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by Mike Caswell

The U.S. Securities and Exchange Commission has permanently barred Helen Bagley, the transfer agent in the massive CMKM Diamonds Inc. fraud, from associating with brokers, dealers or other securities industry participants. The ban, contained in an administrative order handed down on Jan. 13, 2012, stems from her role in the CMKM scheme, which included helping the company's promoters issue 589.7 billion freely tradable shares. The order results from a negotiated settlement, in which Ms. Bagley did not admit to any wrongdoing.

The SEC claimed that Ms. Bagley's actions were essential to the CMKM manipulation that ran from 2002 to 2004, in which Saskatchewan's Urban Casavant and British citizen John Edwards dumped billions of shares. Ms. Bagley repeatedly issued tradable stock based on incomplete and in some instances forged documents, the SEC said. She ignored red flags that would have made it obvious she was facilitating illegal activity.

The administrative case is one of three actions Ms. Bagley has faced for the CMKM promotion. The SEC previously secured a $448,047 civil judgment against her for the scheme, which she is appealing. (All figures are in U.S. dollars.) She and several others also face criminal charges in Nevada, to which she pleaded not guilty on April 28, 2010.

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