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Dennis Lee and Dutchman Win Round Against FTC
In a major victory for the science of hydrogen-boost related systems,
Dennis Lee and Dutchman Enterprises were exonerated after a month of being shut
down by an FTC temporary restraining order for their super-mileage claims.
Assist Fuel Cell kit combines three fuel saving technologies along
with a sophisticated computerized emission system optimizer. It includes
1) an electrolysis unit for on-board hydrogen injection; 2) a
vaporizer/ionizer using magnets; and 3) additives that include acetone
After a month of having their assets and website frozen by a US Federal Trade
Commission (FTC) injunction, Dennis Lee and Dutchman Enterprises were exonerated
Wednesday by NJ Federal Judge, Michael Shipp who ruled in favor of Lee and
Dutchman, who have been selling a "Hydrogen
Assist Fuel Cell" (HAFC) that they "guarantee" to improve
mileage by at least 50%. Lee is free of all encumbrances.
In a thirteen page statement meticulously explaining his reasons, the judge
apparently pointed out that the FTC's charge was inadequate, and that the expert witness
opinion by FTC's physicist, Dr. Halperin, was trumped by the internal combustion
expert witness who spoke in defense of Dutchman. The physicist who the FTC
produced as a key witness, was not an expert in internal combustion engines, and had given his
opinion that the claims being made by Lee's group were "impossible" to
achieve. The judge pointed out that Halperin never had gotten a HAFC
kit, never put it together, never tested it, never ran data. The defense,
on the other hand, had produced a great deal of evidence in support of their
claim, with an expert witness who specializes in internal combustion engines.
The overwhelming number of positive testimonies, the "Orange Test"
before-and-after documentation and the ironclad affidavit swayed the judge to
quickly decide that Dutchman Enterprises was indeed being unjustly railroaded.
Kurt Anaheim, a dealer of the HAFC kit, says that they have seen "hundreds if
not thousands of gasoline powered cars and trucks getting 50% or more mileage
Dr. Halperin admitted to Dutchman's attorney that he does not have a Ph.D. in
engine technology, and acknowledged that his expertise and his report was based
on his background in Cryogenics. In continued cross examination, the attorney asked
Halperin other questions revealing that Halperin knew very little about how an
internal combustion engine worked, and in particular had no knowledge of the
very short period of time there is to get energy out of the fuel while it's
burning in the piston chamber during the power stroke of the engine, or that
this is the only time the burn puts any power to the wheels. (Ref.)
Regarding the "expert" testimony that such mileage improvements were
"impossible," one of the points that Lee's defense argued to the judge
was something to the effect: "Do you think the President of the United States and his advisors don't know what they're talking about when they call for an increase in the mileage of the
vehicles, expecting at least a 10 mpg improvement?"
Anaheim says: "Our Hydro Assist Fuel
Cell technology prepares and volatizes the fuel prior to burning so that it
burns more completely during that short duration of the power stroke, producing
more power, which we are able to convert to economy, while reducing pollution."
In a conference call last night with his extensive network, Lee took three hours to describe the
situation: what led up to
it, how it unfolded, the ramifications for himself and the company, then taking
questions from his listeners.
"We tore him up on the stand," he said, regarding the
"expert" physicist witness.
This is only the second time in New Jersey's history that the FTC has lost a
case. What makes this more astonishing is the extent to which they tied
Lee and Dutchman's hands behind their backs, even going so far as freezing Lee's
personal bank account. In the process of interviewing lawyers for his
defense, Lee recounted how one after another would cower in fear, telling him
there is no way he could win against the FTC -- that the FTC always gets their
way, even if they're wrong. "All you had to do was say 'FTC', and lawyers were shaking in their boots."
Lee, who has been in court twelve times now, but who has never had a trial by
jury, remarked that finally he had experienced justice being served, not
Since at least the early 1990s, Lee has been having one run-in after another
with government agencies who accuse him of some kind of fraud, yet who have
never proven the same in a court of law. He views these actions as being
inspired by the good ol' boy's club, in bed with big oil and the auto makers to
suppress the emergence of technologies that move us toward kicking our addiction
to oil. So with this case victory, he said, "It's always nice to win against the DC
Lee expects that the FTC will try to appeal this, to save face; and he said he
is prepared to go the distance. He told those on the call: "You and I should be
unrelenting. The truth for me is worth dying for. There is nothing they can threaten me with that will cause me to bend my knee to injustice."
At the same time, he said he is prepared to offer the FTC a graceful way to back
out, admitting that they had made a mistake -- in which case Lee would stand
down. "The smartest thing they could do is say, 'We made a mistake, we got a
guy..., he screwed up, we're going to back down."
But if they persist, he is prepared to file a class action suit on behalf of all
his dealers and himself who have been seriously financially impaired by the
temporary injunction, as well as maligned.
Dutchmann took a major hit in the process, losing $750,000 USD in an inventory
fire sale. They now have nothing. However, that will not keep the
dealers from being able to move forward, due to the way the company was set up,
thanks to a sister company that is able to keep things rolling.
Lee is willing to forgive the $750k loss if the FTC will admit its mistake and
go away so they can get on with their business. "Dutchman isn't in this for the money. It won't go after the money if we can just get on with life."
He said he actually looks forward to getting out among the car dealerships and
mechanic training classes to help promote the technology on the ground.
Lee emphasized the many inconveniences caused by the month-long injunction, with
employees not being paid, dealers almost losing their
livelihood, suppliers not being paid, manufacturers not being paid -- and
everyone being treated with suspicion as if they were part of some scam.
"We have a strong case for slander ... and possibly malfeasance."
Lee reported that in the process of this action, agents had taken proprietary
documents not related to this case.
"They accuse us of misrepresentation, yet they themselves are guilty of misrepresentation."
Assets were frozen and all sales had to be stopped, and the company was
virtually decimated. Yesterday, with the funds being unfrozen, Lee
immediately paid his employees, and sales are commencing. The PICC
website was taken down, but it will be back up today, paradoxically Friday
the 13th, with the details of this judgment.
There are around 100 manufactures who have "plenty" of HAFC kits for
distribution. The "Genesis Project", which will be carrying the torch,
is owned by the dealers.
"Probable cause does not exist to believe that the statute in question is being violated."
"Third, and not insignificantly, Dr. Halperin never physically examined the HAFC at issue in this case."
"... the Court did not find Dr. Halperin's testimony persuasive as it related to the internal combustion engine. While Court acknowledges that at times experts may cross-over fields, the attempted cross-over in present case was not appropriate considering all the factors discussed. This case clearly deals with internal combustion engines and Dr. Halperin's testimony failed to convince the Court that probable cause exists to believe that the statute in question is being violated."
"The FTC suggests the 'orange' test is not 'an accepted, reliable scientific protocol for fuel economy tests.' (Pl.'s Replay Br at 13). However, any critique of this testing process was conspicuously absent from Dr. Halperin's sworn hearing testimony."
"Fourth, Dr. Halperin actually agrees that adding hydrogen to fuel, which is what the HAFC purportedly does, could increase fuel efficiency."
"... not a single complaining consumer has come forward demanding relief speaks directly to the minimal, if any, harm to public interests..."
On Feb. 13, 2008, New Energy Congress member, Eric
I think the new judge screwed up and made a mistake - he confused volume for
quantity in the evidence. A real test would be what they have been avoiding for a whole year - credible witnesses first hand doing a mileage test with no tricks. I have so far failed to convince anyone to do this - but the cult is programmed to have nothing to do with me.
Maybe you can get one of the thousands of happy customers to do a demo for you or someone from the press.
Unfortunately, courts aren't set up for that sort of test. Dennis is very good at evading the law. I don't know what the FTC will do for now - it is only a loss of the restraining order not necessarily a stoppage of all prosecution.
From what I understand, there have been hundreds of credible tests run, in
which a very carefully measured "before" series of tests are run,
followed by and "after" series of tests under the same
conditions. The Dutchman guys call this the "orange"
test. I don't know what you find problematic about that. It's what
I would do if I were the one doing the test -- something I've actually
done with another mileage product.
The only reason I haven't tested hafc is that scores of people I have contacted who claim the high mileage won't allow me to test.
[...] I have emailed probably at least 50 different people connected in all various ways: dealer, rep, promoter, installer, trainer, customer, recruiter, etc - none of them will work with me to set up a proper test. My
#1 page makes this very clear.
I've also told these people: "If Dennis says you can't work with me, fine - talk to your small time newspaper or TV reporter - I can tell them how to do a proper test."
Again, they won't do this either.
I don't want to lose my money and be accused of intentionally making it not work. A group I know bought one and had it installed by the best people, and it didn't work.
I have heard this kind of story a lot.
Sterling, the burden of proof should be on the claimant. I can't prove Santa or fairies don't exist.
I'll get documentation on the one that failed. I saw the bill for - total cost around 2 grand - but Dennis will make excuses - he always does. It should be easy to get one of the happy customers to show us. I'm willing to fly out on the word of a media person who I would groom to do such a test. If I see it work, I will give them a grand and the person that talks them into it a grand - but then I would do a 180 and heavily promote hafc and work on the science and media community to help get the ftc off their backs.
Right now, credibility stands between them and lots of sales - why would all of them refuse the opportunity to stop being viewed as
I recommend everyone read both the blog I just posted at my site and Dutchman's full statement before we get into a p****ing war here based solely on personalities. http://energyblog.commutefaster.com/
The HAFC is not and never has been ONLY hydrogen boost. I have said REPEATEDLY the thing that makes it DRASTICALLY DIFFERENT IS THE OPTIMIZER that CORRECT ERRORS MADE BY THE CAR'S COMPUTER. AND NOT ONE OTHER HYDROGEN BOOST MANUFACTURER HAS THAT.
The FTC BROKE CONSTITUTIONAL LAW IN THIS COUNTRY BY DENYING THE DEFENDANT LEGAL COUNCIL PRIOR TO DEPOSITION. That is not permissible for any reason.
The blatantly political attack HAD NOTHING WHATSOEVER TO DO WITH THE HAFC PERFORMANCE CLAIMS. IT WAS BLATANT ENERGY TECHNOLOGY SUPPRESSION. Period.
People have been hurt severely by this criminal act and I will not stand by and watch stupidity and criminal malice let it continue.
Hydrogen Boost was the first to use an electronic control circuit other than the EFIE from Eagle Research, and even though it is a simpler circuit than that of the HAFC, it has been in use for years and has been copied by many others. Yes we have also played with modifying the signals from other sensors as well (as documented in our 2005 patent application) but have kept the circuit as simple as practical.
I commend Dennis and Ken and others on their attempts to improve upon Hydrogen Boost and I congratulate Dennis on standing up to the FTC. But I still want to SEE the DECISION. Ken, could you get it up on the Internet so all can comment on the real outcome instead of commenting on second and third hand information?
My apologies for overlooking your system. Each product will stand on its own merit.
If you have not had time to read my blog, the FTC spooks made sure NO COURT STENOGRAPHER WAS PRESENT, AND WE ARE TOLD THE COURT'S AUDIO SYSTEM FAILED. What fool believes that? So all records of what actually happened was destroyed. We all have to guess who. I sure don't have to ponder that very long.
All of us here WANT TO SEE DATA. FTC DISALLOWED DATA! Why? It was character assassination/suppression, plain and simple. They had no intention of allowing a clean energy technology to see the light of day. I open my blog listing about a dozen LIFE THREATENING atrocities FTC is guilty of complacency on, yet they use an iron boot against Dennis Lee.
have signed up for PACER (Public Access to Court Electronic Records) and
searched the records for the FTC vs. Dutchman Enterprises case and have access
to all recorded documents. Following is the history of the case.
Notice that the case is not over. The Hearing that Dennis reported
on as his great victory was the Preliminary Injunction Hearing of February
5, 2009 as referenced in the Brief filed the next day (attached). Though
it was indeed a temporary victory because of the unpreparedness of the FTC, and
the expert witness of Dutchman Enterprises, please be advised that the
scat is still on its way to the fan and the case is not closed. The trial
has not been held and Dutchman does indeed still need our prayers. If you
want updates on the proceeding of the case you can sign up for PACER at http://pacer.psc.uscourts.gov/
. You can learn about how the system works by reading the PACER manual at
Please pass on my congratulations to Dennis but tell him I am still praying for
him to have justice in court.
FEDERAL TRADE COMMISSION v. DUTCHMAN ENTERPRISES, LLC et al
Faith S. Hochberg, presiding
Michael A. Shipp, referral Date filed: 01/12/2009 Date of last filing: 02/20/2009
On Feb. 28, 2008, New Energy Congress Member, Eric
Looking through Dennis's list of successes that he filed with the court - I just found a fourth person who got no mileage gain and can't get his money back. This guy is with "all sales group" from the NJ area had 3 cars done - all didn't work and one doesn't even run. It is easy to find these people - but so far, it is impossible for me (even with offering thousands of dollars) to facilitate the first open proper proof of HAFC. I offered Rick Brancadora $3000 to prove to me a vehicle that he says gets over 100 mpg. The burden of proof should be on these people - they have evaded a real demo to NEC and any other credible group for about 2 years now.
I really think we should learn by now to not give free publicity to groups that claim to have an energy break through but who won't openly show it.
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