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The pa rticipation of the Securities and Exchange Commission (SEC) in political cronyism and crony capitalism and its practice of covering up for its indisputable gross negligence and seeming criminal complicity (hereinafter collectively referred to as "business as usual") creates an environment in which perpetrators are able to perpetrate their wrongdoings with impunity.
Pertaining to CMKM Diamonds, Inc. (CMKM), business as usual of the SEC and its SEC Enforcement Division Attorneys, John M. McCoy, Molly M. White, and Leslie Hakala (hereinafter collectively referred to as "malfeasant SEC Attorneys"), allows Kevin West, off-and-on COB/CEO/President of CMKM Diamonds, Inc., (CMKM) , Mark Faulk, former CEO/President of CMKM, all other subsequent illegally-appointed officers of CMKM, and illegally-hired Bill Frizzell , current attorney for CMKM (hereinafter collectively referred to as "CMKM management") to operate CMKM without calling an annual shareholder meeting. By failing to call an annual shareholder meeting, the CMKM management breaches CMKM's bylaws, violates Texas Business Corporation Act, Article 2.24(B), and therefore is liable for mismanagement (hereinafter collectively referred to as "wrongdoing").
Even if CMKM management's wrongdoing does not fall within the purview of the SEC and its malfeasant SEC Attorneys, they are still conducting business as usual for failing to refer CMKM management's wrongdoing to the appropriate governmental enforcement agencies.
What is even more disturbing is that the business as usual of the SEC and its malfeasant SEC Attorneys indicates they are colluding with the CMKM management by agreeing not to file a complaint against it for its wrongdoing.
Thus, the CMKM management is now able to illegally operate CMKM without calling an annual shareholder meeting, which includes, but is not limited to, pursuing the following expedient goals: filing complaints against the previous CMKM management for the pump and dump fraud it perpetrated against CMKM investors, appointing their cronies as officers of CMKM, obtaining default judgments (potentially tens of millions of dollars), hopefully collecting on those default judgments, and ultimately splitting Bill Frizzell's contingency fees if those default judgments are collectible (potentially tens of millions of dollars).
In return, the CMKM management agrees not to expose the business as usual of the SEC and its malfeasant SEC Attorneys pertaining to the illegal naked short selling of CMKM's stock and numerous other issues.
Read my articles on OpEdNews -- "The SEC Learned Nothing from Madoff -- Check Out CMKM Diamonds, Inc., for Proof" and "Can the Office of the Inspector General Be Trusted to Perform its Mandated Duties and Hold the SEC Accountable?" -- for the gamut of the business as usual of the SEC and its malfeasant employees.
The following flip-flop of the CMKM management pertaining to the illegal naked short selling of CMKM's stock points toward said collusion:
Before being appointed or hired to their respective positions with CMKM, the CMKM management advocates stock market reform in general and questions the business as usual of the SEC and its malfeasant SEC Attorneys in particular regarding the illegal naked short selling of CMKM's stock.
Excerpts from three of Bill Frizzell's emails:
"I can confirm that actions are contemplated which will identify the naked short position which may exist."
"We proved a huge naked short position in this company a long time ago."
"Our investigation reveals a potentially huge naked short position in at least two of the very companies that have sent us certs."
In his 1-6-06 SEC Deposition, Bill Frizzell testifies repeatedly under oath that CMKM was illegally naked shorted, pages 123, 149-151, 155, 164, and 167;
In his 6-1-06 article, "The CMKX Story: When Too Much Isn't Enough," Mark Faulk points out that brokerages give phony excuses for their failing to deliver stock certificates to CMKM shareholders.
After being illegally appointed or illegally hired to their respective positions with CMKM , the CMKM management flip-flops its position pertaining to the illegal naked short selling of CMKM's stock as evidenced by the following:
In FAQ Session #s 1-4, 6, and 13-14 (8-10-07 to 6-1-08), the CMKM management pronounces that CMKM's being illegally naked shorted is no longer a primary concern; and furthermore, they cover up the illegal status of CMKM's naked short sales which denotes fraud, RICO, and punitive damages and replace it with the legal status of failures to deliver which merely denotes bookkeeping errors and the mere recovering of one's investment.
Mark Faulk constantly disrespects and belittles CMKM shareholders on his show, "The Faulking Truth Show," on Toginet when they broach the subject of their being victimized by the illegal naked short selling of CMKM's stock.
Because the flip-flop is so transparent, many CMKM shareholders are able to interpret it to mean that the CMKM management is colluding with the SEC and its malfeasant SEC Attorneys as evidenced by the following posts of CMKM shareholders in CMKM forums:
"It appears that the Tyler gang has been bought off...... could that be the case, Kevin?
"It is clear that you have signed some sort of settlement agreement in which you promised not to sue the bankers and brokers""