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   Gold/Mining/EnergyCasavant Mining Kimberlite International (CMKM)


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From: StockDung3/12/2010 2:21:23 PM
   of 2593
 
Dealing With Fraud by Denial By FLOYD NORRIS
March 11, 2010

Years after Charles Ponzi was imprisoned for a fraud that cost victims millions of dollars in 1920, the state of Massachusetts determined it had recovered all the assets it could, and began to distribute them to victims, who stood to receive less than 30 cents for each dollar they invested.

To get the money, the victims had to turn over the notes they had received from Ponzi. But many of them refused to do so when the cash was offered in 1931.

Those who refused, wrote Donald Dunn in his book, “Ponzi: The Incredible True Story of the King of Financial Cons,” were “holding onto the belief that Ponzi somehow would yet make good on his promise of 50 percent interest.”

He did not.

nytimes.com

That was probably not the first, and certainly not the last, example of what might be called “buyer’s denial.” It is the belief that somehow a fraud was not what it seemed to be, and that there was still a way to avoid losing the money the victim had foolishly invested.

“One has to ignore a lot of data to come to that conclusion. But that may be better than having to admit to yourself that it is over and you’re never going to get your money back,” said Dean G. Kilpatrick, the director of the National Crime Victims Research and Treatment Center and a professor at the Medical University of South Carolina. “It stands to reason that some would prefer to believe something else.”

To conclude that, it may be necessary to believe that there is some large conspiracy involving the government. Otherwise, why would prosecutors have wrongly claimed there was a huge fraud?

Perhaps the largest case of “buyer’s denial,” at least in terms of alleged damages, is in the fraud involving a tiny company known as CMKM Diamonds, which purported to have valuable diamond mining claims. In reality, what it had was a publicity machine, including the sponsorship of a car at “funny car” races around the country.

Several shareholders in CMKM — some of whom kept buying shares after the government exposed the fraud — want 10 current and former commissioners of the Securities and Exchange Commission to pay them $3.87 trillion, an amount equal to about half the United States government debt in public hands. You might think that would be enough, but the suit claims those are merely compensatory damages. They also want punitive damages, but do not cite a figure.

That is an impressive amount for a company whose last published balance sheet showed total assets of $344. That is dollars, not millions.

The tale the shareholders tell, in a lawsuit filed in January in federal district court in Santa Ana, Calif., is of a conspiracy involving not just the S.E.C., but also the Justice Department and the Department of Homeland Security.

Before getting into their view of reality, we’ll look at the record as developed in court cases filed by the S.E.C. and the Justice Department.

By their account, CMKM Diamonds illegally issued hundreds of billions of shares of stock, which insiders proceeded to sell into the market while the company issued a series of false news releases and failed to file required financial statements with the S.E.C.

With volume in the stock reaching billions of shares a day, the company needed an explanation for where all those shares came from. Disclosure that the company was simply printing them might have alarmed even the least astute investor.

CMKM came up with an explanation that would also be used later by another “pump and dump” fraud named Universal Express. It blamed “naked” short-selling by criminals who had sold shares they had not borrowed beforehand.

Eventually, the S.E.C. ordered a temporary halt to the trading, citing the lack of public information on the company. The insiders kept selling shares, earning a total profit of at least $64 million, according to the government.

The case stands as a tribute to the ineffectiveness of civil remedies against determined crooks. The S.E.C. sued the insiders in federal court in Nevada. Most of them did not bother to reply. The S.E.C. got an order requiring John Edwards, a British citizen said to be the mastermind of the fraud, to pay $55 million in restitution, damages and interest. He left the country.

Urban Casavant, the company’s chief executive and the man who ran the publicity machine, was ordered to pay almost $69 million, but did not. He moved to Canada.

Both of those men, along with four other people said to have been involved in the fraud, were indicted by a federal grand jury in Nevada. Mr. Edwards is fighting extradition from Britain. Mr. Casavant is a fugitive.

The other view of CMKM is advanced by A. Clifton Hodges, a lawyer in Pasadena, Calif. In his class-action suit representing shareholders, and in an interview, he maintained that the government had set up a sting to catch the criminals who were doing the naked shorting.

The government had, the suit says, “evidence that short-sellers were utilizing their activities to illegally launder moneys, wrongfully export moneys, avoid payment of taxes and to support foreign terrorist operations.”

The government supposedly set up a sting using the services of Robert Maheu, a former F.B.I. agent and associate of Howard Hughes, who briefly served as a director of CMKM and complained that he was not paid. Mr. Maheu has since died.

The government now should distribute to shareholders the money it made on the scheme, the suit maintains. It does not explain how it arrived at a number in the trillions.

Mr. Hodges told me he had evidence to back up his case, but would not reveal it now.

He said the suit is allowed under a 1971 Supreme Court decision that allowed victims of ostensibly improper searches by federal narcotics agents to sue the agents as individuals, even though they could not sue the government. He thinks that justifies suing everyone who was an S.E.C. member from 2004 to the present.

Mr. Hodges told me that he could produce testimony from an unnamed witness who had heard Christopher Cox, then the S.E.C. chairman, direct that no enforcement action be taken against CMKM. Mr. Cox declined to comment, citing the pending litigation, but it is worth noting that the S.E.C. did file enforcement actions against the company while Mr. Cox was at the helm.

Mr. Hodges told me he has the phone number of Mr. Casavant, the fugitive former chief executive, in the Canadian province of Saskatchewan, and had spoken to him. He would not provide the number.

While pursuing his own theory of what happened at CMKM, Mr. Hodges does not seem to have done an especially thorough job of keeping up with the official version. The federal indictment of Mr. Casavant was unsealed in September, six months ago. But when I spoke to him this week, Mr. Hodges told me that Mr. Casavant had not been indicted.

Because I had written about CMKM several years ago, several shareholders brought this suit to my attention. When I told one I believed that the suit was unlikely to succeed, another called to ask me if the government was paying me off to suppress the news.

If the suit is dismissed, those shareholders are not likely to conclude that the claim is nonsense. Instead, they probably will see the dismissal as proof of an even larger conspiracy. Buyer’s denial can be a powerful thing.

Floyd Norris comments on finance and economics in his blog at nytimes.com/norris.

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To: scion who wrote (2582)5/13/2013 1:16:51 PM
From: DanDerr
   of 2593
 
LOL! The saga now does not continue! Great job, Al!!!!

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To: DanDerr who wrote (2584)5/13/2013 1:23:31 PM
From: scion
   of 2593
 
Re CMKX - demand for $3.87 trillion from the SEC commissioners - May 13 2013 Petition DENIED.

supremecourt.gov

No. 12-1138
Title: David Anderson, et al., Petitioners
v.
Christopher Cox, et al.

Docketed: March 20, 2013
Lower Ct: United States Court of Appeals for the Ninth Circuit
Case Nos.: (11-55169)
Decision Date: December 19, 2012

~~~Date~~~ ~~~~~~~Proceedings and Orders~~~~~~~~~~~~~~~~~~~~~
Mar 18 2013 Petition for a writ of certiorari filed. (Response due April 19, 2013)
Apr 16 2013 Waiver of right of respondents Christopher Cox, et al. to respond filed.
Apr 23 2013 DISTRIBUTED for Conference of May 9, 2013.
May 13 2013 Petition DENIED.

~~Name~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~Address~~~~~~~~~~~~~~~~~~ ~~Phone~~~
Attorneys for Petitioners:
A. Clifton Hodges 4510 East Thousand Oaks Blvd. (805) 371-7515
Suite 201
Westlake Village, CA 91362
Party name: David Anderson, et al.
Attorneys for Respondents:
Donald B. Verrilli Jr. Solicitor General (202) 514-2217
Counsel of Record United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, DC 20530-0001
SupremeCtBriefs@USDOJ.gov
Party name: Christopher Cox, et al.

supremecourt.gov

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From: DanDerr5/14/2013 7:21:22 PM
   of 2593
 
We already have been at the World Court/International Court being represented there to release our funds the past 2 years, Peter Maheu went before the US Surpreme Court to have our funds released in camera. Review where we all have been.

Mr. Hodges has petitioned Her Majesty Queen Elizabeth the II House of Windsor to have our funds released. This is VERY IMPORTANT to know this. Her Majesty Queen Elizabeth the II House of Windsor she took and oath to protect the Common Law Rights of Common Law man(God's Law) which also includes WE THE PEOPLE as Common Law Man with Inherent Rights Why is this important?

Mr. Hodges has been operating the Bivens according to the ORGANIC/ORIGINAL CONSTITUTION and not the constitution of the corporation of the United States. The US Supreme Court has been attempting to protect the corporation of the United States under her majesty the crown corporation of London at that time, not Her Majesty Elizabeth the second of the House of Windsor. When we begin to comprehend what was done to us and the importance of TITLE/NAME the realm of jurisdiction will open our minds to the way our ForeFathers wanted things to be for us and protected those Inherent Rights and Common Law Rights.

I know this is confusing because you believe to be American's yet America still falls under the Jurisdiction of the Her Majesty Queen Elizabeth II House of Windsor. Reverse engineer American History and evidences and facts begin to reveal themselves how both united states of America was changed into the United States of America Corporation.

THERE IS ANOTHER QUEEN OF LONDON its a TITLE for the CORPORATION OF LONDON also KNOWN AS THE CROWN. When court proceedings take place and the CROWN is prosecuting they are doing so under STATUTORY LAW the lowest of law, statutory law is the lowest form of law and only operates within government and government agency, Common Law is the Highest Law of the Land which all of us both Americans and Canadians realize that this has been hidden from us through the corrupt court systems and we subject ourselves believing what the government dictates, and they use for short the CROWN to trick us and we NEVER QUESTION WHO ARE YOU?

. Just like Federal Reserve people think it is a function of the government we learned its a Private Bank/Cartel. Same goes for the CROWN it represents the CROWN CORPORATION OF QUEEN OF LONDON

Mr. Hodges has done what no other Attorney in the united states of America EVER ATTEMPTED TO DO is operate and plead out Bivens Case through the ORANGIC/ORIGINAL Constitution.

I would write more on this and perhaps I will to help teach what has been taken from all of us through the corruption of the past 100 plus years

Read more: tfant53.proboards.com

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To: DanDerr who wrote (2586)5/14/2013 7:55:22 PM
From: scion
   of 2593
 
...they are doing so under STATUTORY LAW the lowest of law, statutory law is the lowest form of law and only operates within government and government agency, Common Law is the Highest Law of the Land which all of us both Americans and Canadians realize that this has been hidden from us through the corrupt court systems and we subject ourselves believing what the government dictates, and they use for short the CROWN to trick us and we NEVER QUESTION WHO ARE YOU?

The Ignorance Quotient cannot be measured...

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To: scion who wrote (2587)5/15/2013 9:11:41 AM
From: DanDerr
   of 2593
 
Scary to think that idiots like this roam freely amongst us!! See my last post on FAKE for more. Pure nuts...

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From: DanDerr5/15/2013 9:12:34 AM
   of 2593
 
From: DanDerr5/15/2013 9:10:30 AM
of 3504
More insanity! But great for laughs...

---------------------------------------
By: rosencrantz2010
14 May 2013, 08:13 PM CDT
Rating: Rate this post:
Msg. 1175199 of 1175266
Jump to msg. #
BHOLLENEGG says AL was expecting this victory at the Supreme Court and now the company can move forward. this was exactly what BOB and AL were hoping for. this is the best news ever!

By: rosencrantz2010
14 May 2013, 08:17 PM CDT
Rating: Rate this post:
Msg. 1175202 of 1175267
Jump to msg. #
everyone in the know realizes the outcome from the Supreme Court was PERFECT!

we got we came for. AL was hoping for the rejection since it would put SHORTY in a real bind.

BHOLLENEGG said as much when he said, don't be surprised at the outcome. many won't understand it but it will be exactly what we need to happen.

BOB and AL say, count your blessings because this is it. we won as a result of this decision and now we can move forward in the next few days. if it's not the next few days it will be a few after that. but whatever, we won and you know we won because it just feels like we kicked butttt on the Supreme Court and they know we know we won and they lost. YAHOO!! time to CELEBRATE!


By: rosencrantz2010
14 May 2013, 08:21 PM CDT
Rating: Rate this post:
Msg. 1175205 of 1175268
(Reply to 1175202 by rosencrantz2010)
Jump to msg. #
HARV knows what's what. AL did the WHAT-toosie on the Supreme Court and now they are in trouble.

this was exactly what AL was working toward.

word is they may make AL the Supreme Court Chief Justice.

i know it's hard to believe but many insiders are saying AL's brief was so good they are thinking of replacing Justice Roberts with Justice Hodges.

once Al becomes Chief Justice we will be paid.


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From: DanDerr12/27/2013 12:24:30 PM
   of 2593
 
The Definition of Insanity - Al Hodges:

----------------------------------------------

janice shell Wednesday, 12/25/13 11:45:47 PM
Re: 'ttotuc


Post # of 340432






He needs to be institutionalized.

Hodges and Associates - 12/25/13 "THE IMPOSSIBLE DREAM"

FIGHTING THE IMPOSSIBLE DREAM

To dream ... the impossible dream ...
To fight ... the unbeatable foe ...
To bear ... with unbearable sorrow ...
To run ... where the brave dare not go ...
To right ... the unrightable wrong ...
To love ... pure and chaste from afar ...
To try ... when your arms are too weary ...
To reach ... the unreachable star ...
This is my quest, to follow that star ...
No matter how hopeless, no matter how far ...
To fight for the right, without question or pause ...
To be willing to march into Hell, for a Heavenly cause ...

That is the real reason I became counsel for seven brave travelers of similar mind and spirit some five plus years ago. I was frustrated by all the B.S. continually being fed to the CMKM Diamonds Inc. shareholders, I was confused by the fact that no one appeared to ‘be in charge,’ and I was perplexed by so many years having already passed since I had been told by the “founders” that “.... it will all be history within no more than a year.” I was simply overcome with a compulsion to get to the bottom of what was taking place with my not insubstantial investment in this public company, CMKX. Accordingly, because I then enjoyed the luxury of time and resources, I dove in head first and was soon consumed on a full time basis with pursuing the answer to my quest; I can assure you all that it seemed at that point to be an impossible dream.

I did not begin this quest out of a sense of arrogance, power madness, or other such motive; I began this quest because of the vacuum that existed. After some reflection I began to appreciate that I might be the only substantial shareholder with the proper mix of professional skill, investigative skill, intellectual impetus and stimulus, and where-with-all to pursue it. I do not intend to recite here the efforts and travails of the intervening years; some have already been published – the rest will have to await another time.

What I do wish to discuss in this message is some of the reasons for the extremely protracted delay in achieving resolution. In that regard, please understand that circumstance still constrains what I can relate and what must remain, at least for the moment, hidden. To repeat myself again, “...I have previously stated, we have confronted, with added pressure from the ‘lien-holders,’ the vilest, most contemptible, well financed forces for evil on the planet – and we have won!” As I have previously stated, some many months later, that must seem to have been an idle boast. However, it does reflect the mighty struggle that has been raging in the shadows.

The essence of the delay relates directly to the relatively small role CMKX has played in this developing correction. I use those words specifically, and intentionally, to convey what this has been all about. It has not only been about Wall Street, or financial corruption, or fiat currency, or political corruption, or concentration of all the world’s resources in the hands of a few such that the rest of the population become slaves, or the allowance by the American public of having their Constitutional Republic craftily usurped and replaced with a Corporation, or any combination of such ‘horribles;’ it has rather been about all of these things and more. It has been about the US of A and every other civilization on this planet; it has been about returning the US of A to its rightful intended form of government; it has been about crafting a successful and transparent global financial system based on real values; it has been about agreeing with all of our neighbors to a system of trade balance such that the playing field is equally available to all and represents fairness to each; it has been about allowing the world’s resources, both natural and financial to be equitably allocated among all civilized nations; and, it has been about preparing the world for the future.

You’ve heard me state repeatedly that we’ve won; in the face of that you wonder all these many months later why I would lie to you and/or misrepresent the state of affairs. Indeed, I would not do so under any circumstance of which I can conceive, so, let me be perfectly clear: we won the battle over CMKX and our right to be compensated for those wrongs perpetrated against us . I did not mean to suggest when making that statement that the battle was over – if some were left with that impression, I apologize for the inadequacy of my expression. I tried repeatedly to make clear that the battle raged on, and would so continue, until such time as we had received ER. ER was then defined on multiple occasions as receipt by another of my clients of the BASEL approved funds due to be paid to him for the express purpose of conducting the US Dollar Refunding Project, a part of the World Global Settlements (WGS), as is the Global Currency Reset (GCR).

As I have set forth in essentially every legal document and every CMKX Update, achieving ER was a sina qua non to the CMKX shareholders being paid; the reason is a simple one – THAT’S THE WAY THE ENTIRE GAME PLAN WAS STRUCTURED. The fact that the game plan was set up that way became a great stimulus to me to get involved with the WGS and GCR; it simply became the only means available to ‘hurry up’ the CMKX pay-out. No one insisted I become involved and no one has paid me to be involved; however, I have picked up several new clients along the road, and I hope to assist them in their socially responsible efforts after these WGS/GCR programs become realized.

I tried originally to focus the attention of the shareholders on receipt of ER because I had received advice that such receipt would not only be public, but in fact would be the last item completed on the G-20 approved BASEL List of items to be accomplished necessary to support the World Global Settlements and the Global Currency Reset. Accordingly, I concluded, based upon all the information I had discovered, that the CMKX ‘packages’ would be delivered right after the receipt of ER, mostly as a result of the mandate that CMKX moneys be paid out in asset-backed currency. However, the miscreants came to the very same conclusion and have focused intensely on preventing Economic Receipt by any and all means possible.

Their efforts have involved literally every means possible; if you can conceive of it, it is a method/approach the cabal has taken advantage of and utilized. To counteract such behavior, the “sting” approach has been utilized frequently and repeatedly by the ‘good guys.’ The most recent example of this concerns the expected RV of the Iraqi Dinar [IQD] currency, part of the Global Currency Reset. Because of their high exalted status, many Congressional seat holders and other D.C. ‘bigwigs’ were originally allowed to convert their IQD holdings to Bank SKR’s, or Safe Keeping Receipts; these were originally done at various rates of expected exchange value which was in most cases substantially below the rumored $32.00 rate. These same people were recently [w/i the last six weeks] given the opportunity to convert these SKR’s to GFR’s, or Guaranteed Fund Receipts; at that same time they were generally provided approximately 10% of the GFR value in cash equivalents with the express promise that said cash would not be utilized to purchase more IQD. We are currently advised that many thousands violated such proscription almost immediately. Some of these people will be resigning their offices and some others will undoubtedly be prosecuted. Use of these continuing “sting” operations has helped to weed out those who continue to support the cabal and accede to their instructions; most of the other ‘miscreants’ have been arrested one or more times [Timothy Geithner for example has been arrested more than four times] and currently face prosecution in the near future.

The cabal is finished! Most of the high-level and medium-level people, both in and out of government, have by now either been “stung” or arrested, and now face some combination of disgrace, loss of financial advantage, loss of position of power, loss of official office, and/or near term prosecution. In my opinion, having closely monitored the events as they occurred, we have reached the position of imminent conclusion. Although it is very difficult to appreciate the length of time this has taken, I can now accept that the acts involved were necessary to accomplish the goals sought. As a result of this opinion and now having a fuller understanding of both the goals, and the accomplishments to date, I will once again stick my neck out to advise you all that your journey is all but over.

It is my opinion, based not only on what I am told each day by those at the top of the new powers that be, but more importantly on the status of the imminent Global Currency Reset. Its status is important because it cannot become a public fait accompli without the US Treasury becoming a hard-metal asset backed issuer of US currency. Accordingly, when you publicly see the Global Currency Reset you will know that we have an asset backed currency, and you will know that we have received ER. Every indication from every credible source is that the Reset will become public today, tomorrow, the next day, or certainly by January 1, 2014.

I cannot guarantee this of course, but it does represent my best opinion based on all available information. I can absolutely assure you that the wonder of what you are so soon to experience – REALITY – will mightily blow away any doubt, disbelief, bitter humor, or unhappy memories that recent experiences have encouraged and supported. As I have said in the past, “you will be paid a great deal more than any have the right to expect [based on the amount of [your] investment]. In addition, you will receive a payment for the unconscionable length of payment delay.”

Sincerely.
Al Hodges

Ps. Let me take this opportunity to wish each and every one of you a very Merry Christmas, Happy New Year and Joyous Holiday Season.

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From: StockDung2/26/2014 8:20:25 AM
   of 2593
 
Man in diamond mine scandal dead but certainly not forgotten

Posted date February 25, 2014 - 11:48pm

By John L. Smith
Las Vegas Review-Journal

Urban Casavant is dead, but don’t expect all the suckers who dumped millions into his diamond mine stock scam to believe it.

In fact, the Cult of Casavant and the CMKM Diamonds swindle continue apace despite the officially confirmed end of the line for the penny stock mastermind, whose shenanigans allegedly topped $70 million.

Investor chat rooms recently went into overdrive chewing on the possibilities. Some investors swore they didn’t believe Casavant was dead. Then again, some of those same investors still hold out hope he wasn’t conning them all these years.

When the Review-Journal last week published a story noting Casavant’s official death on Feb. 14 in Canada, one reader replied, “What a bunch of crap. Where are the documents where Urban was fighting extradition? I don’t believe a word of this article.”

Multiple unofficial reports on the Internet states Casavant had died during hernia surgery. Lifting that much bravado for so many years apparently took its toll.

The Las Vegas-based Casavant was indicted in 2009 on securities fraud charges. He and nine others on March 24, 2010, were slammed with a superseding indictment on a variety of securities fraud and other felonies that included conspiracy to money launder and tax evasion.

The Securities and Exchange Commission for years pursued Casavant and his crew on civil violations related to his infamous Canadian diamond boondoggle.

According to the superseding indictment, Casavant’s team used at least nine shell corporations to facilitate the unregistered sale of stock to customers recruited through his own contacts and a series of boiler room-style solicitations.

It wasn’t a small operation. Although shares in CMKM often traded in the fractions of a cent, according to the indictment, “the conspirators and their confederates caused these and other corporate shells to issue hundreds of billions of unregistered shares of stock to the defendants and their 14 nominees, associates, alter-egos and straw-purchasers.”

Of course, if Canadian diamond investment didn’t catch your fancy, Casavant’s crew back in 2006 was more than willing to sell you shares — as many as you desired! — in a guaranteed moneymaker called Worldwide Cannery and Distribution, which supposedly was shipping king crab from St. Petersburg, Russia, to the United States.

“In truth, the seafood cannery was not producing products or profits but was instead defunct and bankrupt,” the indictment noted.

Alas, no diamonds. And no crab, either.

The suckers chased good money after bad and held out hope of grand future paydays after reading the steady stream of forward-looking statements coming from Casavant and CMKM. As always, the diamond score was always just around the corner.

Eventually, many investors realized they were getting the runaround and lit up phone lines at the SEC, FBI, IRS and elsewhere.

The indictment states, “These shells did not conduct substantial business activities and produced no appreciable goods, services, or profits. Indeed, the principal business activities of these shells was the sale of unregistered shares of stock. Despite the elaborate facade constructed by the enterprise, investors in time recognized that shares of the particular corporate shell in which they had invested were of little, if any, value.”

By then, of course, Casavant had long since spent their money on everything from gambling forays at Strip casinos to expenses for a racing team that also marketed CMKM Diamonds.

His racing team briefly entered the 2012 U.S. Senate race between Dean Heller and Shelley Berkley. A racing enthusiast, as Nevada secretary of state, Heller had once driven a Casavant race vehicle. Heller through a spokesperson denied he had ever done Casavant any favors.

Although it’s not going to placate those investors who fantasize about recovering anything from their encounter with Casavant, his departure must have some people breathing easier: for one, those casino officials who played the gracious host to the high roller in the months and years after his activities were made public in the Review-Journal and on credible stock watchdog websites.

Word is Casavant blew a bundle at the tables.

Now he’s gone — but you don’t have to believe it if you don’t want to.

John L. Smith’s column appears Sunday, Tuesday, Wednesday, Thursday and Friday. E-mail him at jsmith@reviewjournal.com or call (702) 383-0295.

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To: StockDung who wrote (2591)2/27/2014 2:50:00 PM
From: scion
   of 2593
 
US v. John Edwards et al (CMKM) - »Case Update: CMKM

justice.gov

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Defendants: John Edwards, Jeffrey Turino, Urban Casavant, Nickolaj Vissokovsky, Melissa Spooner, Helen Bagley, Jeffrey Mitchell, Brian Dvorak, Ginger Gutierrez, James Kinney

A false rumor has circulated that confuses the criminal prosecution in the District of Nevada (United States v. John Edwards, et al., 2:09-CR-00132-RLH-RJJ) with a civil suit out of the Central District of California that has now been dismissed (David Anderson, et al., v. Christopher Cox, et al., 8:10 –CV-00031-JVS-MLG). There are many variations of this rumor. However, in short, the Anderson civil case is not related to the Edwards criminal case. In Anderson, the plaintiffs allege that the SEC and other agencies of the U.S. Government conducted a sting operation against “illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock.” Anderson Rev. First Amended Complaint, p. 17, para. 48. Essentially, the Anderson case involved allegations against an entire industry. In contrast, the superseding criminal indictment in the Edwards case charges a more clearly defined group of defendants: insiders at one company (CMKM) and people who enabled them.

Additionally, in the course of investigating and litigating the Edwards criminal case, government personnel in the District of Nevada have not encountered any evidence indicating that a government agency conducted a sting operation against naked short sellers of CMKM stock. Government personnel in the District of Nevada have also not come across any evidence of any settlement fund (much less any settlement fund with trillions of dollars) potentially available to pay possible claims of CMKM shareholders. The criminal investigation in the District of Nevada resulting in the United States v. John Edwards, et al., indictment involved no sting operation.

We hope this statement clarifies the differences between United States v. John Edwards, et al., with the facts alleged in David Anderson, et al., v. Christopher Cox, et al. The public is reminded that defendants are innocent until proven guilty. Thank you.

Scheduled Court Hearings

Status Hearing - April 29, 2014 at 9:00 am
Trial Date - April 23, 2014 at 9:30 am
(John Edwards, Urban Cassavant, and Nickolaj Vissokovsky will not get a court date until they make their initial appearance in Nevada)

Victim Letter

Information and Assistance for Federal crime victims and witnesses brochure

Press Release

Restitution Information

Second Superseding Indictment

On March 24, 2010, the grand jury returned a sealed Second Superseding Indictment which added the following defendants: Jeffrey Turino, Nickolaj Vissokovsky and Jeffrey Mitchell. In addition, several new charges were added, alleging that certain defendants engaged in a conspiracy to conduct an enterprise engaged in a pattern of racketeering activity, a conspiracy to sell unregistered securities and to commit securities fraud and a conspiracy to commit money laundering. On May 6, 2010, the Second Superseding Indictment was unsealed.

Superseding Indictment

The superseding indictment in United States v. Edwards, et al., alleges as follows: the defendants combined and conspired to perpetrate a fraud involving the issuance and sale of CMKM stock over a period of several years. Hundreds of billions of shares of CMKM stock were sold to thousands of investors during that span. Investors in CMKM are invited (but not required) to complete the following questionnaire. The questionnaire solicits information pertaining to this case for purposes of enabling prosecutors to confer with and receive information and opinions from victims of the CMKM scheme. Please note that while the completed questionnaires will not be publicly accessible, relevant information may be disclosed to the court and/or defense counsel in accordance with the Federal Rules of Criminal Procedure and other laws.

justice.gov

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