As the United States continues to fracture in every way imaginable, most citizens are unable to keep up with the never-ending hodgepodge of government corruption. Each day, a new larger-than-life scandal emerges, and in the short mind span of news media, there is always a bigger and better story to chase. Right now, the hot button issue for mainstream news outlets is healthcare reform, and its myriad implications for our society; this doubtlessly ensures the aforementioned media will continue to overlook unprecedented accusations brought forth in a recent $3.87 trillion lawsuit against U.S. Securities and Exchange Commission Chairman Mary L. Shapiro, as well as several other current and former SEC commissioners, among others.
This Bivens action suit represents the largest fraud case in world history, and was filed in the U.S. District Court, Central District of California, on January 8th by Pasadena attorney Al Hodges; in his complaint, made on behalf of CMKM Diamonds shareholders, Hodges alleges that:
[Complaint paragraph 31] During the period of June 1, 2004 through October 28, 2005 a total of 2.25 Trillion “phantom” shares of CMKM Diamonds Inc, was sold into the public market through legitimate brokers, illegitimate brokers and dealers, market makers, hedge funds, ex-clearing transactions and private transactions. The sales of the majority of such shares were at all times known to the Securities and Exchange Commission, including Defendants herein.
[Complaint paragraph 32] At some date prior to June 1, 2004 the Securities and Exchange Commission in concert with the Department of Justice of the United States, together combined with Robert A. Maheu and others to utilize CMKM Diamonds, Inc. for the purpose of trapping a number of widely disbursed entities and persons who were believed to be engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company.
The Securities and Exchange Commission and the Department of Justice, with assistance from the Department of Homeland Security, believed and developed evidence that said short sellers were utilizing their activities to illegally launder moneys, wrongfully export moneys, avoid payment of taxes, and to support foreign terrorist operations.
To fulfill the plan to criminally trap such wrongdoers, the Securities and Exchange Commission, with assistance from the Departments of Justice and Homeland Security:
(a) Assisted in and approved the retention of Roger Glenn, an ex-SEC trial attorney and drafter of Sarbanes-Oxley, to join CMKM Diamonds Inc. for the purpose of verifying claims value, increasing authorized shares of stock to 800,000,000,000, and supervising from the inside of the company;
(b) Encouraged the company to expand its promotional activities, assisted in the set up of the “racing activities” of the company, and underwrote a substantial portion of the cost of such activities;
(c) Consented to, facilitated, and supported the sale of certain company claims to several foreign corporations;
(d) Consented to, facilitated, and supported the conferences between Robert A. Maheu and his associates on the one hand, and the wrongdoing short sellers on the other, all for the purpose of settling the potential liability of said wrongdoers with consent of the U. S. Government and a representation of no criminal prosecution for such illegal sales;
(e) Consented to, facilitated, and supported the declaration of dividends payable by the company to each common shareholder of CMKM Diamonds, Inc.
(f) Consented to, facilitated, and supported the distribution of shares of CIM, a private company owned by Urban Casavant, as a stock dividend, including consent and approval of distribution of said shares to holders of more than 1.4 Trillion shares of CMKM Diamonds, Inc. common stock.
Based on these assertions, CMKM was used by the U.S. government as part of a covert sting operation – unbeknownst to shareholders – to apprehend criminals for their offenses. However, instead of prosecuting most of them, restitution deals were apparently cut:
[Complaint paragraph 34] During the period from March, 2004 through August, 2006, on behalf of CMKM Diamonds, Inc. Robert A. Maheu, with assistance from others, negotiated a settlement with the illegitimate brokers, dealers, market makers, hedge funds, and other persons and entities that had engaged in naked short selling of CMKM Diamonds Inc. stock and cellar boxing the company. In exchange for a U. S. Government promise of no prosecution for such sales, the wrongdoers each promised to pay negotiated amounts to a frozen trust for disbursal at a later time.
[Complaint paragraph 35] Plaintiffs herein are informed and believe, and based thereon allege, that other moneys have been collected for the benefit of the shareholders of CMKM Diamonds, Inc. from the Depository Trust & Clearing Corporation, from the United States Government, and from the sale of additional assets including consent to enter into joint venture agreements with other companies holding mineral claims in Saskatchewan, Canada. Plaintiffs herein are further informed and believe, and based thereon allege, that said moneys, collected for the benefit of shareholders have also been placed in a trust or are otherwise now held in trust by the Depository Trust & Clearing Corporation and the United States Treasury.
Therefore, the crux of this complaint – and the massive fraud allegedly committed by the SEC (and Department of Justice) – is as follows:
[Complaint paragraph 36] Plaintiffs herein are informed and believe, and based thereon allege, that at all times mentioned, the Securities and Exchange Commission reserved unto itself the sole and absolute discretion to determine when moneys collected pursuant to the scheme set forth above would and could be released for distribution.
[Complaint paragraph 37] Demand for release of said moneys has been repeatedly presented to the Securities and Exchange Commission without result. Agents and employees of the Securities and Exchange Commission and the Department of Justice have represented repeatedly that the release of moneys for distribution was imminent, and/or would occur within several weeks, and/or would occur within less than a month. Each of said representations have been made knowing them to be false, and at the specific direction of the named Defendants. These actions of withholding distribution of said moneys, without compensation and without due process of law, amount to a taking of the property of the individual Plaintiffs and of all similarly situated.
During the timeframe referenced above, CMKM was registered as a publicly traded diamond and gold mining company. By 2005, concrete evidence detailing fraud within the company emerged; in addition, it became publicly apparent that CMKM also sold, at the very least, hundreds of billions of unregistered shares – a practice often referred to as naked short selling – to third parties. Eventually, the SEC moved to delist CMKM stock, whose value never exceeded one penny per share, in accordance with Section 12(j) of the Securities and Exchange Act of 1934. After several administrative proceedings, CMKM stock was ultimately deregistered in October 2005.
In September 2006, Floyd Norris, chief financial correspondent of The New York Times and The International Herald Tribune, caught wind of the CMKM scandals, and began to report on some elements of the criminal fraud that ravaged CMKM’s estimated 40,000 shareholders. Norris has reported on more than one occasion that at least 259 billion shares of unregistered CMKM stock was sold; however, per the SEC’s 2008 action against CMKM, the agency itself acknowledges that as many as 622 billion shares of “purportedly unregistered stock” was sold by the company over a 20 month period.
So, how did Hodges initially determine that at least 2 trillion unregistered shares were sold?
[Complaint paragraph 25] A frequently asked question (FAQ) page was added to the web site [CMKMTaskForce.com] on the evening of November 4, 2005 and in response to a question about the degree of naked shorting of CMKM stock, the Task Force [consisting of Robert A. Maheu, Donald J. Stoecklein and Bill Frizzell] indicated that “Credible information indicates the number of naked short shares is potentially as high as 2 Trillion shares.”
‘QUITE A CASE’
Several weeks ago, I spoke with Al Hodges, a practicing attorney with four decades of experience, to find out more about this extraordinary case, and moreover, to determine exactly how he calculated his clients’ potential damages to be nearly $4 trillion – a figure many observers have openly scoffed at.
Almost immediately, I could not help but ask why the mainstream media has not fairly reported on this case; frankly, given the scope of accusations, one would assume that, at the very least, Floyd Norris and The New York Times would have some interest in thoroughly examining the merits of this action; instead, Norris has essentially brushed off Hodges' allegations as being baseless.
It’s not that Hodges and his associates haven’t tried to attract the media’s interest; in fact, on this side of the Atlantic, all the major dailies, including The Los Angeles Times, The New York Times, The Wall Street Journal and The Washington Post have all been informed of the suit. Their respective editorial staffs - with the exception of Floyd Norris - have utterly decided to ignore it.
In the United Kingdom, efforts have also been made to attract mainstream media interest. Veteran financial intelligence Editor and Publisher Christopher Story FRSA – an investigative specialist that focuses on covert government operations and scandals – has personally reached out to The Daily Telegraph’s International Business Editor Ambrose Evans-Pritchard, with whom he is acquainted, to notify him about Hodges’ case. To date, Pritchard has failed to respond to Mr. Story, who has authored a number of articles (1) – and other published commentary – in The Daily Telegraph over the course of his near 50-year-career.
Hodges noted that Story, publisher of International Currency Review, and several other serials, is “subscribed to by every intelligence operation in the world.”
If intelligence agencies are reading about CMKM, then why isn’t the mainstream press covering this case? Hodges prudently observed that “they’re not going to touch it.”
MAINSTREAM MEDIA WON’T COVER ISSUES TIED TO COVERT OPERATIONS? (EVIDENTLY NOT)
“They [the government] used the shareholders without their consent to perform this ‘sting operation’ for National Security interests, and it wouldn’t have worked the way it worked if they had disclosed it,” he continued.
“On the other hand, it isn’t right to bury a company and put them out of business for the purpose of trapping people who are using the company to cheat the government, to line their own pockets, and to fund their operations against the United States.”
As noted above in complaint paragraph 34, and per Hodges, a deal was eventually reached with the aforementioned criminals; they paid the government restitution for documented illegal actions, and in turn, were offered immunity from prosecution.
“Rob Maheu had all these people in a big room in Las Vegas, and made [an] offer to them,” he said.
“Every person, organization and representative in that room stepped up, and either transferred money while they were there, or agreed to transfer money upon some further schedule” to avoid indictment.
Hodges also said, “I have a witness who was there, who saw it, and part of the 2.25 trillion phantom shares is documented by that person’s observations of how many shares were represented in that room.”
HOW MUCH MONEY DID THE FEDS REALLY COLLECT FOR RESTITUTION?
“People are going to laugh and titter about the amount of money that is being claimed, but understand the context of the lawsuit,” he said, before concluding, “we are not asking the government to pay us $3.87 trillion, what we’re asking is for them to release the funds that have been collected for us.” Thus, the implication is that this sum also incorporates substantial punitive damages.
In the end, Hodges believes the U.S. government is going to settle the case before it actually moves to trial. On this possibility, he said, “I think its in the process of happening as we speak.”
Based on these explanations – and the recent scandals and assertions that have surfaced about the SEC – I believe the mainstream media is doing the public a great disservice by not properly examining Hodges’ CMKM case.
The same conclusion must also be drawn about Christopher Story’s reports on the criminality that is undermining international efforts to refund the U.S. dollar, which is dangerously close to losing its status as the world’s global reserve currency...but that’s touching on a whole other can of worms…or is it?
(1) In Paul Johnson’s article “Unions, Pensions, and Financial Responsibility: The British Experience” published in the Journal of Labor Research, Volume 2, Issue 2 (1981) pp. 292, 294, 295, 296, he highlights Christopher Story’s authoritative research, as published in The Daily Telegraph on 30 April, 31 August and 1 September 1976, as well as on 4 September 1978.
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Comments
Hallelujah! Someone actually prints our plight! Thank you, Tim Barello!
CMKXers everywhere need everyone else to know how their investments are REALLY handled and how little they matter to the financial giants. We are treated as disposable pawns in a big-money game. ETERNITY IS A LONG TIME AND GOD IS WATCHING. SO DO WHAT IS RIGHT AND PAY THE CMKX SHAREHOLDERS!
Very interesting read and cant wait for more people to obtain this information so all know what and how the people of this Nation are being USED for the benefit of others. It is sick people do nothing and not being able to makes it very wrong!
It's great to see somebody finally put out a well balanced article on this heretofore forbidden topic. The 40,000 or so damaged shareholders appreciate being given a voice after waiting for more than six years for our government to do the right thing. Sincere thanks go out to Tim Barrello and the Manhattan Headlines Examiner. Now let the truth spread throughout the mainstream media and force the SEC and other entities to release the funds that rightfully belong to the CMKX shareholders -- immediately.
Thank you for having the courage to cover this story.
Thank you Tim, it's refreshing to know that someone out there really does care about getting the story right. I do however need to bring your attention to the following point you made. "Thus, the implication is that this sum also incorporates substantial punitive damages."
There are NO damages included in the trust funds.
From Wikipedia,"Punitive damages (termed exemplary damages in the United Kingdom) are damages intended to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. Although the purpose of punitive damages is not to compensate the plaintiff, the plaintiff will in fact receive all or some portion of the punitive damage award."
We have not been been awarded any damages as we have not yet gone to court. The $3.87 trillion dollar amount therefore contains NO punitive damages and is a stand alone amount which has PREVIOUSLY BEEN collected and has yet to be distributed.
Tim ,very nice article ,thanks to you and the Manhattan Headline Examiner for the courage you have shown..it is duly noted..nb
Let me see if I have this straight...the Govt used a company for a sting operation (of which none of the shareholders were aware), allowed the collection of monetary restitution for the shareholders instead of pursuing criminal charges against the perpetrators, and also set aside monies derived from the sale of company assets and other company related activities during the sting period. So, instead of distributing the funds to the shareholders (as apparently previously agreed to prior),the Govt tries to put the company out of business and keep the monies for themselves. What a country! And we wonder why people don't trust our Government!
Hats off to Tim Barello for stepping up and writing down
for all to see what really goes on in the financial markets.
The world needs to know the corruption that exists and how
innocent, hard working people are being victimized everyday by
their own government. The CMKX Shareholders deserve their
restitution and justice!
Roberto,
The attorney of the case is known as "Crazy Al."
Crazy Al has no evidence to back up his allegations.
Former CMKM Insiders have been indicted, and more indictments are coming.
Crazy Al and his clients, along with (about) 400 shareholders, are having denial problems believing thay have been scammed by those that have been Indicted.
PAY ME MY MONEY..................?
BETTER YET.. SORRY.... WHERE IS MY MONEY..?
Urban, the only references I can find for Al Hodges is that he is a highly respected and successful lawyer with 40+ years of experience. And because of his previous success, he is able to be highly selective of the cases and plaintiffs he represents. Possibly your reference to "Crazy Al" is being made by those who are being threatened by his lawsuit and the exposure that it will bring if this issue is not settled prior to going to court. Also, it is my understanding that CMKM Diamond shareholders are not in denial, but only want the full truth exposed, not just that which the Government chooses to pursue for public consumption.
An accurate account of the CMKX story in my opinion...now multiply this by THOUSANDS of companies (possibly not on this scale) and you begin to see the REST OF THE STORY...the hidden ICE that is just below the not so calm surface of the financial ocean... for more details go to cmkx-treme.com...Flying Moose(Examiner comments)
Roberto,
You are one of the deniers that won’t accept you’ve been scammed.
Claiming that Crazy Al is a reputable attorney is laughable.
As Crazy Al quoted, his lawsuit is based on using the media to force a settlement of the funds with the government. But what Crazy Al and you don’t understand is that there’s no settlement fund.
We can only hope this will now begin to gain attention in the mainstream media. Maybe then all will be addressed.
This story took a lot of guts to put out there. We all as CMKM Diamonds shareholders and small investors as a whole thank you for this "Unbiased" report that our "Captured" media refuses to or have been told that they cannot report on. Funny, Tiger Woods and Jesse James get more publicity than the fleecing of the Average American investor. What a shame. Thanks again.
In my 4 1/2 years as a CMKX investor, I have NEVER before heard Al Hodges, a respected member of the California bar EVER referred to as "Crazy Al." Honey draws flies and CMKX truth draws bashers. Clearly, "Urban," you fit the latter category to a T. Tim, thanks for this fair and balanced article, finally revealing the truth of our situation. All the best, LG
justice for CMKX share holders now!, let the trial begin!
A Sting.. well with Iron Bob Maheu (aka IBM) involved, it's no wonder.. it's his style.. the man who cleaned up Vegas and Hughes right hand man.. this whole sting scenario has his name all over it.. no wonder totally corrupt and owned mainstream media won't touch it..
"Based on these assertions, CMKM was used by the U.S. government as part of a covert sting operation"
and this tidbit.. From the company PR - June 17, 2009
CMKM Diamonds, Inc. Holds Annual Board of Directors Meeting
"since former CEO Urban Casavant fled to Canada leaving only $558 in corporate bank accounts."
why only $558.. hmmm.. maybe IBM was telling the sharholders something.. GOOGLE "558 The Sting" and see what pops up.. interesting to say the least..
thank you Mr. Barello for showing some guts..
I knew there was somebody in the news business who had the guts and integrity and know when they see a good story to print it. There is a serious problem with the the way the SEC and the like have been dealing with companies hence people's lives. We are sick and tired of being trampled upon by the fat cats and the CMKX shareholders are not going away until justice is served. As another person mentioned, this not just about this one company, there are thousands out there, for those of you who really want to find out what really has been going on Wall street start doing your homework. By the way, we are about get a lame weak useless bipartisan financial reform bill, well the congress can stick it. The damage has already been done, we lost our homes, 401k, can't get a loan, job, what a national disgrace, we need more of the Bernie Madoff's in jail.
I sent this headline to 37 Newspapers across America. LET IT BE Told, let it be Writen.
hopefully more media picks it up ... very nice piece!
Wow! this is a Mind blowing! who has damaged these sahreholders and tried to cover it up?
I am shocked!
Great article. Thank You.
Jeff
Interesting to see this story coming to light.
"Urban",
Say "hello" to "Janice Shell" and her/his/their "sane" cronies. You all will have your "fifteen minutes of fame" in front of a jury one day.
Urban.. you're making a fool of yourself. Your agenda is so obvious.
Mr Barello.. your courage to reveal the truth and support the Rule of Law is commendable.
My advice to mr. Barello is to do some DD before assigning any credibility to either Hodges or Christopher Story.
Thank you for your well written article of the problems that have been besieging the many, many CMKX shareholders and others who have not given up faith. We have long ago learned to ignore the ramblings of the pseudo "Urban's" of the world. Have no idea what their agenda is but we ignore it.
We have faith in Robert Mahue, the real Urban Casavant, and all of the old team who will prevail in the long run not only to clear their names but to bring true justice to those of us who are still very much on board until we get paid and the crooks are in jail. Al Hodges is leading this effort and we respect his efforts on our behalf.
Thank you Mr. Barello and thank you Al Hodges and team.
Mr. Barello, I want to thank you so much for covering this story and a HUGE thank you to Mr. Hodges for all he is doing to correct this monumental wrong against common shareholders! The fraud that has gone on through Wallstreet is enormous and must be exposed. It is amazing how the bashers of a revoked pink sheet stock will go to no lengths to follow true shareholders where ever they post in order to "try" and discredit any story regarding the true background of this stock. It is time for all truth to come out, thank you again Mr. Barella and God's Speed to you Mr. Hodges.
My advice to mr. Barello is to do some DD before assigning any credibility to either Hodges or Christopher Story.
Way to go Tim!!! You are one of the first of a handful of journalists to recognize this as news. Hope you receive an award. When this finally does hit the news big-time, I would love to see an in-depth article by you. Congratulations!!!
I Love You for getting this in front of the public, but can we get it in print on the front page??
Please!
Do you remember how many years it took to force the SEC to admit to NAKED SHORT SALES (FAILS TO DELIVER)& how the media would not expose it to the public?,It should come as no surpise what the media is doing with the 3.87 Trillion dollar story.
It is a very accurate story with room for much more detail...we were robbed of our property and our time so that the corrupt players could be brought to some kind of JUSTICE...for us it is having to release our trust that constitutes JUSTICE...whatever deal Iron Bob Maheu made for Bona Fide Shareholders is good enough for me...Flying Moose(cmkx-treme)
Let's get the show on the road...enough talk..we as shareholders need action if in fact the allegations are true...
I'd like to enjoy what life I have left without this stupid fiasco hanging over my head..let's get the court cases underway..let's prosecute the criminals and that includes the paid criminals that contine to post lies and misinformation.
Another excellent source for business and financial information is Dr. Patrick Byrne's Business Blog called "Deep Capture" at deepcapture.com.
Dr. Byrnes details the illegal activity called "naked short selling" by hedge funds, and how this practice has helped to create the gigantic financial mess our country finds itself in.
Thank you Tim..it is an article I'll never forget...Thank you BIG Al..we have been waiting so long for this type of report to make its way around the WORLD ..YOU ARE THE BEST...It has been worth the long wait....we will continue to keep the faith..and forge on for the betterment of generations to come...ZZ
give it up..DD
so whats the deal, you stopped posting abilities of oppinions?
They want it all...AND.. They will get it all, unless we keep the pressure on the owners.. 3.87 Trillion is a speck of poo on the Financial Books of Crooks in light of what they have in-store for all of our children children. IMO Only, By the 10 years of research about the financial banking and Government Cartel....
There was once a time in this Country that the laws and regulations of our legal system worked. It has now become a cluster F*** of greedy Money hungry Lawyers and the Federal Reserve Crooks who have screwed the American people. Slowly taking every last penny to the T of the retirement funds of the people. Enslavement is not enough for the real owners of this Country. they want it all., Your Life to be done... your families money....
Tim, I did not realize there was a single word in my post that stopped it from posting. got frustrated.. sorry
Tim,
Excellent work! This is objective journalism, something that is lacking in major media. You're a "diamond-in-the-rough"! Keep it up!
"Urban" in disguise. Continued gibberish..
Do Your DD says:
My advice to mr. Barello is to do some DD before assigning any credibility to either Hodges or Christopher Story.
To the FOOL who keeps mentioning DD: I did mine, over a period of YEARS. The lawsuit is legit, and justice WILL prevail, to the shame of the mainstream media who have failed so far to report the case. I used to work for a major newspaper, back in the days when the press actually reported the news. RIP 4th estate.
It is ridiculous to believe that only MAINSTREAM news sources never post LIES...and ALWAYS post only the ABSOLUTE TRUTH...we know that is not true...and it is just as ridiculous to believe sources like worldreports and rense NEVER report the TRUTH...even a disinformation site occasionally posts the TRUTH...we read about the CRASH that was coming in 2008 a couple of YEARS before it happened on the ALTERNATE NEWS SITES...the CMKX story is an example...Flying Moose(cmkx-treme)
I Love You for getting this in front of the public, but can we get it in print on the front page??
Please!
Congratulations Tim!!! You did a better job reporting the facts about cmkx than the NYT. I applaud you for your hard work and hope that you are rewarded for it. I look forward to any follow up that you do as the cmkx case unfolds.
I Love You for getting this in front of the public, but can we get it in print on the front page??
Please!
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