As of January 2016, the U.S. Securities and Exchange Commission reports that it is not known how much money is to be recovered in the case of Securities and Exchange Commission v. CMKM Diamonds, Inc. The U.S. Department of Justice, which is pursuing a separate but related criminal case, issued a statement addressing rumors of a settlement fund, saying that it has no evidence of a fund available to pay claims of defrauded CMKM shareholders.Continue Reading
The SEC states that it filed a civil action against the company and 13 individual defendants in 2008, charging them with violations of federal securities laws for illegally issuing and selling stock in CMKM Diamonds, Inc., a supposed mining company in Las Vegas, Nevada. Judgements against several defendants, ordering them to pay repay millions, were made by the court. However, enforcement of the judgements is pending. The SEC reports that if enough assets are recovered to make it possible to repay investors, it can opt to file a court motion to propose a settlement plan.
In 2009, the U.S. Attorney’s Office in Las Vegas, Nevada, filed another action, criminally charging six of the defendants with securities fraud related to the CMKM Diamonds case, according to the U.S. Department of Justice. That case was ongoing as of September 2015.Learn more about Law