Anonymous Blogging Turned On

Recently I enabled the ability to post anonymously, but some individuals used the opportunity to abuse the comment feature.  I have resumed anonymous posting to allow ESS investors, and others that know about this scam, a forum to tell their stories and voice their opinions.  To ensure that this feature is not abused I have enabled the moderator feature so that each comment will be reviewed before it is posted to the site. 

-ESS Investor     

Larry Shultz: Continuing the Con and Helping the Criminals

I received a tip from an anonymous source that stated that he was recently approached by Larry Shultz (pictured below) for an investment in the “oil separation chemical scam”.  He said that Larry was trying to present David and Tom as inventors that have no business sense, “but have a great idea” as an excuse for their criminal activity.  I find it deplorable that he is, TO THIS DAY, continuing David’s con job on innocent investors.  He doesn’t even care that David and Tom were just found guilty of fraud by a federal grand jury!  Clearly nothing will stop this scam unless the government takes action against EVERYONE involved (including this Shultz character).  

I told this tipster that he should contact the FBI and let them know of the recent criminal convictions of his partners.  Hopefully the authorities will stop this scam, and place all the perpetrators in prison.  Enough innocent people have been hurt!

I wouldn't be surprised if he helps them flee before their prison sentence.

Larry Shultz:   

Fly Away?

I have received multiple tips from concerned ESS investors that believe that David Feuerborn will attempt to flee the country before his sentencing hearing.  This concern is based on the following information:

Paul Sicotte

David has connections (and possibly large cash deposits) in Canada.  A Canadian citizen named Paul Sicotte was a key witness in the Criminal Case for Mr. Feuerborn.  Based on Mr. Sicotte’s recent statements, he is still a firm believer in their “technology” and knows that he will be out of business if David is in prison.  I highly doubt that he still believes in their technology, but he testified on their behalf because Mr. Sicotte needs the ability to sell the technology to a third party in order to recapture his investment.  Thus he must keep some semblance of the technology’s credibility despite the fact that he knows it doesn’t work, and is extremely toxic.  

David’s Girlfriend, Asa Kilander

It has also been reported to me that Asa Kilander (pronounced “Osa”) makes multiple trips to Sweden every year, and it is believed that she has funneled ESS money into Swedish bank accounts on behalf of David.  Additionally I am told that she and David purchased a ranch in Sweden with ESS money.  Asa also received large amounts of investor money from ESS based on tax documents the Government has produced.  

Both Canada and Sweden have treaties with the U.S. that allow for the extradition of convicted felons, but I have a feeling David will use nefarious methods if he decides to flee before the sentencing hearing.  I base this opinion on the fact that the Government still has their passports, and thus they would be required to use illegal methods to escape the borders of the United States.  That doesn't deviate from the fact that they most likely have money offshore that they can access after they flee the country.

Please feel free to send me your opinion and your thoughts on this subject.  Let me know if you have any more information on Paul Sicotte or Asa Kilander (pictured above), and their involvement in this scam.  I am very concerned and I believe they should, at the very least, be required to wear ankle bracelets.  Hopefully someone from the DOJ takes this concern very seriously.   

-ESS Investor            

Sentencing

Now that David Feuerborn and Thomas Jennings have been found guilty of tax fraud and conspiracy, everyone is wondering how much time they will spend in prison.  This has been the subject of conversations between me and numerous tipsters.  I have also received a high volume of emails from investors that would like the opportunity to testify at the sentencing hearing in late June.  Hopefully the Assistant U.S. Attorneys will allow many of these investors to tell their story.  A lot of people have been hurt by this scam, and their stories need to be told to the Honorable S. James Otero so he can factor them in to his decision. 

As stated in the DOJ Press Release, David faces up to 25 years in prison and Tom faces up to 17 years in prison.  The research I have conducted on prison sentences issued by Judge Otero indicates that he favors longer punishment terms than average, and the typical tax fraud sentences seem to be around 40-70 months.  The conspiracy conviction (the bogus Eco Logic bank account used to hide money from investors and the IRS) will weigh heavily on the Judge’s decision, and will substantially add to their prison term. 

Judge Otero will most likely want to hear from investors that were scammed, and I am sure the prosecution will bring up the Civil Securities Fraud Case that is currently pending in Dallas, TX.  The Civil Case shows their continued attempts to defraud investors, and the continuation of behavior that promulgated the current guilty verdicts.  The Government has cited the Civil Fraud Case in multiple motions that led up to the trial, and I am sure it will be used again at sentencing. 

It is difficult to speculate how much prison time they will receive, but it is likely that they will get an above average prison term due to the ongoing Civil Fraud Case, as well as investor testimony (over 800 of us).  I guarantee David Feuerborn still thinks he did nothing wrong, and thus he will continue the chemical scam with their new partner that has yet to be indicted, Larry Shultz.  Thanks to the Civil Fraud Case we know the identity of this man (history indicates that they always have someone willing to be their shill for some quick cash).  I think the Judge should ask David and Tom if they plan to continue to pursue the “chemical business” after they are released from prison, or if their third partner, Larry Shultz, will continue pursue the “chemical business” while they are in prison.  If they answer “yes” to either of those questions then I hope Judge Otero gives them the maximum sentences allowed so they can’t hurt any more investors.

We must continue to alert federal and state authorities of the ongoing effort by Larry Shultz to front for this scam on behalf of Jennings and Feuerborn.  Stay vigilant. 

-ESS Investor    

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Two Down, One to Go

David Feuerborn and Thomas Jennings were found guilty by a federal jury on March 4, 2011.  This doesn’t surprise me because of the overwhelming evidence of their guilt, as well as the superior work of the two Assistant United States Attorneys compared to the work of Neil Evans.  Sentencing is currently scheduled for June 27, 2011.  According to the press release issued by the Department of Justice, “Jennings faces a statutory maximum penalty of 17 years in federal prison, and Feuerborn faces a statutory maximum penalty of 25 years in prison.”

The Press Release also stated, “[t]he evidence presented during a two-week trial in United States District Court showed that Jennings and Feuerborn used a bank account under a name very similar to an ESS vendor to funnel to themselves several million dollars that they used for their own personal benefit, including the purchase of numerous cars, motorcycles, and recreational vehicles, as well as interior design work at their residences and condominiums in Palm Desert.

In addition to funneling money to themselves through this bogus account, Jennings and Feuerborn also paid themselves large “management fees” – typically $15,000 each per month – for running ESS.”

Typically a judge would like to hear from investors that were hurt by the scam at sentencing.  If you have been scammed by David Feuerborn and Thomas Jennings and would like to tell your story I recommend contact AUSA Vandevelde or Levin and ask if you can testify at sentencing (eric.vandevelde@usdoj.gov; daniel.b.levin@usdoj.gov). 

Now that Feuerborn and Jennings have been found guilty, I would hope that the FBI will open an investigation on Larry Shultz.  Mr. Shultz has admitted that he is partners with David and Tom in the chemical scam on various documents he has filed with the Government.  He is also implicated in the Civil Securities Fraud Case that is still pending against David and Tom.  Shultz is currently trying to sell their fraud to more investors with the same bogus claims and misrepresentations, and it needs to be stopped once and for all. 

Los Angeles FBI Contact: (310) 477-6565

-ESS Investor 

GUILTY

http://www.justice.gov/usao/cac/pressroom/pr2011/027.html


http://www.vcstar.com/news/2011/mar/04/camarillo-man-and-business-partner-convicted-of/

http://www.bhcourier.com/article/Local_News/Local_News/Owners_Of_Southland_Environmental_Companies_Convicted_In_Tax_Case/74980

http://www.ocregister.com/news/feuerborn-290841-jennings-release.html

11th Hour

Neil C. Evans, David Feuerborn’s attorney, filed a motion yesterday requesting an “abbreviated hearing regarding the prior filed Motion to Suppress and Dismiss All Tax Evasion Charges” (Case 2:10-cr-00346-SJO; Page ID #1437).

Neil Evans is still contending that David Feuerborn’s Fourth Amendment rights were violated by the search and seizure that took place by the Ventura County Sheriff’s Department when they stopped the attempted concealment, and possible destruction, of evidence by Zackary Barker (David Feuerborn’s son-in-law).  According to testimony in the Louisiana Criminal Case, Zackary Barker admitted to the Sheriffs that he was instructed, by David Feuerborn and Arthur Feuerborn, to hide cash, computers and business documents.  Thus, Barker admitted that he attempted to conceal evidence of a crime.  The officers had every right to confiscate this evidence so that it could not be concealed or destroyed under the automobile exemption. United States v. Ross, 456 U.S. 798, 820-21 (1982) (warrantless search of car permitted if police have probable cause to believe the vehicle contains evidence of a crime).            

Once again this is a last ditch effort on the part of Mr. Evans to get the charges dismissed against his client, David Feuerborn.  I can only assume that the U.S. Attorney has presented a mountain of evidence at the Criminal Trial that proves that David Feuerborn and Thomas Jennings conspired to defraud the IRS (just like the conspired to defraud all the investors in ESS).  Since David and Tom were caught in this fraud they are attempting to create the illusion that the investor money they used to purchase their luxury items were paid to them in the form of “loans.”  (Personal Note:  I don’t understand how anyone can justify receiving $3,000,000 of investor money in any way, shape or form prior to the company earning even one cent of profit.  All the money they received came from investors, and not from profit!)   They are also claiming that the U.S. Government would have never found out about their bogus bank accounts if the Ventura County Sheriff’s department had not searched his vehicle.  (He is not denying that he defrauded the IRS, rather he is saying that his fraud would have never been discovered if it weren’t for the LEGAL search and seizure conducted by the Sheriff’s Office.)  David Feuerborn constantly attempts to fabricate excuses, or attempt to exploit legal technicalities when he is caught in his lies/frauds (the chemical fraud and the IRS fraud).  When chlorinated chemicals are discovered within his solvent he claims that state agencies and companies that discovered them maliciously planted the toxic chemicals. 

Furthermore, Neil Evans is claiming that he didn’t have enough time (due to family health issues) before the trial to file the Motion to Suppress and Dismiss.  According to local rules and the Judge’s rules he is required to file any motions to suppress and dismiss 35 days before the trial begins.  Neil Evans waited just over a week before the trial date to file his Motion to Suppress and Dismiss.  Neil Evans is constantly claiming that he doesn’t have enough time in this case because of family issues, but in reality he was able to file two motions to dismiss in the Civil Case and appear for a hearing in Dallas, Texas.  Who knows how many other cases he is working on currently?

Hopefully the Judge will see this tactic for what it is and deny his request for another hearing in this matter.  Let’s get on with the trial in the hopes that justice will prevail.

-ESS Investor

An ESS Investor's Story

Yesterday I received a truly heartbreaking email from the granddaughter of a woman that was scammed by David Feuerborn and Thomas Jennings.  After a few back-and-forth emails she gave me permission to post her story.

Her story begins when her grandmother was informed that some of her friends from church attended a presentation given by David Feuerborn and Thomas Jennings.  She decided to attend one of David’s and Tom’s many presentations, and was impressed by the table top demonstration and the claim that the chemical was environmentally safe and non-toxic. (Now we all know that they use carcinogenic, toxic chemicals which could never be used in a commercial process.)

The granddaughter went on to tell me, “My grandmother was told that she would make millions of dollars off a small investment of just a few thousand.”  She went on to say, “My grandmother even asked to meet with Dave personally before investing in ESS.  Dave came to her house and told her that he had a vision from God which told him how to create his ‘miracle chemical’.  I assume he saw the Christian icons hanging around her small house and decided to use this story to persuade her to invest.  Dave also told my grandmother that she should ‘pray on this investment’, and even prayed with her in order to induce her to invest.  My grandmother was so impressed by Dave’s religious zeal that she decided to invest half of what was left over in her retirement savings into ESS ($30,000).

Eight months after her investment, my grandmother attempted to contact Dave and ESS.  Her calls went unanswered.  Then my mother tried to get information from ESS.  All her calls were ignored as well.  When we had finally realized that this was a scam we attempted to call various state agencies in what became a futile attempt to get her money back.  Little did we know that Dave had taken the money and purchased his sports cars, condominiums, and everything else the IRS has recently discovered.  My grandmother became very sick, and her last days on earth were spent struggling to pay medical bills while Dave and Tom were spending her money on BMWs and Porches.  Even if they are claiming that the money they used was a ‘loan’, how does that make what they did right?”

I was speechless after I read her story.  It is truly heartbreaking, and I am sure there are many more like it.  David and Tom are said to have scammed more than six hundred people and tens of millions of dollars with this chemical scam.  I look back to the last sentence from her email, "Even if they are claiming that the money they used was a ‘loan’, how does that make what they did right?"  I keep asking myself the same question.  

I am sure each investor has a story to tell.  We may never get our money back, but at least we can have some hope that these men will be behind bars, and will never be able to scam anyone ever again.  My sympathies go out to this granddaughter and her family.

-ESS Investor