New Update from Kevin 5/11/07

[ghowiepharts]

www.cmkmdiamondsinc.com/ceoupdates.php

CEO Updates
To all CMKM shareholders:
5-11-07

I will be in Nevada State District Court this coming Tuesday with the attorneys that the Company has hired. We are seeking rulings on our requests for a temporary restraining order and injunctive relief.

A sincere and genuine effort is underway in an attempt to recover value that our legal team and I believe was inappropriately removed from the company by former insiders. Litigation timeframes are inexact. While this litigation is proceeding, we are working with accountants to help us regain reporting status. A part of the injunctive relief involves protection against those that might want to impede our efforts to obtain all financial records of the Company.

Any cause of action that I take must contribute to the stability and long term success of the Company. The current litigation and my findings in the continuing investigation into all recoverable assets will be important as we proceed. If an Interpleader action truly distributes the sole remaining asset of the Company, such action may not be in the best interests of the Company. We are discussing other ways to identify our shareholder base without filing an Interpleader. A lot of options exist and we are examining them in great detail.

The Company has recently retained the services of Susanne Trimbath who is the CEO and Chief Economist of STP Advisors in Santa Monica, California. Ms. Trimbath has agreed to help the Company in our efforts to determine “fails to deliver” in our stock. She is currently reviewing much of the material gathered by the Company in the last two years including but not limited to: NOBO lists, shareholder certificate lists, DTC security position reports and information gathered about certain brokers during the cert pull.

For reasons unknown, there are individuals who continue to disseminate improper, inaccurate, misleading and potentially damaging information regarding CMKM, its current and future actions and corporate activities. There are still many references being passed around as to negotiated payouts, settlements, government stings, etc. There are no such activities and I must again ask that all shareholders completely dismiss any of this misinformation.

Many shareholders are requesting answers to a myriad of questions. A large portion of these questions concern matters that are involved in litigation. The attorneys have asked me not to answer privately or publicly many of these questions that I get from shareholders. We have individuals that do not want this company to succeed. It is not proper during litigation to disclose certain information that might be helpful to our opponents: matters such as arrangements with attorneys regarding legal fees and their expenses, payments for expert consultants and their expenses and payments for any other professional needs. Please be advised that the Company has made more than adequate arrangements for funding in each of these areas.

I also get regular questions from shareholders that suggest that the Company is involved in secret plans and meetings on matters not being officially disseminated to the shareholders. The current state of the Company can be determined by reading the “facts” that are set out “under oath” in our lawsuits and court pleadings.

I have been visiting with experts about the Entourage claims and the core samples which I have personally examined. I will report to you any plans regarding these assets when I have something definitive to discuss with you.

I look forward to sharing another update with you sometime next week after our hearing.

Don’t forget to tell your Mothers how much you love and care for them and please have a safe and happy Mother’s Day weekend.

Thank you for your continued support,

Kevin West
CEO

[portrush]

Thanks howie.

pr

[pj]

Full Biography for Susanne Trimbath, Ph.D.
Candidate for
Board of Trustees; Santa Monica Community College District


This information is provided by the candidate
Susanne Trimbath, Ph.D. is an experienced professional with nearly 20 years in financial services management. Her overlapping academic experience includes teaching economics and finance at New York University, Stern School of Business and New York Institute of Finance. Her research focuses on mergers and acquisitions, real estate asset investments, and emerging capital markets. Trimbath was recently named Senior Research Fellow by the High Institute for Specific Studies at Giza (Egypt).

Prior to forming STP Advisory Services, Trimbath was Senior Research Economist with Milken Institute, a Santa Monica-based think tank. Before earning her terminal degree in economics, she was Senior Advisor on a foreign aid project for KPMG, which laid the foundation for capital markets in Russia. Prior to that, she was Director in operations at Depository Trust & Clearing Corporation (NY); and economic briefings Editor with the Federal Reserve Bank of San Francisco. Trimbath currently serves as Technical Advisor to the California Economic Strategy Panel and Senior Advisor to Martinez & Wright Homeownership Partners, LLC, a California-based firm developing innovative solutions to housing problems.

Trimbath's comments on economics and finance appear frequently in newspapers, television and radio. She authored Mergers and Efficiency: Changes Across Time (Kluwer, 2002), which was featured at the Research Roundtable on Mergers and Efficiency, hosted by the Federal Trade Commission with the Department of Justice (Washington, D.C., December 2002). In addition, Trimbath co-authored Beyond Junk Bonds: Expanding High Yield Markets (Oxford, 2003), and co-edited The Savings and Loan Crisis (Kluwer, 2004). She is a regular contributor to academic and business publications and referees technical articles for academic journals. (Research papers are available at papers.ssrn.com/author=272819.)

Trimbath holds an MBA in Management from Golden Gate University (San Francisco) and received her Ph.D. in Economics from New York University. She completed her Bachelor of Science in Business Administration at California State University (Hayward). Trimbath is active on the Board of Directors for charitable organizations including Friends of the Santa Monica Public Library and People in Progress. She also volunteers with Best Buddies of California.

Recent Speaking Venues:

Business, Transportation and Housing Agency, California Chamber of Commerce, Sacramento.

Thomson Media's Annual Black Tie Event honoring the 25 Most Powerful Women in Banking, hosted by U.S. Banker magazine, New York.

Bank One's Annual National Homebuilders' Financial Executive Symposium, Chicago.
U.S. Chamber of Commerce, Center for Corporate Citizenship, Washington, D.C.

Western Knight Center for Specialized Journalism at the University of Southern California's Annenberg School for Communication, Los Angeles


www.smartvoter.org/2004/11/02/ca/la/vote/trimbath_s/bio.html

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

DTCC Clarifies Work Experience of Former DTC Employee

New York, March 14, 2006— The Depository Trust & Clearing Corporation (DTCC) issued a statement to correct inaccurate information that has appeared in the press and has been represented on Web sites and in public forums regarding the purported work experience of a former employee at one of DTCC’s subsidiaries.

Susanne Trimbath has never been an official of DTCC or any DTCC subsidiary or predecessor company. She has never been an officer of the company or any of its subsidiaries.

Our records indicate that Susanne Trimbath was hired by The Depository Trust Company (DTC) in 1987 as a manager of transfer agent services, a corporate middle-management position below officer level. Ms. Trimbath resigned from her DTC employment in1993 holding the same position.

There have been claims that Ms. Trimbath is an expert on clearance and settlement and the Stock Borrow Program. The Stock Borrow Program is now, and was at the time of Ms. Trimbath’s employment at DTC, operated by the National Securities Clearing Corporation (NSCC), a separate company from DTC. In fact, Trimbath’s employment at DTC pre-dates any corporate affiliation between DTC and NSCC, and predates the formation of DTCC.

At DTC, Ms.Trimbath was responsible for representing DTC’s interests with transfer agents for DTC-eligible securities regarding DTC’s business interactions with these agents. She never held a position in any operations area that dealt directly with electronic clearance and settlement or the Stock Borrow Program.



About DTCC
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter credit and equity derivatives. DTCC's depository also provides custody and asset servicing for more than two million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. DTCC’s derivatives services are offered through DTCC Deriv/SERV LLC, a wholly owned subsidiary of DTCC. For more information on DTCC, visit www.dtcc.com.

###


www.dtcc.com/PressRoom/2006/workexpe.html

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

Dr. Susanne Trimbath Comment Letter To SEC on Reg SHO

Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 8/29/2006 5:50 AM
UPDATE: Forbes Scoops NY Press AGAIN in UBSS/LA subpoena case. Read all about it here.

I'm staring at a fax wherein the State of Louisiana AG is demanding that UBSS turn over all information, including all correspondence and trading records, in the matter of Sedona. It is basically the commencement of a criminal case in that matter, which involved the naked short selling of the company's shares in a wholesale and predatory fashion. Score one for the good guys, and the states. A big raspberry to the Feds, who are again behind the states in doing anything to protect investors.

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

Do you ever read something or hear something, and say, "Boy, I wish I'd said that!"

This letter to the SEC, in response to their request for comments, is an extraordinary example of that phenomena.

That Dr. Susanne Trimbath did say that, with such remarkable erudition and precision, is testament to the fact that we have some stunningly smart people supporting our take on the problems in the markets.

I won't belabor it.

The document is a white paper on the deficiencies of our system, and the dishonesty of our clearing and settlement apparatus, as well as our regulator.

It is damning in its simplicity and its elegance of thought.

And here is the attached comment letter from the SIA on over-voting, which is referenced in the attachments.

Folks, if people of the caliber of Dr. Trimbath get it, and I mean completely get it, why are our regulators and our elected officials acting as though it is all a mystery?

Take the time to read this, carefully, and then send it to everyone you know, including elected officials and any contacts in the media.

Because you don't have to wish someone would say it clearly and succinctly anymore.

Somebody did.

Stay tuned for the NCANS letter, to go up tomorrow, if all goes well. It is different than Dr. Trimbath's in the sense that it is more concerned with mechanics. Dr. Trimbath's is a poignant indictment of the SEC and the DTCC, and the entire system that has brought us perilously close to the brink. It would be a wasted effort to improve upon it or repeat it.

Bravo, Dr. Trimbath. That you have not been nominated for an SEC Commissioner role is clear evidence of the system's reluctance to actually fix its problems. The intellectual horsepower and credentials are out there to do so.

The system is broken because Wall Street profits from the inefficiencies. Simple.

Again, Bravo, Dr. Trimbath.


www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/435/Default.aspx

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

"Mergers: Changes Across Time"..p. 8-18 (Trimbath on TAKEOVERS)..

www.ftc.gov/be/rt/presentationpanel1.pdf

[portrush]

Prior to forming STP Advisory Services, Trimbath was Senior Research Economist with Milken Institute, a Santa Monica-based think tank.

Michael Milken?

[TexasPride]

Susanne Trimbath is a HEAVY HITTER... Glad to see she's now working for us...

[ghowiepharts]

portrush said:

Thanks howie.

pr

portrush,

You are very welcome

ghowie

[wombat]

www.stpadvisors.com/aboutus.html

[TexasPride]

Chris ~

While it's just my opinion, I don't think Kevin would have mentioned the core samples, if there was nothing to them.

Again, IMO, I think he is trying to tell us that we have value and to hang on while they sort this thing through.

Of course the bashers won't see it that way, but who cares what they think anyway...?

[wombat]

THE COMPANY IS FLEXING ITS MUSCLES

"The settlement had to be forced. I don't think one side won and one side lost."
-- Susanne Trimbath, Research Economist, speaking about the West Coast dockworkers' labor settlement.
Los Angeles Business Journal
January 6, 2003

[ivory]

Great mp3 files about Long Sales -
www.stpadvisors.com/Audio/STP2006Oct/Clip_5.mp3

[harvscorvette]

admin said:

Susanne Trimbath is a HEAVY HITTER... Glad to see she's now working for us...

Question comes up again. How do you pay for HEAVY HITTERS?
Susanne won't come cheap. So how are we expensing all this?

Harvscorvette

[TexasPride]

Maybe Kevin has a rich uncle... At this point, I've given up trying to figure out anything related to CMKX. I'm trying to stay focused on the point that if there wasn't something worth fighting for, this would have been over a long time ago.

The fight continues, so I'll hang in there, waiting for the day when the company can finally spill the beans and we get paid.

Until then, the wait continues...

[pj]

First In The "Experts Speak Out" Series - Dr. Susanne Trimbath Knocks One Out Of The Park

Location: Blogs Bob O'Brien's Sanity Check Blog
Posted by: bobo 3/25/2006 11:00 AM

Here is the first in a series of interview questions posed by Bob O'Brien, and fielded by Dr. Susanne Trimbath - a noted and acknowledged authority on stock clearing and settlement. Dr. Trimbath's questions are in blue, and Bobo's questions are in bold:



1) Tell us a little about your background at the DTCC…

Being an economist is my second career. I have 20 years experience in financial services, from Prudential Insurance, through the Federal Reserve Bank and 3 different depositories. I was with the Pacific Clearing Corporation and the Pacific Securities Depository Trust Company the last 2 years before they shut down (1985-1987). I was in operations there both as an analyst and as a manager. After the shutdown, Depository Trust Company (DTC) moved me to New York as Director of Transfer Agent Services, an industry liaison position. Since the same companies that ran transfer agencies (Chase, US Trust, BoNY, etc.) were also broker/dealer Participants at DTC, I was frequently called on to help them with problems that extended beyond my job description into reorganizations, dividends, proxies and even settlement.

At DTC (now a subsidiary of DTCC), one of my more important accomplishments was to propose and then enhance a service for the direct mail of certificates by agents to shareholders at the request of participants. I also proposed, developed and tested automated direct withdrawals and deposits at custodians. Both programs are complementary services to Direct Registration offered by issuers, which the NYSE is trying to have made a listing requirement. After leaving DTC, and before entering the PhD program at NYU, I worked about a year in Russia helping them build clearing, settlement and depository operations.



2) Some have expressed the sentiment that you are a whistleblower, and that it is high time a whistleblower came forward. Do you consider yourself a whistleblower? And, just for the record, are you being compensated for your statements about NSS?

Legal protection for whistleblowers is largely reserved for those who take on the government. Otherwise, you would at least be employed by the party you are decrying. I wouldn’t meet either of those qualifications. Since I’ve never left a share of stock with a broker (once you’ve seen how the sausage is being made, you never eat it again), I can’t claim to have been individually harmed by the activity. Of course, if DTCC attempts to withhold my pension because I talked about their role in this mess, then I might have a claim to “whistleblower.” We’ll have to wait an undisclosed number of years before I’m eligible to test the matter.

As I described earlier, I am on my second career, working full time as an independent researcher and consultant in economics and finance. Although capital markets and corporate finance are in my research portfolio, I first addressed the specific topic of NSS at the request of paying clients beginning in late 2003. Since that time, I have worked and will continue to work as an advisor and consultant on NSS for a variety of firms. What it comes down to is that someone pays me to give them direct advice on NSS; when I make public statements it’s usually not for hire but rather in the interest of civic education. Part of my marketing strategy is to be sure all the stakeholders in NSS know that I can help them. I apply a similar strategy to my other areas of specialization such as international finance and economic analysis of law.



3) Given your background there, what do you make of the current FTD issue – let’s start with, why does the DTCC keep all the data secret?

As the saying goes, “Macy’s doesn’t tell Gimble’s.” DTCC keeps certain data private so that Shearson won’t figure out Merrill’s business strategies. All the Participants compete with each other, so DTCC is careful about data that might reveal firm-specific holdings or transactions. That said, there is much aggregate data that the DTCC could release that would not reveal any trade secrets but that could reveal the real magnitude of the problem.



4) Some refer to the SBP as a “self-replenishing, anonymous lending pool.” Would you agree with this characterization?

Yes. It is definitely anonymous (unless rules are being broken). And since nothing prevents the buyer who receives a borrowed share for settlement from depositing shares into the lending pool at the Depository, it is self-replenishing.



5) The DTCC takes great pains to make it clear that the SBP doesn’t allow a broker to lend the same share twice via the SBP. My contention is that they certainly allow the same share to be lent by different brokers, thus their rhetoric is disingenuous. Do you agree, or disagree?

It’s a word game. The stock borrow program doesn’t track who lent the share (only who borrowed it). So the stock borrow program doesn’t allow ANY shares to be lent…only borrowed, get it? They play the same word game when they say they don’t make money on the stock borrow program.

They don’t.

What they DO make money on is the stock lending program.

By the way, they also make money on fails to deliver. OK, so the same shares aren’t lent twice by the same broker because the lender’s account is reduced by the number of loaned shares until the loan is repaid. Fine. What they aren’t saying is that the shares are a “fungible mass,” and no one keeps track of which share was used to settle which trade. So, a Participant who receives 100 shares of OSTK at settlement could be getting 50 borrowed shares. And it is those 50 shares that can be loaned a second time since all settlement is considered to be “final.”



6) I believe that most of the current FTD issue is caused by two things – the de-linking of clearing and settling, and the allowing of access to the proceeds from a failed delivery over and above collateralization requirements. Would you agree, or disagree, and care to comment on any other issues you feel are contributors to this?

It depends on what the meaning of “is” is…. No, wait, that was something else.

It depends on how you define “(T)he current FTD issue”. Regarding “the allowing of access to the proceeds from a failed delivery over and above collateralization requirements” this is a very convoluted statement. Are you referring to the release of collateral on borrowed stock as the price of shares is driven into the ground? Are you referring to the fact that the seller gets paid for a failed delivery because of net settlement and the ever present “fungible mass”? I see the FTD issue as additive to the NSS issue and the stock lending issue. In other words, I see the problem as being at least 3 times as big as any one observer is willing to admit.

The over-arching problem actually got much worse when clearing and settlement (in the form of NSCC and DTC) were connected under DTCC. Think blue-suited brokers at NSCC and grey-suited bankers at DTC. NSCC was run by the trading side where net settlement minimized the number of cash and share deliveries to one per day (basically). DTC on the other hand is like a bank for brokers; it’s where they keep the shares they need to effect settlement. DTC’s status as a quasi-bank provided more regulators and more oversight. Both NSCC and DTC had different Boards, populated from different sides of the houses, with different interests. When they brought them together, it appears that the blue suits won and their Wall Street Cowboy mentality is dominating the organization.

That said, I always believed that they should not have been separated at birth. It is my opinion that there were two dominant personalities at the time and each aggressively sought to have their own area of authority. After those guys retired, the door was open to reunite the two sides. Unfortunately, by then they had grown to be very different. Perhaps because of weak understanding on the part of the Federal Reserve and the SEC about what these two do, the clearing side was allowed to dominate and with that, “trust” was no longer the middle name.



7) Do you have any opinion as to how large the “ex-clearing” FTD situation is versus the “in-system” FTDs? A ratio?

The by-the-rules version of market infrastructure dictates that the ex-clearing portion should be very small, maybe 15% of the whole problem. In fact, since the clearing system enables NSS, FTD and stock loan, there’s no reason to go ex-clearing with the dirty deeds. Here’s a simple example of how to engage in money laundering and counterfeiting using the Stock Borrow Program and the “in-system” mechanisms.

In a future response, I’ll show a diagram where the entire operation can be accelerated if there is at least 1 ex-clearing transaction. It basically shows that things move much faster if you can get at least 1/3 of the transactions processed ex-DTCC.

8) Any opinion as to how large the total grandfathered position of FTDs was?

Big enough to give me nightmares


www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/181/Default.aspx

[pj]

Bloomberg special on Naked Short Selling

We just got word that Dr. Trimbath appears in Bloomberg TV's half hour program, Special Report: Phantom Shares. The program premieres Tuesday, March 13, 2007 at 7:00pm, 9:00pm, and 10:00pm ET. If you don't get Bloomberg Television, you can watch it online at

www.bloomberg.com/tvradio/tv/index.html.

Producer Gary Matsumoto spent nearly a year researching this subject and recording interviews. This is an important piece of journalism that calls attention to a little-understood subject that directly affects nearly every American. Dr. Trimbath has provided litigation support on this subject since 2003 to law firms, companies and investors.

The program may include sound bites from Dr. Trimbath's presentation "Why Investors and Issuers Hate Short Sellers and Stock Lending," which she did as the keynote speech at the Securities Lending Conference in New York last fall. A complete transcript of the speech is available at...

www.stpadvisors.com/events.html.

[shoelessjoe]

he covers the question about payments for all this here in the update: imo

payments for expert consultants and their expenses and payments for any other professional needs. Please be advised that the Company has made more than adequate arrangements for funding in each of these areas.

[smeagol8]

As long as there is such a thing as "a non-disclosure agreement", people have every justification to disregard KW's statements concerning: "payouts, settlements, government stings, etc". Since IF these things exist, KW CANNOT say so, and in fact is obligated to publicly deny them, repeatedly.

[chucker]

smeagol8 said:

As long as there is such a thing as "a non-disclosure agreement", people have every justification to disregard KW's statements concerning: "payouts, settlements, government stings, etc". Since IF these things exist, KW CANNOT say so, and in fact is obligated to publicly deny them, repeatedly.

he would be obligated to publicly deny them? Are you sure on that point?

thanks
chucker

[moontraveler]

All I can say is, I'm glad I have tickets to the show!

[rileydog]

harvscorvette said:

admin said:

Susanne Trimbath is a HEAVY HITTER... Glad to see she's now working for us...

Question comes up again. How do you pay for HEAVY HITTERS?
Susanne won't come cheap. So how are we expensing all this?

Harvscorvette

[rileydog]

Well we were once broke and now..........


Please be advised that the Company has made more than adequate arrangements for funding in each of these areas.

[bosnerdley]

rileydog said:

Well we were once broke and now..........


Please be advised that the Company has made more than adequate arrangements for funding in each of these areas.

Rileydog--
My guess is that we have some "quiet support" toward our efforts.

Thank you to Kevin, for all he's done so far; we're better informed than we have ever been.

[golden1101]

admin said:

Susanne Trimbath is a HEAVY HITTER... Glad to see she's now working for us...

Her fee, up front of course . . . $558.50

[smeagol8]

chucker said:

smeagol8 said:

As long as there is such a thing as "a non-disclosure agreement", people have every justification to disregard KW's statements concerning: "payouts, settlements, government stings, etc". Since IF these things exist, KW CANNOT say so, and in fact is obligated to publicly deny them, repeatedly.

he would be obligated to publicly deny them? Are you sure on that point?

thanks
chucker

.
.As long as there are anonymous message boards,( and KW undeniably has a presence on these boards), the only way for him to defend himself from accusations that he 'let the cat out of the bag', would be to deny publicly, and often.

[Duc n Altum]

For a company that has nothing, we sure do attract some powerhouses!!

Susanne's Bio ----> www.smartvoter.org/2004/11/02/ca/la/vote/trimbath_s/bio.html

and another link about her ---> www.wkconline.org/index.php/seminars/speakerpage/?sid=733

And some past recordings of pod casts of Susanne Trimbath

Overstock CEO Patrick Bryne and Dr. Susanne Trimbath hosted by Mark Faulk podcast.streetiq.com/streetiq?GUID=287490&Page=MediaViewer

The Debi Kiontke Show w/ Dr. Susanne Trimbath, Ph.D. Chief Executive Manager of STP Advisory Services and Senior Research Economist podcast.streetiq.com/streetiq?GUID=648808&Page=MediaViewer

www.thesanitycheck.com/Portals/0/TSHO.pdf susanne's letter to sec

First In The "Experts Speak Out" Series - Dr. Susanne Trimbath Knocks One Out Of The Park www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/181/Default.aspx

And it is interesting how certain parts of the stockmarket do try to discredit her! I wonder why? Could it be that she just might be a powerhouse and certain parts of the market have something to worry about with what she has come to know?

[lonewolf]

Thanks Kevin for keeping us updated like you said you would, all trust begins with keeping your word.

Thanks Again. (Keep em comin)

Wolf