A booming segment of the Perpetual Motion Machine industry is capitalizing on the hype over the "Hydrogen Economy" with claims to produce Hydrogen for impossibly low cost.


Alternate Energy Corporation Calls Chip Taylor

Alternate Energy corporation sued Russell Rothman, the inventor of its original Hydrogen generation technology, claiming that his technology never worked and that Rothman had previously sold it to someone else. We've previously discussed the incongruities around AEC's glowing statements about Rothman's technology to the press and its investors and its in court statements that the technology never worked.

But what of the claim that Rothman had sold the technology previously? Whom to? One of the parties appearing for AEC claiming that Russell had previously sold the technology to him is Lewis (Chip) Taylor. It's curious that Chip Taylor and AEC would both buy the same invention and not know that they had done it, given the close relationship between them.

On April 23, 2003, months before AEC announced any Hydrogen related activities, it announced that it had signed an agreement with Select Molecular Technologies.
In addition, Mr. Blaine Froats, Chairman of AEC stated, "AEC has signed a letter of intent with Canadian based Select Molecular Technologies, Inc. (Mississauga, Ontario) to explore a sharing of technologies to create a new and novel method of generating electricity for the retail consumer. This will involve the use of a newly developed fuel cell and storage battery." Mr. Froats continued, "Select Molecular Technologies Inc is a private Canadian company that is associated with Mega-C Technologies and Mega-C Power. Mega-C Power, is a technology leader in the field of next generation high efficiency and environmentally friendly batteries".

Additional announcements regarding the business plans and operations of AEC will be forthcoming.

A similar announcement is made again on 2003-07-10
Alternate Energy Corporation (AEC) recently announced it has signed a letter of intent (LOI) with Mississauga, Ontario-based Select Molecular Technologies, Inc. (SMT) to "explore a sharing of technologies to create a new and novel method of generating electricity for the retail consumer."

"This will involve the use of a newly developed fuel cell and storage battery," said AEC chairman Blaine Froats. "[SMT] is a private Canadian company that is associated with Mega-C Technologies and Mega-C Power. Mega-C Power is a technology leader in the field of next-generation, high-efficiency and environmentally friendly batteries."

AEC is a wholly owned subsidiary of Environmental Products Group, Inc., a leading provider of products produced from recycled plastics.

It goes without saying that nothing ever came of these announcements. But it's worth looking into the parties involved. SEC filings from Axion Power provide the following history. Mega-C Technologies was formed in 1999 by C&T Co and a group of investors led by Chip Taylor to commercialize battery technology owned by C&T. In 2001, Mega-C Technologies sublicenced its rights to the C&T technology to Mega-C Power. In 2003, the sales by certain shareholders, including Chip Taylor, of Mega-C Power stock became the subject of an Ontario Securities Commission investigation. Subsequently the company was unable to raise capital and sold its rights to the C&T technology to Axion. Select Molecular Technologies is run by Chip Taylor, as outlined in NEDELJKO ULEMEK vs Lewis Taylor.

So AEC announced in April and July of 2003 that they were making plans with Chip Taylor controlled companies. Later in July 2003, they announced that they had licensed Hydrogen generation technology from an unnamed source, and began making many pie-in-the-sky claims for that technology. How is it possible that Taylor didn't ask AEC if they were working with Rothman back in 2003? It's difficult to believe that AEC did not know back in the fall of 2003 about Taylor's claim that Rothman had sold his process to Taylor. Yet the first that AEC discloses this to its investors is April 1st 2005.


Rothman Confirms Maxxam Tested His Process

As we observed, Alternative Energy Corporation makes some rather strange claims about Maxxam Analytics testing their process in 2003-10-07. On 2003-09-22, the company bought a Hydrogen generation process from an inventor whose name they did not disclose at the time. Some time in 2004, they stopped working with the inventor and in 2004-10-22, sued him, claiming, among other things, that his process does not work. From 2005-Q2 report
On October 22, 2004 we sued Russell Rothman in the Ontario Superior Court of Justice (Case No. 04-CV-277760CM2). We are seeking the rescission of agreements between us and Rothman, return of shares paid to him, and return of money paid. We had entered into an agreement with Rothman for the purchase of certain technology related to the production of hydrogen gas. Rothman represented to us that he had all right title and interest in the technology and had the ability to sell the technology. We alleged in our lawsuit that Rothman had in fact sold the technology to other companies, and on more than one occasion, prior to entering into the agreement with us. We additionally allege that the technology he purported to sell did not work. We do not rely on the Rothman technology for the production of hydrogen. We have developed our own proprietary processes for producing hydrogen. Rothman has counterclaimed against us for breach of contract in the amount of $2 billion and is asking for punitive damages in the amount of $10 million. We believe that the counterclaim is completely without merit. Mr. Rothman's attorney has withdrawn from the case and the Court has ordered Mr. Rothman to obtain new counsel by July 28, 2005.

So they have developed another process. But it seems strange that they still claim that
The output from the AEC process was certified by Maxxam Analytics, and analytical laboratory company in Canada, to be 99.9% pure hydrogen on October 7, 2003.
Really? Two weeks after buying Rothman's process and a year before suing him they took a different process to Maxxam? That's strange. The company was, apparently, still working with Rothman as late as
2004-05-25. Rothman has told me that he was present at the tests at Maxxam, and that it was his process they tested.


Hydrogenerate Founder Guilty of Lewd act on Child

Hydrogenerate founder William Woslum, aka James Pelto, James Strader, and etc has plead guilty to two charges of lewd act on a child in San Diego. He had faced 50 counts. Woslum had a prior conviction for molesting a girl in Ventura County in 1981. He faces a hearing on October 17 to determine if he has a bank robbery conviction from 1964.

San Diego media covered the story:

Kudos to the Thai police who caught him and the FBI who kept the search on all this time. San Diego Deputy District Attorney Wendy Patrick did a great job getting him behind bars without a trial. I hope the 9 year old who, 12 years ago stood up to Woslum's threats serves as an inspiration to the investors who, mostly, have taken Pelto's lewd act on them lying down.