U.S. SEC sues 'Save the World Air' for Fraud

Diesel Fuel News, Jan 7, 2002

Securities & Exchange Commission charges in U.S. District Court that SWTA's "Zero Emissions Fuel Saver," a "fuel molecule atomizer device" that supposedly reduces diesel and gasoline emissions, was involved in stock fraud. SEC cites a "fraudulent promotional campaign using press releases, Internet postings, an elaborate Internet web site and televised media events to disseminate false and materially misleading information about STWA's product and commercial prospects." This fraud eventually inflated STWA's market cap to $218 million, and allowed former STWA CEO Jeffrey Muller to pocket up to $9 million in undisclosed restricted stock sales, SEC charged.

Muller earlier claimed to have been in commercial discussions with Ford Motor, which prompted SEC to suspend STWA stock trading. A related scheme involved "posting positive messages on Raging Bull, an Internet message board, without making required disclosures about compensation" paid to an STWA promoter, Bi lly Blackwelder. SEC also got a cease-and-desist order against Dennis Wilson, another SWTA Internet promoter who used the alias, "Majorbuyer."