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DESIST AND REFRAIN ORDER
State of California - Department of Corporations
STATE OF CALIFORNIA
BUSINESS, TRANSPORTATION AND HOUSING AGENCY
DEPARTMENT OF CORPORATIONS
TO: Raymond Charles Anderson Traffic Alert Systems, Inc.
A.K.A. R.C. Anderson Helmet Alert Systems, Inc.
2045 Burton Street, # 53 Elite Custom Cleaners, Inc.
San Diego, CA 92111 2764 Lake Sahara Drive, Suite 111
and Las Vegas, NV 89117
5715 Baltimore Drive, # 154
La Mesa, CA 91942
and
2364 Fulham Way
San Diego, CA 92139
DESIST AND REFRAIN ORDER
(For violations of section 25110 of the Corporations Code)
1. At all relevant times, Traffic Alert Systems, Inc., is and was a Nevada corporation, first
incorporated on November 15, 2002. At all relevant times, Raymond Charles Anderson, also known
as R.C. Anderson (“Anderson”), is and was the President and control person of Traffic Alert Systems,
Inc.
2. At all relevant times, Helmet Alert Systems, Inc., is and was a Nevada corporation, first
incorporated on December 15, 2003. At all relevant times, Anderson is and was the President and
control person of Helmet Alert Systems, Inc.
3. At all relevant times, Elite Custom Cleaners, Inc., is and was an entity of unknown form. At
all relevant times, Anderson is and was the control person of Elite Custom Cleaners, Inc.
4. Beginning in or about May 2005, Anderson, Traffic Alert Systems, Inc. and Helmet Alert
Systems, Inc., offered and sold securities, in the form of shares of common stock, in Traffic Alert
Systems, Inc. and Helmet Alert Systems, Inc.
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DESIST AND REFRAIN ORDER
State of California - Department of Corporations
5. Beginning in or about August 2005, Anderson and Elite Custom Cleaners, Inc. offered and
sold securities, in the form of shares of common stock, in Elite Custom Cleaners, Inc.
6. Through solicitations in the form of in person sales presentations, Anderson, Traffic Alert
Systems, Inc., Helmet Alert Systems, Inc. and Elite Custom Cleaners, Inc., offered and sold securities
to California residents.
7. The purported purpose of the Traffic Alert offering is to raise funds for the development and
implementation of the Traffic Alert concept: a traffic sign which activates at the presence of in route
emergency vehicles in order to alert motorists and pedestrians of an approaching emergency vehicle.
8. The purported purpose of the Helmet Alert offering is to raise funds for the development and
implementation of the Helmet Alert concept: a motorcycle/bicycle helmet with embedded lights for
rider visibility and safety.
9. The purported purpose of the Elite Custom Cleaners offering is to raise funds for the
development and implementation of the Elite Custom Cleaners concept: a combination coffee shop
and dry cleaner.
10. These securities were offered and sold in the State of California in issuer transactions. The
Department of Corporations has not issued a permit or other form of qualification authorizing any
person to offer and sell these securities in this state.
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DESIST AND REFRAIN ORDER
State of California - Department of Corporations
Based upon the foregoing findings, the California Corporations Commissioner is of the opinion
that the shares of common stock in Traffic Alert Systems, Inc., Helmet Alert Systems, Inc., and Elite
Custom Cleaners, Inc. are securities subject to qualification under the California Corporate Securities
Law of 1968 (Corporations Code, section 25000 et seq.) and are being or have been offered and sold
without being qualified in violation of Corporations Code section 25110. Pursuant to section 25532 of
the Corporate Securities Law of 1968, Raymond Charles Anderson, also known as R.C. Anderson,
Traffic Alert Systems, Inc., Helmet Alert Systems, Inc., and Elite Custom Cleaners, Inc. are hereby
ordered to desist and refrain from the further offer or sale in the State of California of securities,
including but not limited to shares of common stock in Traffic Alert Systems, Inc., Helmet Alert
Systems, Inc. and Elite Custom Cleaners, Inc., unless and until qualification has been made under the
law, or unless exempt.
This Order is necessary, in the public interest, for the protection of investors and consistent
with the purposes, policies, and provisions of the Corporate Securities Law of 1968.
Dated: December 28, 2006
Los Angeles, California
PRESTON DuFAUCHARD
California Corporations Commissioner
By: _______________________________
ALAN S. WEINGER
Lead Corporations Counsel
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Rebuttal Letter
Sept. 9, 2006
PRESS RELEASE
Local investors are maliciously sabotaging a San Diego inventor’s efforts - to produce
safety-warning devices for law enforcement and emergency medical technicians - for their
own personal and financial gain.
Four San Diegans who last year invested a total of $200,000 over a period of several
months are now contacting city and state officials as well as contractors, potential
investors and the news media to try to derail the inventor’s efforts and slander his name.
All of this is being done maliciously and underhandedly to cover up their efforts to steal
the inventor’s ideas of two systems that could warrant millions of dollars in revenues.
This is the third time local inventor RC Anderson has been the victim of someone trying
to steal his idea for their own gain.
(In 1997 and 2003, two other investors attempted to steal Anderson’s same two projects.
He is still battling with a former investor/partner over one of the projects.)
A Channel 10 news investigative report, which aired Sept. 1, titled: “Man accused of
sucker-punching San Diegans,” was not only one-sided, but full of lies and
misinformation, Anderson said. (see Attachment A)
The reporter Thom Jennings quoted ex-heavyweight champion boxer Ken Norton as
siding with the four, when in actuality, Mr. Norton is a very close friend of RC
Anderson’s. Norton has since personally hand-delivered a letter to Channel 10’s General
Manager Derek Dalton demanding a retraction and an apology. (Attachment B)
Norton is one of several investors in the safety systems. His name along with the name of
his son, Ken Norton Jr. was misused in the Channel 10 report.
Bryan Nielsen, Kathy Nielsen, Steve Huss and Jackie Hellenberg are the four investors
that are attempting to derail the projects.
Traffic Alert Systems and Helmet Alert Systems, are projects conceived by RC Anderson
in 1997 and 2003, respectively.
Bryan Nielsen, an engineer for Salk Institute, was brought on board as a contractor to
execute the electronic technology for the Helmet Alert System in late 2004.
Two months into the project, Nielsen and his wife, Kathy, asked to become an
investor/partner with Helmet Alert and Traffic Alert systems. After working with the
Helmet Alert project for at least 3 months, Bryan Nielsen then asked to bring on board
two other investors.
Anderson believed that Nielsen had faith in the projects and believed in his efforts by
bringing on board investors Huss and Hellenberg, both former co-workers at the Salk
Institute.
The four investors were not silent partners. They were very active in the planning and
execution of both projects under the umbrella of Select One Technology, Inc. Board
meetings were held regularly at the home of Steve Huss. Minutes were taken. Travel was
involved to secure contracts by Anderson, Bryan Nielsen, Huss and Norton. Prototypes
were produced. Yet the foursome claimed that the projects were “fraudulently”
represented in an effort to gain their investment. (see attachments F & G)
Prior to the resignations of the foursome, Anderson had an agreement with RU2 in
Phoenix, AZ to produce a prototype of Traffic Alert’s emergency light system.
The system is a 36” X 36” LED unit that gives motorists a visual warning of an
approaching emergency vehicle. An approaching emergency vehicle within 700 feet of the
sign activates the flashing lights.
In addition, Anderson held an agreement with San Diego based Troxel, Inc, and Coast
Cutlery in Portland, OR. to produce prototypes of the Helmet Alert System.
This system is a helmet with LED lights on the sides and rear that give motorists a visual
presence of law enforcement cyclists, particularly in the dusk to evening hours. (see photo
in side bar)
Because the projects were not moving as fast as they had initially anticipated, due to the
investment funds being used to pay off previous investor, Dr. Stuart Steele, they became
inpatient. All partners had agreed to the payoff of Steele and were full aware of
subsequent funding needed to move the projects forward.
Despite their knowledge, the four began dragging their feet on the project and without
notice to other investors, subsequently contacted Richard Timms, CEO, of Troxel, Inc.,
David Brands, CEO, of Coast Cutlery and Steve Sigler RU2, claimed ownership of the
traffic and helmet concepts and accused Anderson of fraud.
Bryan Nielsen sent a letter to Traffic and Helmet alert’s patent attorney Rob Cogan of
Nath and Associates of Del Mar, demanding that he cease and desist filing a patent on the
helmet project. At the time, the patent was 95% complete. In the letter Nielsen claimed
full credit for the helmet system concept. (see letter Attachment C).
As a result, Anderson lost all potential contracts with Troxel, Coast and RU2. Cogan
honored Nielsen’s request, despite being aware that Anderson was the original inventor.
It was later discovered that Nielsen filed his own patent on the helmet project using the
same drawings and technology he developed while as a partner for Helmet Alert Systems,
Inc. Despite the fact that part of that development took place while he was a paid
contractor.
The helmet project was severely delayed because of Nielsen’s failure to complete a
working prototype in ample time for review by the Office of Law Enforcement and
Technology in West Virginia. (contact Tim McFadden w/OLETC) This, in hindsight,
appears to have been a planned sabotage, because their resignations came about six weeks
later.
The four made claims against Anderson of ”fraudulently” withdrawing monies for
personal expenditures. The bank account with Wells Fargo was accessible to Bryan
Nielsen at all times. His name was on the account and Nielsen had established online
access to monitor bank activity. He was also aware of the $50,000 line of credit that was
provided for the company. He received $10,000 of that credit.
They were fully aware of how their monies were being used (as discussed in meeting
minutes, Attach. F). However, after their efforts failed to immediately get their investment
back out of the projects, they began and are continuing their attacks to try and cover-up
their real agenda. Anderson says he personally feels that Bryan Nielsen is trying to launch
the helmet project that he invented.
Bryan realized the demand and market for this helmet. He feels he could undermine me. He
has no regard for the other investors that were there before him. The helmet project was
never mentioned in the news report, because he does not want to draw any attention to it. He
wants to divert the attention to Traffic Alert, and make it seem like that is the issue at hand.
By the same token he is continuing negotiations with Troxel, and Coast Cutlery to develop
the actual helmet system. He has caused Select One Technology and its other investors a
delay of millions of dollars by derailing, maliciously lying and assassinating my character
through the media so that he can continue to move forward on launching my projects in
which he was able to obtain a patent pending.
Being the inventor that I am, I have designed a very unique and different system. I am
indebted to my investors and my partners. Traffic Alert and the helmet project is still going
strong.
Channel 10 news doesn’t really care about the facts of the story. They chose to focus on the
lies that were told to them. They tried to make it seem as though there wasn’t a project. It
seems to me that they are more concerned about reporting lies as opposed to reporting about
a system that saves lives.In closing, I am a strong believer in ‘what goes around, comes
around.’
RC Anderson, CEO, Traffic Alert System, Inc. and Helmet Alert
Attachment A
Oct. 8, 2006
Dear Mr. Thom Jensen,
This is a formal letter demanding that you CEASE and DESIST from broadcasting false
and biased news stories about RC Anderson and Traffic Alert.
In addition to affecting Mr. Anderson’s livelihood, the stories are very damaging,
SLANDEROUS and DEFAMATORY. A news organization should strive, above all, to
present a fair and unbiased story.
There is another side to this story that has not been told. And you have failed to gather all
of the facts that will allow the public to form their own opinion.
Mr. Anderson has obtain legal counsel to stop what he says has been an “avalanche of lies
and hypocrisy.” He will not sit silently and allow you to continue to assassinate his
character when he believes the camera should really be focused on the accusing party and
their motive...which is not about their investment, but about their malicious gain in
defrauding Mr. Anderson of the Helmet Alert project.
Both Helmet Alert and Traffic Alert ARE legitimate enterprises that are moving forward
without them. And if you took the time to research the facts, you will discover this truth.
RC Anderson, CEO
Traffic Alert System, Inc.
Subject: Character
From: "Fox,Tom"
Date: Tue, September 12, 2006 12:03 pm
To: RC@SelectOneTechnology.com
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The slanderous exposé run by channel 10 questions their commitment to
"truth in
journalism".
I am shocked at the lack of investigation performed by Thom Jensen an
"investigative
reporter".
I have know RC Anderson for sometime and am an investor in not only
his companies
but more importantly, in the man.
Mr. Anderson keeps me personally updated multiple times a week on the
progress of
our endeavors. He has always represented himself in a professional
manner with the
success of his inventions, to help save lives, as the priority.
Thomas Fox
Service Director
Mercedes-Benz of San Diego
85-467-3600
Attachment
Attachment F
Meeting minutes SOT 2/4/2006
In attendance: RC Anderson, Paul Jefferson, Jackie Hellenberg, Bryan Nielsen, Ken Norton,
Steve Huss, Kathy Nielsen, and Kathie Taylor
Meeting began @ 1:50 p.m.
Location: Steve Huss
Previous minutes were approved
Clarification was made to J. Hellenberg who was unclear on the status of SOT’s incorporation
and the balance of funds from investments.
RC explained that SOT is a legitimate corporation, and that some of the funds from investors
were used to pay off old investors, and allocated to various expenses to bring the helmet system
to where it is now.
Also, RC said his focus right now is in raising $3.5 million for SOT in the next 30 to 60 days.
Bryan suggested getting the stock certificates issued; and said we’re very close to having a
balance sheet report every month.
Attachment G
(The following minutes were typed and sent by so-called victim Jackie Hellenberg on Jan. 18,
2006. Detective Dubois has a copy of this and many other meeting notes that he failed to mention
in his report. Note the highlighted areas. If the intended accuser was so fraudulently taking money
from a business that didn’t exist, how could the investors be so involved? It was not the type of
blind investment the media makes it out to be. Each one of these “victims” were heavily involved
in securing the success of the project.)
Yesterday's meeting went very well. It was attended by a group which I believe represents all of
SOT's investors plus Rick Timms and his
colleage, Charles, on the Troxel side.
Rick had the opportunity to air his concerns to the group and to have his points addressed one by
one. I believe we all left the meeting with a good understanding of what steps need to be
accomplished, and in what sequence, in order for us to move ahead working together. Rick's
number one issue is that SOT's intellectual property be protected to as iron-clad an extent as
possible.
He iterated and reiterated that if the patent has a weakness, it will be found and exploited and all
our investment and work will be for nothing.
Rick’s second significant concern was fiscal and he sought assurances regarding our ability to
fund substantial start up costs for tooling and other development expenses. Assurances were
provided, but they will need to be backed up with a formal business plan including marketing and
distribution channeling strategies, budgeting, capitalization, etc. There was also discussion of
some of the many advantages that Troxel brings to this endeavor, including its proven experience
with insurance and engineering liability, record keeping, safety standards, product testing, etc.
There was general agreement and appreciation of all that Troxel has to offer in partnering with
SOT. We concluded with ‘to dos’ for Rick, RC, Kathie, Bryan, Steve and me:
•tooling budget numbers for mid-range quality law enforcement prototype
•procurement of sample law enforcement bicycle helmets from LA,LV and DC
test sites
•pre-prototype data collection survey
•lighting pattern geometry and battery and vibrator engineering tasks
•state and federal lobbying for legislation mandating lighted helmets for
law enforcement
•marketing and distribution channel research
•complete detailed robust business plan
•engineering project plan
•fiscal house in order
•patent application preparation
Is RC Anderson still in business
Is this business still operational
Fales allegation are made every second of Our lives. There's two sides to every Story. Everything that glitters is not gold. Please be very careful when we pass judgment against someone, Make sure you have all the Facts, before casting judgment. There are a lot of innocent people, that have fallen Victim to our (bias) system, because of false allegation that were bought against them. And when you don't have the financial, wherewithal to fight for your constitutional rights, you will fall victim to the system.
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