 years, yet never met his boss, a power hungry man who, in relatively lucid moments, used money and power to influence and control people and government. Only a week ago, Maheu revealed on CBS's "60 Minutes" that he delivered $50,000 in cash on behalf of Hughes to Richard Nixon's close friend, Charles "Bebe" Rebozo, after Nixon won the presidency in 1968. It was half of a $100,000 payment that Maheu described as a "political contribution" - but that some observers believe was calculated to buy favorable treatment for Hughes' airline and hotel businesses. Senate investigators later discovered that the money was used for a pool table and putting green at Nixon's Key Biscayne, Florida home.
There are suggestions that the man who will assist CMKM in its compliance efforts has been involved in other clandestine activities as well. Reports suggest that Maheu played a key role in CIA efforts to assassinate Cuban leader, Fidel Castro in 1960, recruiting several notorious underworld figures for the plot.
Now Maheu serves as one half of the CMKM Board of Directors - and the man charged with assuring that the public receives accurate information about the Company. Urban Casavant, CMKM's sole officer, is the only other director. A third individual purportedly will join the CMKM Board once the Company obtains Directors and Officers insurance – a process that may be complicated by the SEC action.
According to Maheu, CMKM has been "aggressively gathering the essential information needed to comply with our public disclosure obligations," but will not let "these regulatory matters impede our primary focus of creating stockholder value through the mining and development of our mineral assets." Maheu did not say whether he actually has seen the Company's "mineral assets," or if, as with Hughes, he is taking their existence on faith.
CMKM, which has not filed public reports since mid-2003, recently acknowledged that it had erred by filing a Form 15 in July 2003, attempting to terminate its reporting responsibilities. The original Form 15 suggested that the Company had no more than 300 shareholders – the threshold for reporting. An Amended Form 15, filed on February 17, 2005, revealed that CMKM actually had 698 shareholders of record at the time. See CMKM Diamonds, Inc. - The Spin We're In. CMKM is obligated to correct its faulty reporting status by bringing all of its reports up-to-date within 60 days – by April 19th – but that seems unlikely. The Company warns that "due to the overwhelming number of reports that need to be filed, coupled with the necessary financial statement preparation…[it] will not be able to comply with the 60-day requirement."
The Company does not believe that its delinquent filing status prompted the SEC's trading halt. In its March 4th press release, CMKM stated that it had provided documentation to the SEC in connection with an inquiry into another public company – suggesting that this had prompted the SEC action. Whatever the reason, regulators are unlikely to be pleased to learn that CMKM does not expect to file the tardy reports within the prescribed time.
On the other hand, CMKM says that it plans to file Forms 8-K "in the upcoming weeks" reflecting important company developments. The Company insists that its "top priority [is] to uncompromisingly disclose all material corporate information as soon as it becomes available" – despite its failure to disclose such information for almost two years. The Company's March 4, 2005 press release opens the window on that disclosure revealing that CMKM has issued has over 703 billion shares of common stock (of 800 billion authorized) and presently has more than 2000 shareholders. The Company also revealed that it had moved its executive offices to 5375 Procyon St., Suite 101, Las Vegas, NV.
One final thought: In the March 4th press release, CMKM's CEO Urban Casavant pointed out that "[t]he SEC did not provide us with any notice of the temporary trading halt" – as though the Commission had somehow flaunted the rules. We have heard that note sounded before, by other companies confronted with similar suspensions. Their point is not well taken. The SEC does not notify a company or its management of an impending suspension because it does not want to run the risk that someone will use that information to profit by buying or selling shares before the suspension becomes effective and public.
By remaining silent until the suspension takes effect, the SEC simply is serving the public interest – and isn't that precisely what CMKM now says it wishes to do?
IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com
www.stockpatrol.com/article/key/cmkm3605
