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RAPAPORT... Former active Canada diamond miner CMKM Diamonds reports having received several boxes of corporate records revealing evidence not previously known to new management and CEO Kevin West. The company has been embroiled in legal and regulatory issues since the Securities and Exchange Commission delisted the company from trading in first quarter of 2005.
West stated, "In response to this new information, I have asked Bill Frizzell to file suit in Nevada against some former company insiders in an effort to attach some assets that I believe belong to the company. Our investigation suggests that there may be legal action in the future against additional parties."
CMKM filed a Temporary Restraining Order in Nevada state court on April 25, 2007, it reported. The restraining order was granted on April 30.
West addressed CMKM shareholders by saying, "I cannot adequately express the gratitude I have towards the entire CMKM community for their resolve and support of our collective search for the truth. Our best chance of restoring value to the shareholders, as well as achieving some measure of justice, is represented by our current legal action. CMKM is fortunate to have such a significant shareholder base with a large number of passionate and resourceful individuals supporting our course of action. We are confident and optimistic that our goals are realistic and obtainable."
Shareholders have been inquiring how the company can expect to maintain operations and fund legal efforts given the present shortage of assets and an outstanding share count of over 703 billion shares.
The company's management reported it was focused upon finding lost or misappropriated company funds; locate those who have wronged the shareholders, recover assets from them, and if appropriate, their insurers; and thoroughly evaluate all pending contracts and current legal obligations to expedite the company's return to trading.
West added that, "We have evidence of the attempt by at least one specific large brokerage firm to purchase for itself, rather than simply transfer, such certificates. However, we will have an expert examining several suspect transactions."
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