Thursday, October 28, 2010

David Feuerborn, Thomas Jennings, and Lawrence Shultz

I have been doing some digging on David Feuerborn, Thomas Jennings (the two individuals in the Criminal Case) and the third person mentioned in the Civil Case, Lawrence Shultz.  Through my research I feel like I now have more questions than answers, but I would like to share my findings with the ESS community.  

Scapple, Inc.:

It would seem that David Feuerborn and Thomas Jennings filed a 13D with the SEC in reference to Scapple, IncScapple was a publicly traded company.  The 13D was filed on approximately October of 2004 while they were in the middle of raising money in ESS for R6000.  A 13 D is filed, "when a person or group of persons acquires beneficial ownership of more than 5% of a voting class of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934, they are required to file a Schedule 13D with the SEC."(http://www.sec.gov/answers/sched13.htm).  

Here is the link for the 13D filing with the SEC: http://www.secinfo.com/d151E3.1Yu.d.htm

It is unclear what they were planning to do with a public company in 2004 without the knowledge of ESS investors.  To my knowledge they never issued any information on this public company to ESS.  This leads me to believe they were following their same protocol to sell the same chemical under a different name and different company.    


Jewelry by Asa:

Now this one is really strange.  I Googled the Lantana address that I found in the Whois search for "Cleansal" and discovered a Swedish jewelry business that makes clogs.  At first I thought it might be an old address, but I then discovered that David Feuerborn has been using this address since 2004 according to the Scapple report (see above).  Maybe Feuerborn shares a box with this business.  I am not sure of its relevancy, but I wanted to post all of my findings.  I am always worried when I see anything foreign that could relate to the sale of ESS stock, because I see it as another avenue to hide investor money.  They already have tax issues with the United States Government.  Surely this isn't a scheme to hide more funds?  

Link to the webpage where you can see Feuerborn's address in the "contact information":


Encore Clean Energy:

Lawrence Shultz also has a 13D filing with the SEC for a company called Encore Clean Energy (http://www.secinfo.com/d1Ze2u.2Ua.htm).   From everything I have found it looks  as if it trades sub-penny, and according to Bloomberg the company, "engages in the research and development of commercial products that generate electricity without burning fossil fuels. Its products include HeatSeeker, a waste heat recovery unit, which is designed to utilize waste heat exhaust gases, hot water, or steam to generate electricity; Eliminator, a Rankine cycle liquid pump elimination process; and SideWinder and RiverBank, high torque kinetic energy turbines. Encore Clean Energy is based in Vancouver, Canada" (Business Week Link).  I don't think Shultz is still involved with this company, because I don't see him listed on any of their updated information. 

I have a few more companies I have found on Shultz and Feuerborn, but I want to do some more research before I post them.  I should have some more stuff up by early next week.  Have a good weekend!  

- ESS Investor 

Tuesday, October 26, 2010

Cleansal

I've got definitive proof that Cleansal is the new name they are using for R6000 and Reneu.  Check out http://www.whois.com and look up "cleansal.com" and you will see the following:

"Registrant:
None
355 Lantana, Suite 115
Camarillo, CA 93010
US
805-857-0997
Fax: 805-383-0022
 
Domain Name: CLEANSAL.COM

Administrative Contact:
Feuerborn, David
355 Lantana, Suite 115
Camarillo, CA 93010

US
805-857-0997
Fax: 805-383-0022


Technical Contact:
Feuerborn, David
355 Lantana, Suite 115
Camarillo, CA 93010

US
805-857-0997
Fax: 805-383-0022


Record expires on 01-31-2011
Record created on 01-31-2010"

Now that I have confirmed the new product name is Cleansal, can someone explain why ESS investors haven't been updated on the new name?  There is nothing about it on the ESS website.  I know of a conversation Dave and Tom had with some ESS investors where they stated they didn't even have enough money to update the ESS site, but it seems that they have enough money to make a new website.  Hmmm. 

Also, look at the "Record created" date.  They purchased this domain name in January of 2010.  This was created prior to the Civil Case Freestone filed against them in July 2010.  Maybe Freestone found out that they were working on something behind their back?  The original complaint Freestone filed against them doesn't mention Cleansal, but one would have to assume they found this information as easily as I did.  This seems like the standard modus operandi.  They sell the "solvent" under one name to one group of people, and sell it under another name to another group of people.  



-ESS Investor

Continuance Confirmed

The Judge hearing the Criminal Case signed an order granting the continuance of the Criminal Case from November 30, 2010, to January 18, 2011 at 9:00 a.m.  This is the third continuance that they have been granted.

This is very disappointing for everyone that wanted swift justice, but when the prosecutor has 43,000 or more pages of documents and numerous recorded interviews that show the extent of the tax fraud then you have to assume that it will take a long time for the defense counsel to sift through it all. 

My main concern is the perpetuation of the chemical fraud against others.  If they use people to front for the chemical scam, and change the names of their companies then it could be hard to trace it back to to them.  I have set my internet alerts to look for the name "Cleansal" since that was the last name I saw them use. 

It might be a while until anything new shows up in the Criminal Case now that it has been continued until January 2011, but maybe some new information will surface in the Civil Case. 

Until then,

-ESS Investor

Friday, October 22, 2010

Another Continuance...

Yesterday a stipulation was filed in the Criminal Case.  It was filed by the U.S. Attorney's office in cooperation with the attorneys representing Feuerborn and Jennings.  This stipulation is a request for yet another continuance of the Criminal Case.   This stipulation cites the same reasons for the continuance as listed in the previous request.  Primarily it states that Neil C. Evans (the attorney for David Feuerborn) had family issues during the months of June, July and August so he could not devote enough time to the Criminal Case.  (Personal Note:  We know of one other case, the Civil Case, in which Mr. Evans represents all the Defendants (including Feuerborn and Jennings) against Freestone Resources.  If Mr. Evans doesn't have enough time for their Criminal Case then why is he the attorney of record in the Civil Case which was filed well after their Criminal Case?  How many other cases has he taken on since the Criminal Case?)

I hope this is not another stall tactic by the Defendants so they can continue to sell ESS stock, or stock in one of their other companies.  It would appear that they have created many companies with many product names since ESS and R6000.  It would also appear that new people are involved that front for their companies according to the Civil Case.  I also believe their travel is still restricted to central California, Texas and Louisiana.

One might ask why the U.S. Attorney agreed such a lengthy continuance?  Maybe he  has more evidence against Feuerborn and Jennings that he would like the opportunity to pursue.  It is really all speculation at this point.  I know we all want the same thing; we want to see this scam stopped once and for all.  It looks like we will have to wait until January.

I will keep watching for any more updates on PACER.

-ESS Investor  

Tuesday, October 12, 2010

Criminal Case Update

Hello all!  There isn't much to update at this time.  There is nothing new to report in the Civil Case and just a few miscellaneous filings in their Criminal Case.  In the Criminal Case, the Court accepted conflict waivers from Defendants Feuerborn and Jennings so Neil Evans can represent both of them in the Civil Case without causing a conflict during their Criminal Case.  These waivers were not published on PACER.  

Additionally the Judge granted and affirmed the Stipulation in the Criminal Case which allowed for a continuance of their trial date until November 30, 2010.  The exact language reads, "Defendants shall appear in Courtroom 1 of the United States Courthouse, 312 North Spring Street, Los Angeles, California, on November 30, 2010, at 9:00 a.m." (Order Continuing Trial Date and Findings Regarding Excludable Time Periods Pursuant to Speedy Trial Act, Page 199). 

Assuming that a plea is not reached by the Defendants before the trial, is there anyone that plans to attend?  If they are convicted I wonder if the Judge will allow the shareholders of ESS to speak before their sentencing?  This is all pure speculation at this point but I have seen episodes of American Greed on CNBC, and usually the judges hearing the cases will let investors speak to the Court prior to sentencing to hear about the hardships incurred because of their scams.  

We have a month and a half to wait until their trial.   All indication is that the trial should last no more than two weeks.  


- ESS Investor

Tuesday, October 5, 2010

ESS Website and Letter

There are still no updates on either the Criminal Case or the Civil Case.  There was a hearing on October 1, 2010 in the Criminal Case for the Conflict of Interest Motion presented by the U.S. Attorney.  We should probably see those hearing minutes on PACER within the next few days to find out the Judge's decision.

I decided to use today's post to present the ESS website, and the Letter that David Feuerborn issued to ESS shareholders in January of 2008.  It doesn't seem like much has changed since that letter was issued. The text from the website states the following:

"ESS Environmental
UPDATE ON THE CURRENT STATUS OF THE
COMPANY TO ITS SHAREHOLDERS

We at ESS apologize for the lack of communication thus far. The following is the current status of ESS Environmental operations and activity.

Canadian Joint Venture

Due to the recent downturn in our economy and the Canadian economy which has affected the funding of operations, the activity of the Canadian Joint Venture has been placed on hold at this time.


Utah

The Utah project with our Utah partners is currently raising funds to construct production systems in Utah to recover hydrocarbons from tar sands and oil shale."  (ESS Environmental Website: http://www.essenvironmental.com/ess.htm)

My analysis:  Based on that information I would say that the Canadian Joint Venture is stalled indefinitely, but then again Larry Shultz was scheduled to give a presentation in the United Kingdom on cleaning Canada's tailing ponds with Cleansal (their new solvent name).  If there is a new name for the solvent, and if Canadian operations have resumed then I think the ESS shareholders deserve an update.  

I am also curious about the Utah Project.  Is there any update?  If anyone knows the contact information of the Utah Partner could you please post it as a comment to this blog entry.  Also, if you have any information on this project that would be appreciated as well.  I would like to research it further.  

The ESS Companies: I am totally confused.  According to the California Secretary of State there are two corporations with similar names.  Freestone is suing a company called Environmental Services and Support, IncESS Environmental, Inc. is a totally different corporation.   So what does ESS Environmental own, and how does that differ from what Environmental Services and Support owns?  In the Criminal Case it alleges that they created corporations with the same name to hide the distribution of investor money to themselves.

Dave's Letter:   Dave's Letter states, "[c]onstruction of the demonstration unit commenced in January 2008"  (ESS Environmental Shareholder Letter, Page 1).  Does anyone know what happened to this demonstration unit?  The letter also says that the Desist and Refrain Order issued by the California Department of Corporations "became final late last year" (ESS Environmental Letter to Shareholders, Page 2, Paragraph 4).  What does that mean?  Is it still in effect or not?  In his Letter, Dave continues by disccusing the hurdles that face any "new business."  Mind you this letter was written in 2008.  According to the information I have presented on this blog, Dave Feuerborn has been working on this solvent since the early 1990's.         

In light of the allegations in the Criminal Case I think ESS Shareholders deserve an update.  I think that's the least of what we deserve, but I think ESS should issue and update before the trial date this November.        
Links discussed above:


Monday, October 4, 2010

New Chemical Name

There have been no updates on PACER as of this morning.  I am now following the stock message boards for Freestone Resources (the company suing Dave and Tom).  I was very intrigued by what I found.  According to these message boards Larry Shultz (an individual that is being sued in the Civil Case along with Dave and Tom) is attending the SMI Unconventional Oil Conference.  I decided to do some digging to see what this conference was all about, and what he was speaking about.  I found a cached version of the website where it states that he would be speaking about the following:

" Cleaning-Up and Drying Out of Canada's Oil Sands Tailing Ponds
- Defining the tailing pond problem in Canada 
- Canadian government's directive 074 mandate to clean-up the tailing ponds
- Details of new Cleansal solution to clean-up and dry-out the tailing ponds
- Environmentally-friendliest chemical-based technology
     Larry Shultz, Director, Freestone Resources"

I can only find this information on the cached version of the SMI website.  It looks as if he has been removed as a speaker from this conference.  It would appear that "Reneu" and "R6000" is now called "Cleansal."  Here is the link to the cached version of the website:  

Cached SMI Site      

Current SMI Site

It also states that Larry Shultz is a director at Freestone.  I can't find any information, past or present, that indicates he was ever a director at Freestone.