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Investors, inventor left behind in apparent scam

Posted by keelynet on December 5, 2009

This is the kind of thing that hurts alternative science researchers and inventors.

“Scientist and inventor Oskar Klenert spent the better part of 50 years perfecting and patenting his Earth Cell Module and dreaming of when his invention would end coastal erosion. It took Scott David Farah less than two years to nearly shatter that dream, according to Klenert who is in his mid-seventies and lives in a small Cape Cod community.

Klenert is the founder of Earth Protection Systems, Inc., a Delaware corporation with a mailing address in Meredith. Farah operated Financial Resources Management, Inc., and his business partner, Donald Dodge, had C L and M, Inc. until both companies abruptly shut their doors. The state Attorney General’s Office has filed petitions for involuntary bankruptcy against the two Meredith firms in order to gain control over the assets and arrange an orderly dissolution of both.

Klenert said his business relationship with Farah began in 2008 when he told Farah about the Earth Cell Module which he has embedded into coastal areas and which uses the energy from crashing waves to collect displaced sand and rebuild the beach. While it is not clear when Klenert became aware Farah had investors to whom he had sold interests in Earth Protection Systems, Inc., he said now he “should have been smarter,” adding he “just took some things for granted.” Klenert said he was “blindsided” like everyone else when Farah and Dodge closed down Financial Resources Mortgage, Inc. and, as far as he was concerned, disappeared.

Since then, Klenert said he has been contacted by many of the people who invested in his company and he is learning what Farah told them to entice them. “He glorified the product,” said Klenert, adding Farah “made claims of great returns.” – Full Article Source

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