Allen

BACKGROUND

Texas residents Phillip Allen and his brother Todd Allen became interested in the business possibilities of hydrogen-on-demand technology, a process for producing hydrogen from water, and injecting it into the fuel intake of diesel engines in order to increase engine power while reducing fuel consumption and exhaust emissions. Looking for a proven and marketable product, their internet research led them to seek further information about the dealership potential for the hydrogen-on-demand product of HydroFuture, LLC. Defendant David Packer responded by telephone to Phillip Allen‟s 2 email inquiry in June 2008. Allen told Packer that they sought a product that was fully developed and ready to market in Texas. Packer repeatedly told him “„I have the goods. Our units are perfected‟” and ready for market. In August 2008, the Allens travelled to California to meet with Packer and see the HydroFuture products. Packer took them (and some other prospective HydroFuture dealers) to Robertson‟s Trucking, a sand and gravel facility, where they were shown a “HydroZilla” unit in operation on an idling truck. Packer told them that with the HydroZilla unit, the truck was getting…