September 12, 2007
SEC see what you have done You have allowed these crazy dumb ass cmkx'r who have been brainwashed by the pumping no good dumb shits like Acca aka Roger Stelma, Jay Adobe's. Now they think there is a pot of money waiting for them Its your fault for not going after Urban Casavant, his wife Carolyn Casavant, his son Weasly Casavant and his brother Ron Casavant. There the criminals who stole money Dont forget all the insiders, John Edwards, David Desormeau, Roger Glen, Deshawn Wayne, Brian Dvorak, James Kinney, Ginger Gutierrex, these cum sucking basterds need to be stopped. Your not doing a thing and now the idiots are out in force expecting money. Its your fault for doing nothing Anette Nazareth you were right there is no such thing as naked shorting Christopher Cox why do you allow this to go on Do something Why Urban Casavant is so scared he is hiding like the lame idiot he is They all need to be seeked out and punished
COMP
David R. Koch (Nevada Bar No. 8830)
TURNER GREEN AFRASIABI ARLEDGE LLP
701 N. Green Valley Pkwy, Suite 200
Henderson, NV 89074
Telephone: (702)990-3155
Facsimile: (702) 990-3156
Bill Frizzell (Texas Bar No. 07484500)
Frizzell Law Firm
602 South Broadway
Tyler,Texas 75701
Tel. (903) 595-1921
Fax (903) 595-4383
Appearing Pro Hac Vice (Motion to Associate
Forthcoming)
Attorneys for Plaintiff
DISTRICT COURT
CLARK COUNTY, NEVADA
CMKM DIAMONDS, INC., Case No.:
Department:
Plaintiff,
v. COMPLAINT FOR:
(1) CONVERSION
URBAN CASAVANT THE UAJC 2005 (2) BREACH OF FiDUCIARY
TDD1DXTflflAflT U mDTTC9. TIITVTD DUTY
1flJXL V t.fl_tklJJ—J..- I fl Id 0 I JVIIJXLi (3) USURPATION OF
WILLIAMS DESHAWN L. WAYNE CORPORATE OPPORTUNITY
BRIAN DVORAK JAMES KINNEY 4 CONSTRUCTIVE TRUST
tTKTr 1) flT vVTUflDlr7. 0 A 1JflT flflJflC? 5 CIVIL CONSPIRACY
LHINLJEa tflJ i in.nLz-, F .fl. 6 UNJUST ENRICHMEkT and
INC. BUCKO LLC DOES 1-20 and 7 REQUEST FOR
ROES 1-20, STERILIZATION OF STOCK
EXEMPT FROM ARBITRATION:
Defendants. iNJUNCTIVE RELIEF REOUESTED
AND VALUE EXCEEDS $50,000
Plaintiff, CMKM Diamonds, Inc. (hereafter CMKM), files this Complaint against
the above named defendants and for causes of action alleges as follows:
PARTIES
1. Plaintiff, CMKM Diamonds, Inc., is a corporation that is incorporated under
the laws of the State of Nevada. Plaintiff is currently doing business in Texas but the
corporation remains domiciled in the State of Nevada at the time of filing of this suit.
2. CMKM is informed and believes, and on that basis alleges, that defendant
Urban Casavant is an individual residing in the country of Canada and may be served at the
address of 501 Cartwright St., Saskatoon, Saskatchewan.
3. CMKM is informed and believes, and on that basis alleges, that defendant The
UAJC 2005 Irrevocable Trust, is a Nevada trust doing business in the State of Nevada.
This trust can be served by serving its trustee who is believed to be Mike Williams, who
resides at 3162 Dove Run Creek Drive, Las Vegas, Nevada.
4. CMKM is informed and believes, and on that basis alleges, that defendant
Mike Williams is an individual residing in the State of Nevada and may be served with
process at 3162 Dove Run Creek Drive, Las Vegas, Nevada.
5. CMKM is informed and believes, and on that basis alleges, that defendant
Deshawn L. Wayne is an individual residing in the State of Nevada.
6. CMKM is informed and believes, and on that basis alleges, that defendant
Brian Dvorak is an individual residing in the State of Colorado and may be served with
process at 4725 Greylock Street, Boulder, Colorado.
7. CMKPs4 is informed and believes, and on that basis alleges, that defendant
James Kinney is an individual residing in the State of Nevada and may be served with
process at 5798 Judson Aye, Las Vegas, Nevada.
8. CMKM is informed and believes, and on that basis alleges, that defendant
Ginger Gutierrez is an individual residing in the State of Nevada and may be sewed with
process at 1013 Whispering Birch Avenue, Las Vegas, Nevada.
2
COMPLAINT
9. CMKM is informed and believes, and on that basis alleges, that defendant
P.A. Holdings, Inc. was a Nevada corporation at many times pertinent hereto. The
corporation may be served by serving Brian Dvorak at 4725 Greylock Street, Boulder,
Colorado.
10. CMKM is informed and believes, and on that basis alleges, that defendant
Bucko LLC is a Nevada limited liability company doing business in the State of Nevada.
11. The true names and capacities, whether individual, corporate, or otherwise, or
Defendants herein designated as Does 1-20 and Roes 1-20 inclusive, are unknown to the
Plaintiff at this time, who therefore sues said defendants by such fictitious names. Plaintiff
is informed and believes that each of said defendants is responsible in some manner for the
events and happenings and proximately caused the damage herein alleged. Plaintiff will
seek leave to amend this Complaint to allege their true names and capacities as they are
ascertained.
COMMON ALLEGATIONS
12. During the last several years, CMKM has sold over $200 million in corporate
stock to the public, but as of this writing, only $558 remains in the corporate bank
accounts. Rather than use the hinds raised through equity sales for the benefit of the
corporation, Urban Casavant and his cohorts have funneled the money into their own
personal bank accounts and trusts for their personal use, all at the expense of the
corporation. This action seeks to recoup the funds from those who have converted this
money from CMKM.
A. Early Formation of CMKM
13. In 2002, Urban Casavant (Casavant) accumulated over 1,000,000 acres of
mineral claims in and around Saskatchewan, Canada. To raise funds to develop these
claims, Casavant came to Las Vegas, Nevada. Casavant met a group of penny-stock
promoters led by individuals named John Edwards and Gary Walters. Edwards and
Walters promised to raise $100,000,000 for Casavant to develop the mineral claims.
14. In order to facilitate this plan, in or around the end of 2002, Edwards and his
group of investors procured a publicly traded shell company and merged the shell with
Casavants company. The shell company had little or no assets and carried an enormous
amount of convertible debt with non-dilution provisions. The stock of the resulting new
company (CMKI later to become CMKM Diamonds, Inc.) began public trading in
November of 2002. Casavant began promoting his stock to penny stock investors with the
help of John Edwards and his crew of experienced penny-stock promoters.
15. The true facts regarding the shell company and its converted debt were never
conveyed to shareholders of the company by management through its public filings, as
requiredby law.
B. Casavant Promises One Million Millionaires
16. Casavant began promoting the sale of stock in his new company (hereafter
CMKM) through various means. Shareholders were told that promising kimberlite pipes
had been discovered on the CMKM mineral lands. Casavant and company management
also issued press releases telling the shareholders that CMKM had acquired zinc claims,
uranium finds, and gold mines in South America. Casavant and CMKM claimed to have a
goal of producing one million millionaires.
17. At this time CMKIvI stock sold at a fraction of a penny. One could invest
$100 and buy 1,000,000 shares of stock. Rumors abounded that a major buyout of CMKM
was forthcoming because of its huge diamond discoveries and skillfUl acquisitions being
made by company management — a major buyout promising $1.54 a share to its
shareholders was being touted throughout the investment community. Casavant and the
company management refUsed to deny these rumors and in fact encouraged them.
According to the promises and press releases issued or condoned by Casavant, individuals
investing $100 to purchase stock at $0.000 I per share would become overnight millionaires
when the huge merger took place. Casavant was aware of these rumors but made no efforts
to deny or correct them. The result of the companys decision to fuel and/or permit such
rumors to continue was a stock-buying frenzy by the public during 2004 and beyond.
4
C. Hundreds of Billions of Shares Sold into the Market
18. During this stock-buying frenzy, and as a direct result of the promotional
scheme devised and implemented by Casavant and his cohorts, billions of shares of CMKM
stock were being sold into public markets. Over a two-and-a-half year period, CMKM
dumped over 700 billion shares into the marketplace. This scheme was perpetrated by
Casavant along with highly paid lawyers and insiders of the company, including defendants
Williams, Kinney, Gutierrez, and Dvorak.
19. From the period January 2, 2003, through May 3, 2005, the public purchased
more than $200 million of CMKM stock either from the company or through its agents.
U. Casavant and Prior Company Mana2ement Loot the Company
20. Rather than use the funds raised through the sale of stock for the benefit of the
company, Casavant and the other defendants used the funds for their own personal
purposes. The funds were channeled into accounts held by entities such as the UAJC 2005
Irrevocable Trust. Some of the funds were used to purchase real estate in the Spanish
Trails development of Las Vegas, including a $3.5 million home located at 90 Innisbrook,
Las Vegas, Nevada. CMKM is informed and believes that Casavant used fbnds obtained
from CMKM in order to purchase the Innisbrook property, along with several other pieces
of real estate.
21. Other company funds were used by Casavant to pay his personal gambling
debts at local casinos, in particular the Venetian hotel. Cashiers checks, checks payable to
cash and huge payments made to credit cards from company funds were customary
methods of paying the gambling debts of Mr. Casavant
22. CMKJ4s new management has recently obtained many company resolutions
that were passed which allowed 703 billion shares to be dumped into the market. The
resolutions demonstrate that billions of shares were transferred to friends and families of
company management and insiders. Bank records confirm proceeds of a portion of these
sales came back to the company, but these funds were then invested in projects beneficial
only to Casavant, company management, and company insiders personally.
IN THE MATTER OF: THE SECURITIES ACT
-and-
IN THE MATTER OF: CMKM DIAMONDS, INC.
NOTICE OF HEARING
TAKE NOTICE that The Manitoba Securities Commission ("Commission") will hold a public hearing ("Hearing") at its offices at Room 500 - 400 St. Mary Avenue, Winnipeg, Manitoba on Wednesday, the 24th day of October, 2007 commencing at 9:00 oclock in the forenoon or so soon thereafter as the Hearing can be held, and from day to day thereafter until the Hearing is concluded, to consider:
1. whether or not it is in the public interest to order, pursuant to section 148 of The Securities Act, R.S.M. 1988, c. S50 as amended ("Act"), that CMKM Diamonds, Inc. ("CMKM") be cease traded
2. whether or not it is in the public interest to order, pursuant to subsection 19(5) of the Act, that:
(a) subsection 19(1) of the Act does not, with respect to such of the trades referred to in that subsection, apply to CMKM
(b) subsection 19(2) of the Act does not, with respect to such of the securities referred to in that section, apply to CMKM
2. such further and other matters and the making of such further and other orders as the Commission may deem appropriate.
BY REASON OF THE FOLLOWING ALLEGATIONS:
By reason of an Order issued by the Saskatchewan Financial Services Commission dated November 9, 2004, to be filed, and such other material as staff counsel may advise and the panel may allow.
AND FURTHER TAKE NOTICE that a person or company attending or submitting evidence at the Hearing may be represented by counsel of its choice.
AND FURTHER TAKE NOTICE that any party to the proceedings may, at the Hearing, call witnesses and submit such evidence relevant to the Hearing as it may wish and, for that purpose, it may obtain from the Director of the Commission at Room 500 – 400 St. Mary Avenue, Winnipeg, Manitoba, a form or forms of summons to compel the attendance of witnesses.
AND FURTHER TAKE NOTICE that upon failure of any party to attend at the time and place aforesaid, the Hearing may proceed in that partys absence and the Commission may make or give any decision or order as though that party were present.
DATED at Winnipeg, Manitoba this 17th day of August, 2007.
Director, Legal and Enforcement
TO: CMKM DIAMONDS, INC.