Martinas B.

CMKM Diamonds Faces SEC Charges in $64 Million Penny Stock Fraud

by Martinas B. April 8, 2008

moneyA microscopic mining company called CMKM Diamonds Inc., which was trading under a penny, has been accused of a $64 million penny stock fraud. The allegations are that the company issued hundreds of billions of shares illegally, leaving 40,000 investors nationwide without their money.

With assistance from a transfer agent and an attorney, allegedly CMKM fraudulently issued hundreds of billions of shares of purportedly unrestricted stock to John Edwards and his nominees, as well as to the nominees of Urban Casavant, the company's chief executive officer.

The SEC complaint charges CMKM, a broker dealer and transfer agent, as well as 11 individuals, including Casavant.

In its complaint, the commission identifies John Edwards as the brains behind the fraud. It is believed that Edwards and others pumped their unregistered stock into the public markets. According to the SEC, Edwards pocketed $26.4 million from sales through a single brokerage firm and that Casavant received about $31.5 million.

The SEC's investigation is continuing.

Sources

SECURITIES AND EXCHANGE COMMISSION
www.cmkmdiamondsinc.com

Comments 4

1. Guest
January 19, 2010, 02:23PM

Quotes Sounds like the movie "Stock Shock" where Sirius XM stock rises from the ashes. "Stock Shock" says the SIRI stock went down to 5 cents a share due to naked short selling. That was actually a great movie for learning all about Wall Street manipulation. Amazon has it on dvd or there is a trailer at www.stockshockmovie.com

2. Guest
May 12, 2008, 12:18PM

Quotes dig deeper into cmkx its alot bigger then u can ever fathum and its about to explode

3. Guest
April 20, 2008, 08:50PM

Quotes DO A STORY 0M RSMI, RIM SEMI CONDUCTOR OUT OF PORTLAND OREGON. NO DIFFERENT THAN CMKM, ALOT OF PROMISING PR'S OVER THE YEARS BUT NEVER CAME THRU ON ONE. LIES GET BIGGER EBERY YEAR. TAKEN IN OVER 90 MILLION IN SHARES SOLD. 700 MILLION OUT NOW AND WANTS SHARE OUTSTANDING TOINCREASE TO 4 BILLION. SCAMMERS

4. Guest
April 13, 2008, 04:25PM

Quotes It is about time the SEC jumps down on the fraud with the brokerage firms..

David Schauss which is a broker for AXA Previously Employed by John Han*** fraudulently took my funds and placed the investment money into his private account and the check was made out to ..How ever it was not millions ,It was fraud just the same..White collar FRAUD..

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