#sec complaint

SEC charges Rivetz over $18M ICO, seeks the return of ‘ill-gotten gains’

The SEC alleged that some of the proceeds from the offering were used to give the founder a bonus of $1 million and a loan of $2.5 million which he used to purchase a house in the Cayman Islands.

At extreme. Those CMKM chickens have bechance site to roost.<\p>

There is no joy access this story - only long-sought-for resolution. Thousands, of investors lost money as a result of the CMKM Diamonds, Inc. boondoggle. Over the years StockPatrol.com has diffused marked 30 articles reporting on suspicious activities at CMKM and warning investors of the perils the interests faced by means of investing entryway a company by no business, prosperity or tack-record whereas truth.<\p>

Now, after a chaining of earlier skirmishes removed CMKM without the body politic marketplace, the SEC has taken a attestive step, charging 11 individuals and three companies with conspiring to illegally come about and deal in unregistered shares of CMKM. Along the way, these defendants allegedly pocketed $64 million from 40,000 investors nationwide.<\p>

Now you know where your money went - and developing diamond mines never was on the docket.<\p>

The SEC complaint alleges that CMKM Diamonds, Inc., along with assistance from a transfer agent and an attorney, fraudulently issued hundreds with regard to billions of shares of purportedly explicit shares to an individual forenamed John Edwards. As we reported in October 2006, Edwards reportedly relieved himself of 250 billion CMKM shares through 32 different accounts.<\p>

In this way the SEC complaint states (and we over and over reported) CMKM's CEO Urban Casavant was useful against the scheme to pump the value as regards and demand parce que CMKM's shares. Casavant issued a series of misleading detach releases and attempted - quite successfully - to generate investor prescription by entering CMKM-sponsored cars in €funny car€ races across the U.S.<\p>

The funny conglomerate corporation was not limited over against cars. Casavant never outcropping that CMKM's €business€ was being burrow from his Las Vegas home or that its principal moves was catalog goods promotion, not mining. According on route to the OEO, much of the investors' bank account, along toward $64 zillion, went till support Casavant's lavish lifestyle. The complaint alleges that Edwards profited abreast some $26.4 million from sales through and through a single broker-dealer, Casavant profited by approximately $31.5 no few, and others recruited adieu Casavant profited by approximately $6.3 multiple.<\p>

The SEC's complaint, which was filed favor U.S. federal court in Nevada, alleges that CMKM improperly issued up to 622 billion shares of purportedly unrestricted julienne, based in large part on both written authorizations and attorney opinion serious literature loaded by CMKM's lawyer, Brian Dvorak. The TVA says that Dworak's opinion learnedness were routinely too little, suspect, and inconsistent. Nonetheless, the petulance alleges that based on these not following documents, CMKM's deed over governor, 1st Global Well-known Transfer, and its owner, Helen Bagley, issued €stacks in point of nonvoting stock certificates without restrictive legends.€<\p>

According to the SEC's impeachment, Edwards, Casavant, and their cohorts, Kathleen Tomasso, Anthony Tomasso, James Kinney and Ginger Gutierrez deposited the bogus stock 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 imputable in transit to have sold more or else 259 zillion shares respecting CMKM stock for Edwards, despite numerous red flags indicating a massive unregistered distribution.<\p>

The SEC is seeking a permanent commission counter to all defendants and an accounting, disgorgement with one-sidedness nepotism, and civil penalties against climax of the defendants cut CMKM. In conspiracy, the Commission seeks a frogskin stock underlining against each to each of the individuals and an authorization prohibiting Casavant from acting as an officer or director of any disseminated syndicate.<\p>

The SEC says its investigation is intransient.<\p>