The FTC released the following:  http://www.ftc.gov/opa/2011/12/dutchman.shtm

FTC Stops Marketers From Selling Phony Fuel Economy Devices

The Federal Trade Commission reached a settlement putting a stop to the phony claims of marketers who told consumers their fuel economy device could boost automobile gas mileage by at least 50 percent and "turn any vehicle into a hybrid." The settlement bans marketers of the so-called "Hydro-Assist Fuel Cell" from selling fuel economy products.

According to the FTC's complaint (filed in 2009), Dennis Lee, Dutchman Enterprises LLC, and United Community Services of America Inc., doing business as UCSA Dealers Group LLC, falsely claimed their Hydro-Assist Fuel Cell (HAFC) turns water into "water gas" with five times the potential energy of gasoline. The court subsequently halted the allegedly illegal practices and froze some of the defendants' assets pending further litigation.

The settlement order bans the defendants from selling energy generation or conservation products, and allows them to sell or transfer HAFC kits or parts only if they don't misrepresent energy or fuel efficiency capability and don't permit others who buy them to do so. They can sell the kit's liquid fuel additive component only if they disclose, up-front, that it contains petroleum distillates, and only if they provide buyers with a copy of the Material Safety Data Sheet for the additive dated February 3, 2008. If the defendants sell or transfer any kits or parts, they must tell the FTC each buyer's name and address and describe any prior business relationship they may have had with the buyer.

The order also prohibits the defendants from misrepresenting any good or service, and from selling or otherwise benefitting from customers' personal information, and requires them to properly dispose of customers' personal information within 30 days. In addition, the order imposes a judgment of more than $2.7 million against the defendants, all but $230,356 of which will be suspended when they have surrendered frozen assets. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.

The Commission vote approving the proposed consent order was 3-0-1, with Commissioner J. Thomas Rosch abstaining. The FTC filed the proposed consent order in the U.S. District Court for the District of New Jersey. The order was entered by the court on December 7, 2011.

NOTE: This consent order is for settlement purposes only and does not constitute an admission by the defendants that the law has been violated. Consent orders have the force of law when approved and signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC's website provides free information on a variety of consumer topics. Like the FTC on Facebook and follow us on Twitter.

A few out takes from the settlement which is found at
http://www.ftc.gov/os/caselist/0823203/111220dutchmanorder.pdf
:

Judgment is hereby entered in favor of the Commission and against
Defendants Dutchman Enterprises, LLC, United Community Services of America,
Inc., and Dennis Lee, jointly and severally, in the amount of Two Million, Seven
Hundred and Thirty-Eight Thousand, Nine Hundred and Fifty Dollars ($2,738,950),
which Plaintiff and Defendants stipulate is the amount received from dealers in
sales ofthe HAFC that is the subject of the FTC's Complaint. Except as provided
in Section V of this Final Order, all but Two Hundred and Thirty Thousand, Three
Hundred and Fifty-Six Dollars ($230,356) of this judgment shall be suspended
upon the transfer of all of the assets set forth herein.
1. Lakeland Bank shall transfer all accounts frozen pursuant to the
Stipulated Preliminary Injunction in this case, in the amount as of the date
the accounts were frozen, plus any interest payable by the institution, and
any funds deposited into the accounts, to the Commission or its agent by
wire transfer in accordance with wiring instructions to be provided by the
Commission.
2. PNC Bank shall transfer all accounts frozen pursuant to the
Stipulated Preliminary Injunction in this case, in the amount as of the date
the accounts were frozen, plus any interest payable by the institution, and
any funds deposited into the accounts, to the Commission or its agent by




===============
B. If, upon motion by the Commission, the Court finds that one or more
Defendants have failed to disclose any material asset, materially misstated the
value of any asset, or made any other material misstatement or omission in the
sworn statements described above, then the Court shall lift the suspension of the
judgment and reinstate the full judgment against such Defendant, in favor of the
Commission, in the amount of Two Million, Seven Hundred and Thirty-Eight
12
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3881
Thousand, Nine Hundred and Fifty Dollars ($2,738,950), minus any payments
previously made pursuant to this Order.
VI.
ORDER PROVISION REGARDING CUSTOMER INFORMATION
IT IS FURTHER ORDERED that Defendants, and their officers, agents,
servants, employees, and attorneys, and all other persons in active concert or
participation with any of them who receive actual notice of this Order by personal
service or otherwise, are permanently restrained and enjoined from:
A. disclosing, using, or benefitting from customer information, including
the name, address, telephone number, email address, social security number, other
identifYing information, or any data that enables access to a customer's account
(including a credit card, bank account, or other financial account), of any person
which any Defendant obtained prior to entry of this Order in connection with the
marketing and sale of any product or device that is, or has been, purported to
generate energy, reduce energy consumption, or increase vehicle gas mileage, fuel
efficiency, or fuel economy; and
B. failing to dispose of such customer information in all forms in their
possession, custody, or control within thirty (30) days after entry of this Order.
Disposal shall be by means that protect against unauthorized access to the customer
information, such as by burning, pulverizing, or shredding any papers, and by
erasing or destroying any electronic media, to ensure that the customer information
cannot practicably be read or reconstructed. Provided, however, that customer
information need not be disposed of, and may be disclosed, to the extent requested
13
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3882
by a government agency or required by a law, regulation, or court order.

 ======================  Eric commentary:

The settlement document
http://www.ftc.gov/os/caselist/0823203/111220dutchmanorder.pdf
says Dennis sold 2.7 million dollars of "product" to dealers.
The judgement says money collected goes into a fund for "for equitable relief, including consumer redress" - so sounds like victims who were not part of the fraud can get their money back.
There are provisions that the defendants can really be hit hard if it is found they have hid assets. so anyone with such info should contact jmillard@...

When a number of states prosecuted Dennis, they really didn't follow up on judgements - but this settlement includes provisions for ten years of ongoing monitoring which I think will keep Dennis from starting new energy scams.