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by Mike Caswell
Former Nevada lawyer Brian Dvorak, the last active defendant in the CMKM Diamonds Inc. case, has reached a deal in which he will not go to jail or even have a conviction registered against him. Mr. Dvorak, who helped issue most of the shares used in the massive fraud, has agreed to enter something called the pretrial diversion program. Assuming he completes the program, prosecutors in Nevada will drop the charges against him. In return, Mr. Dvorak will only have to surrender his law licence.
The charges against Mr. Dvorak stemmed from his participation in a massive fraud run by Saskatchewan's Urban Casavant. From 2002 to 2004, Mr. Casavant and others touted the "Casavant diamond brand" and a $50-million jade collection as they sold billions of unregistered CMKM shares, prosecutors claim. (All figures are in U.S. dollars.) In all, they reaped $60-million in profits, according to the government.
Mr. Dvorak is the last remaining active defendant, the others having all pleaded guilty or died in the 15 years since the scheme ended. He is also the only defendant to end the case through what is known as a pretrial diversion agreement. The agreement, filed in court on Feb. 6, 2019, specifies that Mr. Dvorak must spend up to 18 months under supervision in the pretrial diversion program. During that period, he must not violate any laws and must attend school or hold a job. He also must remain in Colorado, where he now resides, although he may seek permission to move. He must also surrender his law licence. (The agreement does not specify if he may apply for reinstatement when the 18 months ends, but he no longer appears to be practising law.)
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