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.

2006-09-29

Quiet End to Genesis World Energy

Patrick Kelly pled guilty on 2006-07-31, admitting to spending $200,000 of the United Fuel Cell Technologies money on personal vehicles. So that's the yellow Hummer and a few more cars. The sentencing hearing is not scheduled yet. John Yoka's case is still pending.

Can we get the "free Patrick Kelly" guy back to explain why Kelly admitted to those charges? Was he swayed by my propaganda?

Update 2006-11-11
Thanks to an anonymous poster who alerted me off that the case against Yoka was dismissed. From the New Jersey Attorney General.

Idaho Man Sentenced for Stealing Funds Invested in Bogus Fuel Technology Venture

TRENTON – Attorney General Stuart Rabner and Division of Criminal Justice Director Gregory A. Paw announced that an Idaho man has been sentenced to prison for stealing funds from victims who invested in United Fuel Cell Technologies Inc., a phony corporation that the defendant claimed had developed a revolutionary technology to convert water to hydrogen fuel.

According to Director Paw, Superior Court Judge Thomas P. Kelly of Mercer County sentenced Patrick Kelly, 51, of Kuna, Idaho to five years in state prison on a charge of second-degree theft by failure to make required disposition of property received. The defendant also was ordered to pay $400,000 in restitution. Kelly pleaded guilty to the charge on July 31, admitting that he used more than $200,000 in funds invested in United Fuel Cell Technologies to purchase eight cars in his own name.

An investigation by the Division of Criminal Justice determined that between November 2000 and June 2004, Kelly collected about $2.5 million in investments in United Fuel Cell Technologies from about 500 people, mostly New Jersey residents.

It is alleged that Kelly spent investor funds on a variety of expenses, many of which were clearly not related to the business or the development of their purported technology. Kelly allegedly spent $80,000 for a fountain for his home and financed a credit card for his 12-year-old daughter.

“This defendant is going to prison because he stole from investors,” said Attorney General Rabner. “We are committed to vigorously prosecuting these cases to protect New Jersey residents who are trying to invest and save for their retirement or their children’s education.”

“Mr. Kelly claimed to offer investments in a breakthrough technology. In reality, he offered only lies,” said Director Paw. “We have ensured that he will be appropriately punished for his greed and deception.”

The Division of Criminal Justice obtained a state grand jury indictment on Sept. 23, 2005 charging Kelly with second-degree securities fraud in connection with his sale of “common stock” in United Fuel Cell Technologies. The indictment alleges that he falsely claimed that United Fuel Cell Techologies was a Delaware corporation, and that Hewlett Packard and IBM had agreed to assist the corporation in developing and marketing its technology and related products. In fact, United Fuel Cell Technologies was never incorporated, and Hewlett Packard and IBM did not make any agreement with the company. Kelly also was indicted on second-degree charges of conspiracy and theft.

The judge today dismissed charges in the case against a second man, John Yoka, 35, of Livermore, Calif.

Hydrogen fuel cells, which are a legitimate technology, generate energy using hydrogen or hydrogen-rich fuel, with water as a byproduct. However, Kelly, who also used the name Genesis World Energy, fraudulently claimed to have invented a process to separate the hydrogen and oxygen molecules in water to produce hydrogen and oxygen gases to be burned as fuel or used in fuel cells. He claimed the technology would free the U.S. from dependence on oil from the Middle East.

State Investigator Noelle Holl and Deputy Attorney General Patrick J. Flor were assigned to the investigation for the Division of Criminal Justice. They were assisted by Investigators Dean Kuehnen and Julian Leone of the New Jersey Bureau of Securities. Flor prosecuted the case and represented the state at the sentencing.

Note that the period when Kelly was collecting investments, November 2000 and June 2004, includes the period that the Genesis website was up claiming that they were not taking investments.

3 Comments:

Anonymous Anonymous said...

Seriously
Who cares?
$200,000 isn't much
Get your facts right buddy
He pled guily for saying he was working with HP and IBM but he never did.
That's the only thing he was charged with.
TRUST ME i know

December 17, 2006 12:14 PM

 
Anonymous Anonymous said...

Stop trying to act bad through the keyboard.

It's not working.

Swaying of propaganda?

Are you fucking serious?
It was your "swaying by propaganda" that got him in there so what makes you think he "admited it" because of you?

You did realize that right?

December 17, 2006 12:20 PM

 
Blogger john lichtenstein said...

Read the indictment. He plead guilty to taking money for United Fuel Cell Technologies and spending it on himself. Along the way he lied about IBM and HP, sure. He also lied about GM and Toyota, about his criminal record, about how his house was powered, about United Fuel Cell Technologies being registered in Delaware... Everything was a lie. But that's not what he was charged with.

January 19, 2007 5:59 PM

 

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