State and Federal Agencies Urged to Protect New York Consumers

ALBANY, NY (08/20/2008)(readMedia)--

Empire State Ethanol & Energy, LLC (ESE) has uncovered new evidence relating to their Federal lawsuit against BBI International (bbibiofuels.com), its employee Mark Yancey, Jeff Kistner and Ed Stahl, as well as Albany Renewable Energy, LLC a/k/a New York Renewable Energy, LLC and Bio-Pro Resources, LLC. The $72 million lawsuit has been filed in the United States District Court for the Northern District of New York.

The lawsuit alleges that after ESE hired BBI to conduct a feasibility study and head-up project development activities related to building an ethanol plant in New York, BBI wrongfully used that information to secure a development opportunity at the Port of Albany. The lawsuit contends BBI terminated its relationship with ESE under false pretenses and then used the research conducted and paid for by ESE to submit its own bid and subsequently win an RFP for 18 acres of land at the Port of Albany to build a $350 million fuel ethanol facility.

ESE has uncovered critical new evidence, which implicates Mike Bryan, CEO & Founder of BBI, giving his full permission and encouraging the alleged illegal activities outlined in the lawsuit. Based on this new evidence, an amended lawsuit will be filed to include Mike Bryan as the lead defendant alleging he encouraged his employees to “moonlight” with projects competitive to BBI clients for BBI’s benefit, and thereby illegally withholding critical data from the preparation and dissemination of securities offerings.

Empire State Ethanol & Energy Urges NY State and Federal Investigation.

In conjunction with the lawsuit, ESE is requesting state and federal agencies to investigate BBI and their select partners for alleged violations of the Sherman and Clayton Anti-Trust Laws, securities fraud, and allegedly creating illegal barriers to market entry. These activities may be leading to an increase in the price of ethanol in the New York and national markets. ESE is requesting the following agencies investigate the antitrust and securities charges, and potential monopoly control power of BBI and it’s partners: The New York Attorney General’s Office, New York State Comptroller’s Office, New York State Commission on Public Integrity, the Federal Trade Commission, Security and Exchange Commission-Enforcement Division, the United States Department of Justice-Antitrust and the United States Department of Energy-Inspector General. ESE has sent certified letters to all of these agencies requesting their investigation into these matters to protect all American consumers, and launch a multi-jurisdictional action against Mike Bryan & BBI International and any partners that may have potentially colluded with them.

“We are requesting a full and thorough investigation because market data will potentially show these practices have now gone far beyond damaging Empire State Ethanol,” said Christopher Von Zwehl, president of Empire State Ethanol & Energy, LLC. “These individuals are potentially creating illegal barriers to market entry and could have a huge impact in the ethanol market. This forces up the cost of ethanol and will be paid for by the American consumer, and lead to further increases in fuel costs at the pump. To protect the public consumer and other independent ethanol producers I implore both New York State and Federal agencies to investigate these allegations,” concludes ESE President Von Zwehl.

BBI is also expanding their control of the ethanol industry, and now wants to become a producer, by forming their new venture BBI Bio Ventures, LLC. The industry is shifting from corn to cellulosic ethanol production, and BBI is no longer satisfied being just an industry consultant. They now want to develop and operate their own cellulosic ethanol plants, and formed BBI Bio Ventures, LLC, and named Mark Yancey as the CEO. “This expanded market influence now potentially puts BBI in a position in which they can take all of their consulting client’s confidential information, business plans, acquired knowledge, business contacts, financial investors, and proposed plant information to take over the industry business model in cellulosic ethanol,” said Von Zwehl. “We tried to amicable settle this, but they have not even responded. I guess they feel they are above answering to anyone but themselves,” he concludes.

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