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
Holy Cow! The report was dated at the end of 2006! I am sure Dave and Tom hid those reports and didn't give them to anyone (they never disclosed it to ESS shareholders). Legally speaking, if the defendants knew about the reports (even just one of them) and it wasn't disclosed prior to the deal, then Freestone should be granted a summary judgment on fraud by omission of a material fact. This is a violation of federal securities laws (1936 act), California state securities laws (1968 act), and the Desist and Refrain Order which bars them from selling "ANY SECURITIES" through misrepresentations and/or omissions.
ReplyDeleteI would put a word of caution to Freestone and recommend that they obtain a copy from the state agencies themselves. It shouldn't take more than two weeks to process under federal and state open records laws. While it's not 100% necessary it will make the judge more comfortable in granting the summary judgment. Also, check to see if any of the defendants signed the memo or a notice of receipt, and request that the delivering agent sign an affidavit that the defendants received a copy, and thus knew about it and its contents.
I'm not sure if this community knows just huge this discovery is, but this is a giant development. ESS investors should have been notified of this memo and the denial letter. I know ESS has enough shareholders to be categorized as a public company by the SEC. This means that this should have been released to shareholders in the form of a news announcement, because it is such a key business event. Ess investors, from the date of its discovery the fraud statute of limitations begins anew.
When this summary judgment is granted (and based on this new information I find it hard to believe that it won't), it should be sent to the Dept of Corporations and the SEC. We may see another criminal trial on the horizon. Sorry, Mr. Blogger, but you may have a full time job here again soon!