May 14, 2012 Company Update w/recap+SK Update

[Twist Capper]

www.cmkmdiamondsinc.com/index.html


May 14, 2012

Re: Company Update and Webinars

To All CMKM Shareholders:

It is my duty to report to you that Mr. Jim Lowden has resigned as Secretary/Treasurer of CMKM Diamonds, Inc., effective May 10, 2012. Jim has other business and personal interests that demand his time, and needs to focus his full attention on those matters of importance.

Jim Lowden has truly been an asset to CMKM, and I hate to see him leave, but I fully understand his need to move on at this time. During his time with CMKM, Jim performed many important and thankless tasks, including getting all the overdue CMKM tax returns filed and current. Jim took much personal risk to keep the company afloat during a difficult time, and much of what he did is not known or appreciated by shareholders.

I consider Jim both a personal friend, and a friend to CMKM Diamonds, Inc. He will be sorely missed, as men of integrity like Jim are hard to find in this day and age. He deserves much credit for the fact that we are still afloat and “in business” – much more than shareholders will ever understand or appreciate.

Jim – thank you for all you have done for CMKM, and my prayers and hopes for much success are with you as you continue your business and personal endeavors!

I will immediately take over the role of handling Jim’s duties, and will have our accounting firm, Madeley and Associates, oversee the checking account with me. I have no plans to fill the Secretary/Treasurer position until such time as we have substantial capital in the bank.

Date for Next Webinar

The next Company Meeting/Webinar is planned for Tuesday, May 22, 2012 at 8 P. M. CDT. Please mark your calendars, and get your questions ready.

I hope to have new information of interest to discuss, including the budget for testing the 1010 core samples, and fundraising ideas for sample testing funds. I will also discuss the Trimbath Report, which is a topic that I have gotten numerous questions about.

We had approximately 400 attendees at the peak of the first webinar, and around 200 at the peak of the second one. These numbers indicate to me that most shareholders are worn down from this CMKM journey, and just want a large check to come in the mail! I certainly understand that feeling, and wish that day would come soon. However, the effort continues daily to rebuild CMKM Diamonds, Inc. into a legitimate, profitable operation. That is all I have any influence or control over, and will continue that effort until we are successful.

I hope you will plan to attend the meeting on May 22. Until then, contact me at [e-mail] if I can assist you in any way.

Take care, and God bless!
Steve Kirkpatrick

[TexasPride]

Did anyone listen to the Webinar?

[Twist Capper]

Recap courtesy of portrush as posted on Millionaire's



portrush
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My Webinar Notes
« Thread Started Yesterday at 10:37pm »

Summary of CMKM Webinar 5.22.12

These are my notes from the webinar. I may not have recorded everything and could have missed something that needs correction. If you see a mistake, let me know and I will correct.

pr


Opening Comments:
There is a considerable effort going on to turn the company into something that has value. This is Steve and others working on behalf of the shareholders.


Trimbath Report:
This topic has been asked of him many times over the past several months. He is sharing as much as he can. After all the questions that came his way, he was expecting a massive amount of documentation—but was somewhat deflated after he got a copy because it was only a few pages long. There are a few associated questions that he can’t answer live tonight based on pending legal action.

It is not particularly earth shaking. She looked at a group of 30 brokerage statements with the intent of looking for NSS. This is not a far-reaching comprehensive study—rather a forensic sample of a handful of statements, looking for NSS and then extrapolating a total from there.

Steve understands some shareholders will be put-off because he cannot divulge everything that is in this report—but he needs to protect those that submitted their statements, as well (again) various information tied to legal action being taken.

Her conclusions were that there were many instances (from the samples) where there was seemingly no proof that the brokerage house bought the shares in an open market and covered those shares. Indeed, in her opinion, there was naked shorting that took place and it could have been significant.

When he spoke with Wes Christian a few months ago, he was told that this happens day to day in the markets, in spite of it being illegal—and apparently the government isn’t/won’t enforce as stringently as we would like. Indeed, there is speculation that some of that took place with Facebook on their IPO.

Apparently brokerages buy the shares naked and have 3 days to cover—betting that they can turn a profit within the 3 days from the NSS they sold. Most of the time there are enough shares available and everyone ends up happy. But in the case of CMKX that wasn’t the case. At times we may have had a couple trillion in the marketplace when we only had 703B authorized.

He said that is essentially the extent of her document and that it doesn’t present any kind of information that would allow us to move forward in a lawsuit with this as proof. In fact, as time goes on and he learns more—Steve is less and less optimistic that we can find a law firm available and willing to tackle a project like CMKM and its complexities.

They do have proof (the company does) that former insiders did indeed spend the proceeds from stock sales. But he doesn’t think there is anything in the Trimbath report that will provide the impetus to do much (legally) with this as “proof.”

He called the DTCC today to get more info about the “global lock” that’s been talked about on the boards. Its not a new ruling—been around since 2006. He called Morris Richards today and spoke to his assistant…and was given his email to inquire with him. Steve advises if your brokerage statement shows a global lock, call your broker and have them call Aaron White at Transfer Online 503-227-2950. Even though some show a global lock, evidence exists that many certs have been transferred broker-to-broker and broker-to-client since the lock was placed. If you have a huge problem with this, you can send an email to Steve directly.

Steve advises shareholders not to allow their brokerage house to delete their shares.


2011 Tax Return
We have not yet filed. They did file for an extension and working to complete the return at this time. It was delayed due to a family illness in the company’s CPA family. Once done, the return will be posted on the website. Should be done in the next few weeks.

The P&L won’t be pretty and will show a significant loss for 2011—largely due to the costs of the trial (Glenn) and the lack of any revenue.


1010 JV and the Core Samples
Still waiting for the budget numbers to test the core samples. Koch has been delayed getting the needed quotes due a serious illness in his family, (please pray for Koch’s daughter and family as they face this health crisis) plus heavy business volume in the spring. Steve asks that shareholders refrain from calling Koch about this matter.
Steve is concerned that we proceed correctly and not increase any more financial exposure/costs for shareholders.

He knows folks are going to view this as “here we go again—more delaying and stalling” but asks that we try to understand that Koch is truly facing a serious illness diagnosis/surgery for his daughter and he must address that as a primary concern—first.


Ongoing Legal Matters
The keys to the company’s success really lay in many of these legal proceedings. We will be sitting here until we have some capital reserves to do anything. He is flying to Tyler next week to meet with Frizzell about the details of each and every case. The success/failure of these proceedings are critical to the future of CMKM. The process of moving CMKM to an Alabama Corporation is underway.

The reason for moving the domicile to AL is simply for convenience since this is where Steve is, as well as the accounting firm.


The Wells Fargo Lawsuit
The legal process is ongoing and we are in the discovery phase at this point. The estimated damages are $60 million. They have assembled a great legal team.



Monies Owed by Can Cal
John Edwards loaned them $300K at 16% interest and they owe us $900K today. Can Cal pledged a120-acre tract against this loan, so the company is striving to get the money and or the land.

Three properties have been reclaimed and sold to date. The most recent was the 24 acres in Clayton GA. Numerous others have been identified as purchased by insiders and the company is endeavoring to reclaim them as fast as possible. Steve is hoping to lien as many of these as quickly as possible.


The Board of Directors
We currently have no Board or any other Officers. Shareholders will vote for TWO Shareholder Representatives on the Board. These two will have full voting rights and duties as any other Director.

Method of voting will be determined by July 15, 2012. Individuals interested in running for this position need to apply between July 15 and August 15. The vote will happen on September 30, 2012. Steve will then appoint THREE non-shareholder Board members prior to September 30, 2012. One of the three BOD positions is currently committed. The negotiation and search for the remaining two is ongoing.

Steve recognizes (as most with integrity do) [my editorial] that it wouldn’t be appropriate for him to endorse any one individual shareholder for the Board. He will not and has not. The shareholder positions will be elected BY the shareholders.


Trade Again?
What would be necessary to trade again? A strong balance sheet, zero debt, proven claims/product/service/technology to sell to the market. As well, we need a track record of stability and competent management. And Steve notes here—we do not own ANY claims as a company right now. We have a JV with Koch, but Koch owns the claims. He also mentioned that “management” believes a return to trading is the best way to address the naked short issue.

He also reviewed the financials for Shore Gold. Based on how they are struggling, he doesn’t anticipate that CMKM will end up being a mining exploration company. We simply won’t have the ability to raise the capital necessary to mine diamonds.

He does see other opportunities for us: products, real estate, technologies, etc. as opposed to being a mining company—regardless of how romantic it sounds to be invested in a diamond company. However, if we do test the samples and find value and Koch agrees to it—we could investigate the opportunities to sell them off or other opportunities to turn the company into something that makes profit every quarter and get us back to trading.

If the company gets to the point of being properly positioned and stable enough to get back to market, then we could realize a strong return by going back to trading.


CMKM Business Plan Recap
1. Keep overhead low.
2. Raise cash through litigation, sales of reclaimed land, debt collection and fundraising efforts.
3. Pay off al debt. (Law firm debt from previous management)
4. Test core samples.
5. Build stability and strong Balance Sheet.
6. Build a viable company using seed capital to invest in profitable ventures.
7. Return CMKX to trading status.

At this point he doesn’t feel comfortable asking for anyone to invest additional funds into the company apart from perhaps testing the core samples. He feels that it is important for CMKX Shareholders to know whether there is something really there—in these samples.

Steve cites that if something were to happen (hypothetically) and Koch lost his interesting in the JV—would it be the end for our company and shareholder investment. He says—absolutely not. There are other opportunities the company has to create value for shareholders and he cites that he favors real estate ventures if/when the purchase is made under market value.

However, please note—no decisions will be made until he seats a Board of Directors and we actually have some capital to work with.

His goal is to be trading by the end of 2013—but states it is possible to do so before then. He does think the 2013 date is realistic.


The Rumor Mill Debunking
There is nothing to the rumor that we would reverse split at the onset. Perhaps at some time it would be advantageous to manage the size of the share count—but NOT to the detriment of letting the brokerage firms who naked shorted the company off the hook.

Steve says that if you hear rumors that he is meeting with shareholders in secret at various locations—don’t believe it. Someone is spreading one that says he is meeting in DC with someone. Not true.

Some shareholders are insinuating that Steve is working for the government, Maheu or some kind of larger scheme or with special agenda. All of this is fallacy, says Steve.

The information on these webinars is truthful, Steve states, and based on hard facts or evidence provided to him by others. Any suggestion that his job is to provide cover for others or keep shareholders occupied or “buy time” is totally false and ludicrous.

He did call the FBI today (Gerald Burkin[sp?]) to ask where we are with extradition of former insiders. He was told those processes are still in motion (on the two "most notable insiders").


Poll Questions
This is a point where Steve posted the following questions to those on the webinar as means of gauging some general response from the participants.

1. How many shareholders are interested in running for a position as a Shareholder Rep on the Board?

2. How Many would be interested in making a small investment (approx $100/unit) toward the 1010 core sample testing—of the investment offered a preferred return once the claims are sold?

3. Are these webinars informative and helpful to the shareholder base?

He says he will post results on the company website.


Speaking of the Company Website
He is in process of updating the company website at very little cost to the company. The current site was done with outdated software and makes it difficult to navigate. He doesn't anticipate losing any information that is posted there and expects it will be much more user-friendly when completed.



Q&A Session with participating shareholders

Have you realized the Market Cap value that would provide a small ROI?
(No answer...must not have seen this question in the scroll)

Who is Steven Brewer and what was his role?
He has no official role with the company, is a shareholder living outside of the country and was not an "under the table" supporter of the company...info from Frizzell.

Where is the money the brokers took?
The money is likely still sitting in the brokerage accounts--because if they were truly phantom shares, then there would be no reason to deliver to the company. If legitimately sold, they would pass through the DTCC and proportionately to the company. If NSS, then they would potentially still be holding the money.

What other law firms other than Wes Christian have been consulted with on the NSS issue?
Christian is not interested in taking the case because the SOL has run out. It is very hard to prove the company was damaged by naked shorting and Christian would have to JV with another law firm just to handle the workload...so he's not interested. Steve does not feel that we will find a firm or a group of firms to take this case on.

Did you ask Hodges if he wanted to participate on this webinar?
Yes he did ask and Hodges declined at this time. Steve left an open invitation for anytime Al would like to join the conversation.

Have you estimated a reverse split ratio and share price that would be needed to accomplish that and make this a viable company?
Yes, he has--he did so during the first webinar and said that it would take a couple hundred million in revenue to deliver back to shareholders what they orignally invested. if we could get to the point where we could at least issue dividends, that would be an accomplishment at this time.

Are you aware that CMKX was warned , by the the SEC regulators that they would not look kindly , at CMKX pulling certs ? That the SEC Regulators would look at it as Market Manipulation? So how would that afffect trading again?
He doesn't know the answer to this. What he's been told from one of our attorneys, they're confident about ways to get the company trading again. So he is basing his confidence about trading on what they've said.

Have you ever spoken to Peter Maheu?
No, absolutely not. Also, Steve knows nothing about the truth of Leo Wanta and he doesn't want to give any shareholder unrealisitc hope or put a damper on their hope--he can only say that which he knows to be truth.

Has it been established that the shares sold by Marko Glisson (Deli) are legitimate legal shares certified by both our company and the SEC?
It is his belief that if you hold certs for shares purchased from Deli, they are indeed legitimate shares. He believes that Marco bought certed shares from shareholders and re-sold them, thus making them legit.

The “Company Shareholder Audit” refers to the ongoing share count that was being performed by the Task Force (Donald Stoecklein, Robert Maheu and Bill Frizzell) during the cert pull. Mr. Kirkpatrick when are you going to publish the completed Company Shareholder Audit, and considering the cert pull was a total waste of time and money because “the company” let the Statute Of Limitations run out, are you going to refund to us the $50.00 per certificate we had to dish out?
He doesn't know that the company got that money--it went to Frizzell's firm and we don't have that money to refund that. The SOL has run out, but he thinks the previous management felt that was something worthwhile doing at the time. They did all they thought they could do to fight the NSS issue and they could get no traction. They spoke with Wes Christian too--efforts were made--but they were unsuccessful in making this work.

You need to try to understand that CMKX is one of the most incredible business stories in US history. This company has a very muddy and storied history on the streets, the SEC and many other people. The folks that know the full story of the company are scared to death of CMKX. They don't understand how it could happen or how it is still in existence. There are lots of reasons why people would be scared to take on a NSS lawsuit for CMKM. That's why he is trying to get the company back to trading and do a short squeeze when it gets on the market.

Are you working on the judgements against the former insiders?
Absolutely yes. The FBI is looking for us too. There is a property that was found this week that was sold through some shady dealings and the FBI is interested in looking into those details. And he is working daily on these judgements.

Wes Christian was the lawyer you recently visited regarding the naked short issue, was he also the lawyer that past management consulted with before the statute of limitations ran out? What other law firms were consulted by past management or yourself regarding the naked short issue?
I don't know what other firms were contacted--Wes is the most notable and best on this issue. There are other firms that Steve has contacted and he will divulge those when appropriate but at this time he is not getting any traction from them.

Mr. Kirkpatrick, would you ask the remaining members of the Task Force for their reason why the cert pull counter stopped at 703 odd billion?
Yes, he will ask Frizzell.

What date did the SOL run out?
Five years from 2005. He will get the exact date.

While browsing our company website I’ve noticed numerous references to confidentiality agreements cloaking discovery or settlement documents. Mr. Kirkpatrick, can you explain briefly why our council, previous and current management and the criminals should be allowed to hide information or documents from us concerning our stolen property?
There were certain agreements made with people we sued that owed the company money...but there is nothing else that ought to be disclosed to shareholders. Many times when people pay you as a result of lawsuit one of the stipulations can be that you cannot divulge who paid what. He hasn't been involved in any of those kinds of agreements...and hasn't signed an NDA regarding it...he doesn't know if previous management did so.

During our last webinar I requested documents showing the assets we have recovered to date and map coordinates to our claims held by Mr. Koch be posted to our company website, is this something that’s currently in progress or is this more information shareholders are not entitled too?
Yes he can do this and will do so...he has the coordinates.

Did our past company BOD have liability insurance?
He doesn't know if they did--he currently does not. When we have a new Board, we will have to have it at that time.



[Commentary]
The greatest damage to this company was done by the former insiders who were good salesmen...and unfortunately that money went to them. When the company was handed over to Kevin West, it was virtually bankrupt at that time. When attorneys look at the details of this company and the whole NSS issue, they get cold feet. They might not be scared as he said before...but they are overwhelmed with the situation.

Where we are today and where the company was 10 years ago don't really connect any more. He is curious about the past...but he doesn't have the time to go back and dig through all that to see what it is. He is focused on a profitable future. Where we are today is what really matters and we need to get some capital to keep the company alive and try to rebuild it. Answering questions from the past doesn't really do us any good. It borders on wasting our time...he doesn't mean to offend, but implies its really about our future moving forward.




Do you think it’s possible that past management and council colluded with law enforcement and the SEC to embezzle settlement funds from CMKM Diamonds Inc. shareholders? And isn’t that a more believable reason for why past management let the statute of limitations run out and then all resigned?
He understand the question, but cannot believe that any previous management would collude with government forces. He doesn't believe any of the previous management, legal counsel or current counsel did anything illegal. As far as people working for this company being involved in collusion...he does have any evidence whatsoever that these people are anything but decent law-abiding people.

Why didn't we hire Wes Christian in 2005?
Wes and Frizzell were college roommates...and they talked about it, but couldn't get any traction on this.

What are your thoughts on the "JEFF Letter" that was entered into evidence at the administrative hearing?
He thinks what they did was wrong and they were smart to admit it. They dd ante up the money and he thinks it went into CMKM.

What makes you believe previous management were not crooks?
He's met them in person, seen lots of documentation...and just doesn't believe they are. Could they have made mistakes? Sure...we all do. But he doesn't believe they were crooks and there is nothing to make him think so whatsoever.

When we ended our relationship with Entrouage we receivied $85,000 and our 1010 claims back. How could these claims not be ours and only EK's?
He doesn't know all the details, but has been specifically told that he got these claims because of this own efforts and he is willing to work with the company on a JV arrangement.

Where's the money from the JEFF payment?
Some of that went to legal expenses and overhead, etc. How much came from the JEFF payment, he doesn't know. Former insiders took this for their own benefit and that's why Urban has a federal indictment against him.

Why is Koch willing to help CMKM Shareholders?
Good question...he knows the history of our company, is a shareholder, has many dealings with Urban and lost a lot of money and therefore wants to see shareholders have a shot at some recovery. He doesn't owe us a thing, has no obligation to the shareholders, but has a sense to help shareholders recover some of their money over time.

Can you post the specifics of the ProSe lawsuit recently settled with 6 shareholders to the company website?
Yes, he can do that. Some of the agreements were to do some webinars, allow shareholders to view company records that they are able to review, elect two shareholders to the BOD, provide any NSS info that the company is obligated to share if we don't have a law firm hired within 6 months...which he doesn't think we will do.

Frankly he thinks that it was best to answer these 6 rather than risk putting the company into receivership which would ultimately put the company into bankruptcy. He thinks the outcome has been efficient. There are a certain number of company records that the company is obligated to show the shareholders. There really isn't anything that is all that exciting to see.

The BOD was to be seated anyway, the idea to have 2 Shareholder reps is a good idea. The idea of providing the NSS info to shareholders so that they can pursue their own lawsuit...he sees no problem with that. It will be a pile of documentation, but he doesn't think shareholders going out on their own would be able to capitalize or find a firm willing to represent them.


Closing comments:

Hopes shareholders realize he is trying hard to keep the company going and there is a real possibility to get this company trading again. He anticipates the days ahead could be exciting, and wants to give shareholders some hope that your investment isn't a total loss. It could have been bankrupted back in 2007, but Kevin West chose not to do so. Steve promises to always be truthful and will do his best to update us. Send an email to him if you have questions unanswered, have suggestions to make the webinars more helpful and informative. And please have patience over the next few days as he typically gets a lot of email after these.

Please pray for Emmerson's daughter, and for this company if you believe in prayer.

###

[Twist Capper]

Courtesy of portrush via the Millionaire's Board:


To All CMKM Shareholders:

On the webinar last night, I inadvertently stirred up unnecessary controversy about the JEFF matter. My answer to a question about Jeffries selling/clear shares of CMKX outside of normal clearing procedures was misleading and incomplete. I am researching this matter closely, and will publish an update fully explaining the facts about Jeffries' dealings in the next few days.

After speaking to many sources today, it is clear to me that most do not understand the facts - including me. I am sorry for creating unnecessary confusion or controversy about this matter. I will get all the facts and present them on the website for your study and understanding. Thank you to those who attended last night's webinar!

Steve Kirkpatrick
www.cmkmdiamondsinc.com/

[TexasPride]

Who is Jeff and what has he done with our money?