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Post by Franko10 ™ on Mar 6, 2005 16:01:45 GMT -5
JOHN L. SMITH: Feds demand more from diamond company than flashy news releases
Las Vegas-based CMKM Diamonds has dazzled thousands of investors with its claims of locating a glittering fortune in icy Saskatchewan, but the Securities and Exchange Commission is now officially unimpressed.
The SEC announced Thursday that it was temporarily suspending trading on the flashy penny stock after concerns arose over the adequacy of the company's publicly available information. A company's assets and liabilities, business activities, share structure and stock details must be reported properly to the SEC.
The suspension began Thursday and is scheduled to continue through March 16.
CMKM, which trades as "CMKX," has produced dozens of news releases touting the potential of its supposed Canadian diamond exploration, but it has failed to file necessary forms with the SEC.
"The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information subsequently issued by CMKM Diamonds," the SEC stated.
In his order, SEC Secretary Jonathan G. Katz said, "The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading" in CMKM.
I recently reported that the SEC was investigating CMKM and had seized dozens of accounts at a local bank, where the company was suspected of moving an estimated $64 million in recent months. The report was met with skepticism by dozens of CMKM investors, who have bought into the company's dizzying tale of riches within reach in the Canadian province.
In a recent CMKM news release, President Urban Casavant announced that his company was updating its "corporate strategy" with an eye to complying with SEC rules. One recent move was to bring in former Howard Hughes aide Robert Maheu.
"Today, CMKX is embarking on an aggressive, strategic plan that is intended to transform the entire corporation into a tightly focused mining and development company," Casavant said in a Feb. 11 statement not long after I reported that CMKM was under SEC investigation. "It is our intent to use all available resources to generate consistent, long-term growth and profitability for our stockholders."
Obviously, the SEC decided not to take Casavant at his word.
Informed sources say the SEC has focused on particularly suspicious stock sales during its local investigation.
Even more eye-popping than CMKM's publicity effort is the estimated trillion shares of its all but worthless stock that has flooded the penny market.
Web sites that scrutinize publicly traded companies recently noted the banning of CMKM and its subsidiaries from trading in Canada. The company has responded with more news releases.
Meanwhile, CMKM's logo shines on a variety of dragsters and racecars. .
www.reviewjournal.com/lvrj_home/2005/Mar-04-Fri-2005/news/25992037.html
Las Vegas-based CMKM Diamonds has dazzled thousands of investors with its claims of locating a glittering fortune in icy Saskatchewan, but the Securities and Exchange Commission is now officially unimpressed.
The SEC announced Thursday that it was temporarily suspending trading on the flashy penny stock after concerns arose over the adequacy of the company's publicly available information. A company's assets and liabilities, business activities, share structure and stock details must be reported properly to the SEC.
The suspension began Thursday and is scheduled to continue through March 16.
CMKM, which trades as "CMKX," has produced dozens of news releases touting the potential of its supposed Canadian diamond exploration, but it has failed to file necessary forms with the SEC.
"The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information subsequently issued by CMKM Diamonds," the SEC stated.
In his order, SEC Secretary Jonathan G. Katz said, "The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading" in CMKM.
I recently reported that the SEC was investigating CMKM and had seized dozens of accounts at a local bank, where the company was suspected of moving an estimated $64 million in recent months. The report was met with skepticism by dozens of CMKM investors, who have bought into the company's dizzying tale of riches within reach in the Canadian province.
In a recent CMKM news release, President Urban Casavant announced that his company was updating its "corporate strategy" with an eye to complying with SEC rules. One recent move was to bring in former Howard Hughes aide Robert Maheu.
"Today, CMKX is embarking on an aggressive, strategic plan that is intended to transform the entire corporation into a tightly focused mining and development company," Casavant said in a Feb. 11 statement not long after I reported that CMKM was under SEC investigation. "It is our intent to use all available resources to generate consistent, long-term growth and profitability for our stockholders."
Obviously, the SEC decided not to take Casavant at his word.
Informed sources say the SEC has focused on particularly suspicious stock sales during its local investigation.
Even more eye-popping than CMKM's publicity effort is the estimated trillion shares of its all but worthless stock that has flooded the penny market.
Web sites that scrutinize publicly traded companies recently noted the banning of CMKM and its subsidiaries from trading in Canada. The company has responded with more news releases.
Meanwhile, CMKM's logo shines on a variety of dragsters and racecars. .
www.reviewjournal.com/lvrj_home/2005/Mar-04-Fri-2005/news/25992037.html
