Rick,
I'd been doing some DD on HYER. The net result was that I filed a complaint to the SEC as abstracted below:
Regards,
Jay Reynolds
Abstract of Complaint to the SEC
Abstract:
No fuel cell.
No patents issued.
No patents pending.
No patent rights ever applied for in “96 international jurisdictions:
Misrepresentation to the Securities and Exchange Commission. Misrepresentation to the public and shareholders.
From the SEC site:
Hydro Environmental Resources 10SB12G dated 10/26/99
The ECHFR and the chemical formula for producing hydrogen are both
covered by pending patents. The pending patents were filed in Australia
and cover 96 international jurisdictions, including the United States.
There is no assurance that the patents will issue and there is no assurance
that if the patents issue that they will not infringe on other patents.
snip
June 16,1999, the rights to the ElectroChem Hydrogen Fuel Reactor
(ECHFR), which produces clean burning hydrogen gas at low pressure from any
water source, were assigned to the Company in exchange for a 5% royalty to
the inventor. The patent-pending machine and process combines low cost compounds in a sophisticated mechanical reactor that creates an electrical current that splits the water molecule, separating the two hydrogen atoms from the oxygen atom.
snip
Comment: There is no Patent Pending for either “the machine or the process”.
There have only been Provisional Patent applications filed, both of which are lapsed, neither of which would have included coverage in “96 international jurisdictions”, or included PCT rights as suggested. Consequently, this is a gross misrepresentation to the Securities and Exchange Commission in an official filing by the company
No patents = no intellectual property rights.
Hydro Environmental Resources, Inc. 10KSB dated 4/17/2001
Patents
The ECHFR and the chemical formula for producing hydrogen are
both covered by pending patents. The pending patents were filed
in Australia and cover 96 international jurisdictions, including
the United States.
Snip
In addition, HERI stated both on their web sites and in press releases that
they either had patented or patent pending formulas and system. I can supply
URL's and copies of some of the web pages. Some were modified, before I
thought to copy them, but are quoted on the Raging Bull bulletin board.
Two Websites: hydrogenerate.com and laguna.net
The reality is that the only two patent applications that HERI or James Pelto
the original inventor ever filed were two Australian provisional patents,
both of which are lapsed at this point. Since provisional patents do not
have claims, there is no patent, there is no patent pending and there has never been a PRT (Patent Cooperation Treaty) filing that would provide “patent pending status in 96 international jurisdictions..
Here are those provisional patents
Provisional
Number: PP4127
Applicant: James Pelto
Title: Electro-chem hydrogel fuel reactor
Filing date: 16/06/98 (lapsed)
and
Provisional
Number: PQ7048
Applicant: Hydro Environmental Resources, Inc.
Title: Electro-chem hydrogen fuel reactor II
Filing date: 20/04/00 (now lapsed)
In addition, HERI on both it's web sites and in press releases and in one
audio interview with the wallstreetreporter last month has repeatedly stated
that water is fuel in their device and so they never have to worry about a
source of fuel. I've been a chemical engineer for twenty-five years and I
can assure you that water is not a fuel. It can be a reactant and can react
with a metallic powder to produce hydrogen, but it is the metallic powder
that is considered the fuel, not the water. (The interview can be accessed at www.wallstreetreporter.com - Wednesday 04/11/01, CEO Interviews).
Other False and Misleading Statements Promulgated by the Company to the Investing Public and Shareholders
Research shows that there have been numerous unsuccessful attempts worldwide to develop the technology that we have produced but because of our patents it cannot be duplicated. hydrogenerate.com
HYER has NO patents.
The Company's assets are valued mainly in patented technologies, rights and future potential global revenues. hydrogenerate.com 4/25/2001
HYER has NO patented technologies. No patents = No Intellectual Property Rights
February 13th 2001
Hydro Environmental Resources, Inc. (The "Company") is proud to announce that it has developed a unique and revolutionary alternative energy system in which a consumer merely adds water (including wastewater) and a patented formula to the converter.
biz.yahoo.com
There is NO patented formula.
HYER continues to call their device a "fuel cell" within the context of hydrogen generation/consumption which implies a Fuel Cell that combines hydrogen and oxygen to produce electricity. Per statements of Mr. Wheeler below, this is CLEARLY not what HYER has developed. biz.yahoo.com
CONFIRMATION of key points in this complaint via statement of John Wheeler, director and legal counsel to HYER, below:
Q: In the press release discussing Hydro’s plans to test their fuel cell in an automobile the word “fuel cell” is in quotations. Is Hydro’s use of “fuel cell” referring to a reaction vessel generating hydrogen as a fuel or does it refer to a fuel cell stack comprised of anode, cathode and membrane electrode assembly?
Wheeler: >That’s right, it produces the hydrogen from a reaction chamber, we can think of this as the first “fuel cell”, and then into a fuel cell stack.
Q: Will the automobile trial discussed in this PR be powered by an internal combustion engine powered by hydrogen produced by the ECHFR or will the motive power be supplied by a fuel cell stack?
Wheeler: >There will be an internal combustion engine using hydrogen. This is not an electric car. The press release is not referring to use of a “fuel cell stack”.
Comment: Accordingly “The Company intends to go into production of alternative energy fuel cells this year” does not, in my opinion, refer to a fuel cell stack, only a “hydrogen reaction/production vessel” hydrogenerate.com
Q: How much of your powder product is needed to produce 1 pound or (kilogram) of hydrogen?
Wheeler: >I just got the guys finalizing this now.
Q: Can you give me a ballpark figure?
Wheeler: > I’m an Australian attorney. I can get on to it tomorrow.
Q: Hydro’s website states: “The Company's assets are valued mainly in patented technologies”. Could you give me the reference number for the patents that have issued?
Wheeler: >We have been advised not to proceed with the Australian patents but to proceed with U.S. patents which would include treaty. (ie, the PCT filing)
Q: Just so I understand correctly, Hydro has NO “patented, technologies” i.e., no patents issued at this time. Is that correct?
Wheeler: >There are no patents which have issued.
Q: Hydro’s SEC filing states that Hydro has applied for a patent in 96 countries. Is that reference to an application through a Patent Cooperation Treaty, a PCT filing? A Provisional Patent doesn’t provide PCT treaty coverage.
Wheeler: >Oh doesn’t it?
Q: Is that a formal patent application or a provisional patent application?
Wheeler: >Provisional application but we can reactivate but we won’t.
Q: Filing a provisional patent does not constitute applying “for a patent in 96 countries” so the SEC filing is not accurate.
Wheeler: >I need to speak to somebody here that prepared that document.
Q: So the two provisional patent applications (recited numbers) are the only patent applications out there?
Provisional
Number: PP4127
Applicant: James Pelto
Title: Electro-chem hydrogel fuel reactor
Filing date: 16/06/98 (lapsed)
and
Provisional
Number: PQ7048
Applicant: Hydro Environmental Resources, Inc.
Title: Electro-chem hydrogen fuel reactor II
Filing date: 20/04/00 (expired)
Wheeler: >Yes.
John Wheeler, Director
John has been instrumental in the conception of HERI and will continue to work toward the growth of our company as Legal, Marketing and Promotional Advisor.
"As a respected attorney, Mr. Wheeler has been called on numerous occasions to advise the government or opposition on proposed legislation. He has served on the board of one of Australia's largest private construction companies, as well as the companies' counsel. He has practiced extensively in commercial law and advised numerous people on public company acquisitions and mergers domestically and internationally." hydrogenerate.com |
