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Admittedly I don't follow the results in great detail but the recent PR seems to have had quite a negative effect. Can someone explain why?
I have no firsthand knowledge but get the impression that the technology could not be scaled up to the levels needed. Too many companies have looked at it and passed. In addition all the joint venture opportunities were probably just smoke and mirrors, for instance the tire recycling facilities they were supposed to build with JV partners ECO Energy, Phoenix Renewable Energy and Envirotech Industries. None of which got off the ground. The press release about the carbon black byproduct didn't amount to anything either. Even the primary byproduct, the oil, was eventually and quietly dropped as a source of revenue that could be generated from the machine.
If their other JV with Schlumberger couldn't make it work in the heavy oil application, it probably isn't feasable.
Last August, Walker was ordered by Ben Barry, U.S. bankruptcy judge, to pay $410,000 in a settlement of a lawsuit filed in Hot Springs by Michael Simms of West Palm Beach, Florida.
(Walker) obtained $205,000 from Simms “under false pretenses” or an actual “fraud,” Simms said in his lawsuit, filed by Judy Henry of the Little Rock firm of Wright Lindsey & Jennings.
Walker promised to return Simms’ $205,000 along with another $205,000 in 95 days.
Simms paid Walker $205,000 in 2007 as part of a Florida real-estate deal which was supposed to be used to persuade Wal-Mart to locate a store.
In the settlement, Walker was ordered to pay Simms $100,000 in four quarterly installments, ending next month. Asked how much he had been paid so far, Simms said Monday: “not a nickel.”
Simms said the $205,000 he gave Walker was from his late wife’s life-insurance policy. He planned to use the money for his children’s education.
Simms complained to the Democrat-Gazette reporter that Walker “is not cooperating.” Smith noted that “Walker did not return phone calls Monday seeking comment.”
Wow. This Phoenix story is showing more legs than a granddaddy spider.
Phoenix Renewable Energy chief operating officer Stephen R. Walker is in more hot water.
Last month, the Arkansas Securities Department ordered Walker and Phoenix to stop selling securities, but not until they had persuaded 50 investors to hand over $1.4 million to build Phoenix’s planned $180 million power-generating and wood-pellet plant in Camden.
In today’s Business section of the Arkansas Democrat-Gazette, there’s new news that Walker, a Hot Springs real-estate developer, has been indicted by the U.S. Attorney’s Office on three counts of income-tax evasion and two counts of failure to collect and pay taxes.
The charges are related to companies owned by Walker: Renaissance Development and Renaissance Holding Group. They “specialize in developing shopping centers,” the district attorney said in a news release.
Here’s how the Democrat-Gazette put it:
According to the release, the indictment alleges that Walker evaded income taxes in 2004 and did not file individual income-tax returns for 2005 and 2006.
For 2005, he owes more than $89,000, and for 2006 he owes more than $46,000, the release said.
Walker couldn’t be reached for comment.
Also, according to the release, the indictment says Walker withheld “income tax, Social Security and Medicare” taxes from his employees’ paychecks, but never paid the taxes to the Internal Revenue Service.
For 2005 and 2006, the indictment alleges he withheld more than $122,000 which he didn’t turn over to the IRS.
I wrote an email to the CEO at GBRC and got a very diplomatic standard response,
"Thank you for this note. I have spoken with Phoenix's CEO and he assures me that our project is not affected by this matter. I shall keep you updated."
I'm not buying it. The whole situation was brushed off too quickly.