Some time ago we wrote about CMKM Diamonds penny stock fraud. Well, it appears that the judge has finally reached his decision.
And the decision was to award $33.7 million to CMKM Diamonds, a tiny mining company that says it has got an asset rich of resources somewhere in Canada.
Current CEO and Chairman, Kevin West, noted "I am very pleased with the progress being made through the Company’s litigation. It is time to begin the search for someone with the business experience that is needed to move the Company forward."
The complaint said that John Edwards, who acted as the brains behind the fraud with a help of his other associates, issued hundreds of billions of shares of purportedly unrestricted stock. Among his compatriots, was former CMKM Diamonds CEO, Urban Casavant.
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.