Post by bignaterich on Jan 18, 2008 17:38:24 GMT -6
www.cmkmdiamondsinc.com/faq_index.html
FAQ Session #9: January 18, 2008
Q) Is CMKM to the point where we have audited financials, or financials that could be audited? All of the company updates refer to a "return to trading", obviously audited financials are key to trading again, thus the relevance of my question. Thanks.
Among the many other challenges, this Company has been in operation since November of 2002 and has never filed tax returns. We have demanded all company records from every attorney and individual associated with the company that might have any related records. We received only a small number of bank statements and a random collection of files, documents and agreements from one attorney that represented Urban personally. All other attorneys and individuals have either refused to respond or have responded by saying they have no records.
Because of the lack of records this company has been forced to subpoena records and documents in hopes of obtaining an auditable set of books. Due to a lack of cooperation with former management, we may be unable to obtain sufficient records for an auditable set of books for certain years past. You may recall that two SEC certified auditors were paid substantial sums in 2005 when management was in daily contact with them. In the end both auditors resigned from their task and were unable or unwilling to complete an audit. We work on this matter daily and will continue to do so.
There are many different avenues and scenarios that could arise which would cause CMKM to become a tradable security. We are continually evaluating all options as we work on recovering assets and obtaining the financial records to complete any required audits.
Q) Are the core samples that Kevin viewed the same samples that United Carina refers to on their website?
Our investigation suggests the filing of industry standard documentation and permits have not occurred with the regulatory agencies in the Province of Saskatchewan. The company does not know with certainty the location from which the core samples were obtained. Emerson Koch told Mr. West that no one knows where he drilled the holes except for himself and his drilling crew. This is an area that is receiving a lot of attention by the company at this point. Clearly the company has paid the costs of drilling the holes which produced the core samples. We are hopeful of obtaining this information amicably but we are prepared to use the Courts to assist us if necessary.
Q) In the latest Motion on the website, in the Desormeau / Edwards case, the term "acquired assets" is used. Have we acquired any assets, or does it refer to Entourage?
The latest filing was an amendment to the initial suit. The wording of the original suit was not changed except for the addition of the new entity as a defendant. At the time of the original complaint, the Company did own 45 million shares of Entourage Mining common stock. This asset is the subject of litigation currently filed by Entourage Mining, Ltd. against the company.
Q) How long is this share audit going to take to get the final numbers? It’s been a long time. Is there a light in sight for 2008?
The shareholder audit is one that has to provide the answer to many questions. Most of the outstanding shares were illegally issued to insiders and friends of the former management. Some of these insiders and others still own large amounts of shares that will have to be addressed in a lawsuit. The Company will seek to dissolve these shares on an individual basis if the shareholder cannot prove to the Company the payments rendered for the receipt of those shares.
This is just one facet of the ongoing audit that will take an untold amount of time to complete.
Q) What happened to the 75 billion shares that were returned to us from the failed JV deal? Where they returned to the treasury? Were they then retired?
The 75 billion shares in question were retired to the treasury on January 25, 2005. They have not been re-issued or otherwise pledged.
Q) How are people still able to get certs for their CIM shares when the company is revoked in the state of Nevada and no longer a legal entity? Who is authorizing the release of those certs and who is paying for them? Due to its revoked status, is it legal for CIM to issue certs?
CMKM has no business relationship with the revoked company by the name of Casavant International Mining, Inc. (CIM). CMKM Shareholders are advised to direct their questions to the people who are listed as officers on the Nevada SOS website. CMKM paid a lot of money and shares for claims that were transferred to CIM. CMKM is evaluating the merits of filing suit to recover any assets to which it may be entitled.
Q) What is the outstanding share count as well as the amount authorized to be issued? Are there any shares currently held in the treasury at this time and if so, how many?
The current number of issued and outstanding shares of CMKM stands at 703,518,875,000 shares. The authorized shares are still at 800 billion. All shares in excess of the 703,518,875,000 are retired. No shares are being held in any other form or are being pledged for any purpose.
Q) To your knowledge, are there any more shareholders who have requested certs and not received them? If so, how many shares do these outstanding requests represent?
This is another part of the ongoing shareholder audit. There are still many shareholders that have not been able to procure physical certificates through their brokerage house. We do continue to receive communication from shareholders regarding their inability to obtain certs. The total number of these shares is unknown at this time.
Q) In a recent FAQ you stated that the response to the Entourage suit was to be filed within days. Has it happened yet and/or do you have a new estimated time to do so?
The company has retained the firm of Getz, Prince and Wells, LLP in Vancouver, B.C. The company has entered an appearance in the suit. The company is prepared to file its Statement of Defence but has not done so at the time of this writing. There are ongoing communications between the parties. There are efforts being made to amicably resolve the issues raised in this lawsuit. If the matter cannot be resolved amicably, litigation could be rather lengthy. The Company will post immediately any filed documents on this website.
Q) What ever happened to the black SUVs?
We assume you are referring to the trucks that were paid for with a CMKM Diamonds, Inc. bank account wire for $371,100.86 made payable to Owens and Sweitzer on September 22, 2004. We are continuing our investigations into these vehicles as well as a couple of expensive RV’s. If anyone has any verifiable information concerning the present ownership and current whereabouts of these trucks, please contact the Company with your information.
Q) Without going into detail have any brokerages been cooperating with your efforts?
If you are asking if any brokerage houses have come forward with an offer to purchase shares from the Company to deliver to their clients for their failures to deliver, the answer is no. The company does communicate with brokerages when questions arise about stock issuances or delivery failures.
Q) At this time I would like to request the outcome of the cert pull performed by The Owners Group. This information has never been disclosed to the CMKM Diamonds Shareholders when it should have been upon its completion.
Neither the CMKX Owners Group nor The Owners Group, Inc. has ever performed a certificate pull. The CMKM Task Force was in charge of a certificate pull at the request of CMKM management (Urban Casavant). The Task Force consisted of Don Stoecklein, Bob Mahue and Bill Frizzell. The Frizzell Law Firm volunteered its office as a central place for the shareholders to send information requested by the Task Force. Don Stoecklein informed Bill Frizzell of the dissolution of the CMKM Task Force via a letter written on June 21, 2006 when the Task Force made a recommendation to the company to seek the help of the courts in an interpleader action.
The objective of the cert pull was to identify the shareholders of the Company. As a result of the cert pull, most CMKM shareholders hold a certificate issued by the company transfer agent.
Q) What is the status of the case filed in the Eastern Texas Federal Court on October 29, 2007 against CMKM Diamonds, Inc. and others? It was filed by JP Montagne. Will you publish the documents on the web site?
CMKM Diamonds, Inc. has not been served with any such lawsuit.
Q) Re. the Shane PR from September 19, 2003:
Shane Resources Ltd. (TSX.H: SEI) is pleased to announce that the Company has entered into an agreement with Casavant Mining Kimberlite International (U-CMKM) whereby the Company, will have an option to earn a 10% interest in 82 claims in the Fort à la Corne area of Saskatchewan. The interest will be earned by the Company providing $100,000 in 2003 and $200,000 in 2004, to be spent on exploring the claims for diamonds. In addition, the Company has agreed to grant CMKM a right of first refusal to earn up to a 49% interest in any diamond properties the Company may hold and seek to joint venture.
Is this still valid?
The Company has no evidence of this agreement or that it was ever consummated. Large amounts of Company funds were wired or otherwise transferred to several companies that are related to Rick Walker. However, the evidence that CMKM has obtained points to shares of Shane Resources being issued to Urban Casavant personally and sold in more than one of his personal trading accounts. We continue our investigations into all assets that might be recoverable by the company.
Q) I'm from Belgium and have one question. A lot of my friends and family bought into CMKX. They did not order physical certificates for their holdings. Suppose we'll go trading again. What will be the difference between cert holders and non-cert holders?
We cannot advise you on the steps you should take if your shares were taken from you by your broker. We cannot advise you on how your broker will handle your shares when the company resumes trading. It is reasonable to assume you may have difficulty trading your shares if you do not have your shares in cert form. There is no plan by the company to declare some official distinction between shares owned in cert form versus non cert form.
Q) Can you please explain how and when CMKX became a “Private Company”? As an example, De Beers bought out their shareholders to become a private company. Doesn't a company have to buy out their shareholders to go 'private'?
De Beers was a publically traded company when they bought out the holdings of their shareholders with a cash payment. Once De Beers bought out their stockholders, those stockholders no longer owned equity in the company. CMKM was delisted from the U.S. Markets by the SEC in October, 2005. CMKM is no longer a publicly traded company because of this delisting.
FAQ Session #9: January 18, 2008
Q) Is CMKM to the point where we have audited financials, or financials that could be audited? All of the company updates refer to a "return to trading", obviously audited financials are key to trading again, thus the relevance of my question. Thanks.
Among the many other challenges, this Company has been in operation since November of 2002 and has never filed tax returns. We have demanded all company records from every attorney and individual associated with the company that might have any related records. We received only a small number of bank statements and a random collection of files, documents and agreements from one attorney that represented Urban personally. All other attorneys and individuals have either refused to respond or have responded by saying they have no records.
Because of the lack of records this company has been forced to subpoena records and documents in hopes of obtaining an auditable set of books. Due to a lack of cooperation with former management, we may be unable to obtain sufficient records for an auditable set of books for certain years past. You may recall that two SEC certified auditors were paid substantial sums in 2005 when management was in daily contact with them. In the end both auditors resigned from their task and were unable or unwilling to complete an audit. We work on this matter daily and will continue to do so.
There are many different avenues and scenarios that could arise which would cause CMKM to become a tradable security. We are continually evaluating all options as we work on recovering assets and obtaining the financial records to complete any required audits.
Q) Are the core samples that Kevin viewed the same samples that United Carina refers to on their website?
Our investigation suggests the filing of industry standard documentation and permits have not occurred with the regulatory agencies in the Province of Saskatchewan. The company does not know with certainty the location from which the core samples were obtained. Emerson Koch told Mr. West that no one knows where he drilled the holes except for himself and his drilling crew. This is an area that is receiving a lot of attention by the company at this point. Clearly the company has paid the costs of drilling the holes which produced the core samples. We are hopeful of obtaining this information amicably but we are prepared to use the Courts to assist us if necessary.
Q) In the latest Motion on the website, in the Desormeau / Edwards case, the term "acquired assets" is used. Have we acquired any assets, or does it refer to Entourage?
The latest filing was an amendment to the initial suit. The wording of the original suit was not changed except for the addition of the new entity as a defendant. At the time of the original complaint, the Company did own 45 million shares of Entourage Mining common stock. This asset is the subject of litigation currently filed by Entourage Mining, Ltd. against the company.
Q) How long is this share audit going to take to get the final numbers? It’s been a long time. Is there a light in sight for 2008?
The shareholder audit is one that has to provide the answer to many questions. Most of the outstanding shares were illegally issued to insiders and friends of the former management. Some of these insiders and others still own large amounts of shares that will have to be addressed in a lawsuit. The Company will seek to dissolve these shares on an individual basis if the shareholder cannot prove to the Company the payments rendered for the receipt of those shares.
This is just one facet of the ongoing audit that will take an untold amount of time to complete.
Q) What happened to the 75 billion shares that were returned to us from the failed JV deal? Where they returned to the treasury? Were they then retired?
The 75 billion shares in question were retired to the treasury on January 25, 2005. They have not been re-issued or otherwise pledged.
Q) How are people still able to get certs for their CIM shares when the company is revoked in the state of Nevada and no longer a legal entity? Who is authorizing the release of those certs and who is paying for them? Due to its revoked status, is it legal for CIM to issue certs?
CMKM has no business relationship with the revoked company by the name of Casavant International Mining, Inc. (CIM). CMKM Shareholders are advised to direct their questions to the people who are listed as officers on the Nevada SOS website. CMKM paid a lot of money and shares for claims that were transferred to CIM. CMKM is evaluating the merits of filing suit to recover any assets to which it may be entitled.
Q) What is the outstanding share count as well as the amount authorized to be issued? Are there any shares currently held in the treasury at this time and if so, how many?
The current number of issued and outstanding shares of CMKM stands at 703,518,875,000 shares. The authorized shares are still at 800 billion. All shares in excess of the 703,518,875,000 are retired. No shares are being held in any other form or are being pledged for any purpose.
Q) To your knowledge, are there any more shareholders who have requested certs and not received them? If so, how many shares do these outstanding requests represent?
This is another part of the ongoing shareholder audit. There are still many shareholders that have not been able to procure physical certificates through their brokerage house. We do continue to receive communication from shareholders regarding their inability to obtain certs. The total number of these shares is unknown at this time.
Q) In a recent FAQ you stated that the response to the Entourage suit was to be filed within days. Has it happened yet and/or do you have a new estimated time to do so?
The company has retained the firm of Getz, Prince and Wells, LLP in Vancouver, B.C. The company has entered an appearance in the suit. The company is prepared to file its Statement of Defence but has not done so at the time of this writing. There are ongoing communications between the parties. There are efforts being made to amicably resolve the issues raised in this lawsuit. If the matter cannot be resolved amicably, litigation could be rather lengthy. The Company will post immediately any filed documents on this website.
Q) What ever happened to the black SUVs?
We assume you are referring to the trucks that were paid for with a CMKM Diamonds, Inc. bank account wire for $371,100.86 made payable to Owens and Sweitzer on September 22, 2004. We are continuing our investigations into these vehicles as well as a couple of expensive RV’s. If anyone has any verifiable information concerning the present ownership and current whereabouts of these trucks, please contact the Company with your information.
Q) Without going into detail have any brokerages been cooperating with your efforts?
If you are asking if any brokerage houses have come forward with an offer to purchase shares from the Company to deliver to their clients for their failures to deliver, the answer is no. The company does communicate with brokerages when questions arise about stock issuances or delivery failures.
Q) At this time I would like to request the outcome of the cert pull performed by The Owners Group. This information has never been disclosed to the CMKM Diamonds Shareholders when it should have been upon its completion.
Neither the CMKX Owners Group nor The Owners Group, Inc. has ever performed a certificate pull. The CMKM Task Force was in charge of a certificate pull at the request of CMKM management (Urban Casavant). The Task Force consisted of Don Stoecklein, Bob Mahue and Bill Frizzell. The Frizzell Law Firm volunteered its office as a central place for the shareholders to send information requested by the Task Force. Don Stoecklein informed Bill Frizzell of the dissolution of the CMKM Task Force via a letter written on June 21, 2006 when the Task Force made a recommendation to the company to seek the help of the courts in an interpleader action.
The objective of the cert pull was to identify the shareholders of the Company. As a result of the cert pull, most CMKM shareholders hold a certificate issued by the company transfer agent.
Q) What is the status of the case filed in the Eastern Texas Federal Court on October 29, 2007 against CMKM Diamonds, Inc. and others? It was filed by JP Montagne. Will you publish the documents on the web site?
CMKM Diamonds, Inc. has not been served with any such lawsuit.
Q) Re. the Shane PR from September 19, 2003:
Shane Resources Ltd. (TSX.H: SEI) is pleased to announce that the Company has entered into an agreement with Casavant Mining Kimberlite International (U-CMKM) whereby the Company, will have an option to earn a 10% interest in 82 claims in the Fort à la Corne area of Saskatchewan. The interest will be earned by the Company providing $100,000 in 2003 and $200,000 in 2004, to be spent on exploring the claims for diamonds. In addition, the Company has agreed to grant CMKM a right of first refusal to earn up to a 49% interest in any diamond properties the Company may hold and seek to joint venture.
Is this still valid?
The Company has no evidence of this agreement or that it was ever consummated. Large amounts of Company funds were wired or otherwise transferred to several companies that are related to Rick Walker. However, the evidence that CMKM has obtained points to shares of Shane Resources being issued to Urban Casavant personally and sold in more than one of his personal trading accounts. We continue our investigations into all assets that might be recoverable by the company.
Q) I'm from Belgium and have one question. A lot of my friends and family bought into CMKX. They did not order physical certificates for their holdings. Suppose we'll go trading again. What will be the difference between cert holders and non-cert holders?
We cannot advise you on the steps you should take if your shares were taken from you by your broker. We cannot advise you on how your broker will handle your shares when the company resumes trading. It is reasonable to assume you may have difficulty trading your shares if you do not have your shares in cert form. There is no plan by the company to declare some official distinction between shares owned in cert form versus non cert form.
Q) Can you please explain how and when CMKX became a “Private Company”? As an example, De Beers bought out their shareholders to become a private company. Doesn't a company have to buy out their shareholders to go 'private'?
De Beers was a publically traded company when they bought out the holdings of their shareholders with a cash payment. Once De Beers bought out their stockholders, those stockholders no longer owned equity in the company. CMKM was delisted from the U.S. Markets by the SEC in October, 2005. CMKM is no longer a publicly traded company because of this delisting.
