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.
Showing posts with label CMKM Diamonds. Show all posts
Showing posts with label CMKM Diamonds. Show all posts
Tuesday, September 15, 2009
Wednesday, August 5, 2009
New board at Carlisle Goldfields
The dissidents prevailed at the July 31 shareholders meeting (mentioned as one of the thre brief items in my entry on this blog on Sunday, August 2) of Carlisle Goldfields.
Carlisle has defined reserves of 412,000 ounces of gold in the Lynn Lake Greenstone Belt of Manitoba. Here's some more information about the geology of it.
The only incumbent director re-elected was Carl McGill, who thus represents the voice of continuity. In a statement, McGill said the usual good-sport stuff: "It was a well-fought proxy contest....Now that the shareholders have made their decision, the new board of directors intends to pursue its vision and to implement plans to achieve the common objective of all - to enhance shareholder value."
The new board members are: Steven Mintz, Bruce Reid, Donald Alexander Sheldon and Frank C. Smeenk.
Those names don't immediately ring a bell for me. I googled the first of them. There exist, unsurprisingly, a number of fellows named Steven Mintz. Though I could be wrong, I believe the pertinent one is this fellow.
The long-running CMKM diamond saga has developed in me some interest in Canadian mineral claims, so I'll keep on eye on this company.
Carlisle has defined reserves of 412,000 ounces of gold in the Lynn Lake Greenstone Belt of Manitoba. Here's some more information about the geology of it.
The only incumbent director re-elected was Carl McGill, who thus represents the voice of continuity. In a statement, McGill said the usual good-sport stuff: "It was a well-fought proxy contest....Now that the shareholders have made their decision, the new board of directors intends to pursue its vision and to implement plans to achieve the common objective of all - to enhance shareholder value."
The new board members are: Steven Mintz, Bruce Reid, Donald Alexander Sheldon and Frank C. Smeenk.
Those names don't immediately ring a bell for me. I googled the first of them. There exist, unsurprisingly, a number of fellows named Steven Mintz. Though I could be wrong, I believe the pertinent one is this fellow.
The long-running CMKM diamond saga has developed in me some interest in Canadian mineral claims, so I'll keep on eye on this company.
Wednesday, June 11, 2008
Mining frauds
I'm just thinking today, through a wayward stream of associations, of a couple of recent awe-inspiring mining frauds, both with a Canada connection.
Bre-X was the most spectacular mining swindle in history, bursting upon the world as it did during the 1990s bubble, and possessing before the furor died down the added drama of a fatal fall from a helicopter.
At one point, indeed, Bre-X was claiming the rights to 8% of the world's gold at a site in Busang, Indonesia. How much would you pay to own a share in a company with 8% of the planet's gold? That was the question they had investors asking themselves. And it was the wrong question. There was no gold at the site at all.
The moral of the story: ask the right questions!
Another story comes to mind today. CMKM Diamonds. As it happens, CMKM isn't a Canadian company, just as Bre-X was never an Indonesian company. CMKM is a US company, that over a four year period (2003-07) sold $200 million in stock to the public in the expectation that their capital would help exploit 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 it exists chiefly for the purpose of pursuing a lawsuit against its former insiders in the hope of acquiring some assets to distribute to those too trusting shareholders.
As to that fall from a helicopter I mentioned above. In May 1997, Michael de Guzman, a field geologist with Bre-X and someone who would have to have been in the thick of any salting of the rock cores, jumped to his death from a helicopter. Or maybe he fell. Or maybe he was pushed.
Or maybe he didn't die after all. A body was recovered, but never positively identified. In June 2005, one of his widows [there are four widows in all!] told reporters that he is still alive and living in Brazil, and had sent her a money order for $25,000.
The moral? who the heck knows!
Bre-X was the most spectacular mining swindle in history, bursting upon the world as it did during the 1990s bubble, and possessing before the furor died down the added drama of a fatal fall from a helicopter.
At one point, indeed, Bre-X was claiming the rights to 8% of the world's gold at a site in Busang, Indonesia. How much would you pay to own a share in a company with 8% of the planet's gold? That was the question they had investors asking themselves. And it was the wrong question. There was no gold at the site at all.
The moral of the story: ask the right questions!
Another story comes to mind today. CMKM Diamonds. As it happens, CMKM isn't a Canadian company, just as Bre-X was never an Indonesian company. CMKM is a US company, that over a four year period (2003-07) sold $200 million in stock to the public in the expectation that their capital would help exploit 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 it exists chiefly for the purpose of pursuing a lawsuit against its former insiders in the hope of acquiring some assets to distribute to those too trusting shareholders.
As to that fall from a helicopter I mentioned above. In May 1997, Michael de Guzman, a field geologist with Bre-X and someone who would have to have been in the thick of any salting of the rock cores, jumped to his death from a helicopter. Or maybe he fell. Or maybe he was pushed.
Or maybe he didn't die after all. A body was recovered, but never positively identified. In June 2005, one of his widows [there are four widows in all!] told reporters that he is still alive and living in Brazil, and had sent her a money order for $25,000.
The moral? who the heck knows!
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