Overview

I created this blog to consolidate my work for the purposes of:

1. exposing the Securities and Exchange Commission (SEC), a longtime poster child for the rampant corruption pervading the US Government, and its malfeasant employees — Merrily W. Katz (malfeasant Katz), SEC Investor Assistance Specialist; John M. McCoy (McCoy), Molly M. White (White), and Leslie Hakala (Hakala), SEC Enforcement Division Attorneys, (hereinafter “McCoy,” “White,” and “Hakala” will be collectively referred to as “malfeasant SEC Attorneys”)  —  for engaging in political cronyism and crony capitalism and for covering up for their indisputable gross negligence and seeming criminal complicity (hereinafter “political cronyism,” “crony capitalism,” and “covering up,” will be collectively referred to as “business as usual”) pertaining to CMKM Diamonds Inc. (CMKM).

Business as usual of the SEC and its malfeasant employees caused them to:

a. create an environment which allowed the original CMKM management to perpetrate its pump and dump fraud with impunity, which in turn caused said fraud to continue and perpetuate; therefore the SEC and its malfeasant SEC Attorneys contributed to the losses suffered by CMKM victims;

b. create an environment which allowed the naked short sellers to illegally naked short CMKM’s stock with impunity, which in turn contributed to the plummeting of the price of CMKM’s stock; therefore the SEC and its malfeasant SEC Attorneys contributed to the losses suffered by CMKM victims;

c. create an environment which allows A. Clifton Hodges, Esq., Hodges and Associates (Hodges), CMKM insiders, and select CMKM shareholders (fraudsters) to perpetrate their ongoing frauds with impunity, which in turn causes said ongoing frauds to continue and perpetuate and Bivens Action, Civil Action No. 1000031, David Anderson, Lt. Col, et al, vs. Christopher Cox, et al, Complaint for Declaratory Judgment and for Damages for Violation of Civil Rights, United States District Court, Central District of California, (Bivens Action) to continue needlessly at the expense of taxpayers as evidenced by Hodges’s taking the Bivens Action all the way to the Supreme Court of the United States (Supreme Court).

On 5-13-13, the Supreme Court  put out Order List: 569 U.S. in which it granted one Petition for Certiorari — 12-7892, Burnside, William D.V. Walters, T., et al — and denied 271 Petitions for Certiorari, which included: 12-1138, Anderson, David, et al V. Cox, Christopher, et al (Bivens Action). Therefore, the SEC and its malfeasant SEC Attorneys contributed/are contributing to the losses suffered/being suffered by CMKM victims.

The SEC and its malfeasant SEC Attorneys seemingly want the attention of CMKM shareholders on the Bivens Action, which is the fulcrum of the ongoing frauds, and not on pending Superseding Indictment, 2-09-CR-00132-RLH-RJJ, filed 5-27-09, United States of America vs. John M. Edwards et al, , United States District Court, District of Nevada, and pending Second Superseding Indictment, filed 3-24-10, (Superseding Indictments),  because the pending Superseding Indictments are rife with contradictions, inconsistencies, and discrepancies, which ultimately render them incomplete, inaccurate, and  inadequate, all of which are caused by the business as usual of the SEC and its malfeasant SEC Attorneys.

Thus, the SEC and its malfeasant SEC Attorneys seemingly view the Bivens Action as subterfuge and therefore knowingly and willingly allow the  fraudsters to perpetrate their ongoing frauds by either implicit or explicit agreement.

d. stonewall my Whistleblower Complaint, Case Number HO102219 (Whistleblower Complaint), that I filed with the SEC on 12-20-10, in which I prove without a shadow of a doubt that the fraudsters are perpetrating ongoing frauds against existing CMKM shareholders and unsuspecting investors; therefore the SEC and the malfeasant Katz contributed/are contributing to the losses suffered/being suffered by CMKM victims;

e. allow the original CMKM management and Kevin West (West) — COB/CEO/President of CMKM from 3-30-07 to 2-26-11 — Mark Faulk (Faulk) — CEO/President of CMKM from 9-11-08  to 9-09 — and Bill Frizzell (Frizzell) — attorney for CMKM from 3-30-07 to the present (hereinafter, whenever applicable, “West,” “Faulk,” and “Frizzell” will be collectively referred to as the “previous CMKM management;” Note: Faulk is only included in the previous CMKM management from 2005 until September, 2009) — and “Steve Kirkpatrick — ” COB/CEO/President of CMKM from 11-18-11 to the present ((hereinafter, whenever applicable, “Steve Kirkpatrick,” and  “Frizzell” will be collectively referred to as the “current CMKM management“) —  to illegally operate CMKM without calling an annual shareholder meeting, thereby allowing them to breach CMKM’s bylaws;

allow the original CMKM management and the previous CMKM management to violate NRS 78.310-78.330 and NRS 78.650;

allow the previous CMKM management and the current CMKM management to violate Texas Business Corporation Act, Article 2.24(B);

allow the original CMKM management, the previous CMKM management, and the current CMKM management to operate CMKM while being guilty of mismanagement;

Hereinafter “breaches,” “violations,” and “mismanagement” will be collectively referred to as “indisputable malfeasance.

The SEC and its malfeasant SEC Attorneys seemingly entered into an implicit or explicit agreement with the “previous CMKM management“), in which they agreed to overlook the indisputable malfeasance of both the previous CMKM management and  subsequent illegally-appointed CMKM management, including “Steve Kirkpatrick,” and refrain from filing a complaint against them. In return, the previous CMKM management agreed to refrain from exposing the business as usual of the SEC and its malfeasant SEC Attorneys;  therefore the SEC and its malfeasant SEC Attorneys contributed/are contributing to the losses suffered/being suffered by CMKM victims.

On 10-26-12, “Steve Kirkpatrick” posted the Amended and Restated Bylaws of CMKM Diamonds, Inc., (Bylaws) which went into effect on 8-1-12, on the CMKM website.

Article II Section(a) of the Bylaws provides “This Company [CMKM] was converted to a Texas corporation from a Nevada corporation on April 30, 2007 after being turned over to new management [previous CMKM management] with only a few hundred dollars in the bank account and no tangible assets. For this reason, the Company [CMKM] has not been able to hold any shareholder meetings since that time [Article II Section(a) acknowledges the previous CMKM management is guilty of indisputable malfeasance] due to the prohibiting costs associated with mailing proxies to and receiving back world-wide and providing an adequate meeting facility with security without leaving broke and unable to sustain itself.”

The previous CMKM management was obviously too busy pursuing its expedient goals — filing complaints against the original CMKM management for the pump and dump fraud it perpetrated against CMKM investors, obtaining default judgments (potentially tens of millions of dollars), hopefully collecting on those default judgments, ultimately splitting Frizzell’s contingency fees if those default judgments are collectible (potentially tens of millions of dollars), hopefully receiving favorable verdicts in litigation that goes to trial, appointing its cronies as officers of CMKM, and unjustly paying its cronies undeserved salaries — than to bother about a trivial matter such as its indisputable malfeasance or to even bother about providing a feeble excuse, as was provided by Article II Section(a) of the Bylaws, for its indisputable malfeasance.

2.  providing an abundance of evidence to force a suspect governmental agency, the Securities and Exchange Commission Office of Inspector General (OIG), to follow the rule of law and properly investigate the following five complaints that I filed against its cronies — the SEC and its malfeasant employees — and hold them accountable for their business as usual.

On 9-1-11, I filed Complaint, Report #115612564, with the OIG against the SEC and the malfeasant Katz, for their stonewalling my Whistleblower Complaint, Case Number HO102219,

On 9-2-11, I filed Complaint, Report #115613986, with the OIG against SEC and its malfeasant SEC Attorneys for their failure to comply with the demands listed in my 8-18-11 Petition Letter on change.org.

On 1-5-12, I filed Complaint, Report #116066995, with the OIG against the SEC and its malfeasant SEC Attorneys for their seemingly colluding with the then CMKM management.

On 4-14-12, I filed Complaint, Report #116467345, with the OIG against the SEC and Molly M. White, its malfeasant SEC Attorney, for their failure to act on the red flags revealed in CMKM’s Transaction Summaries.

On 11-4-12, I filed Complaint, Report #IWF_9A869A6678, with the OIG against the SEC and its malfeasant SEC Attorneys for their failing to provide the DOJ and the Grand Jury in the Superseding Indictments with the indisputable evidence that proves that CMKM was victimized by illegal naked short selling.

3. exposing the indisputable gross negligence and seeming criminal complicity of the previous CMKM management for failing to hold the SEC accountable for its business as usual for both the pump and dump fraud of the original CMKM management and the illegal naked short selling of CMKM’s stock.

4. exposing the indisputable gross negligence and seeming criminal complicity of West and Frizzell and the indisputable gross negligence of “Steve Kirkpatrick” for failing to investigate the unsubstantiated allegations of Hodges in the Bivens Action.

5. expediting the criminal investigations that the Federal Bureau of Investigation, Las Vegas Office (FBILV), and the United States Department of Justice, District of Nevada (DOJDN) are most certainly conducting pertaining to the ongoing frauds that I expose in my Whistleblower Complaint.

6. convincing a well-known investigative journalist to utilize the facts contained in my blog as the basis for his/her writing an exposé for a prominent magazine, which would give CMKM the national exposure it deserves.

7. convincing a prominent law firm to utilize the evidence contained in my blog as the basis for its filing a lawsuit on behalf of worthy CMKM shareholders against the SEC and its malfeasant employees for their business as usualand against all other malfeasant entities. And a federal judge ruled in the case of Allen Stanford that investors could proceed with a lawsuit that alleges the SEC was negligent in its handling of the Ponzi fraud.

8. convincing a prominent law firm to represent me pertaining to my Whistleblower Complaint that I filed with the SEC on 12-20-10 against Hodges. In my Whistleblower Complaint, I prove without a shadow of a doubt that Hodges and the other fraudsters are perpetrating ongoing frauds against existing CMKM shareholders and unsuspecting investors.

I will eventually post all of my following work and hyperlink the appropriate posts and source documents to my other posts to build a solid foundation and paint a panoramic picture of the CMKM saga. My following work includes, but is not limited to:

1. Thirteen articles I wrote, the first three of which were published on OpEdNews:

a. The Securities and Exchange Commission Learned Nothing from Madoff — Check Out CMKM Diamonds, Inc., for Proof;
b. Can the Securities and Exchange Commission Office of the Inspector General Be Trusted to Perform its Mandated Duties and Hold the Securities and Exchange Commission Accountable?;
c. The Securities and Exchange Commission Seemingly Colluded with the Management of CMKM Diamonds, Inc.;
d. What Happens When the Suspect OIG Is Provided with an Abundance of Evidence? It Is Forced to Follow the Rule of Law;
e. Welcome to CMKM Diamonds, Inc.: A Disturbing Tale of Flip-Flops, Expediency, Illegal Agreements, and Ongoing Frauds;
f. Welcome to Bill Frizzell’s World: A World of Avarice, Illegal Agreements, Breaches, Duplicity, and Cover-Ups;
g. The Truth Behind the Ongoing Frauds Has Reached Critical Mass and Is Finally Accepted as Being Self-Evident;
h. Why Have the FBI and the DOJ Failed to Indict A. Clifton Hodges More Than Three Years after I Filed Whistleblower Complaint, Case Number HO102219?;
I. Kevin West and Bill Frizzell Add to Their Already Sordid Histories with Their Decision to Appoint “Steve Kirkpatrick,” a Person with His Own Sordid History, as COB/CEO/President of CMKM Diamonds, Inc.;
j. Formula for Comprehending the Labyrinth Which is CMKM Diamonds Inc./Will Thomas Gates Follow the Formula? Or Will the Gates Action Turn into Another Fiasco?;
k. Categorizing Shareholders of CMKM Diamonds, Inc., According to Their Past and Current Positions Pertaining to the Alleged CMKM Trust Funds;
l. The Gates Action Is Turning Out to Be Another Fiasco and Could Even Turn Out to Be a Farce;
m. Faction Consisting of Credible Shareholders of CMKM Diamonds, Inc., Who Take Action for Truth, Justice, and a Return on Investment/Four Generations of Fraudsters.

2. Five complaints I filed with the OIG against the SEC:

a. Complaint, Report #115612564 –Filed on 9-1-11 ;
b. Complaint, Report #115613986 — Filed on 9-2-11;
c. Complaint, Report #116066995 — Filed on 1-5-12;
d. Complaint, Report #116467345 — Filed on 4-14-12;
e. Complaint, Report #IWF_9A869A6678 — Filed on 11-4-12.

3. Complaint I filed with the Council of the Inspectors General on Integrity and Efficiency (CIGIE) against the OIG — Emailed 5-20-13;

4. Complaint I Filed with the Federal Bureau of Investigation against “Steve Kirkpatrick,” Kevin West, and Bill Frizzell for Collusion and Other Violations — Filed 7-11-13.

5. Complaint I Filed with the Federal Bureau of Investigation against A. Clifton Hodges for Perpetrating Ongoing Frauds against Unsuspecting Investors and Existing CMKM Shareholders — Filed 7-13-13

6.Complaint I Filed with the Federal Bureau of Investigation against Kevin West, Bill Frizzell, and “Steve Kirkpatrick”  for their Aiding and Abetting the Ongoing Frauds — Filed 8-7-13.

7. Fifteen copies of source documents:

a. Securities and Exchange Commission Office of the Inspector General, Complaint, Report #115612564 — Filed on 9-1-11;
b. Securities and Exchange Commission Office of the Inspector General, Complaint, Report #115613986 — Filed on 9-2-11;
c. Securities and Exchange Commission Office of the Inspector General, Complaint, Report #116066995 — Filed on 1-5-12;
d. Securities and Exchange Commission Office of the Inspector General, Complaint, Report #116467345 — Filed on 4-14-12;
e. Securities and Exchange Commission Office of the Inspector General, Complaint, Report #IWF_9A869A6678 — Filed on 11-4-12;
f.  Sworn Testimony of Robert Maheu at the 5-10-05 Securities and Exchange Commission Administrative Hearing for CMKM Diamonds, Inc.;
g. Resignation Letter — Stan Polsom Resigns from the Board of Directors of CMKM Diamonds, Inc.;
h. Owners Group Agreement — Phase I;
i.  Owners Group Agreement — Phase II;
j.  Bill Frizzell’s 9-6-05 Shareholder Derivative Rights Letter to Donald Stoecklein;
k. 5-26-03 SEC Fax to 1st Global StockTransfer;
l.  FOIA Requests for the Securities and Exchange Commission Depositions of Donald Stoecklein, Bill Frizzell, and Robert Maheu;
m. Securities and Exchange Commission Denies FOIA Requests for the Depositions of Donald Stoecklein, Bill Frizzell, and Robert Maheu;
n. FOIA Administrative Appeal #1 — Securities and Exchange Commission;
o. FOIA Administrative Appeal #2 — Securities and Exchange Commission;

8. My Whistleblower Complaint, Case Number HO102219, that I filed with the SEC against Hodges on 12-20-10, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted 7-21-10, which establishes a Whistleblower Program that requires the SEC to pay awards to whistleblowers who voluntarily provide the SEC with original information that leads to successful SEC enforcement actions and certain related actions.

Furthermore, I will hyperlink the following six petitions letters I started on change.org to the appropriate posts:

1. Securities and Exchange Commission — Correct Your Past Mistakes and Implement Efficient New Systems — Started on 8-18-11;
2. Office of the Inspector General — Don’t Sell Out CMKM Diamonds, Inc., Shareholders — Started on 10-30-11;
3. Steve Kirkpatrick: Honor Your Promise to Obtain the Transaction Summary for CMKM Diamonds, Inc. — Started on 4-25-12;
4. Bill Frizzell and John Martin: Stop Concealing the Proof That CMKM Diamonds, Inc., Was Victimized by Naked Short Selling — Started on 7-30-12;
5. US Department of Justice: Provide Justice for the Shareholders of CMKM Diamonds, Inc. — Started on 11-2-12;
6. US Department of Justice: Either Indict A. Clifton Hodges for Fraud, or Change Your Official Statement According — Started on 2-13-13 .

Because my Whistleblower Complaint that I filed with the SEC against Hodges will be the magnum opus of my blog, I want all of my hyperlinks active when I post it.

After I post my Whistleblower Complaint, I might start a petition letter on change.org in which I respectfully request that the DOJ either indicts Hodges for fabricating his allegations in his Bivens Action for the purpose of perpetrating ongoing frauds, or changes its official statement to reflect that a sting operation actually occurred and a settlement fund actually exists.

I prove without a shadow of a doubt in my Whistleblower Complaint that Hodges makes allegations in his Bivens Action pertaining to a sting operation and a settlement fund that are not only unsubstantiated, they actually contradict sworn testimony.

Although the DOJDN corroborates the truth I uncovered in my Whistleblower Complaint by claiming in its official statement that it has “not encountered any evidence indicating that a government agency conducted a sting operation against naked short sellers of CMKM stock,” and that it has “also not come across any evidence of any settlement fund (much less any settlement fund with trillions of dollars) potentially available to pay possible claims of CMKM shareholders,” it allows the Bivens Action to continue needlessly at the expense of taxpayers as evidenced by the Appeal Brief that Hodges filed for the United States Court of Appeals for the Ninth Circuit (Court). The oral arguments were scheduled for 12-4-12, 9:00 am, Courtroom 2, for the Court, but on 11-21-12, the Court decided that the appeal was to be submitted without oral argument on 12-4-12. On 12-19-12, the Appeals Court put out a Memorandum in which it denied the Appeal Brief and affirmed the decision of the District Court to dismiss the Bivens Action.

Hodges subsequently appealed the decision of the Appeals Court to the Supreme Court of the United States (Supreme Court).

On 5-13-13, the Supreme Court  put out Order List: 569 U.S. in which it granted one Petition for Certiorari — 12-7892, Burnside, William D.V. Walters, T., et al — and denied 271 Petitions for Certiorari, which included: 12-1138, Anderson, David, et al V. Cox, Christopher, et al (Bivens Action).

The DOJDN can rectify that injustice by first inserting a fraud alert in its official statement and then by ultimately indicting Hodges for fabricating his allegations in his Bivens Action for the purpose of perpetrating ongoing frauds. If the DOJDN fails to take those necessary actions, it is in fact allowing the fraudsters to defraud unsuspecting investors — e.g., the unsuspecting investor the fraudsters defrauded in tripper’s 1-14-11 post — with impunity.

In essence, the current position of the DOJDN of dismissing the unsubstantiated allegations of Hodges in his Bivens Action pertaining to a sting operation and a settlement fund, but failing to include even a fraud alert in its official statement and then failing to ultimately indict Hodges for fabricating those same allegations for the purpose of perpetrating ongoing frauds, is a mockery of justice.

If the DOJDN fails to indict the fraudsters for perpetrating ongoing frauds, the only other alternative is for the DOJDN to admit that Hodges did not fabricate his allegations in his Bivens Action pertaining to a sting operation and a settlement fund. Then the DOJDN must change its official statement to reflect that a sting operation actually occurred and a settlement fund actually exists.

In essence, an indisputably grossly negligent legal system has allowed the Bivens Action to sully the hallowed courtrooms of the District Court, the Appeals Court, and the Supreme Court. Therefore, the fact that piece of tripe made it all the way to the Supreme Court is not a testament to the validity of that piece of tripe; on the contrary, it is an indictment against a legal system that would even allow that to happen.

Therefore, the legal system must investigate the causes of this travesty and make the necessary changes to prevent it from ever occurring again.

The scuttlebutt among the literary cognoscenti is that when I accomplish the purposes I present supra, I will be the favorite to win the Pulitzer Prize for investigative journalism.

And it couldn’t happen to a nicer, more deserving guy.

Responses

  1. Great site….. wink

    • Thank you.

      Keep checking back for the new articles I will be posting.

  2. nice

  3. Cmkm truth are you still on this


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