Calif. Suspects Reportedly Have Ties to Cleanup Scheme in La. Parishes

Ventura County (Calif.) District Attorney Gregory Totten announced that investigators from the District Attorney’s Office – Bureau of Investigation have been working with the Louisiana Attorney General’s Office on an investment fraud scheme involving at least two alleged suspects with ties to Ventura County.

According to the Louisiana Attorney General’s Office, employees of ESS Environmental Inc. convinced approximately 150 investors, including lawyers, judges and governmental officials, to invest more than $1 million in a “miracle soap” for oil field cleanup referred to as “R6000” and “RTS-11.”

Seminars were used to convince investors from the Vermillion and Lafayette parishes of the power of the supposedly patented and environmentally safe product that could be used to reduce oil field sludge into marketable products. Testing of the product determined that it is not a proprietary substance and is merely a common cleaner and solvent. In addition, the company was not licensed to sell shares of these securities in Louisiana. Individual investments were made between September 2004 and June 2005 in amounts ranging between $500 and $25,000.

On Aug. 12, 2005, five individuals were indicted on charges of racketeering, securities fraud, and criminal conspiracy. A sixth individual was indicted for being an accessory after the fact. The indicted individuals included David J. Feuerborn (DOB 7-20-60), of Camarillo, Arthur M. Feuerborn (DOB 4-25-65), of Camarillo and Thomas R. Jennings (DOB 3-31-56), of Anaheim. Arrest warrants were also issued for these individuals, with the initial bond being set at $1 million each. The arrest warrants have been served and the individuals have been released on bond pending further court proceedings in Louisiana.