Post by raidermike99 on Jun 29, 2007 10:24:49 GMT -5
www.cmkmdiamondsinc.com/ceoupdates.php
To all CMKM shareholders:
6-29-07
CMKM attorney Bill Frizzell is going to provide you with today’s update as provided below. We would like to wish everyone a safe and happy 4th of July holiday.
Sincerely,
Kevin West
CEO & Chairman
To CMKM shareholders,
I have advised Kevin not to answer specific questions regarding litigation matters. It is not legally appropriate for a CEO to discuss company business that is in litigation with shareholders or other third parties. For this reason, I have agreed to update you in a general fashion on certain matters.
A Wells Notice was issued to the company in February of 2007. The attorney representing the company at that time failed to timely respond to the notice. The allegations in the Wells Notice involve matters that occurred while Mr. West was not involved with company management. A full and complete response by the company requires information which we are seeking at this time through the Courts. I have discussed this matter with the SEC and I am confident the company can make a full and complete response in cooperation with the SEC.
We have obtained financial records of the company from several banks and brokerage houses beginning in 2002 and continuing to the present. It is taking an extraordinary amount of time because of the sheer volume of records that were generated over the years. These records are necessary for the preparation of audited financials. When Kevin assumed his position of CEO, he was told by various lawyers and former insiders there have never been any official books of the company. There has never been a corporate tax return filed. There is not a set of books from 2002 through the present date. We will eventually obtain all the records necessary to have an audited set of books. I can give you no specific date when this process will conclude. The work is ongoing daily. This is the first and most important step to a return to trading by the company. The rumors of payouts and huge trust funds are not supported by the records being examined by Kevin, the accountants and the attorneys.
David Desormeau has been served and he has filed an answer. We are awaiting service on John Edwards. Once Mr. Edwards is served, discovery will begin in that litigation. Urban Casavant has not been served but efforts are ongoing to have him served. Our investigation is continuing to support additional claims against new parties for personal loans and disbursements which were made from company funds to individuals and other third parties. We find records of millions of dollars which were loaned or gifted out to other parties but never returned to the company. We expect to be adding additional parties to our litigation in the next few weeks.
There have been many inquiries about our ongoing naked short investigation. We are providing Susanne Trimbath with certain information that she has requested. Although the company is continuing its investigation into the problem of identifying its bonafide shareholders, the litigation is taking priority and consuming most of our time at this point.
The Entourage and interpleader situation is undergoing extensive review and discussion. Mr. West has not yet received any files from previous Company attorneys regarding work that was done on the interpleader. Mr. Stoecklein has continued to hold the Entourage certificate in his possession. Please follow the company website for developments.
Management will provide quarterly updates to its shareholders with the next scheduled update to occur on September 30, 2007. Any significant event or occurrence will be reported through interim updates on an as needed basis.
Bill Frizzell
Attorney for CMKM Diamonds, Inc.
