David Feuerborn, Thomas Jennings, Larry Shultz and the Ultimate Scam

Hello Blog World.  I want to thank all my followers and tipsters for your continued efforts to help stop the chemical fraud still being perpetrated by David Feuerborn, Thomas Jennings and Larry Shultz.  Your detailed information has been paramount to this Blog’s success.  Unfortunately, even the criminal convictions and the imminent prison sentences have yet to deter them.     

When I started this Blog I had no idea what type of responses to expect, but it has been overwhelming.  Feuerborn, Jennings and Shultz have deceived a lot of investors, and ruined many lives with this scam.  They have raised more than $20,000,000 since 1992, and they have not earned one cent of profit to date.  Instead they have used our investment to purchase houses, condos, sports cars, motorcycles, ATVs, and many other luxury items to support their scam artist lifestyles.

I will acknowledge that some of the investor money has gone towards “machines”, but I have learned that they use only a small portion of their funds to engineer and build these non-functional machines to look impressive in order to scam a new crop of investors.  For instance, ESS shareholders were issued a press release in 2007 stating that ESS/Can (now Elemax) was building a machine.  Feuerborn, Jennings and Shultz have even posted a letter from Paul Sicotte, where Mr. Sicotte touts the chemical’s abilities.  Personally I think this letter could be fake, but then again Mr. Sicotte was on the witness list on behalf of Feuerborn and Jennings in the Criminal Case.  Now, the Elemax machine is the same machine Larry Shultz is showing to potential investors.  This machine is non-functioning as well, and I am told it has never worked.  I am also told Shultz does not bring Feuerborn and Jennings to the meetings in order to conceal their involvement.

Let’s think about this--if Mr. Sicotte and Elemax are so confident in the chemical and the machine, then why is Shultz trying to raise money for its completion?  Why doesn’t Elemax fork out the money to complete the machine?  A tipster that visited the machine with Shultz stated that Shultz claimed they only need $250,000 to complete it.  If the Canadian group has spent millions of dollars on this technology then $250,000 should be a drop in the bucket.  If this chemical is the next best thing since sliced bread and it works in this machine, then why have the Canadians not paid for its completion to prove that it works as represented?  If you could spend $250,000 to save your multi-million dollar investment, wouldn’t you do it?  If you believed in the technology then you would, but if you realized it’s a scam then you wouldn’t.  In my humble opinion the facts do not add up, and if it smells like a skunk then it probably is one.

Jennings   

Also, I have to ask WTH is going through the mind of Thomas Jennings!?!?!  How is he willing to sacrifice his marriage and his relationship with his kid(s) for David Feuerborn and Larry Shultz?  I have received information from tipsters that tell me Thomas Jennings is actually a fairly decent guy with a skill set that would allow him to get another job away from this scam.  Personally, I think anyone that involves themselves with this scam is unethical, but through the years I have seen how greed can corrupt, and I have also witnessed how deceivingly convincing Feuerborn is.  It’s hard to pass up easy money, but there is a point when you have to walk away to protect your relationship with the ones you love.  But who knows, maybe there is more to Feuerborn’s and Jennings’ relationship than we know.

-ESS Investor

SEC

Lately, I have been receiving a lot of tips from some very credible sources.  One such tip has led me to provide information to the SEC.  Apparently the SEC has an open file on these guys, but they won’t comment too much further beyond that fact.  They wouldn’t say whether a formal investigation is occurring or not, but they did say they would be willing to view any information such as prospectuses, lab reports, promotional materials, memos and personal correspondences.  If you have any of this information you can send it to me and I will be glad to pass it on.  If you want to speak to an agent personally I can provide you this information as well via email.      

I also asked if they were aware of the current Freestone case against Feuerborn, Jennings and Shultz, because Freestone alleges multiple securities fraud claims.  They said they are very much aware of that case.  I told them that Freestone has filed multiple exhibits that they should look at that show where Feuerborn and Shultz made written representations to Freestone that the “solvent” is proprietary,  patented, non-toxic, and operates in a closed loop system (among others).  I told him that these are the same misrepresentations they have been making since 1998 and he should look at the Desist and Refrain orders issued by Texas and California.  (BTW, If Dave even tries to use that BS claim that in 2006 he was using an “old formula” to explain away the damning SCAQMD Report, CA Desist and Refrain and Louisiana Docs, then I want to know why we have amassed hundreds of documents where Dave claims it’s non-toxic well before 2006.)   

I also made a comment about the stock they sold to more than 600 people before Freestone was even in the picture. They said they were aware of that as well.  I also told them that I had been contacted in the last few months by people Larry Shultz is still attempting raise money from by giving the same misrepresentations and showing them a bogus machine.

Hopefully the U.S. Attorney’s Office will have round two with these guys based on the securities fraud.  It seems like a pretty easy case to win based on the preponderance of evidence.

-ESS Investor 

Delusional Minds

I received emails from tipsters that have some valuable information about David Feuerborn and Thomas Jennings.  

Freestone

Dave and Tom are telling people close to them that they are about to take control of Freestone, and they will soon be running the company.  This is too funny, and really shows how delusional they are.  They really think they can keep their scam going, and use Freestone (a public company) as a vehicle to start defrauding the pubic at large.  I'm sorry boys but that ain't happening.  The Freestone management has taken a proactive step to  stop you from scamming more investors.  I will also make sure I am on the front steps of the local SEC field office every day if Dave and Tom even come close to selling this scam to the public.   

"No Jail Time"

Dave and Tom are telling everyone that they are working with prosecutors to avoid any jail time.  I really hope that this is not the case.  I am requesting that everyone reading my blog email and call Assistant U.S. Attorneys Vandevelde and Levin and plead with them to request the statutory maximum (eric.vandevelde@usdoj.gov; daniel.b.levin@usdoj.gov).  Tell them your story and that you heard they are boasting to friends and family that they won't do any jail time.

New Corporation Started to Continue Their Scam   

David and Tom are starting an Oklahoma LLC as a vehicle to continue raising money from more innocent investors.  To my knowledge they have not raised money from investors in Oklahoma, and I am told that they now feel that OK is fertile territory for the scam.  I will try and do a corporation search so I can post the name of their new Oklahoma limited liability company.  

Personal Lives

Tom was recently divorced and he sold his house.  He also let the bank foreclose on his condo in Palm Desert (the one the U.S. Attorneys said he purchased with ESS money that he funneled through his bogus Eco-Logic bank account).  David is also selling his assets (including his Rolex watch) in order to raise money to fight Freestone in an attempt to hold on to the fruits of his scam, and also to start the new Oklahoma LLC.

We need to be proactive to stop these criminals.  I will post more information of regulatory agencies we can contact to help stop these scam artists once and for all!

-ESS Investor 

Mixed Bag

It looks like the Civil Case hearing occurred on Friday, and Judge O’Connor made some important rulings:

“ELECTRONIC Minute Entry for proceedings held before Judge Reed C O'Connor: Evidentiary Hearing held on 4/15/2011. The Court denied Plaintiff's Motion for Preliminary Injunction pending Defendants filing affidavits on the record by April 30, 2011 stating that they will not attempt to sell or transfer any Freestone stock without prior authorization from this Court, as well as a proposed Order to that effect. 

Defendants are ORDERED to file their answer and any counter-claims on or before April 30, 2011. Further, Defendants' counsel Neil Evans's deadline for filing a motion to proceed without local counsel or engaging local counsel is hereby extended to April 30, 2011. Lastly, for the reasons stated on the record, Defendants' Motion to Dismiss (ECF No. 31) is dismissed. (Court Reporter: Denver Roden) (Exhibits admitted - returned to party) Time in Court - 4:00. (chmb) Modified on 4/18/2011 (chmb).” 

In summary, the Injunction requested by Freestone was denied, but the Judge ordered Feuerborn, Jennings, Shultz and Environmental Services and Support Inc. not to sell or transfer stock without permission of the Court (that seems like a partial win for Freestone).  Additionally, the Court dismissed the last Motion to Dismiss filed by Neil Evans, and set an April 30^th deadline to get an answer filed.  It’s about time!!!  

It sounds as if things are finally ramping up, and Neil can’t stall the proceedings any longer.  I am sure the Judge is getting tired of all the delay tactics.

-ESS Investor      

Friday’s Civil Hearing

Happy Monday!  I was wondering if anyone had any information about the civil hearing that took place on Friday.  I am curious to find out if Neil Evans showed up with any of the three amigos.  I may have to wait until the Order is posted on PACER, but I will keep checking the database daily to keep everyone up to date.

On a personal note, I am shocked that there hasn’t been a settlement in the Civil Case.  I have to assume that Freestone is sticking to its guns and refusing to make any settlement offers with these con artists.  Good for them!  I am sure David, Tom and Larry want to settle to avoid any damning documents being filed of record with the Federal Court.  Unlike state courts, everything made of record in Federal cases are available to the public via an easily accessible online database.  Until now, every major lawsuit filed against Feuerborn and Jennings (relating to the chemical fraud) occurred in state courts which made getting access to the documents very difficult.  Thanks to the Federal jurisdiction of the Civil Case this will not be an issue anymore.  I will make sure to continue to post any documents Freestone files on this blog so that the public has full access to the plethora of evidence against these convicted criminals.

Vice versa, if the three amigos are refusing to settle with Freestone then I have to assume that they think they have nothing to lose (seeing how two of the three are looking at 17+ years in prison), and that they are using every last drop of money they scammed from investors to pay an attorney in an attempt to hold on to the fruits of their last scam.  Larry Shultz has already attempted to attack Freestone and its management in the same way that Feuerborn and Jennings have constantly attacked and defamed Federal Prosecutors, Judge Otero, the Ventura County DA and Sheriff’s Office, agents working at environmental agencies, the Louisiana Attorney General’s Office…the list goes on.  In one of Larry Shultz’s rampages he talks about removing the management at Freestone so that he can run it with Feuerborn and Jennings--No Joke.  I guess Shultz plans on holding board of directors meetings during the hours set aside for conjugal visits!  He must be delusional to think that is even a possibility.  

I have received a large amount of inquiries from ESS investors about a possible class action lawsuit.  Thus, I am going to create a message board to allow ESS investors to exchange information in an effort to coordinate this action.  Remember, we can use any relevant documents Freestone uncovers in an ESS class action.  We can also use documents filed by the U.S. Attorney's Office in the Federal Criminal Case that just ended.     

Last but not least, the SCAQMD report mentioned in my last blog entry is extremely damning, because it states that their Cancer Machine spewed massive amounts of the toxic, non-proprietary chemical that Dave touts as R6000 (Name they used in California), RTS-11 (Name they used in Louisiana), and RENEU (Name they used CA and TX) as late as 2006.  2006 was well after most ESS investors got involved on the basis that their chemical and process was non-toxic, which is clearly refuted by this report.  I would like to see them explain that one away.  Stay vigilant and I will be posting the message board link shortly!

-ESS Investor                    

The Goose is Cooked

I have recently been in contact with an ex-employee and investor that worked with Dave and Tom for about two years.  He has given me some of the most damning documents on Dave and Tom that I have ever seen.  These documents include a police report and lab report from Louisiana authorities, and a seven page memo and lab report issued by the South Coast Air Quality Management District (“SCAQMD”).  Both reports indicate that more than 88.1% of Dave’s magic solvent is nothing more than a non-proprietary, carcinogenic, and extremely toxic chemical.  The SCAQMD report was issued by an agent of the organization on August 2, 2006 (Re: A/N 457775), and it cites the many reasons why Dave and Tom were denied a permit to operate their machine in California; the main reason being that it spewed this carcinogenic chemical into the air during the operation of the machine.  The memo I received issued by the SCAQMD is an expanded and more detailed version of the document available online.  

The Louisiana report states that Louisiana authorities raided a meeting held by ESS for prospective investors.  The undercover Louisiana authorities identified themselves, and confiscated the “magic solvent”.  A lab in Louisiana found 80%+ of the “solvent” that was confiscated was the same toxic chemical listed in the SCAQMD report.  

I have emailed these documents to Freestone to help their case. I have also sent the information to some ESS investors that have discussed a possible class action lawsuit against Feuerborn and Jennings.  I am sure that these documents will be used as exhibits in the Civil Case, and made of record with the Court so that any subsequent cases against Feuerborn and Jennings can include these documents.  I will also post them on this blog when they are included in the Civil Case.  I think these documents might be grounds for a summary judgment in the Civil Case.  I doubt that Feuerborn, Jennings, and Shultz gave these documents to Freestone prior to the execution of their contract (just like these documents were never disclosed to ESS investors), and one of the counts against the three amigos in the Civil Case includes fraud by nondisclosure.  

-ESS Investor     

Oy Vey

The Honorable Judge O’Connor set a hearing for the Injunction, and Neil C. Evans responded with a request to postpone the hearing, “due to Jewish Holidays, vacations, and conflicting matters” (Case 3:10-cv-01349; Page ID 741).  Neil also claimed that he has, “been scheduled to attend Trials in a family law matter” this week (Case 3:10-cv-01349; Page ID 740).  It sounds like Mr. Evans thinks his schedule is more important than that of a Federal Judge.  He showed contempt for Judge Otero in the Criminal Case so I am not surprised to see the same flippancy in the Civil Case.

Here is what Judge O’Connor had to say to that:

“Before the Court is the Declaration of Neil C. Evans Requesting Re-calendaring of Hearing on Plaintiff’s Motion for Preliminary Injunction (ECF No. 33). On April 4, 2011 the Court set a hearing on Plaintiff’s Motion for Preliminary Injunction for Wednesday, April 13, 2011 at 9:00 a.m. See ECF No. 32. Mr. Evans indicates that he has trials on April 11, 2011 and April 13, 2011 in a family law matter set in Ventura County Superior Court, California. See ECF No. 33. One such trial was recently moved to April 13, 2011 at 1:30 p.m. See ECF No. 33.  Mr. Evans further states that he is “unavailable the weeks of April 18 and April 25, 2011, due to Jewish Holidays, vacations, and conflicting matters.” Id. Mr. Evans requests that the Court recalendar the hearing on Plaintiff’s pending motion during the first two weeks of May, 2011. Id.

The Court hereby DENIES Mr. Evans’s request for such delay.

Plaintiff’s Motion for Preliminary Injunction hinges on allegations of imminent and irreparable harm. See ECF No. 22. A multi-week delay would fail to accord Plaintiff substantial justice and would unduly prejudice Plaintiff. Nonetheless, in light of Mr. Evans’s noted conflict on April 13, 2011, the Court will briefly delay the hearing on Plaintiff’s Motion for Preliminary Injunction. Mr. Evans has not shown or mentioned any conflict on April 15, 2011. See, e.g. ECF No. 33. Accordingly, the Court sets a hearing on Plaintiff’s Motion for Preliminary Injunction for Friday, April 15, 2011 at 9:00 a.m. The hearing will convene in the United States District Judge’s Courtroom 1516, 1100 Commerce Street, Dallas, Texas. Lead counsel for both Plaintiff and Defendants are hereby ORDERED to appear and be prepared to discuss all issues related to Plaintiff’s Motion” (Case 3:10-cv-01349; Page ID 743 and 744).

Without any motion filed by either side the Judge filed another order last Friday stating:

“Pursuant to Local Rule 83.10(a), local counsel is required in all cases where an attorney appearing in a case does not reside or maintain an office in the Northern District of Texas. See L.R. 83.10(a). An attorney who desires to proceed without local counsel must obtain leave from the Court. Id. In this case, Neil C. Evans, attorney for Defendants, does not reside or maintain an office in the Northern District of Texas. Accordingly, Mr. Evans must either obtain leave from this Court to proceed without local counsel, or obtain local counsel. See id.

It is therefore ORDERED that Mr. Evans either file a motion for leave to proceed without local counsel or engage local counsel on or before April 22, 2011” (Case 3:10-cv-01349; Page ID 745).

What a shock.  Once again Neil Evans is not doing anything correctly.  His haphazard legal practices definitely helped the Government’s case against Feuerborn and Jennings, and it looks like he is continuing those same practices in this case.  This should get interesting.  Any local Dallas-ites plan on attending?  I would love a play-by-play.

-ESS Investor

Twilight Zone

I think Neil C. Evans, the attorney representing David, Tom, and Larry, is living in the Twilight Zone.  Today, Evans filed a Motion to Dismiss Counts of Plaintiff’s First Amended Complaint Under Rule 12(b)6; Alternatively, for a Motion to Strike all References to Texas Law in all Counts Under FRCP 12 (f) in the Civil Case.  This is the third attempt to get the Civil Case dismissed.  The motion is only 7 pages long, and it looks as if it was thrown together in about five minutes.  It is riddled with grammatical errors and spelling mistakes.    

This is becoming kind of humorous.   The only reason Evans continues to file these baseless motions to dismiss is to buy his clients more time so they don’t have to answer the lawsuit.  If they answer the lawsuit then they will be forced to admit that their “technology” contains chlorinated, carcinogenic chemicals.  When they admit this fact on the record, they won’t be able to raise more money from innocent investors.

If they were innocent then there would be no need to file dismissal motions, and they would simply answer the lawsuit and get their “day in court.” The Honorable Judge O’connor has thrown out the previous motions to dismiss, because he recognized that they had no merit and that they were only stall tactics.  

Last but not least, Freestone filed a Temporary Restraining Order (“TRO”) to request that the Court hold certain stock during the duration of the Civil Case.  The Judge ordered the defendants to respond, and of course David, Tom and Larry filed an opposition motion that didn’t even address the TRO.  Instead they used the opportunity to defame Freestone, and Larry Shultz attached a declaration that amounted to an incoherent tirade.  This new guy Shultz must be legally insane (which is evident from his continued partnership with convicted felons Feuerborn and Jennings).  Based on what I have read and heard about him, I am sure he makes one heck of an investor presentation LOL!  His insanity might be the best tool to stop this fraud once and for all. 

As I have mentioned multiple times in previous posts, the defendants are constantly defaming organizations and government agencies that uncover their scam.  

To Freestone: Don’t let these clowns get to you.  Despite all their baseless attempts to get your case dismissed, sleep well knowing that two of the three con-artists will be spending a lot of time in prison. And maybe they can use their "technology" behind bars to do some oil separation - extracting their lube from its bottle.  Bottoms up boys! 

-ESS Investor