Dave and Tom Sentenced

http://www.justice.gov/usao/cac/pressroom/pr2011/108.html

I'm sorry I have been out of the loop since the sentencing hearing of David and Tom (4 years each).  I have been dealing with some serious computer issues, but I'm back again.  It looks as if David is filing an appeal in the Criminal Case.  He failed to pay his filing fee ($400+), but he recently made the payment so the appeal has officially been submitted.  I will keep everyone updated on its status.  

-ESS Investor 

Hearing Confirmation for Today

I have received confirmation that the sentencing hearing will occur today (August 1^st) at 10 am in Judge Otero’s courtroom.  

David published an email from his pastor at the Camarillo Church of the Nazarene in an attempt to discredit one of the many emails sent to the U.S. Attorney’s office.  The letter reads:

“David Feuerborn has been a member of this church since 1968.  I have known David Feuerborn for more than 21 years as his pastor.  I have seen Dave in a variety of circumstances and he has always maintained a godly and respectful demeanor under some very difficult situation[s].

He has always acted in a professional manner.  He has never brought his business dealings into the church.  He has maintained a Christian character in relationship to the church.  I am aware that some letters or emails have been circulated by a Samantha Hessler indicating that Dave has solicited business at church.  This is not the case as far as I am concerned, and I have no knowledge of this person.  Whoever she is, she is not nor has she ever been a part of this congregation.

David has a high sense of responsibility, and I believe he will do nothing to demean God or his Christian witness.

Sincerely,

Bob Hislar

Pastor”

Wow!  So how does this pastor know that David hasn’t solicited business from anyone at his church?  How does the good pastor know that this “Samantha Hessler” isn’t a pseudonym for an actual person in his flock that might be nervous about using his/her name for fear of reprisal from David and Tom?  David used the same technique at his Louisiana bail hearing.  He had the same pastor write a letter on his behalf.  Hopefully none of this will matter in Judge Otero’s eyes. 

I’ll let everyone know the sentencing details as soon as I find out.  

-ESS Investor

New Sentencing Date and Apparently Tom is Healthy

It looks like there is a tentative sentencing date set for August 1^st in Judge Otero’s Courtroom.  I will update everyone immediately if I hear that the date has changed again.  I know there are a few people that have expressed interest in attending the Hearing.   

I have also been informed that Tom is staying with his jeweler friend in Anaheim Hills and isn’t even in the hospital.  He recently renewed his contractor’s license and has a few jobs he is currently working on, which begs the question of how he is working if his medical issues (cellulitis) require “bed rest”?  I know some people that recently saw him and they said he looks like his usual self.  They also tell me he is once again boasting that he is working on a deal to get probation and no jail time.  The Assistant U.S. Attorney already debunked that lie in his Sentencing Memorandums.  It looks as if they are willing to do and say anything to avoid facing the music, and to save face with friends and family.  I hope the U.S. Attorney’s office investigates these medical claims, and uncover this stall tactic for what it is.  I don’t think it would make Judge Otero very happy, and it shows a repetition of the same pathological behavior that got them into trouble in the first place. 

Personally I think they should own up to the fact that they were caught and they are going to be punished for their crimes.  It’s time they turn over a new leaf and start telling the truth and making amends.    

-ESS Investor

Sentencing Update

It looks like the sentencing hearing did not occur on the 14^th as planned.  Tom Jennings filed an emergency motion stating that he developed a skin condition and could not attend the Hearing.  There is no new date set for the Hearing as of today.  As soon as I hear something I will update everyone.

Also, the Assistant U.S. Attorney filed a response to the Feuerborn and Jennings’ sentencing requests (that asked for home detention and community service or 6 months) and affirmed their position of 63 months for Feuerborn and 57 months for Jennings.  Hopefully the Honorable Judge Otero will side with the Assistant U.S. Attorney.  

-ESS Investor 

T Minus One Day and Counting

David Feuerborn and Thomas Jennings are scheduled to be sentenced tomorrow for their convictions relating to tax fraud and conspiracy.  I had a chance to do a detailed reading of Feuerborn’s Sentencing Recommendation, and I found some things that I thought I would share.  

Medical Ailments 

David Feuerborn is asking for pity on the court based on the following ailments he claims to have:

Vertigo

High Blood Pressure

Diabetes

Gout

Damaged Kidneys

Feuerborn’s sentencing position

1)    “A plan of Home Detention combined with a daily requirement of community service.”

This part is pretty entertaining: “Mr. Feuerborn has extensive skills in the toxic waste remediation areas and can volunteer his time to promote clean up of the environment.  Mr. Feuerborn would like to propose a comprehensive, several year plan of providing community service in this field subject to approval of the Probation Department” (Case 2:10-cr-00346-SJO; Page ID #2284).

You have got to be kidding me!  Mr. Feuerborn has been raising money from investors since the early 90’s for his “environmental remediation skills” without a penny to show for it except for this lavish spending of his investor’s money.  

2)    “To the extent that this Court feels that some form of incarceration is necessary, it is requested that any such incarceration be limited to a period of 6 months or less.”  

Feuerborn’s Sole Assets

On Page ID #2263 Feuerborn’s attorney claims that “[David Feuerborn] has been forced to liquidate all his assets to pay for the costs of defending himself in this matter.”  But previously on Page ID #2252 Feuerborn’s attorney claims that, “[David Feuerborn] only has his home in Palm Desert along with a few vehicles.”  These statements clearly contradict one another, and don’t even get me started on the “few vehicles” comment!  How many individuals do you know that have more than one car?  How many investors were forced to liquidate their homes, cars and other assets in order to make up for the money they lost in ESS?  To say that he still owns a “few cars” is a slap in the face to ESS investors that had to endure hardships because they lost their entire investment.  Maybe the IRS will obtain these cars and sell them at auction?  I would imagine they would do the same with the Palm Desert house.  We will see.

-ESS Investor 

Dave and Tom Respond to the Government's Sentencing Recommendation

Earlier this week Thomas Jennings filed his response to the Government’s Sentencing Recommendation. (It was lengthy and it took some time to go through.)  Today I noticed David Feuerborn filed a similar response.  In fact, most of Feuerborn’s response is identical to Jennings’ response.  They both insist that they are good family men, valuable members of their communities, etc.  They also contend that the Government is greatly overstating the amount that they owe to the IRS.  Here are some excerpts from the Feuerborn’s response:

“Mr. Feuerborn has attended the same Church since 1968, the Camarillo Church of the Nazarene.  During the past 43 years at the Church of the Nazarene, Mr. Feuerborn has served on the Church Board, served as the Nazarene Youth President, and taught Sunday School for over 12 years” (Case 2:10-cr-00346-SJO; Page ID #2249).

“Mr. Feuerborn has worked in Mexico, South Korea, and the Philippines to assist in the detoxifying of water and soil to enable the local people to plant crops and irrigate with clean water” (Case 2:10-cr-00346-SJO; Page ID #2249).  

In response to that last excerpt, I hope he wasn’t using the toxic chemicals identified by Louisiana and California state agencies, because those chemicals cause cancer!  Hopefully those “crops” and “water” aren’t slowly killing the natives!

Here is an excerpt from both responses that I think most ESS investors will disagree with:

“After becoming involved with ESSI, Mr. Feuerborn worked many long hours on a full time basis to try and make the company a success.  While the Government has characterized ESSI as a sham operation designed and operated by Mr. Jennings and Mr. Feuerborn as a way to fleece investors, the Government did not charge either Mr. Jennings or Mr. Feuerborn with Investment Fraud, and there is no proof in this case, or findings by any other Court that Mr. Feuerborn has in fact defrauded any investors” (Case 2:10-cr-00346-SJO; Page ID #2250).  

Have any ESS investors received a return on their investment or profits?  I sure haven’t.  Apparently they have been raising money since the early 90’s for this “technology”.  Isn't 20 years enough time to commercialize the technology or give up and stop losing people's investements?  

This response is a clear indicator of the excuse they will use to continue the chemical scam after they are released from prison (or their third partner Larry Shultz will use while they are in prison).  They will tell potential investors that because the Government did not indict them for investment fraud that there is actually some value in this technology.  Will this ever end?  

Jennings’ response also indicated that he only has $2,000 to his name, and must use a shower at a gym.  Also his home was foreclosed on and his cars were repossessed.  It looks like any class action lawsuit to recapture our money is out of the question.  

 

Live and Learn...the hard way

-ESS Investor

Settlement?

It appears that there has been an interesting turn of events in the Civil Case.  Freestone filed a report today which stated that they reached a settlement with Dave, Tom, one of the ESS companies and the new guy Larry Shultz  (nothing is on PACER yet about it though).

http://secfilings.com/searchresultswide.aspx?link=2&filingid=8020321

I’m not sure what to make of this.  Usually settlement agreements are private, but this one was posted by the company.  I’m shocked Freestone settled with these guys!  I also can’t believe that they settled for no return of cash!  They were suing for more than a million dollars, and then they settled for canceling most (NOT EVEN ALL) of their shares?!?!  

My Presumption: 

I’m going to assume that the depositions took place, and there was some piece of evidence that was a bombshell.  Maybe that changed the tide of the depositions and caused settlement talk.  Moreover, based on the recent Government Sentencing Recommendation it looks as if the IRS is going after 1.8 million dollars.  Most likely that took away the possibility of receiving any monetary damages.   That doesn't explain why they let them keep any stock in their company. 

In the last few filings by the two attorneys it seemed as if the Civil Case was reaching a boiling point, and thus this settlement comes as a surprise.  I’m going to put my feelers out and see if I can find out what caused this settlement, and the terms upon which it was settled.  

-ESS Investor     

Caught in the Web

Evans admits he made untrue statements in his latest court filing!  Evans just filed a motion where he admits he contacted the U.S. Attorney in the Criminal Case, 4 days before he contacted Freestone’s counsel, requesting a continuance of the Sentencing Hearing.  I guess when you get caught in a lie, and there is email documentation, one must admit that they lied.  Why wouldn’t he contact Freestone’s counsel on the same day he contacted the U.S. Attorney?  According to all of the motions filed in the Civil Case, the depositions were scheduled to take place on the SAME DAY as the Sentencing Hearing.  Doesn’t it make sense to contact Plaintiff’s counsel and give him the same courtesy that was given to the U.S. Attorney?  Or does it make more sense to play low ball legal tactics and wait till the last minute to cause an undue burden on the opposing side?  I’ve been in situations where I’ve had to change travel plans at the last minute.  It can be stressful and can get very expensive.  Then you add attorney’s fees on top of that!  This was a deliberate move (evidenced by the lie that Evans just admitted to).  I can’t believe the unethical tactics at play here.  I will be equally critical if the Plaintiff’s side pulls the same tactics during the duration of the Civil Case, but I would hope they are above this behavior. 

What a Tangled Web We Weave

Apparently we have a firestorm brewing in Texas, and I’m not talking about all the wildfires on the news lately.  In the Civil Case, the counsel for the Plaintiff (Freestone), Mr. Alfonso, fired back at Mr. Evans' Emergency Motion stating, among other things, that it was not put together properly, not in compliance with local rules, and pointed out that Mr. Evans knew about his conflicts multiple days before he notified the Plaintiff.  It looks like he intentionally waited until the 11^th hour to notify Freestone in order to cause undue hardship on them, and stall the depositions so they don’t take place before the Sentencing Hearing.  According to Mr. Alfonso’s response, Evans made requests to continue the Sentencing Hearing multiple days before he notified the Plaintiff of a conflict with the depositions (now we know why the Sentencing Hearing was moved).  I find it unethical to pull these tactics just because you’re involved in litigation.  That’s just not playing fair.     

            

Then Mr. Evans fired one back across, and stated that the “Plaintiff and its counsel” are engaging in “underhanded school yard tactics”, and once again made the claim that ESS is the “Plaintiff’s blog”!  You can’t just make allegations that preposterous without any evidence!  Oh wait, Mr. Evans did this in the Criminal Case too.  Remember when he claimed that the Ventura County Sheriff's office illegally gathered evidence or when he claimed that the Judge in the Criminal Case made multiple mistakes ruling on motions during the trial?  Stop trying to give my credit to someone else!  I worked hard, and spent a lot of time amassing my information from ESS investors, past ESS employees, government databases, and other tipsters.    

In his most recent brief, Mr. Evans claims that this blog defames him.  Apparently he underestimates the power of the internet and the truth.  Here’s how it works:  

I was contacted by a tipster that is an acquaintance of an employee at Intercoast Colleges.  That tipster notified me that Mr. Evans called this employee and threatened to sue them (that phone call is how they obtained Evan's name, and when they searched him on the internet they found my blog).  It wasn’t hard for me to search the internet (and btw Google isn’t the only search engine) and discover that Intercoast Colleges has a campus, randomly, in Portland, Maine.  Isn’t that the location constantly mentioned in his motions?  When you start connecting the dots you find out a lot more disturbing information located on multiple message boards that contain Evans' name and his association with Intercoast Colleges, but apparently Evans didn't feel the need to mention the other websites that discuss him and Intercoast Colleges (the website that I got my information from).  The only reason he mentions my blog is because he is trying to create a conspiracy that isn't there.    

In Mr. Evans' latest motion I should also point out that he questions the compassion in the Northern District of Texas.  Yikes!  I think the compassion stops when you start lying to the Court.  The Plaintiff’s counsel fired off another response to Mr. Evans' unfounded claims, and even points out that multiple statements made by Evans are not true, and he provides evidence to back up his claim.

These hostile motions are beginning to look identical to the one's filed by Evans and the U.S. Attorney in the Criminal Case.  I guess this is round two.   

I’ll keep everyone informed how this one turns out.

-ESS Investor