Most Outrageous Motion Yet

The latest motion filed by Neil Evans, on behalf of David Feuerborn, was very offensive to me, and should be offensive to all ESS investors.  It truly shows the arrogance of David Feuerborn and his belief that he can scam investors and do anything with investor money.  The latest motion is entitled Motion in Limine to Preclude Introduction of “Mug Shot” Diagram Depicting “Lavish Purchases” by Defendants (“Mug Shot Motion”).  Apparently Neil Evans thinks that using the mug shots of David and Tom during the trial would be prejudicial to the Jury.  Personally I think the mug shots embody the true nature of David and Tom.

The most infuriating part of the Mug Shot Motion is where he states, “[h]ow the Defendants spent the money once it was received is completely irrelevant.  For example, if the Defendnat in good faith believed that the money received was a loan, how he spent the money is completely irrelevant.  If the money was a loan, it was a loan.  There are no Internal Revenue Rules or Regulations that redefine whether money was a loan or income, based upon how the money was spent.”  He goes on to state, “if the money was legitimately received as a Loan, Defendant was free to blow every penny on anything he wanted to spend it on, and such expenditure would be completely irrelevant to this case” (Case 2:10-cr-00346-SJO Page ID # 951-952).

Freestone states that it gave money to David and Tom.  If so, then I would like some evidence that David and Tom used this money to pay back ESS if they actually believed that the money they received from ESS was a “loan” and not income.  If the Defendants did not use this money to pay back ESS then it contradicts the claim in the Mug Shot Motion that the Defendants used a “good faith” effort to repay this money. 

It’s clear that David and Tom received money from ESS in the form of INCOME.  They just didn’t want to pay their taxes, just like they didn’t want to spend investor money on the “technology”.  Instead they spent investor money on RVs, exotic cars, interior decorating, motorcycles, condominiums, and other luxury items.  In their own words they think they are “free to blow every penny on anything.”  Since they got away with scamming investors they thought that they could scam the IRS too.  David didn’t even file a tax return in the six years he received money from ESS. 

The Mug Shot Motion shows the true character of David Feuerborn and Thomas Jennings.  They don’t feel any obligation to ESS shareholders, and don’t feel the need to explain their lavish spending habits that occurred at our expense. 

All of the latest motions will be heard on February 23, 2011 (delayed by one day).

-ESS Investor