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scion

11/01/12 11:13 AM

#63616 RE: scion #63615

Q. Not yet. Cyber Care, tell me what Cyber Care is or was.

A. Cyber Care, the direct vivid memory of Cyber Care was a public company used by John Stanton to continue his fraud and his career of ripping off stockholders in public companies.

Q. What role did you play with Cyber Care?

A. John Stanton, who was a investor several times with me in various of my companies before I was a public company, was inducing me to put my technology into Cyber Care. And since he was contributing large sums of money to assist me in bringing my technology to fruition, I agreed in principle to putting my technology into the Cyber Care shell until I found out that it was another one of his scams and that the shell was in bankruptcy.

[...]

Q. Okay. All right. Let's move back to the businesses. We've talked briefly about Cyber Care. We need to talk about Phoenix Eco. We need to talk about Earth First Technologies, USSE, SSTP and Zeons. Which of those businesses came first?

A. I'm sorry, sir. You said a platitude of businesses, and I don't know what chronological order you're putting them in.

Q. I'm asking you to put them in chronological order.

A. I can't. Well, I have no direct knowledge, all right, of the time frames of any of those businesses.Excuse me. I have no direct recollection of the time frame of any of those businesses.

Q. Well, Cyber Care was something that you did with Mr. Stanton, you've testified to. Was Mr. Stanton also involved in Earth First Technologies?

A. Earth First Technologies, Mr. Stanton was the owner, president, chairman of the board of Earth First Technologies.

Q. What role did you play in association with Earth First Technologies?

A. They had a license with me.

Q. A license for what with you?

A. To participate in my process.

Q. Can you explain that for me? How were they going to participate in your process?

A. They were going to get a percentage of the profits derived thereof.

Q. All right. And what was Earth First Technologies' business?

A. The scope of their business changed faster than I changed my -- my shoes. They had everything from plasma arc furnaces to medical supplies to wrecking companies to steel foundries to -- I could not begin to delineate all the different purported businesses that Earth First Technologies was in or is in. I don't even know if they're still in existence. They shouldn't be.

Q. All right. Who was involved in that besides Mr. Stanton?

A. Mr. Stanton is a master of misdirection. He only dealt -- I only dealt with him or Walter Hammock.

Q. Pardon me?

A. Walter Hammock.

Q. Okay.

A. Or Mark Clancy. But for me to delineate who else was involved with Earth First and John Stanton, I would have a easier task as to delineate as to who's involved with the Securities and Exchange Commission.

Q. All right. That's fine. Is it fair to say that Mr. Stanton controlled the business?

A. Yes, sir.

Q. All right. Did you hold any title with the business as an officer or an employee?

A. To the best of my recollection, I was never paid as an employee of Earth First Technologies. I did receive compensation from them or one of their entities or one of their Does or from John Stanton in the capacity of a joint venture agreement with various of my companies.

Q. Which companies would those have been, your companies there?

THE WITNESS: Did you say something?

THE VIDEOGRAPHER: No.

THE WITNESS: Oh, I'm sorry.

A. If I misstate the names, it is not being done on purpose. EFWE, which is a acronym for Earth First Waste Energy. GWE which is Green Waste Energy. And I believe Phoenix Eco.

Q. All right. Did you ever -- how were you compensated by Mr. Stanton or Earth First Technologies? In cash?

A. No.

Q. In shares?

A. I had shares of Earth First Technology that predates John Stanton. Earth First Technologies was originally Tubes Technology Licensing, and I was instrumental in securing contracts and land purchases and various other things in the Dominican Republic for Tubes Technology Licensing. And I was compensated millions of shares of that company as far as shares goes. When Tubes violated the joint venture agreement trying to take over my technology, which they've been trying to do for eight years, nine years, I took those shares and I encumbered them with a loan to continue my work with my mechanical -- my chemical- mechanical process using a catalyst vacuum system. It's a chemical mechanical process utilizing a modified pyrolysis type system as a carrier. I borrowed $500,000 to continue my work.

Q. From whom?

A. Hmm?

Q. From who?

A. An offshore company that lends money against restricted stock.

Q. Okay. What's the name of it?

A. I don't remember. Oh, wait a minute. I am not sure. Mr. Rue, rather than risk the possibility of stating something that is false, I will answer that question by stating that I will do my utmost to find the name of that company and, if possible, find the loan agreement and have it delivered to you.

Q. Okay. Was there any relationship between Earth First and Cyber Care?

A. The best way I could answer that question would be is there any relationship between Chrysler Corporation and Fiat? They're all owned by the same person.

Q. So I can translate that into meaning --

A. It was all one entity owned --

Q. These were --

A. -- by John Stanton.

Q. They were both owned by John Stanton.

A. I did not say that. Cyber Care owns Earth First or Earth First owns Cyber Care. I'm saying they all are owned by John Stanton.

Q. All right. That's what I wanted to find out. And what is Phoenix Eco?

A. Phoenix Eco was a company that I started to continue my R&D for my tire process when Stanton reneged on his joint venture and paid one of my employees for a sample of the catalyst. I threw him out in violation of the joint venture agreement and started Phoenix Eco. He had already obtained copies of blueprints of my system and how it was built. And he had probably spent a half a million dollars in having engineers come out and design, reduce to blueprints my system where he promptly went to Mobile, Alabama and duplicated my system. Then when he found out that it didn't work because he didn't have the right catalyst, he came back.

Q. Back to Earth First a minute. I believe you testified --

THE WITNESS: Are you having trouble hearing him?

MR. LELAND: No.

THE WITNESS: It's probably me.

Q. (By Mr. Rue) I believe you testified with regard to Earth First Technologies that you licensed your process to them; is that correct?

A. That is incorrect. I had a licensing -- they were the benefactor of a licensing agreement that I had with Tubes Technology Licensing that when Stanton bought Tubes Technology Licensing, he inherited that licensing agreement.

Q. Okay. Did Earth First sell any product that was the subject of that licensing agreement?

THE WITNESS: Do you have any in your purse?

MR. RUE: Do you need to take a break?

THE WITNESS: No. It's just -- I was just

surprised. I drink expresso by the gallon, and I must have distracted my wife this morning because she only put Splenda in two of them. The third one had no sweetener in it whatsoever, and it just got my attention.

MR. RUE: Ah.

THE WITNESS: I am like (indicating).

A. I'm sorry, sir, what was the last question?

Q. (By Mr. Rue) You had a licensing arrangement with Earth First.

A. I had a licensing arrangement with Tubes Technology Licensing which Earth First inherited --

Q. Okay.

A. -- when it purchased --

Q. Tubes Technology?

A. -- Tubes Technology. And they immediately sent their generals and gurus and loan crushers down to tell me what I was going to do, how, when and where. And needless to say, I was not intimidated, and it did not happen.

Q. So can I conclude from what you've just told me that Earth First Technologies did not take advantage of the process that you were licensing or that they had inherited through Tube Technologies?

A. You may not.

Q. All right. Explain then.

A. They instructed me to do a 48-hour run with their engineers, their processing engineers, all right, so that they came in, they documented every nut and bolt and hose and temperature setting of the entire process from the first tire chip going in to the steel carbon gas and oil going out. Then they stole the technology and rebuilt it in Mobile, Alabama. So if that's not taking advantage and grand theft in the first degree, then your interpretation of taking advantage of the license and the situation and mine are totally different, sir.

Q. All right.


OCR extract
Doc 102 PDF file
http://www.scribd.com/doc/111784724/SEC-v-U-S-Sustainable-Energy-Corp-Et-Al-Doc-102-Filed-15-Oct-12