Encore Energy Systems Inc (ENCS)

[northwoods]

drugmanrx. imo, another avenue that would be wise
to pursue is the ownership of the $1.5 million DeMarco Convertible Debenture.

The debenture is secured by the patents.

per DMES 10KSB filed on Nov 14, 2003:

'The debentures are secured by all of the
unpledged assets of the company including our current and pending patents'.

MOTG/MODC acquired the debenture in early 2005:

http://www.primenewswire.com/newsroom/news.html?d=71885

MODC sold the debenture about a year later, per MODC Aug 18, 2006 filing:

'On January 24, 2006, we sold these debentures to Shield Investments, Inc. for a purchase price of $500,000 payable in a promissory note bearing 5% annual interest and a term of five years'.

MODC/welch sold the $1.5 million debenture for a $500,000 promissory note? imo...suspicious transaction. MODC also took a $989,000 tax loss on the sale. IRS may be interested in that considering welch was ceo of both companies at the time.

More info regarding the last known owner of the debenture (Shield Investments and current owner, if different) needs to be disclosed. Is the lawsuit asking for that info?

Think of the implications if welch has/had direct or indirect control of 'Shield Investments, Inc.

EGVI was revoked...ENCS (correct me if wrong) gives Peak Entertainment 40% of company, meaning patents.. just so that it can trade again...100's of millions of shares dumped in the last few months and now a/s increased to 2 billion, yet debenture holder did not call a default and exercise their right to foreclose?