Its the largest fraud case in world history. It is alleged that between June of 2004 and October of 2005, over 2 trillion dollars worth of fake CMKM Diamonds Inc. shares were sold to the public. The companys shareholders are now suing the S.E.C for 3.87 trillion dollars. Tim Barello from the Manhattan Headlines Examiner joins Alyona from New York to tell you more.
These Defendants, acting in the course and scope of their employment by the United States of America as duly authorized Commissioners of the Securities and Exchange Commission, a federal agency, through their acts and omissions knowingly, consciously, wrongly, without compensation and without due process of law have effected a taking of property from each of the named Plaintiffs and all who are similarly situated.
PDF (18 Pages): CMKM Lawsuit Against the SEC 9 January 2010
The Denver Post, 14 October 2006
It began as Pederson watched words appear on her computer screen at her Arvada home office. Investors, writing via an Internet chat room, were touting a mining company called CMKM Diamonds Inc.
The Las Vegas-based company, the investors claimed, owned mineral rights to more than a million acres of diamond-rich land in Saskatchewan, Canada. Intrigued, Pederson bought shares worth $15,000.
The decision began Pederson’s involvement in a saga that includes lawsuits, huge financial losses and allegations of fraud on Wall Street and inaction by federal regulators.