Not sure how accurate this information is:

The SEC's complaint, filed in U.S. District Court for the District of Nevada, alleges that, from January 2003 to May 2005, CMKM shares were improperly issued and these issuances were based in large part upon both written authorizations and attorney opinion letters prepared by Brian Dvorak, CMKM's lawyer, which were often facially inadequate, suspect, and inconsistent.

These faulty documents through CMKM's transfer agent, 1st Global Stock Transfer LLC, and its owner, Helen Bagley, were issued by the stack without restrictive legends. Edwards, his nominees, Kathleen Tomasso and Anthony Tomasso, and Casavant's nominees, James Kinney and Ginger Gutierrez, then allegedly deposited the certificates with various broker-dealers and sold the shares into the market. NevWest Securities Corporation and its employees, Anthony Santos, Sergei Rumyantsev, and Daryl Anderson, are alleged to have sold more than 259 billion shares of CMKM stock for Edwards, despite numerous red flags indicating a massive unregistered distribution.
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Special 2 hour Faulking Truth show with Mark Faulk on TogiNet Radio www.toginet.com Friday April 11th at 10:00 am EDT
Diamond in the rough

Ex-mine CEO allegedly sold billions of shares to investors in Canada, U.S.
Chris Purdy, TheStarPhoenix.com
Published: Wednesday, April 09, 2008
SASKATOON - American securities officials have charged a Prince Albert man who headed a diamond mining company that allegedly scammed millions of dollars from investors around the world.

Urban Casavant, the 51-year-old former CEO of CMKM Diamonds Inc., was among 11 people charged earlier this week with fraud and other offences by the United States Securities and Exchange Commission (SEC).

The agency claims the group conspired to illegally sell unregistered stock - 622 billion shares -and lined their pockets with at least $64 million from 40,000 investors between 2003 and 2005.


Urban Casavant, the 51-year-old former CEO of CMKM Diamonds Inc., was among 11 people charged earlier this week with fraud and other offences by the United States Securities and Exchange Commission (SEC).
Mark Faulk, an author from Oklahoma City, Okla. who has researched the case for two years for an upcoming book, believes the numbers are actually much higher.
He said Wednesday thousands of people across the U.S., Canada, Europe and Asia were actually swindled out of $250 million.

"This may be the largest fraud of its kind ever in the stock market," said Faulk.

Casavant is alleged to have personally pocketed at least $31.5 million while running the scheme out his home in Las Vegas.

Faulk said Casavant blew most of the money on his extravagant lifestyle, which included lavish homes and nights out drinking and gambling.

Casavant was a known "high-roller," who would often gamble more than $100,000 a night at various casinos, said Faulk.

Casavant grew up in Prince Albert and worked in the city as both a prison guard and U-Haul franchise owner - before he moved on to bigger ambitions with mining and stock markets.

According to SEC court documents filed in Nevada, Casavant controlled several private Canadian companies that later entered into a reverse merger with a public shell owned by John Edwards, a British man living in Las Vegas, and the alleged mastermind in the ensuing scheme.

CMKM was created in 2002 and claimed to have mineral rights for nearly two million acres covering northern Saskatchewan in the Forte a la Corne region, east of Prince Albert.

The SEC alleges the company issued the billions of shares of unrestricted stock with suspect and inconsistent attorney opinion letters.

At times, the shares were considered a bargain on the penny stock market.

"Although CMKM's stock sold for well under a penny a share, the defendants were able to reap millions in profits by conspiring to flood the market with billions of unregistered shares while falsely promoting CMKM's value," Rosalind Tyson with the SEC's office in Los Angeles, Calif. said in a press release.

The court documents allege the company had no meaningful mining operations or records. CMKM solely focused on issuing and promoting stock.

It's marketing machine allegedly included phony and misleading news releases. One release in December 2002 said the company had opened an office in Belgium to promote the "Casavant diamond brand."

The company, however, had not yet found a single diamond.

Another press release in early 2004 announced a discovery of kimberlite ore, in which diamonds are usually found. The site was named "the Carolyn Pipe," after Casavant's wife.

Casavant also hyped the company on the Internet and in one webcast interview said CMKM was ahead of schedule and "drilling 24-7 up in Canada."

His most effective promotion tool was the creation of a CMKXtreme team of motorbike and car racers that travelled to events across the U.S.

Hundreds of shareholders who attended the races visited a CMKM tent, where they where they could study a map of alleged mineral claims and watch a looped video of mining work.

One shareholder from Chicago, who brought his 11-year-old daughter to a race in 2004, said he was happy to shake hands with Casavant in the company's tent.

"(Casavant) said, 'We're driving truckloads of diamonds out of there.' And then he looked down at my daughter and said, 'Your daddy is going to be so rich.' "

The shareholder, who did not want to give his name, said he sunk about $7,500 into the scheme and convinced his brother to invest thousands as well.

He said the racing team was perfect for targeting novice investors in "middle-class America." According to the SEC, the company's racing team was extremely popular and did help increase stock transactions.

In the fall of 2004, over questions of accurate public information on the company, both the SEC and the Saskatchewan Financial Services Commission (SFSC) issued temporary cease-trade orders against CMKM.

The truth of much of the company's activities became public a year later, during an evidentiary hearing, and the SEC issued a final order de-registering the company's stock.

In March of 2007, Casavant resigned from CMKM. It's believed he returned to Canada.

Molly White, an SEC lawyer involved with the case, said Casavant has not yet been served with court documents. She could not confirm whether officials are having trouble finding him.

She explained the SEC charges are civil, not criminal. And if found guilty, Casavant and those co-accused in the case will not face prison time.

The SEC is seeking fines and the return of what's left of the stolen investment money, said White.

As well, the SEC is seeking an order preventing Casavant from acting as an officer or director of any public company in the U.S.

Faulk said he has learned the Federal Bureau of Investigation, Internal Revenue Service and the U.S. Department of Justice are also investigating the case, so criminal charges could be laid in the U.S. in the future.

Ed Rodonets with the SFSC office in Regina, said his group exchanged information with the SEC to help with the investigation.

He estimates there are at least 100 affected shareholders in Saskatchewan.

Faulk said some of the shareholders he interviewed threw a few thousand dollars into the company on a whim. Others "lost every single penny they had."

The scam cost some people their homes and marriages, he said. Some died while waiting for their diamond windfall.

CMKM, now based in Texas with a new CEO, faces several lawsuits. It has also launched its own suits to recover property and assets purchased with stolen investment funds so it can rebuild the business.

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----------

An additional 18 diamonds were recovered from a 22 kilogram sample
which was combined from two samples to form composite sample V2. Four
of the 18 stones recovered (22%) are macrodiamonds with at least one
dimension measuring more than 0.5mm.

The Caroline kimberlite is located 1.8 kilometres northwest of the
Casavant Kimberlite Structure. These results are from the 2004
exploration program on the CMKM Green lake Project which was jointly
funded by Casavant Mining and Shane Resources ltd.
............
................
DIAMONDS RECOVERED
-----------------------------------------------------------------
Sample Weight Total +0.5 mm +1.0 mm
# (Kg) Diamonds 1 Axis 2 Axis 3 Axes 1 Axis 2 Axes
-----------------------------------------------------------------
V1 25.6 132 9 3 2 3 0
-----------------------------------------------------------------
V2 24.0 53 4 2 0 3 0
-----------------------------------------------------------------
Total 49.6 185 13 5 2 6 00
-----------------------------------------------------------------
......

The largest stones from the two Caroline samples have the following
dimensions.


-------------------------------------
Largest stones (mm)
----------------------
Sample X Y Z
-------------------------------------
V1 1.35 0.82 1.56
-------------------------------------
V1 1.86 0.80 0.93
-------------------------------------
V1 0.77 0.60 1.44
-------------------------------------
V2 0.92 0.77 0.45
-------------------------------------
V2 0.82 0.68 0.30
-------------------------------------


Full Square Mesh Sieve diamond results for composite samples V1 and
V2 are presented below. These results demonstrate the presence of
larger stones and a favorable diamond size distribution at Vega from
modest sized samples. The diamond distribution indicates that the
Casavant portion of the Caroline Kimberlite Structure has economic
diamond potential which can be demonstrated by the collection of a
much larger sample.

------------------------------------------------------
Sieve Sizes
Kimberlite Sample +0.600 +0.425 +0.300 +0.212 +0.150 +0.100
Wt (Kg) mm mm mm mm mm mm TOTAL
----------------------------------------------------------------------
-
V1 25.6 1 2 6 16 23 30 78
----------------------------------------------------------------------
-
V2 24.0 0 1 2 5 7 3 18
----------------------------------------------------------------------
-
Total 49.6 1 3 8 21 30 33 96
----------------------------------------------------------------------
-


The results from Caroline show consistent high diamond counts and
very high macro/micro ratios along the Casavant Structure and reveal
that the collection of a larger sample has resulted in an increased
stone count when compared with the diamond results for Casavant in
which 22* diamonds were returned from a 22 kilogram sample in drill
hole BI-02-04. *(Original reporting stated 20 stones in 22 kilograms;
subsequent re-picking of the sample resulted in the recovery of 2
additional stones.)

The Casavant kimberlite is represented by a one kilometre long, 50-
125 metre wide linear magnetic low which connects with Victor
kimberlite on its eastern end and forms part of the 2.7 kilometre
long diamondiferous southeast portion of the Caroline Kimberlite
Structure.

Drill hole BI-03-08 was drilled to a depth of 140.21 metres at -70,
oblique at 30 to the azimuth of the kimberlite structure to obtain a
larger volume of sample. d**e V1, which measures 27.18 metres (true
thickness) was intersected 11 metres north of d**e V2 (1.65 metres
true width). Both d**es are described as olivine macrocrystic
hypabyssal kimberlite d**es containing mantle derived indicator
minerals. A 5.29 metre (true width) kimberlite breccia in contact
with the southern margin of d**e V1 was also encountered. This unit
was not sampled due to high dilution of country rock and the
irregular, random orientation of the kimberlite intervals throughout
the section.

Eight other kimberlite d**es (six located up section of V1/V2 and 2
situated between the two main d**es) ranging in true widths from 0.01
to 0.45 metres were also cored in drill hole BI-03-08. Composite and
individual samples were collected from these d**es for comparative
purposes. One sample (1.96 kilograms) taken from an individual d**e
returned three diamonds that remained on the +0.212 mesh while
another stone, recovered from a 13.38 kilogram sample, remained on
the +0.100 mesh.

The color and clarity of the diamonds recovered from the 2004
Caroline samples are summarized below for samples V1 and V2.

Vega 1
No. % % %
Color stones Transparent Translucent Opaque
---------------------------------------------------------
All Stones 78 78% 19% 3%
---------------------------------------------------------
White 63 91% 9% 0%
---------------------------------------------------------
Off White 7 71% 0% 29%
---------------------------------------------------------
Yellow 7 86% 14% 0%
---------------------------------------------------------
Brown 1 0% 2% 0%
---------------------------------------------------------





Vega 2
No. % % %
Color stones Transparent Translucent Opaque
---------------------------------------------------------
All Stones 18 85% 6% 0%
---------------------------------------------------------
White 17 100% 0% 0%
---------------------------------------------------------
Yellow 3 75% 25% 0%
---------------------------------------------------------
Off White 2 100% 0% 0%
---------------------------------------------------------
Pink 1 100% 0% 0%
---------------------------------------------------------


Kimberlite samples were split and logged in secure facilities at the
field camp by qualified geoscientists. Samples were securely sealed
in solid containers and shipped by air to Saskatchewan Research in
Saskatuwann. standard caustic fusion diamond recovery method was
utilized for all samples. Saskatchewan Research accredited by the
Standards Council of Canada to the ISO 17025 standard for specific
registered tests.
Logged