The Securities and Exchange Commission today charged 11 individuals and three companies, alleging they conspired to illegally issue and sell unregistered stock in a purported diamond and gold mining company and lined their pockets with more than $64 million from 40,000 investors nationwide.
The SEC complaint alleges that CMKM Diamonds, Inc., with assistance from a transfer agent and an attorney, fraudulently issued hundreds of billions of shares of purportedly unrestricted stock to the scheme's mastermind. The complaint also alleges that CMKM's CEO Urban Casavant generated investor interest in the company through false press releases, Internet chat boards, and "funny car" race events across the country without disclosing that he ran the company from his house in Las Vegas and that CMKM's primary activity was to issue and promote its own stock
Securities and Exchange Commission v. CMKM Diamonds, Inc., et. al, United States District Court for the District of Nevada, Civil Action No. 08- CV 0437
SEC Charges Fourteen Defendants In Scheme To Issue And Sell Unregistered CMKM Diamonds Stock
The Securities and Exchange Commission today charged 11 individuals and three companies, alleging they conspired to illegally issue and sell unregistered stock in a purported diamond and gold mining company and lined their pockets with more than $64 million from 40,000 investors nationwide.
The SEC complaint alleges that CMKM Diamonds, Inc., with assistance from a transfer agent and an attorney, fraudulently issued hundreds of billions of shares of purportedly unrestricted stock to the scheme's mastermind. The complaint also alleges that CMKM's CEO Urban Casavant generated investor interest in the company through false press releases, Internet chat boards, and "funny car" race events across the country without disclosing that he ran the company from his house in Las Vegas and that CMKM's primary activity was to issue and promote its own stock
Additional Materials
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20519 / April 7, 2008
Securities and Exchange Commission v. CMKM Diamonds, Inc., et. al, United States District Court for the District of Nevada, Civil Action No. 08- CV 0437
SEC Charges Fourteen Defendants In Scheme To Issue And Sell Unregistered CMKM Diamonds Stock
SEC Complaint
sec.cmkm.diamond.ligitation.pdf
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