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You are here: > News > Sept. 2, 2009

Dennis Lee's mileage-boosting HAFC shut down by FTC

The technology is to be picked up by Genesis Technology Systems.  Mary Yugo extends a $150,000 award for a provable demonstration of a 2x-stock mileage boost.  Skeptic Eric Krieg may have found a working hydroxy boost system.

by Sterling D. Allan
Pure Energy Systems News
Copyright © 2009

The Hydro 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 and xylene.
The Hydro Assist Fuel Cell kit combined 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 and xylene.

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Back in February, we reported that "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 a FTC [Federal Trade Commission] temporary restraining order for their super-mileage claims."

Dutchmann Enterprises were making the Hydrogen Assist Fuel Cell (HAFC), a hydroxy injection system among other things, for improving mileage and decreasing emissions.

They were claiming to improve mileage by at least 50%, saying that they often even doubled mileage, yet solid, third-party evidence was lacking.  And many of the testimonials they were claiming to be in support of their claim turned out to be non-favorable when contacted for confirmation.

So in May, the FTC issued another injunction which Dennis Lee signed.  It included a prohibition against false or unsubstantiated claims, and it called for restitution to customers seeking refunds.

Here are three pages from the injunction:

Mary Yugo, who has been a watchdog on this case, speculates that "Lee agreed to the injunction, possibly because otherwise, he would have been criminally prosecuted."

Regarding Dennis Lee's capitulation, Jeff Otto, one of the premier former dealers of the HAFC system, wrote:

So why did Dennis fold and sign the May 29 injunction? Well lets see, Plaintiff = FTC = unlimited funds and a free hand to wield the sword of tyranny on anyone of their master's choosing. Defendant = Dutchman Inc. & Dennis Lee = limited resources and a total lack of knowledge of remedies provided in the commercial law for such blatant transgressions.

Baton Passed to Genesis

These FTC actions have resulted in the discontinuance of Dutchmann Enterprises and the HAFC.  The technology is in process of being picked up by Genesis Technology Systems.  Their site, presently says "this site is temporarily unavailable."

Otto has a web page both mentioning the HAFC and showing that it is now renamed the "Genesis Combustion Enhancement System (GCES)", crossing out former instances of "HAFC" and replacing them with the new name.  Everything else is essentially the same on the page, including the photos; and most importantly, the claims.  He doesn't seem to mind that he is in violation of the FTC order which specifically mentions "Dealers" as defined "any and all distributors, purchasers, or other transferees of a covered product who acquire such product from any Defendant for sale or resale." (p. 4)

Prize Offered for Documented Mileage Improvement

Today, Mary Yugo offered a $150,000 USD award to Jeff Otto -- or to anyone else, for that matter -- who can actually prove that they have improved the mileage of a stock vehicle by two-fold, or 104 mpg or above using the HAFC or equivalent, as Jeff claims to have done with the HAFC on a 2005 Honda Accord.

She wrote:

Mr. Otto's web page here: includes claims for these "actual tests" showing these improvements comparing before and after the addition of the Mr. Otto's mileage enhancer:

2005 Honda Accord 4 cylinder, from 33 to 104 (+215%) 

And his web page here:  includes this claim: 

2005 Honda Accord 4 cylinder, from 33 to 104 (+215%) 

If Mr. Otto can provide me with either one of these cars, and if a properly performed EPA test --highway, city or combined, his choice-- can provide those mileage numbers (104 mpg or better) as done by a mutually chosen independent laboratory, I will give him $150,000 cash (by means of a certified check on Wells Fargo bank) on the spot for the car. The car to be modified must be purchased at Mr. Otto's expense, be verified completely factory stock by the independent lab prior to Mr. Otto's modifications. I will pay for the testing once the car is delivered to the lab and passes my preliminary test which will consist of an informal highway drive and gas pump measurement. 

Mr. Otto can equip the car with any of the devices offered for sale to the public by his company. No additional batteries beyond the stock vehicle's usual one and the associated standard alternator and regulator are allowed. Any amount of water may be electrolyzed for the test. The mileage must be sustained for a minimum of 750 miles. The only allowed fuel for this test is gasoline or gasohol from a commercial pump and of course, as much water as the electrolyzer portion of the equipment requires. The modified car must perform in terms of acceleration from zero to 60 mph within ten percent of the stock model. The car will be inspected for hidden gas tanks and other subterfuges.

In the alternative, If Mr. Otto can deliver ANY commercially available stock automobile available for sale in the US with a displacement of at least 1.8 liters and a weight of at least 2500 pounds designed for gasoline, which makes 104 miles per gallon or better on a 750 mile test using standard EPA criteria, and modified only with one of his devices as made available to the public, I would buy THAT car for $150,000 on the same additional conditions as above.

Just to be clear it's either or-- I only need one car! And if either test is performed and passed, I promise to fly at my own expense to Mr. Lee's residence and issue him a personal apology in front of any press he wishes to be present.

If Mr. Lee or Mr. Otto are not willing to do either test and sell me the car which passes, then I suggest that they should not make the claims that they do or for that matter any claims until their modified cars are properly and independently tested.

When I asked Mary's permission to state this offer as being open to anyone, she wrote:

Yes you can so state.  However you should add, "stock" (or "otherwise stock") to the description of the Honda Accord.  Obviously, one can achieve 100 mpg with an Accord either by converting it to a plug in hybrid or by using a tiny weak engine in it-- neither of which, I am prepared to pay for.

Dateline Calls HAFC a Fraud

In April, we reported that MSNBC's Dateline sought to replicate the Dutchmann claim of a two-fold mileage increase in a Honda Accord, having Sam Burlum, a certified installer, trainer and tuner of the HAFC system, who after installing it told them the car was now getting 96 mpg.  However, when Dateline took their officially modified vehicle to a government-approved testing facility, the mileage was shown to be essentially unchanged, at 34 mpg.

Dateline contacted as many of the 24 "satisfied customers" that they could, which Lee had listed in its victory claim last February, and found that 17 of them were not at all satisfied customers, many of them wanting their money back, having spent typically around $1000 for the equipment and another $1000 for the install, but with very little change in performance. Four of those are shown on camera making statements about their experience with the HAFC.

When approached with Mary Yugo's challenge above, Jeff Otto wrote today:

Dutchman Enterprises sold all interest in North America in the Hydro Assist Fuel Cell (HAFC) to Genesis Technical Systems (Genesis).

The HAFC has been discontinued. Genesis will release their own product in their own time.

Neither Dutchman Inc. or Dennis Lee has any ownership or management interest in Genesis.

Jeff Otto does not own any more interest (ownership or management) in Genesis than anyone of the other 1,999 UCS of A dealers worldwide. exhausted their inventory concerning the HAFC product over 3 months ago.

The results shown on any pages for HAFC mileage improvement was obtained directly from the Dutchman factory training center.

So Mary, as far as your challenge goes, obviously you have directed it to the wrong parties. However once Genesis does release their product, and of course you are willing to enter in to an escrow with your $150,000 deposited up front, they may take you up on your challenge. Not my decision however I will forward to Genesis on your behalf. 

By: Jeff Otto; Secretary LTD

PS: Instead of using the word Jaded to describe your actions I would tend to believe you may be lost in your own mind and should consider a competency evaluation.

A screen shot from Jeff Otto's site, Sept. 2, 2009, 1:15 pm Mountain

Click here for enlargement
| full page

It seems to me that Jeff is the one who is being irrational here.  On his site he makes it look like the technology is rolling on without a hitch under new ownership, but above he distances himself from the Genesis product as if it is an unknown quantity.  He's being misleading in one of the two places because they are contradictory.

Mary's offer is fair, though I disagree with her response about escrow, in which she stated to me: "Jeff Otto suggested an escrow but in fact, in the unlikely event someone offered me such a car, I (or my representative) would show up at the test with a certified check.  No need for escrow."  I think if someone is going to take her up on her offer, in good faith, she needs to put up the money in escrow so that their efforts will not be in vain.  I would require that if I was the one doing the install.

In response, Mary wrote:

Sorry, no escrow. Here's why: Otto doesn't need to make any special effort or to spend any money- according to his web page he tested exactly the configuration which is the subject of my challenge. All he has to do is borrow that car for one day-- for a share of the $150,000. I'm happy to travel to wherever the car is located. What owner wouldn't go for a part of that deal? He doesn't even have to adapt another Accord though he easily could. They bring less than $8K on the used market and his addition costs about $1K.

On the other hand, with an escrow, I'd have to tie up $150K for who-knows-how-long on the exceedingly, vanishingly small, possibility that Otto would ever take up such a challenge-- one that he knows full well he would irrevocably lose. See the problem? 

Should a test take place, I will provide a $150K cashier's check on Wells Fargo bank the day of the tests which you, if you wish, can hold. And if the car passes a preliminary test which you and I can conduct together -- a 100 mile drive over ordinary roads starting with a full tank followed by refilling the tank at the end of the drive and estimating the mpg -- then if our estimate is close to 100 mpg, I will pay for all further independent precise testing at a lab of mutual choosing.

Fellow New Energy Congress member and famous skeptic, Eric Krieg, who is featured in the Dateline story as an HAFC skeptic, also weighed in on the above dialogue, stating:

This reversal of a reversal happened largely because Lee told the court of people who got doubled mileage - but these people in fact got no mileage gain and had trouble getting their cars working or their money back. Since that filing, Lee's lawyer jumped ship - in his pleading, he mentioned many not too flattering things. The untold story is of all the hundreds of thousands of investment money lost by people who were willing to give a really out-there claim a chance. It makes any people trying radical ideas with energy look like a crook.

Lee had attacked the Tesla Society in the mid 90's - it went bankrupt and Lee bought the assets. I think you could tell the court in the FTC case or other groups holding judgments against him that you are willing to buy all the Tesla assets. Lee has claimed to courts trying to collect money that he has no assets - but I think he still owns all the Tesla stuff - lets help get it into honest hands.

There seems to be no end to free energy and super high mileage fraud out there. I've heard a number of complaints from people who dealt with Otto. Otto officially challenged me to a $5000 both sides with winner take all challenge. But when I emailed him to try to negotiate issues related to such a test, he never responded. Insiders have told me that Jeff never got his to work. Both on a phone conference line and on an email list for HAFC kit people, the question has gone out "has anyone got it working?" and no answer comes back. This is pathetic. 

People have been out a huge amount who bought into those nationwide full page ads, video spots, training classes, building production lines for the kits and 6 figure dealerships. Jeff Otto seems to be one of the only HAFC people promoting the sales of the same stuff with the Genesis name. He'll say everything to you accept where to see real proof first hand. 

As near as I can tell, Lee's claim to have sold out all to a new Genesis company would be a violation of the court order. 

The court statement that Mary alludes to does not tell the latest news of Lee's lawyer getting permission to get out of the case for many reasons including the implication that Lee wanted him to do unreasonable foot dragging. I found about a dozen people that Lee listed to the court as having near doubled mileage who actually had no improvement and some of them couldn't get their money back or car working. The HAFC scam involved people being strung along with days without their cars, driving hundreds of miles for nothing and paying hundreds of extra dollars for nothing. 

If any of the thousands of said happy customers would have showed me it work, I happily would have changed sides. Lee and his leading followers are afraid to open dialog with me

In other news, I was given an HHO boost kit from a company that demo'd a car getting higher mileage than I can conventionally explain.  If I can get it to work, it would mean the demo I was impressed with did not have some trick I ... failed to detect.  More on this later

What about Hydroxy Boosting in General?

On this day of bad news about Dennis Lee's version of the hydroxy technology, there is therefore some great news, as seen in that last paragraph.  Eric Krieg, the famous skeptic, is presently reviewing a fuel-improvement via HHO technology that defies his scientific upbringing.  He may be making a major about-face announcement soon about the plausibility of the technology in general.

Wouldn't that be ironic if Eric was the one to claim Mary's $150k prize

Also, next Monday I am tentatively scheduled to interview Damon Coon, COO of Ronn Motor Company.  Their $150,000 Scorpion will be first production vehicle that will use the hydrogen boost technology in which an on-board electrolysis unit produces essentially Brown’s gas which is then ducted into the air intake to effect a more efficient burn of the fuel, achieving 40 mpg in a muscle car.

Stay tuned.

# # #

See also

Page composed by Sterling D. Allan Sept. 2, 2009
Last updated December 24, 2014




"It is harder to crack a prejudice than an atom." // "I'd rather be an optimist and a fool than a pessimist and right." -- Albert Einstein

ADVISORY: With any technology, you take a high risk to invest significant time or money unless (1) independent testing has thoroughly corroborated the technology, (2) the group involved has intellectual rights to the technology, and (3) the group has the ability to make a success of the endeavor.
All truth passes through three stages:
   First, it is ridiculed;
   Second, it is violently opposed; and
   Third, it is accepted as self-evident.

-- Arthur Schopenhauer (1788-1860)

    "When you're one step ahead
of the crowd you're a genius.
When you're two steps ahead,
you're a crackpot."

-- Rabbi Shlomo Riskin, (Feb. 1998)

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