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Faulking Opinions - April 4, 2007 - Printable Version
- The Frizzell Factor
by Melody Milam Potter
The party could be over for securities crooks who scammed well over a hundred million dollars from the shareholders of a small Vegas-based diamond company. Last Friday, March 29, 2007, almost two years after CMKM Diamonds was kicked out of the stock market by the SEC, attorney Bill “Bulldog” Frizzell brought suit in Las Vegas court naming the first of many who defrauded and condemned not just that diamond company but a whole slew of other small companies owned by ordinary Americans.
From 2002 through its closing by the SEC on charges of nonfiling in 2005, CMKM Diamonds managed to trade more shares on a daily basis than the whole of the New York stock Exchange, to sell stock at prices 10 times lower than legally allowed, and to suck in 50,000+ hopeful shareholders while promising to create a million millionaires. Ten to twenty billion shares a day traded was not unusual. It looked like everyone wanted in at the incredible low prices of .0001 a share. Hell, you could buy a million shares for a hundred bucks!
Granted, from a sane perspective, it looked like something anyone with a single operative brain cell would run from as fast as they could. But from shareholders who invested their last trading dollar, the press releases, the multi-million dollar deals, and the promise of 54 cents a share potential within months, it was a dream-come-true, stock-of-a-lifetime, set-you-up-for-life bonanza; a rags to riches story just waiting to happen.
Some shareholders, specialists at due diligence, had researched the company and checked out claims. The claims were there alright, just waiting to be mined or sold to the highest bidder. True, the company had at least several hundred billion shares, maybe even 300 billion (Yes, I said Hundred BILLION) but everything seemed okay since, according to the man in charge, CEO Urban Casavant, there was plenty of value in the million-plus Canadian acres of diamond rich dirt to cover that many shares.
And, UC, as shareholders affectionately called him, claimed he was buying back tons of shares and soon would announce the total number of shares left in the company so stockholders could start counting their money. And, he was trading some shares of the company and even some of his own shares for ownership in other claims rich in uranium and gold. It looked like the real deal.
But when the numbers finally leaked out via a persistent shareholder, the total was 800 billion instead of the 100 or 200 billion everyone was expecting.
What the frack had gone wrong?!!!
50,000+ stomachs shot up into 50000+ throats and the spin started. Unable to give up their dream, thousands of CMKM shareholders began to share rumors of a possible government sting operation. Convincing themselves that the confusion and hype were all part of a plan to correct corruption in the stock market, most held on to their shares willing to wait for their millions.
Enter Bill “Bulldog” Frizzell, unknown small-town attorney from Tyler, Texas, with a drawl so thick you could step in it. He, and his best friend, John Martin, both shareholders themselves, smelled a rat. Not that the rat reek was THAT hard to detect, but this rat had a system of tunnels so deep in the bowels of the stock market, the traces almost dissipated before you could identify them.
During their ensuing investigation, Frizzell and Martin, with help from the aforementioned DDers, uncovered a labyrinth of organized crime and stock fraud that threatened to literally undermine the American economy. They also discovered that certain U.S. government organizations, charged with the protection of the American people, were aware of the intricacies and extent of the fraud and were not just turning away from their responsibilities but were actively involved in denying it’s existence. They learned that counterfeit stock is now, and has been for decades, being sold to hapless Americans under the very noses of these government agencies, who are currently engaged in protecting the criminals instead.
For two years behind the scenes, Frizzell and Martin dug into this sewer pit and, tens of thousands of legal documents later, have finally identified the perpetrators and gathered enough evidence to proceed legally. The first two, John Edwards, a virtually silent partner, and Dave Desormeau, former CFO, are subjects of a suit that, Frizzell states, proves they manipulated CMKM stock by creating and selling nonexistent shares to the tune of millions of dollars in illegal gains and resulting in the subsequent loss of market trading privileges for the company and value for the shareholders.
Edwards and Desormeau are only the beginning. “Bulldog” Frizzell intends to go after all the thieves who siphoned value from the company, return the assets to their rightful owners, and restore the company’s value. The current CMKM CEO, Kevin West, has assured the company’s full backing and support by hiring Frizzell’s law firm to represent the company itself. Those shareholders who decided against all logic to hold on to their shares may eventually see their stock returned to the market backed by genuine value, not because of a nonexistent sting operation, but because an unknown small-town thick-accented lawyer refused to quit in the face of almost overwhelming governmental barriers.
Even if that proves impossible and the Bulldog can’t make CMKM stock valuable again, at the very least he will have yanked the rodents out of their slimy holes and flung them into the glaring light of justice.
Last year, the founder of TheFaulkingTruth.com, Mark Faulk, began an investigative volume detailing the CMKM saga which is only now coming to some kind of conclusion due to Frizzell’s actions. His book, The Naked Truth: Counterfeiting the American Dream can now finally be completed.
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