Digital Gas, Inc.(fka DIGGQ)

[Buckey]

HUMM quite a yarn

No, XRAY I am not an insider. I happen to be a CPA that invested in DIGG along with several family members and friends. My only financial incentive is in seeing the company stock go up in value. When the stock got hammered I went after some answers. The following is what I have been able to discover from my inquiries. Hopefully this information will provide other shareholders with some new understanding about DIGG.

Based on bank records and other correspondence a group defrauded a bank in November of 2005. This same group was attempting to divert DIGG assets as early as 2004 and continuing through June of 2005.

They approached Smith with bribes of $15 million and $65 million to relinquish control of quarry properties held by DIGG. Smith refused to participate in the bribes and took the honorable approach of protecting DIGG shareholders. When the group tried to circumvent DIGG's claim to the quarries,Smith exposed their intentions.

They immediately began filing reports with the Monmouth County Prosecutor that the company was a scam. This same group first became involved in assisting DIGG in obtaining financing for the various technologies and properties that DIGG was pursuing and were well aware of the huge potential of the company. To claim DIGG was a scam was hypocritical to the extreme.

Two months after claiming DIGG was a scam to the MCP and BOS, they took 2.5 million shares of stock to an official of the aforementioned bank and obtained a loan for hundreds of thousands of dollars using the stock as collateral. Apparently the bank official was known by someone in the group and likely received a payment for approving the loan. In order to obtain the loan they would have filed fraudulent documents about the true value of DIGG stock.

The cash from the loan was used for personal enrichment and as funds to continue raids on DIGG assets. For instance, they substitued a DIGG subsidiary at a federal bankruptcy court in Wyoming with the name of the company that obtained the loan. This was done in an attempt to gain control of an energy property that was being pursued by DIGG. Therefore, they filed fraudulent documents with the court from November of 2005 to November of 2006.

The court originally decided the energuy property should be awarded to DIGG. However, DIGG was unable to meet the stipulations of the court to obtain the property at that time.

As gas prices dropped from highs and complaints against water damage on CBM properties increased, the fraudulent group also failed to get funding to take the property out of bankruptcy court.

Almost three months prior to the civil suit, the bank called Smith and asked for the 2.5 million shares of restricted stock to be freed up. Smith refused and the bank their loan applicants committed fraud against both the bank and DIGG. After the bank lawyer called, a settlement was worked out whereby DIGG would buyback the note, but not the shares.

The company was unwilling to let the fraudulent group go without prosecution. Buying the note left the option open of pressing charges for fraud against the perpetrators of the stock loan scheme.

The company had one condition, DO NOT TELL THE LOAN APPLICANTS WHAT WAS ABOUT TO OCCUR. The company knew they would come after DIGG again in NJ or in the market.

Unfortunately, the bank filed a UPC notice on Levinson et and the person handling the account must have tipped of the group. The UPC was up at the end of September. DIGG was raided less than two weeks later.

Five federal agencies and 50 agents do not raid a person’s home over placing a couple of hundred thousand dollars into the renovation of a family home. That would have been handled by the Monmouth County Prosecutor. The agencies were pursuing alleged interstate bank fraud. Rumors also existed that Smith had 5-10 million stashed away.

There were renewed complaints to the BOS in August and September of 2006. the complaints were intended to shut down DIGG. This would have ensured that DIGG shareholders incurred a total loss.

After the filing of a lawsuit and failing to meet the funding promised to the Wyoming Bankruptcy Court for more than a year,
the conspirators went back to Lowe and resumed their prior attempts to grab quarry properties. That occurred in 2007 and remains pending. Presumably, Lowe signed deals with them and everyone is waiting to see how this turns out.

Smith was naive in thinking he could manage or fight them alone.
Smith could have taken the $15 or $65 million bribes. Smith could have taken the restriction off the 2.5 million shares of stock. However, he chose to protect the interests of the shareholders and has experienced significant anguish for that decision.

The BOS will try to ignore these facts in order to save face. That is unfortunate because their fiduciary duty is to the shareholders of DIGG. They should focus some of their efforts in pursuing the illegal activities of the group antagonistic to DIGG.

The reason is simple. Several of the support letters used against DIGG and Smith were written by members of the group that robbed the bank.

A major investor whose money Smith was alleged to have put into his house filed false and misleading claims and has ties to the bank robbing group.

At some point a modicum of ethics will take hold of someone with the authority to once and for all arrest these people for initially misleading the prosecutor, the BOS and the AG and for defrauding the federal bank of $850,000 with DIGG restricted shares and a well placed bribe. By the way, the loan officer was fired when the bank caught on.

At the end of September DIGG once again refused to free up the 2.5 million shares held by the bank. The bank, acting on the advice of its crooked clients, no doubt called the BOS.

The AG went for receivership. I doubt if it has anything to do with Smith’s house, as we never heard a follow-up release indicating that they found the $5 or $10 million in hundred dollar bills they were told were salted away. No, it is more like the new DIGG attorney finally began an offensive for him and all of us and they acted quickly to shut down DIGG, shut down the truth, before any additional information that refutes their press release could be mounted and utilized in Court. If they get their receiver, kiss DIGG goodbye. Is it right? No. Is it fair? No.

If the BOS and the AG were acting in the interest of shareholders, they would put out a release and note that DIGG had the asset on its website, possibly more assets and that the company had been defrauded and victimize by a group that filed false complaints in NJ, defrauded a federal bank and then replaced DIGG in the bankruptcy court in Wyoming.

There are even reports that the BOS has proactively told investors that there are no assets AFTER THE ASSET WAS POSTED ON THE WEBSITE.

Apparently prosecutors are more interested in a cover up than the truth. A press release that admits the company has at least one asset, apart from being the legal and ethical thing to do, would not serve their case against Smith.

If and when the truth comes out, Smith will have used most of the investor's money pursuing deals. Unfortunately closing deals has not been his long suit.

It appears Smith paid himself about $300,000 since 1999, or about $40,000 a year. Much of that money was used to pay operating expenses. This atrocity pales when compared to bank fraud of $850,000 by the known asset grabbers using restricted paper and a bribed bank official.

If a good chunk of the $300,000 came from a person that gave it to Smith FOR THE EXPRESS PURPOSE of fixing a leaking roof, and that person also worked on Smith’s house and the investment had nothing whatsoever to do with DIGG, then the shareholders of DIGG have been scammed by the BOS in this suit.

The matter could have and should have been handled by the Monmouth County Prosecutor.

Instead of going for receivership and effectively trying to cover this all up, the AG should distance itself from the apparent faulty and dubious investigative work and claims of the BOS, issue a press release that there is an asset and arrest a group of people they should have arrested at any time over the last 18 months.

Carmelbeach, you have worked tirelessly to print the low stock prices and print the court dates. I am going to help you out. There is a new motion on for May 7th.

http://www.judiciary.state.nj.us/acms/MOTN/CV0390w0e.asp

REMEDIATING FALSE INFO.

Smith has an attorney.

Smith’s attorney filed.

The judge is encouraging remediation.

If the AG knew of DIGG assets for the last 18 months and did not update shareholders, if the BOS lied and misrepresented to investors, shareholders or the public during this time, if they both have failed to bring the bank robbers to justice and let DIGG shareholders suffer, all to keep their civil case in tact…

THEN THEY HAVE A LOT OF REMEDIATING TO DO TO DIGG SHAREHOLDERS.

I agree that federal banks normally don’t give loans using pink sheet stocks as collateral.

From my investigation, it appears evident that efforts have been taken to destroy DIGG and seize its assets. These efforts have prevented DIGG from moving forward on a number of business plans.

Everyone can now post the October 2006 press release on the forum for the 100th time, as evidence that DIGG is a scam.

FINALLY, WHAT IF WE FIND THAT LEVINSON HAS EXTENSIVE TIES TO THE RECEIVER AND SEVERAL OF ITS PRINCIPALS? Will we excuse that to coincidence? If the ties exist, as shareholders we should write letters to Anne Milgram and have her excuse the chief investigator of the BOS from the case.

Maybe someone should write the governor of NJ and ask him to verify that a sub of Digital Gas had a $75 million offer from Goldman Sachs. The governor should be able to verify this information as a past chairman and CEO.

Unfortunately for DIGG shareholders the fox got into the DIGG hen house. A misinformed AG led by the BOS could be the end to this company unless the shareholders demand the AG look at all the facts of the case with the purpose of arriving at the truth.