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JOHN L. SMITH: Diamonds boondoggle a testament to the power of public relations

Urban Casavant has received news that not even he can spin into a positive press release.

The high-rolling front man of the Las Vegas-based CMKM Diamonds boondoggle and 13 of his colleagues have been hit with a civil injunction alleging they illegally issued and sold up to 662 billion shares of unrestricted stock and collected at least $64.2 million from investors who bought their story about the vast diamond fortune lying beneath the surface in far reaches of Saskatchewan, Canada.

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  • The government alleges the proceeds generated from January 2003 to May 2005 were largely split between Casavant, who got $31.5 million, and the "scheme's mastermind," John Edwards, who got $26.4 million. The rest of the cash filtered down to various paperhangers, brokers and phone sales jockeys.

    Casavant's diamond empire was initially run out of his home, where he generated a steady stream of press releases touting the promise of the vast deposits in the Canadian wilderness.

    Like all good cons, there was a grain of truth to the promotional puffery. The behemoth DeBeers corporation has explored the Forte a la Corne region of Saskatchewan, which is believed to contain one of the larger diamond fields on the planet.

    Not that Casavant found any, or used the millions his promotion generated to develop his claims. But he wisely left such details out of his dizzily optimistic media statements.

    Meanwhile, our man Urban mostly stayed warm in Las Vegas, where he was known as a big casino customer and a promoter of the CMKM Racing team. From top-fuel dragsters to high-powered auto racers, Casavant ran fast and used the machines to market his stock. He even loaned a vehicle to weekend racing enthusiast and Nevada Secretary of State Dean Heller. Now a congressman, Heller distanced himself from the CMKM crowd several years ago.

    Casino sources say Casavant made little secret of his big diamond promotion. For the record, I wouldn't for a moment suggest the Gaming Control Board step up and question how much Strip casino officials knew about Casavant's scam despite the press and SEC scrutiny. Our gaming moguls need all the good customers they can get these days.

    Casavant's company is a testament to the power of public relations. With press releases, hyperbolic Internet chat rooms, and race event promotions across the country, he attracted more than 40,000 investors.

    His glittering press releases not only promoted his worthless stock, but they also helped calm the fears of skeptical investors as they downplayed the SEC's criticism. And that often meant investors eventually poured good money after bad as they chased their dream of riches glittering from the Great White North like some penny stock aurora borealis.

    They didn't, however, take a shine to my reporting. I long ago lost count of the number of CMKM investors who called to rip me to pieces after reading a column that dared to call into question Casavant's motives. And executives at Silver State Bank weren't too pleased when it was reported that millions floated through more than 100 accounts linked to Casavant.

    As the SEC gathered evidence and began isolating the company, eventually suspending it, the calls of complaint slowed to a trickle.

    Now the SEC has taken the next step. In addition to Casavant and Edwards, attorney Brian Dvorak, First Global Stock Transfer owner Helen Bagley, Kathleen Tomasso, Anthony Tomasso, James Kinney, Ginger Gutierrez, Anthony Santos, Sergei Rumyantsev, and Daryl Anderson also were named in the complaint.

    Santos, Rumyantsev, and Anderson were employed at NevWest Securities Corp. They allegedly generated millions in sales, but I guess NevWest forgot to pay its phone bill. Its number has been disconnected.

    CMKM's Pecos Road "home office" is closed, too. Casavant has supposedly returned to Canada, perhaps to be closer to his diamonds.

    The Tomassos' reputation as Boca Raton, Fla., paperhangers is so well established they rate their own page on the Ripoff Report Web site. They helped promote and sell CMKM stock in a city known as a scammer's paradise. Attempts to reach the Tomassos via phone also were unsuccessful. You guessed it: The number is no longer in service.

    I'd like to think we've heard the last of the CMKM Diamonds scam, but here's a twist the company's glittering impresario might appreciate.

    After all these years, the SEC is writing press releases about Urban Casavant.

    John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295.



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    Stormgrey wrote on May 11, 2008 04:38 AM: John, in the interest of fair reporting, why would an "alleged" professional such as yourself appear to be taking this story so personal? What ever happened to fair and unbiased reporting? Sorry pal, you've just lost all credibility with many...


    cmkx broke wrote on April 16, 2008 07:33 PM: Lee Webb from stockwatch was right. Shame on Harold Engel aka willywizard who promoted this and accadacca in his paltalk room. Harold Engel aka willywizard also had some SEC fraud charges not long ago for another similiar scam.


    Joe English wrote on April 11, 2008 01:51 AM: John, what the dilly O with Dr. Rodger Glenn from the prestegious law firm of Edwards and Angels writing opinion letters flooding the market with over 300 billion shares of CMKX long after the investigation began.. Sup wid dat homey? Help a brudda out and git hold of these big boys and axe em a few questions.. Put down the gerbil now and git!!


    Joe English wrote on April 11, 2008 01:44 AM: John, keep your pencil sharp...


    privy wrote on April 09, 2008 05:09 PM: Las Vegas-based CMKM Diamonds boondoggle -
    words of advice, if they're selling something in Las Vegas
    Run Forest Run


    ALLEGED Comment wrote on April 09, 2008 04:30 PM: CMKX The case of the greatest "counterfeit shares." fraud in the UNITED STATES .
    Subject: File No. S7-08-08

    From: THOMAS THORTON, Sir

    Affiliation: Bear Stearns Bond holderMarch 24, 2008

    My Fellow Americans and Global Investment Community.

    The case of the greatest "counterfeit shares." fraud in the UNITED STATES is in my opinion CMKX.


    CMKX DIAMONDS, THE LARGEST NAKED SHORTED STOCK IN THE HISTORY OF THE UNITED STATES/WORLD" Trillions of stock shares traded and changed hands UNTIL CMKX revoked itself and had every stock holder pull stock certifcates out of brokerages out of street name and into Investors name to safely hold in their possesion. CMKX is also the LARGEST STOCK CERTIFICATE PULL IN THE HISTORY OF THE UNITED STATES"


    I Hope the the SEC did not create a regulational rule during this period the above action was commited to absolve them from liability of cmkx "counterfeit shares." from this company or anyother company that used this tactic to steal from all markets. This naked shorting fraud rule be passed without a second to lose.

    Naked shorts in the United States: "counterfeit shares."

    ALLEGED. LOL

    The Securities and Exchange Commission has charged three companies and 11 people in an alleged scheme to illegally issue and sell penny stocks "in a purported diamond and gold mining company." Through this activity, the defendants obtained more than $64 million from tens of thousands of investors across the country, the SEC says.


    HU wrote on April 09, 2008 04:22 PM: Why would anyone trust you?


    karl wrote on April 09, 2008 04:18 PM: Have you thought about interviewing Bob Maheu about his take on all this CMKM stuff?


    Ms Wick wrote on April 09, 2008 12:38 PM: NAME CMKX TA HELEN BAGLEY FOR SECURITY'S FRAUD, TAKING BRIBES FROM JEFFERY G TURINO(SS#
    262-29-7718)
    = EX BANNED CEO OF PCBM WHO HAS A 5 YEAR PENNY BAN, AND IS NOW TRADING GBDX, AND POSTING ON THE
    GBDX
    IHUB MESSAGE BOARD AS RONNIED,STOCKLOBSTER, NEGGER0 TO SCAM HONEST INVESTORS INTO BUYING ANOTHER OF
    HIS(HELEN BAGLEY IS ALSO GBDX TRANSFER AGENT, AS WELL AS PCBM, CMKX, (GET THE PICTURE).JEFFERY OWES
    $1MILLION DOLLARS TO THE IRS. HE HAS NOT FILED TAX'S IN THE LAST 4 YEARS REPORT HIS SOCIAL SECURITY
    # ABOVE TO THE IRS FOR A 10% WE TIP AWARD NOW

    . REPORT HELEN BAGLEY FOR ALLOWING A DEAD ATTORNEY'S NAME(YEARS AFTER HIS DEATH (JIM
    PETROCHELLI(not
    exactly sure of spelling last name = but the Feds will find it) AND SIGNATURE TO BE FORGED PLACING
    MORE PCBM STOCK CERTS IN THE MARKET. REPORT BILL JONES CERTS WERE ALSO STOLEN FROM HIM BY JEFFERY G
    TURINO, AND THE DIRTY NOTARY AT THE WELLS FARGO BANK WITH IN BLOCKS OF 1 GLOBAL TA HELEN BAGLEY =
    THE NOTARY BLINDLY STAMPED ANY THING(PAID OFF) = THEY CAME UP WITH SIGNATURES(FORGED) ON THE BTMD
    FRAUDULENT CERTS(WHICH IS A GOOD HONEST COMPANY TAKEN ADVANTAGE OF BY AT DIRTY TA, ADAM
    BURNETT(OMOG
    FRAUDULENT CEO IMO) AND JEFFERY G TURINO)THAT ANY ONE WOULD KNOW WERE FORGED, FRAUD, MANIPULATION
    OF
    SECURITIES, COUNTERFEITING,ETC!

    PLEASE HELP ADAM E BURNETT, AND JEFFERY G TURINO HAVE HURT A LOT OF HONEST INNOCENT PEOPLE.
    THANK YOU


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