|Shareholder update 9.08.11
Dear Fellow CMKM Shareholders,
I spoke with many of you
last Friday on my first day on the job for you. I came away flooded
with emotion. After
hearing of your concerns,
situations, welcoming your tough questions as well as your kind remarks
and well wishes, I
came away from every call
with a feeling of solidarity that I had never felt before. Thank you.
To be a CMKM shareholder
is an honorable thing. Well shall prevail. I hereby commit to you
to try and be a
conduit between our company
and its shareholders. I feel it is important for me to state that our current
Management and Board of
Directors are to commended for their honesty, integrity and dedication
to not only our
company but to our
shareholder base as well.
I recently met most of them
while in Las Vegas last month attending the recent trial. When that case
went to the
jury, I believe we all felt
we had presented our case well and we were optimistic of a positive outcome.
monetary judgment was awarded
by the jury from defendants Roger Glenn or Edwards Angell Palmer and Dodge,
Company did prevail with
a combined $70 million judgment from defendants Urban Casavant, Ginger
My wife, Carol, and I attended
the hearing for a total of 5 days and following is my perception of the
represented CMKM at the
Las Vegas hearing: Mr. Jim Lowden sat at the plaintiff's table projecting
distinguished, relaxed and
confident persona as the President of the Company. Attorney Bill Frizzell
and his team
gave it their all and looked
as if they were absolutely exhausted when it was over. In my opinion, it
was a job well done.
Thank you, Bill. Two of
the CMKM Directors, Tom Stephenson and Stan Polsom, were in attendance
further strengthening to
our case as an ongoing concern. I would like to add that I have in the
past met all three
Directors of CMKM and would
represent to you that Mr. Stephenson, Mr. Polsom and Mr. Summers are among
most honorable men I have
ever had the pleasure of meeting. I can state without a shadow of doubt
that there exists a
very healthy relationship
complete with a necessary check and balance system between the Board of
Directors and the
Officers of the Company.
Finally, in my opinion, Kevin West is the unsung hero of the group although
he always insists
that he has done nothing
on his own and that it always is and has been a team effort. He is a warm,
outgoing person who is also
well spoken, knowledgeable and passionate. My hat is off to all of them.
I look forward
to the potential of what
the Company is trying to accomplish for all shareholders in the days, weeks,
months and years
As for the future, it should
be noted that our Company faces many obstacles and difficult decisions.
As stated above, I
personally believe that
we are in capable hands. The Company intends to release their unaudited
2010 financials in the
Call Me, Steve Walker 903-253-0510
Fridays 10am to 6pm Central
* starting October 4, the
call line will be open Tuesdays and Thursdays from 10am-2pm CST.
The last Friday call in
date is September 30, 2011.
All that is necessary for
the triumph of evil is that good men do nothing.
Shareholder update 8.11.11
To the shareholders of CMKM:
We are happy to announce
that Steve Walker has signed an agreement with the Company to provide Investor
Relations services. With
a background in sales and marketing, Steve Walker has been a Golf Professional
for over 30
years. While moonlighting
as a day trader, he became involved in CMKM in January 2003. This life
altering event, led
him to stock market reform,
to which he remains passionate and devoted to today. In taking on this
challenge for CMKM,
Steve says " my objective is to help reunite CMKM shareholders, so together
we can all move
forward, as the company
emerges from past problems and readies itself for a bright and prosperous
future. It is now
our time CMKM shareholders,
so let's get together and show the world how strong we really are. I want
to thank Jim,
Kevin, Bill and the Board
of Directors for all their tireless efforts and for giving me an opportunity
to be a part of the
future of CMKM Diamonds.
We cannot change the past, but we can change the future. I stand ready
for the task,
please join me." The investor
relations hotline is 903-253-0510 and will be open to receive calls from
10am to 6pm
Central time on Fridays
starting September 2nd. New dates and times for the hotline will be updated
Please note that this line
will not have voice mail at this time and only live calls between the above
mentioned times will
As you may already be aware,
the Company representatives will be in Las Vegas for trial currently scheduled
on or about August 17th.
The case going to trial involves our claims against Urban Casavant, Ginger
Kinney, Attorney Roger Glenn
and his former law firm Edwards, Angell, Palmer and Dodge. The case
presided over by Judge Elizabeth
Gonzales. The present calendar call for this case is August 15, 2011.
Company expects jury selection
to begin on August 17th and opening arguments and testimony will begin
jury selection. Casavant,
Gutierrez and Kinney have defaulted. Glenn and his law firm are disputing
all claims being
made by the Company.
The judge has summoned 100 jurors. Each of the jurors has filled
out 20 page questionnaires
containing questions specific
to this case. The courtroom is small with less than 50 seats to accommodate
The Board of Directors is
in the process of bringing the Corporation’s bylaws current and
is working to amend
them to make sure that we
are in full compliance with our commitment to the shareholders and ensuring
their rights are
upheld in the State of Texas
where we are domiciled. Once amended, the bylaws will be updated to the
Board of Directors and Company
Executives remain committed to protecting the interests of the company
shareholders as a whole.
While reviewing the current
corporate bylaws, the Board of Directors made the determination that the
position of CEO
as advertised is not required.
The Board mandated the position of CEO be changed to President. After reviewing
resumes submitted for the
leadership position of the Company, the Directors came to the conclusion
that the best
possible candidate for the
job is already on board. That said the Directors are very pleased to announce
James Lowden has agreed
to accept a permanent role as President of the Company. "The Board
of Directors is
extremely pleased that Mr.
Lowden has agreed to accept our offer to join the team for the long term
and would like to
sincerely thank him for
all of his efforts. Mr. Lowden possesses the necessary business acumen,
experience and a keen eye
for detail that our company requires to be successful. As the company moves
are extremely confident
that Mr. Lowden will provide the continued leadership, knowledge, and consistent
work ethic he has demonstrated
during his tenure with the company. Please join us in welcoming Mr.
Lowden to our
The Company would like to
extend its gratitude to the other candidates that applied for the CEO /
The response from our request
for candidates was very reassuring that there are people committed to assisting
making our company successful.
The Board of Directors has
asked former officer and Director Kevin West back to take on the role Vice
the Company to assist Mr.
Lowden in their continued efforts moving the company forward. Both Gentlemen
together and through these
combined efforts have been able to stand the company back on its feet.
This team is
desirous to see the growth
of CMKM. Mr. West stated, “I am humbled and honored to
be asked back by the
Board of Directors. I feel
rested and excited to once again be doing my part to help the Company move
The shareholder meeting that
was fully intended to be accomplished by June of this year has had to once
again be put
on hold. The Directors of
the Company wish to make known to the shareholders that the lack of proper
funding is the
reason that there has not been a shareholder’s meeting since
new management took over
in 2007. With over 50,000
shareholders of record, including over 10% with international mailing addresses,
costs of a meeting at this
time is not possible. Even with discounted rates being offered to the Company,
costs of printed, third party mailed and received proxy statements plus
envelopes and other
hard costs stand at $175,000.
On top of these costs, there will have to be a meeting venue, security
to accommodate hundreds
and perhaps even thousands of shareholders wanting to attend in person.
This puts the
minimum cost to hold an
annual shareholder meeting somewhere between $190,000 and $250,000 for
with the same or even higher
costs annually thereafter. That said, the Company would need to have enough
cash in the
bank to not only hold the
meeting, but to continue to sustain running the Company for at least the
next several months
at which time another shareholder
meeting would need to be planned, funded and held. As you can see,
the costs of
these meetings are very
prohibitive at this time because of the extreme size of our shareholder
On February 26th of this
year, the Company announced its desire to create a round table team of
individuals. Since that
time the Company has received fewer resumes than positions needed from
interested in a possible
place on this team. We would like to extend the resume intake period for
another 90 days.
After this period, depending
on the number of resumes, the Company will give a final review and recommendation
the Board of Directors for
the seven members to be placed.
CMKM and 101047025 Saskatchewan
LTD still have a valid agreement in place with the remaining claims from
Fort a la Corne area.
This agreement calls for the development of a New Corp for the exploration
development of these claims.
The Board of Directors of CMKM have already endorsed the agreement to move
forward with the plans for
this venture and are patiently waiting for all of the pieces on the Company
side of things to
fall into place.
Once again, the Company would
like inform the shareholders that we believe in the success of CMKM Diamonds
and will continue to work
for the best interest of the all shareholders.
We the undersigned are directors
of CMKM Diamonds Inc. We do not believe that the board of directors
CMKM Diamonds Inc. have
been in any way negligent or derelict in any of the duties to inform and
shareholders in any matters.
Firstly, your demand letter
states that you would like to be informed of “funds purported
to exist” in the
Bivens lawsuit that
has been before the courts brought by certain shareholders or on behalf
of certain shareholders
through attorney A.
You spoke to the fact that
Mr. Hodges testified under oath in the court proceedings. On
this point we must
Mr. Hodges was speaking on behalf of his client(s) and as such was not
under oath. Lawyers
are allowed to advocate
for their client based on facts they believe to be true. Mr. Hodges
was in fact arguing a side
of the case, and as such
is not “testifying” as you have misstated in your letter.
brought by Mr. Hodges was
dismissed by the Court and is now on appeal.” Mr. Hodges is pursuing
on appeal at this time.
The company has no obligation nor would it be a wise use of resources to
attempt to get
involved in this matter.
In fact spending valuable company resources and time on something that
has never been
validated by our own extensive
investigation would, in the opinion of the board, be irresponsible. This
always had an open line
of communication with Mr. Hodges. The company has requested on multiple
Mr. Hodges any such tangible
evidence, including but not limited to any pertinent documentation which.
known only to Mr. Hodges,
the company has not received any documented evidence of any trust that
to exist. The company has NO knowledge of any type of trust fund
and has no evidence
that such a trust has ever
Shareholders have received
transparency of everything this board has been doing since it’s
Company has posted on the
Word Wide Web evidence from our many litigation activities that the company
in order to restore money
to the company bank accounts. This is being done for the benefit
of all shareholders. The
Company has stated and restated
our goal of being a viable and fully legally compliant company in the future.
the last calendar year the
Company built the financial records from recovered data that was thought
lost at one time,
filed all taxes for pertinent
previous years and posted the information on our company website for the
With all due respect to the
writers of the demand letter to the company, you are misinformed on some
It is stated that the concerns of shareholders are “unanswered
This is quite simply not
factual. The company website has court filed documents on it that
show where the company is
resources. This is done with great consideration and care in fulfilling
our duties to shareholders.
The board at this time finds
that the request to pursue action against Mr. Hodges to be misguided and
case before the court as
mentioned above was dismissed. The company has asked for evidence
and received none.
There is no meritable action
that we can find to take at this time There are simply no accounts, trusts,
settlement damages that
the company can find to pursue. We have stated and restated this
several times in the past.
We are hopeful for all shareholders
and this company that a compensation fund of some type does exist and that
Hodges is successful in
the pursuit of this matter based on the information he possesses and wishes
confidential. If the company
can assist in that endeavour it stands ready to assist Mr. Hodges and his
Demanding that we pursue
something that does not appear to exist would be irresponsible and would
company to expend valuable
resources in the process. We have instructed management to obtain
a copy of any trust
agreement holding funds
for shareholder regardless of the source, this management has not found
agreement has ever been
in existence. In response to the accusation that the Board is in
breach of its fiduciary duty,
please see the financial
statements posted on our company website.
It should also be noted that
the Frizzell Law Firm is NOT an officer of the company. Mr Frizzell
is a contingency
attorney that the company
hired to perform litigation against the former insiders and associate of
the company in order
to recover assets that were
illegally taken from the company and it’s shareholders.
You are requested not to
contact his office for information
about the company’s affairs. The company is diligently working
for a Public Relations officer
that will be available to answer general shareholder questions. A
basic set of protocols
and appropriate contact
methods will be posted to our website as soon as this process is completed.
The company is
also reviewing data received
from candidates for the CEO position that is vacant and will inform shareholders
suitable candidate is chosen.
The Board hereby recognizes
the demand to answer the shareholders letter and as evidenced by the date
stamp on this
letter we have complied
with said demand. Please continue to monitor our website at
for further litigation progress and company updates.
The CMKM Diamonds, Inc. Board
February 26, 2011
To The Shareholders CMKM:
It is with regret that we
received the resignation of Mr. Kevin West. Mr. West was a tireless worker
for and on behalf
of the shareholders of CMKM
Diamonds Inc. When Mr. West was asked to take the position of CEO and President,
the company was at best
in terrible shape. No money, no records, no set list of assets, in fact
there was nothing but
50,000 disgruntled shareholders
all expecting that he could perform a miracle for them. Well, he did. He
company doors open and proceeded
to expose and rectify some of the unscrupulous activities of the past.
Mr. West used his best efforts
to make certain things happened. It was Kevin's desire that the corporation
day be on a solid foundation
of accountability. Most importantly that accurate records exist so that
could be accounted for and
the information the transfer agent needed was correct and noted. Much of
this has been
accomplished and the company's
financial records are now becoming an asset and not a liability.
Mr. West believes it is time
to hand the reins to someone else. He has accomplished a lot of what he
has set out to do.
He will agree to continue
to help the company as it moves forward.
As reported in earlier updates,
CMKM reached another milestone this past year. Using all of the information
available to the company
and with the assistance of the company's accounting firm, CMKM has filed
tax returns dating
all the way back to 2002.
2010 is being prepared and will be filed within a couple of weeks. We would
like to thank
Mr. West for his efforts
In view of this news, the
Board of Directors has asked Mr. James Lowden to assume control while we
search for an able replacement.
If any of the shareholders would like to apply, Please send your resumes
to P.O. Box
9575, Tyler, Texas 75711.
We will only except resumes by mail.
Disclaimer: Please be advised
that compensation for this position is negotiable based on the business
experience of the
applicant. The person selected
for this position may be asked to accept stock in lieu of salary or may
be asked to
allow the company to defer
his salary pending the sale of certain company assets or until other revenues
are realized by
The current Board of Directors
realizes the frustrations expressed by certain shareholders on the lack
available from company management.
For this reason, we have asked Mr. Lowden to come up with a plan to appoint
a shareholder committee
that we can communicate with. Matters such as the plan for a shareholder
meeting and other
aspects of company business
could be discussed with such a committee. We have asked Mr. Lowden to report
of his ideas in this regard.
We will report to you through a company update on the official company
web site as we
make decisions in this regard.
The Board of Directors
February 26, 2011
To the Shareholders of CMKM
This was a statement made
in June of 2010
From the update:
CMKM intends to hold its
first ever-official shareholder's meeting within the next 12 months. As
imagine, this event will
be an extremely large undertaking with a great deal of organizational and
requirements to make it
happen correctly. To begin preparing for this event now, it will be necessary
have current information
for as many shareholders as possible. If you intend to be able to vote
you will need to have a
certificate in your name and have a current address on file with the transfer
If you have electronic shares
only, then your vote(s) will be held by the brokerage or clearing firm
theoretically holding the
bulk certificate for your position.
Please be advised that through
an extensive amount of work and with the assistance of Transfer Online,
undeniably the most accurate
account of the shareholder base that could be gathered.
I feel there is a number
of a CMKM shareholders that are very knowledgeable about the company and
could play a
vital role in the final
phases of the company's reconstruction.
The goal of this management
is to build a company one step at a time. It is of the opinion of the company
that a round
table team of shareholders
be assembled with approximately 7 individuals. These individuals will assist
the company in
their past knowledge and
their ideas moving forward. It is important that these individuals have
a good standing with
our shareholders. Please
submit your information in writing and reference Round Table Member. If
you are not
selected we still need your
"The company cannot be specific
at this time about matters such as compensation, benefits and overall job
requirements. But we encourage
those interested to send a short letter with their resume. We will address
in the coming weeks."
CMKM will have the 2010
tax returns completed on or before March 15, 2011
LEGAL: Refer to the Litigation
update Dec 2010.
NewCo: The NEW CO, J/V agreement
with 1010 is still a valid opportunity for our company. 1010 and CMKM
have worked together throughout
the year to develop a business plan however at this time, the Company has
unable to provide the large
amount of funds needed to move this venture forward. Mr. Koch has continued
the claims that hold potential
value for the NEW Co and ultimately the sake of the shareholders. We are
confident in our partnership.
As earlier stated by CMKM,
after a complete investigation into the matters being litigated by Mr.
company does not believe
any legal action is necessary or would be appropriate. Our position regarding
the matter has
been clearly set out in
our updates to the shareholders. We have no evidence to validate his claims.
Shareholders, please understand
that your questions and concerns are important; it is impossible to answer
all of the
emails and phone calls.
I watched Kevin spend entire days on the phone and responding to emails
only to see him
exhausted at day's end and
still be the object of criticism. I pray each of you understand that CMKM
is at its absolute
healthiest place it has
ever been. Although there is not regular and ongoing revenue for the company
at this time,
CMKM has proper accounting,
a few pieces of Real Property, Judgments from past events, and some very
legal cases moving forward.
It is with great regret
that Mr. Kevin West resigned from CMKM after the years of hard work he
has put in. Please let
us not lose sight of his
goal for the company.
Please submit your questions
in writing and they will be responded to in a timely manor
James E. Lowden
CMKM Diamonds Inc.
P.O. Box 9575
Tyler, Texas 75711
December 31, 2010
Another year has come to
a close and we would like to wish you and your families the very best in
While the Company has been
quiet for the last few months, please know that we are still working daily
on litigation and
other Company matters moving
forward. Although shareholders are understandably focused upon a return
investment, there has been
much that has taken place behind the scenes to help revive and put a foundation
Company that was left for
dead several years ago. In this past year, outside of litigation matters
to be updated below,
there have been two major
corporate accomplishments that have been underway for a very long time….
1. For the
first time in the history
of CMKM Diamonds, Inc, all tax periods dating back to year 2002 have been
filed; 2. The company
has interviewed and selected a new transfer agent. Even though it is not
something that can be
measured by shareholders,
please be advised that the Company has incurred hundreds of man-hours of
time that went
into the finalization of
just these two projects alone.
Many questions are coming
to the Company regarding the issue of a fund to be paid out to shareholders.
Company has publicly stated
its position on this matter several times in the past and continues to
stick by that position;
after several years and
countless hours of investigation into the matters surrounding the past
history of this Company
and the possession of hundreds
of thousands of pages of documents, the Company has not come across one
document indentifying a
trust fund held on behalf of the Company or its shareholders.
Many have asked about my
position on the matters that Al Hodges is working on. I continue to stand
by my previous
statements of June 25, 2010.
I personally believe that Mr. Hodges is looking out for the best interests
shareholders and that he
believes, without any doubt, in the information that he has shared with
you. I have spoken
with Mr. Hodges in the last
weeks and although he still cannot share details with me or the Company,
I am of the
personal opinion that he
is still 100% confident in his facts and has not wavered in those beliefs.
I have let him know
that I am just a phone call
away if my help should be needed.
The NEW CO, J/V agreement
with 1010 is still a valid opportunity for our company. 1010 and
worked together throughout
the year to develop a business plan however at this time, the Company has
been unable to
provide the large amount
of funds needed to move this venture forward. Mr. Koch has continued
to secure the claims
that hold potential value
for the NEW Co and ultimately the sake of the shareholders.
Please see the litigation
update provided by the Frizzell Law Firm to the Company below.
Kevin M West
CEO / President
December 31, 2010
To: CMKM Management
Desormeau Suit – Work continues
on many fronts in this lawsuit. Enormous amounts of due diligence,
investigation and legal
work have been expended in our effort to collect the $33,000,000 judgment
obtained by the company
in July of 2008. I reported in my litigation update in May of this
year of the recovery by
CMKM of properties in Georgia
and Virginia. As of this date CMKM has not accepted any offers on
property. The real
estate market for these valuable properties is not favorable as is the
case in most parts of the
country. CMKM management
is currently considering contracts with new listing agents and has some
brokers in the area providing
feedback to the company.
In September of 2009 thanks
to some good work by one of our shareholder volunteer researchers, the
informed that a property
which we had once identified as a property belonging to John Edwards had
recently sold in
Las Vegas. This office
has developed quite a database of information on properties purchased by
John Edwards and
held through the names of
various fictitious entities and trusts. Upon learning of the sale
of that property, we began an
investigation into the trail
of funds following the sale. Since these funds belonged to John Edwards,
they were subject
to our judgment. We
have known for quite some time that John Edwards has historically used
lawyers’ trust accounts
to purchase properties.
As our investigation developed
into this transaction, it was apparent to us that Mr. Edwards was using
lawyer and law firm and
its trust account to conduct business with third parties. We noticed
two lawyers in Las Vegas
for depositions and requested
that they turn over all files, documents and records of business dealings
of John Edwards. The
lawyers informed me when they appeared for the deposition that they gathered
we requested but due to
their confidential relationship with their client they could not turn them
over to us without a
court order. We reached
an agreement where the lawyers would prepare a privilege log and we would
Delaney to review the logs
and decide if the documents identified were discoverable. Judge Delaney
ultimately ruled in
our favor on August 18,
2010 and turned over to us each and every document which was being withheld
by the Mr.
It took nearly 8 months and numerous court appearances in Las Vegas by
Kevin West, myself
and our Las Vegas counsel
and the filing of several briefs to obtain this ruling.
These documents contained
a wealth of material about Mr. Edwards’ business dealings. We found
investments in other countries.
I am confident you can understand why I must be rather vague about the
uncovered in these documents.
We obtained a flow chart which I will provide for the company to post in
document section of the
company web site which came from these documents showing some projects
investments of Mr. Edwards.
I have dedacted certain names of companies and individuals for obvious
are still in the process
of investigating the matters learned of in the documents obtained from
John Edwards’ lawyers.
Based on information obtained
in these privilege logs your company chose to secure counsel in the UK.
hired a top firm to assist
us in our investigations in the UK. Company management spent a great
deal of time searching
out the right law firm and
gathering the requested information to obtain their services. Mr.
Edwards has been
incarcerated in London since
September of 2009 and has engaged counsel in the UK as well.
Our collection work continues
in foreign jurisdictions as it is clear Mr. Edwards made large investments
money outside of the U.S..
We have recently located
properties in Nevada, Florida and California which we have proven belongs
Edwards. Post judgment
collection activities have begun including hiring local counsel in the
locales where the
properties are located.
The company will customarily file a Lis Pendens in the respective locale
of the property and
then proceed with litigation
to have the property legally seized subject to our judgment. Such activities
are in progress
at this time. Again, for
obvious reasons, I am choosing not to specifically identify the properties
until we have the
appropriate legal proceedings
in process to protect your company’s interests.
Once again I was notified
by one of shareholders that Can Cal Resources Ltd. had made an SEC filing
indicating that it
had defaulted on a note
the company had with two John Edwards’ entities. The note was secured
by 120 acres of
land in San Bernadino County,
California and originated in 2000. All properties belonging to John Edwards,
of how the property is held
or when it was acquired is subject to the judgment obtained by your company.
has recently devoted resources
to testing the land to ascertain the land’s potential for mineral development.
officers presently running
Can Cal were not in control in 2000 when the note was made with John Edwards.
has asserted they are unable
to contact Mr. Edwards but are desirous of working out an amicable settlement
CMKM. Pursuant to
those discussions I began appropriate legal proceedings to consummate an
agreement with Can
Cal. I filed a garnishment
proceeding in a local Texas District Court on July 20, 2010 which would
have allowed the
company to receive a negotiated
amount of money and execute a full release of the note to Can Cal.
property and the debt are
not in Texas, this Texas garnishment proceeding would only be a viable
venue if the parties
reach an amicable settlement.
Discussions at one time were amicable and a settlement amount was agreed
hearing date was set in
a Tyler court to get Court approval of the agreement. Company management
hours in getting information
to Can Cal and in discussing the ways to resolve this matter amicably.
amount of money and legal
time was spent with Can Cal attorneys to substantiate the claim of the
company. Can Cal
for various reasons withdrew
from these negotiations and we are renewing our efforts to collect on this
Your company will in short
order dismiss the Garnishment action mentioned above. Our rights
to collect on this note
are not in jeopardy because
of this dismissal. We are now proceeding in Nevada and California to assert
rights to a turnover order
of the note. Plans are being made to seize the property upon failure
of Can Cal to pay the
note owing to Mr. Edwards.
After extensive meetings
a new plan is underway to aggressively pursue the many properties that
we have found and to
further our investigation
into the information we have obtained about the assets of John Edwards.
We have the right to
conduct post judgment discovery
in every state of the United States to aid us in enforcing our judgment.
procedures on how we conduct
this discovery vary somewhat from state to state. Your company is
in the process of
engaging counsel in the
various states to help us. Two firms have already been engaged.
This post judgment
discovery allows us to send
out sworn interrogatories to individuals and companies and to take sworn
people who may have information
which would lead us to assets which might be subject to our judgment.
five individuals in three
different states targeted for these depositions. These individuals
are people we know have had
business dealings with Mr.
Edwards and we believe they have information which will assist us as we
of our judgment.
Casavant/Glenn Suit – Discovery
is ongoing in the Casavant/Glenn suit. If this is the first update
you have read, you
might want to go to the
company web site (www.cmkmdiamondsinc.com) to see what transpired prior
to May of this
year in this case. Since
my last update, your company has received a second set of interrogatories
and we have
responded to those interrogatories.
Your company has sent its first request for production of documents to
attorneys. Glenn has
produced a number of documents pursuant to our request and has made various
some of the requests.
Your company has recently sent a Request for Admissions to Glenn which
includes over 100
for Admissions is a discovery tool designed to narrow the contested issues
in a law suit. Rules
allow the parties thirty
days to respond to most discovery including a Request for Admission.
A deposition of one board
member was taken this year with our Las Vegas counsel representing the
company and the
board member. We participated
in the deposition of Neil Levine, the CPA that withdrew
from representing the
company on the day of the
administrative hearing in 2005. This deposition took place in Mr.
Levine’s attorney’s office
in New York City on October
20, 2010. The deposition was an all day deposition. We participated
in the deposition
of Don Stoecklein in his
office in San Diego on October 28, 2010. This deposition was an all
day deposition. We
participated in the deposition
of Mark Faulk in a law office in Oklahoma City on September 16, 2010.
This was an all
day deposition. An
enormous amount of work goes into preparation for these depositions.
Mr. West was previously
deposed as company representative
by Mr. Glenn’s attorney. His deposition as a fact witness will be
Your company has hired an
expert to testify on behalf of the company. Our expert will give
his opinion on certain
matters at issue in this
litigation. Your expert will be given information pertaining to the
legal work done by Mr. Glenn
and his firm. He will
then give his opinion regarding the work. Experts are commonly used
in cases of this sort. The
courts allow expert testimony
when a matter is being litigated that might be above the common understanding
of a lay
person. It would be helpful
to a lay juror to have information from an expert in some of the issues
being tried in this
lawsuit. Mr. Glenn
has already announced the name of their expert witness. We expect
to offer our witness up for a
deposition and we expect
to depose their expert. I will also be deposing Mr. Glenn but we
have not yet scheduled
that deposition as of this
A scheduling order has been
put in place by the trial court. This case will be called for
trial on August 1, 2011. I
expect this case to be tried
sometime during the month of August.
A protective order has been
agreed to by the parties and signed by the Judge which cloaks many discovery
with confidentiality by
agreement. I think this scheduling order is a matter of public record.
If it is, I will allow
company management to post
it in the document section of the company web site.
Declaratory Judgment Suit
in Tyler--Service issues are being resolved due to Mr. Edwards being incarcerated
London. Once service
has been obtained, this matter will proceed.
Al Hodges’ Bivens Suit –
I will only make a brief comment on the Al Hodges litigation. The
company has made its
position very clear on several
occasions. I reiterated the company’s position in my update this
past May. Please
reread my comments if there
is any misunderstanding of my position and that of the company. There
is an open line of
communication between Mr.
Hodges’ office, your company and my office. If any help or assistance is
needed by Mr.
Hodges from me or the company,
Mr. Hodges knows we stand ready to do whatever is needed. Having
said that, a
lengthy in-depth investigation
by myself and your company has been ongoing into related matters since
March of 2007.
Your company management
has met with Mr. Hodges. We have received the same information most
of you have
received about this matter.
The company’s position has not changed. Mr. Hodges has been relentless
in his pursuit of
the monies identified in
his lawsuit. He is firm in his belief that he will eventually be
able to obtain the funds he believes
are being held in trust
for the shareholders.
Communication to Shareholders
– I feel compelled once again to ask you to use your common sense and be
with the officers and directors
of your company as this litigation proceeds. The law is clear that
when I discuss
company plans which involve
litigation with the officers and directors, those discussions are privileged
your officers and directors communicate with third parties, whether in
my presence or not, that
communication is no longer
privileged. Discovery requests have been filed with us seeking communications
all parties involved and
shareholders. I do not allow the officers and directors to go online
or engage in conversations
with shareholders about
the details of the company business. The cases we are litigating
are very important to this
Thanks and Best Wishes For
2011 – I want to thank the many shareholders who have tirelessly contributed
and efforts to the cause
of this company. I am very much aware that this update will not excite
the masses out there
who are in daily anticipation
of the funds being sought by Mr. Hodges. Should his efforts
come to fruition, I will be as
happy as any shareholder
alive. But I am proud of the legal work that has been done
for this company. We will
continue to exert our time,
money and efforts until these matters are all resolved and this company
is back to trading. I
have confidence that our
hard work and efforts will be rewarded in the end. Have a safe and
Happy New Year.
September 17, 2010
CMKM Diamonds, Inc. is very
happy to announce the completionof the form 1120 Internal Revenue
Income Tax Returns for years
2002, 2003,2004,2005,2006,2007,2008,and 2009.
Using the subpoena power
granted by the District Court of Clark County Nevada, we have been able
all of CMKM bank records
from various banks accounts known to us that the prior management used
in years 2002
-2005. After intensive work
by the Company’s accounting firm, 4 years of financials have been prepared
based on the
information we could gather.
Current Management had already filed years 2006-2008 on time. However,
completing the previous
years, the new financial data obligated the Company to restate years 2006,
2007 and 2008.
Each of these IRS filings
have been filed in addition to the most current year filing for 2009.
One of our main goals has
always been to establish a foundation that would one day support the Company’s
return to trading status.
Filing these returns has moved the Company one step closer to that goal.
The Company is happy to now
make available to shareholders the financial statements of the combined
2009 Balance Sheet and the
combined 2002 – 2009 P&L Statement. (Click HEREto be directed to those
Please understand that these
statements contain the combined numbers from all of the financial data
available for the
full eight years. We have
made notations on several of the entries to make them more understandable.
Many of the
minor settlements that are
shown were made under non-disclosure agreements between the
parties.CMKM is devoting
substantial time and resources in its ongoing attempt to collect on all
judgments obtained by the
Company through its litigation.
The United States Department
of Justice has brought a criminal indictment against John M. Edwards, Urban
Helen Bagley, Brian Dvorak,
Ginger Gutierrez and James Kinney alleging that they conspired to commit,
commit, securities fraud
involving the issuance and sale of CMKM stock. The United States Attorney
for the District
of Nevada has posted information
regarding this criminal case on its website at
Federal prosecutors will
periodically update this information to notify shareholders and victims
of significant events in
that case and the status
of those proceedings. Shareholders and victims of this alleged scheme are
invited to visit the
website for additional information