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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: WillP who wrote (2632)	3/18/2005 4:34:32 PM
From: kidl	Read Replies (2) \| Respond to of 16206

WillP re CMKM: I sure hope no one here got caught. SEC Suit Against CMKM Diamonds, Inc. Could Sink Company Investigative Reports March 17 2005 CMKM Diamonds, Inc. (Pink Sheets: CMKX) has reached a crossroads. On March 3, 2005, the Securities and Exchange Commission temporarily suspended trading of CMKM's securities for ten days, citing the lack of accurate and complete public information about the Company. At the time, CMKM shares were trading at close to zero. On March 16, 2005, as the temporary suspension was about to expire, the SEC filed an Administrative Proceeding seeking an order suspending or terminating the registration of CMKM’s securities. If granted, the Order could leave CMKM shareholders holding over 700 billion virtually worthless, untradeable shares of common stock. The problem stems from CMKM’s persistent failure to file public information, including audited financial statements. As the SEC points out, CMKM is required to file public reports because its common shares are registered under of the Securities Exchange Act of 1934. That registration was voluntary – but once the Company committed to filing, it was required to continue. Despite this obligation, CMKM has failed to file a Form 10-K Annual Report since May 9, 2002 or a Form 10-Q Quarterly Report since November 18, 2002. CMKM attempted to justify its failure to file by filing a Form 15, on July 23, 2003, claiming that it had only 300 stockholders of record, and therefore was entitled to terminate its reporting obligations. That proved to be untrue. On February 17, 2005, CMKM amended the Form 15, admitting that it actually had 698 stockholders of record at the time of the earlier filing. In the interim, CMKM’s shareholders and prospective investors had been left in the dark. Now the SEC is going to hold a public hearing to verify these facts and, while CMKM will be given an opportunity to defend its conduct, the Commission is seeking to suspend trading of the Company’s securities for at least twelve months, or to terminate it entirely. An initial decision is expected within 120 days. If registration is terminated or suspended, CMKM shareholders will be left holding the bag – or more literally, bags full of shares. The SEC has established a “hotline” for CMKM shareholders, who may be adversely affected if the SEC gets the relief it is seeking. The SEC’s CMKM Diamonds Investor Line can be reached at (323) 965-4519 or by email at cmkmdiamonds@sec.gov. Public shareholders, who may now be the unfortunate victims of CMKM’s failure to comply with the federal securities laws, have 700 billion reasons to dial that phone number. IF YOU HAVE QUESTIONS OR COMMENTS FOR STOCKPATROL.COM, CONTACT US AT editor@stockpatrol.com All content © 2004 StockPatrol.com. All rights reserved.