Daryl O. Anderson

A recent article in the Las Vegas Review-Journal tells us of the latest troubles of Daryl O. Anderson, a veteran of the great CMKM penny-stock swindle.

Anderson was a stock broker at the now-defunct NevWest Securities, which used to sell CMKM stock in the heyday of Casavant and his cronies. Back in the good ol' days, over the four year period 2003-07, CMKM sold $200 million in stock to the public on that public's expectation that such capital would help exploit the diamond wealth of Saskatchewan, Canada. By the spring of 2007, CMKM was a penny stock company with, in essence, no assets and $558 in the cash drawer.

CMKM still exists, but the new management there is encouraging the Dept. of Justice, the FBI, and an IRS task force to "finally issue indictments and commence criminal proceedings" against the the old management.

Anyway, none of this has discouraged Daryl Anderson, who got right back on the horse, as they say in Nevada. The Fort Worth, Texas office of the SEC has recently filed a lawsuit against Anderson for stock scalping involving a company named Cloudtech Sensors. [Stock scalping involves the recommendation of the purchase of a stock while the person giving the recommendation is himself selling it into the market.]

Apparently, this enterprising fellow got forty investors to pony up $3 million total for Cloudtech, which caused a 358% rise in its price, allowing him to cash out his Cloudtech for a profit of $930,852.

My point? Just the age-old one: caveat emptor.