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

Emergency Motion Filed in the Civil Case

Well readers, you won’t be surprised to discover that Neil Evans is using the same delay tactics that got him four continuances in the Criminal Case.  Let me begin by saying that I wish no ill will or disrespect towards Mr. Evan’s sick father-in-law, but this is becoming ridiculous.  He has been using the same excuses now for more than a year to get multiple delays in both the Criminal Case!  Now he is using these tactics to delay the depositions of all the Defendants in the Civil Case.  (In my opinion, he probably doesn’t want the Defendants deposed before they have their sentencing hearing.)     

Apparently my blog has hit a nerve!  In his Emergency Motion, Neil Evans makes the absurd claim that, “[the Plaintiff] published a damaging ‘blog’ regarding this case on an ‘[ESS] Investor Information Spot’ which is designed to attack and defame the Defendants and apparently, also myself and my unrelated clients” (Case 3:10-cv-01349-O; Page ID 962).  He thinks that I am associated with the company suing Dave and Tom!  Apparently Neil Evans doesn’t realize that federal court documents are available to the public!  I’m sorry that Mr. Evans thinks I am defaming him or his clients, but publishing the contents of federal documents filed by the U.S. Attorney’s Office and Freestone is not defamation.  I am merely providing a service to my fellow ESS investors that were scammed so they can keep track of the two ongoing cases against Dave and Tom.  Dave and Tom were convicted by a federal jury for conspiracy, tax fraud, and tax evasion.  I am merely posting relevant information on the investor scam that was unveiled during their Criminal Case.  The best defense against defamation is the truth Mr. Evans.  For the record, I am providing this service as an independent ESS investor that was defrauded by David’s and Tom’s snake oil scam just like more than 1,000 other investors in Louisiana, Oklahoma, Texas, California and other states.    

I am glad Mr. Evans took the opportunity to notify the Judge in the Civil Case of my Blog.  Hopefully he visits my blog and reads what the U.S. Attorney’s Office has to say about these guys, hear stories from ESS investors, read some fascinating polls and watch some interesting videos!    

Thanks again Mr. E, and despite my distain for your tactics I will keep your father-in-law in my prayers.

God Bless

-ESS Investor 

Planning Your Prison Visit

Tom and Dave are looking at long prison sentences for defrauding the Government.  They have also created undue hardship in the lives of many investors that put their trust and faith in them, only to discover in the Criminal Case that they used our money to purchase interior decorating, exotic cars, motorcycles, ATVs, condominiums, jet skis, fancy golf carts, etc.  Even though we won’t receive any money from the Criminal Case verdict we can have peace of mind that Dave and Tom will spend some substantial time in prison and this fraud will not be perpetrated on any more investors.  

Here is what they can expect behind bars, and if Dave and Tom are reading this Blog then they may want to take some notes:

http://www.wikihow.com/Survive-in-Federal-Prison

-ESS Investor

Sentencing Hearing Moved

This post is to issue an update regarding the Criminal Case.  The Sentencing Hearing for David Feuerborn and Thomas Jennings has been moved to Thursday July 14, 2011 at 9 a.m. in the courtroom of Judge Otero. 

New Motion Filed in the Criminal Case: Sentencing Position of the Government

First and foremost, I want to let all the ESS investors know that the Assistant United States Attorneys representing the Government in the Criminal Case are fighting for all the ESS investors to the very end!  They are requesting that David Feuerborn receive a sentence of 63 months in prison, and that Tom Jennings receive a sentence of 57 months in prison.  They are also requesting that they serve 3 years of supervised release, and pay the IRS $1,814,248.  Obviously, we would have liked them to spend the maximum behind bars, but I believe the requested sentences are indicative, and encompass the magnitude of the crimes they perpetrated on the IRS and the thousands of investors that invested in ESS.

Here are some key excerpts from the Government’s Sentencing Position Regarding Defendant’s Thomas R. Jennings and David J. Feuerborn:

“From 2003 through 2007 alone, defendants, both personally and through various stock promoters they hired, raised approximately $16 million from hundreds [of] investors throughout the country” (Case 2:10-cr-00346-SJO; Page ID 2031).

“To date, ESS has never generated any profits (nor significant revenues) and investors have lost everything they put into the company.  Moreover, defendants’ technology has never been proven to work as claimed.  As explained below and proven at trial, unbeknownst to ESS’s investors, ESS’s accountants, ESS’s board members, and ultimately the IRS, defendants siphoned off millions of dollars invested in ESS into a secret bank account defendants controlled and then used that money to fund lavish lifestyles for themselves and their family and friends” (Case 2:10-cr-00346-SJO; Page ID 2031).  

“Defendants used the diverted money for their personal benefit, including to purchase numerous cars (including a Porsche, a Dodge Viper, and a BMW), motorcycles, RVs, and jet skis; to pay for interior design and cabinetry work at their personal residences; and to purchase condominiums in Palm Desert, California.  Defendant Jennings also wrote dozens of checks drawn on the Bogus Ecologic Account that were made payable to himself, to defendant Feuerborn, and even to his in-laws Alice and Ralph Bertania. (Govt Ex. 155.)  Other such checks were made payable to his country club, golf cart companies, car leasing companies (eg., Mercedes and Lexus), auto detailing companies, and home improvement companies (eg., that sold granite counter-tops, fireplaces, patio furniture, and window treatments” (Case 2:10-cr-00346-SJO; Page ID 2034).   

“[A]lthough defendants were convicted of conspiracy and tax fraud and not investment fraud, and while the IRS is technically the only ‘victim’ in this case for purposes of guideline calculations and restitutions, see Parts III and IV infra, ESS investors rightfully consider themselves victims of defendants’ lies and omissions.  A number of ESS investors, in fact, have reached out to the government to tell their stories, and the government believes the Court should consider those stories in evaluation the 3553 (a) factors to determine appropriate sentences for defendants” (Case 2:10-cr-00346-SJO; Page ID 2037-2038).   

“Disturbingly, several investors have informed the government that defendants are currently seeking to restart their business and are actively soliciting new investors, while minimizing the seriousness of their convictions and bragging that they will receive only probation in this case”(Case 2:10-cr-00346-SJO; Page ID 2038).

ESS Investors—your stories are being heard.  The Assistant US Attorneys have even acknowledged the emails they are receiving from you, and they are using them to request the above prison terms!  If you haven’t already, I urge you to share your stories with the Assistant US Attorneys so that they can include your stories in the sentencing hearing on June 27^th (eric.vandevelde@usdoj.gov; daniel.b.levin@usdoj.gov).  

Also, the US Attorneys’ Office is aware that they are trying to continue this scam, and I think they will be proactive in stopping everyone involved once and for all.  

-ESS Investor    

David Feuerborn's Gold Scam EXPOSED!

Here is the video description: 

“David Feuerborn claims he is an "inventor" with a God-given talent that allows him to create solvents to extract various elements that have monetary value from solid material. He is most famous for his oil sand extraction solvent scam that led to his conviction in April 2011 (http://camarillo365.com/local-man-guilty-of-tax-fraud/).

In another scam he claims he can extract gold from slag (the impurities and fluxing agents that combine to form a liquid silicate in the smelting process). In this video you see a crucible with a flame. In the beginning of the video, when the representative from the gold company turns his back, Dave quickly takes a gold coin from his left pocket and sticks it to the bottom of his ladle. (seconds :08-:10 in the video) (Dave claims he needs the ladle to tell how hot the flame is so he knows when it's at optimal temperature. Wouldn't a thermometer work?)

Dave's hope is that the gold will fall off into the crucible below without the employee noticing. Notice that when the employee turns his back again, Dave turns the ladle over to see if the coin has fallen off (you can see the bright gold coin is still attached to the bottom of the ladle). Since it has not fallen off, Dave puts it back over the flame. This is all the setup to the scam to claim that his "magic solvent" extracted the gold, when in fact he obtained the gold from melting the coin into the crucible.

The Gold Company became suspicious when he always produced EXACTLY 1oz of gold (the exact amount in a gold coin) from the slag, and they placed these hidden cameras in the warehouse to expose the scam! Amazing!

...more videos to come”

WOW!  This guy is a professional con artist and here is the video to prove it. 

PS: David taught this "process" to Tom, and he is currently teaching their new front man Larry Shultz.   I'm also told David is perfecting his latest solvent which will turn water into wine.

-ESS Investor

Do You Want to See How David Feuerborn Spent Our Money?

A tipster sent me some pictures of the cars David purchased and modified with our investment money.  It’s funny, I didn’t see these cars in the Use of Proceeds when I invested in ESS—did you?  (BTW, this isn't even all of them.)

-ESS Investor

The Month We Have All Been Waiting For

It’s finally the month we have all been waiting for!  Only 26 more days (June 27^th) until David Feuerborn and Thomas Jennings are sentenced by Judge Otero for Defrauding the United States of America, Tax Fraud, and Tax Evasion.  If you remember the last motion filed by Neil Evans in the Criminal Case, Neil proceeded to tell Judge Otero that he made a lot of wrong decisions during the Criminal Trial, and Neil even claimed that the Ventura County Sheriff’s Department attempted to frame David Feuerborn.  In light of the last motion, I hope Judge Otero sees the true colors of Feuerborn and Jennings.  

The Criminal Case was not about the multi-million dollar fraud that Feuerborn and Jennings perpetrated on thousands of investors with their snake oil scam, but then again Al Capone wasn’t convicted of murder, racketeering, bribery, and prostitution.  In the end Mr. Capone, like Mr. Feuerborn and Mr. Jennings, were convicted by federal prosecutors of the black and white allegation of Tax Evasion.  While I would have preferred to see the U.S. Attorney’s Office go after Feuerborn and Jennings for defrauding thousands of investors, I know that their sordid pasts will weigh heavily on the Judge’s mind during sentencing.  I would also recommend that every investor that was defrauded by this scam request to testify at the sentencing hearing.  I am sure the U.S. Attorney’s Vandevelde and Levin (eric.vandevelde@usdoj.gov; daniel.b.levin@usdoj.gov) would love to hear your story.  

You can guarantee that Dave will have friends, family, and probably even his preacher testify on his behalf.  This is exactly what he did in Louisiana during a bail hearing.  Of course his friends and family want him to have a short sentence so he can restart his chemical snake oil scam.  The U.S. Attorneys already proved that some of the money in the fake Eco-Logic Account went to family members and friends of Dave and Tom.

Let’s pray that Dave and Tom get the statutory maximum for their convictions, and I hope they are placed in the general population at a medium security prison.  Maybe then they will experience the same type of suffering and heartache that so many ESS investors have had to deal with.  If Dave and Tom get the statutory maximum and the U.S. Attorneys go after their partner Larry Shultz, then we can finally rest assured that this scam will stop once and for all.

Lastly, I am working on an email to go out to all the investors interested in pursuing a class action lawsuit to get our money back.  Thank you for the overwhelming response.  It will go out shortly!

-ESS Investor