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scion

11/01/12 11:44 AM

#63617 RE: scion #63616

Q. (By Mr. Rue) All right. How -- what is the relationship between Phoenix Eco and U.S. Sustainable Energy Corp., the Mississippi corporation?

A. The relationship is that neither of them exist.

Q. That's not responsive to my question.

A. Excuse me. You said what is the relation -- they don't exist anymore.

Q. What was their relationship in October of 2006?

A. When U.S. Sustainable Energy Corp., the Mississippi corporation came to be, okay, Phoenix Eco ceased to be because it took on or U.S. Sustainable Energy Corp. took over the licensing -- the license agreement and the process that Phoenix Eco had because U.S. Sustainable Energy Corp. -- okay, it was another joint venture agreement between John Stanton and myself.

Q. All right. As I understand the record in this case, then, there was a time or up until a certain time, Mr. Stanton funded the operations of Phoenix Eco; is that correct?

A. For a short time, yes.

Q. And then --

A. Let me modify that answer -- that answer.

Q. Sure.

A. For a short time, okay, while U.S. Sustainable Energy Corp. Mississippi was being formed.

Q. Okay. All right. And there came a time when he didn't fund it any longer. Why not?

A. I have already testified that John Stanton's purpose of joint ventures or funding my operation in any way, shape or form was to gather information to steal my technology. Once he has -- once he was satisfied that he had enough information, he'd stopped funding it and continue with his operations in Mobile, Alabama.

Q. All right. All right. Tell me about the -- tell me what you know about the trans – transaction between U.S. Sustainable Energy and Zeons Corporation.

A. I'm sorry, I didn't understand that second word.

Q. Zeons Corporation.

A. No. The, and then there was a second word that did not understand what you said. I could not hear it properly.

Q. All right. What's the relationship between USSE and Zeons Corporation?

A. I have absolutely, positively no knowledge of Zeon Corporation other than the fact that I read on the Internet that Zeon Corporation or USSE became Zeon Corporation. Other than that, the -- anything that had to do with Zeon Corporation was handled by Richard Cutler.

Q. All right. Did you transfer shares of USSE to the people involved with Zeons Corporation?

A. No sir, I did not.

Q. Okay

A. I would like to clarify for the record that when I dis -- when I resigned from the board and as president and everything, and Richard said that there was a company that had a chain of gas stations that wanted to buy USSE, okay, and they wanted to compensate me for it and this, that and the other, I said I want nothing to do with it. He said, well, they can't do it because you're the -- you're the major stockholder. And I said, well, I'll give them my proxy to do whatever the hell they want, okay. And as a result of that, they did some ungodly -- and I don't even know what the numbers are -- reverse split. Basically, I don't know if I had 300 million or 400 million. I don't know what I had, but I -- I think that after all the smoke clears, I may have 500 shares from -- it was -- I never even heard of a reverse split that big. But that's all I know about Zeon.


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

EarnestDD

11/08/12 2:20 PM

#63619 RE: scion #63616

Is Stanton still in jail?