Case 1:11-mi-00012-TWT Document 1 Filed 02/10/11 Page 1 of 6

'A M'S N HAT No UERK

THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA " ~~~
ATLANTA DIVISION

SECURITIES AND EXCHANGE

COMMISSION,

Civi l Act ion No. ~~

Applican t,
_! .
V. 1 : 10-CV- -

EHYDROGEN SOLUTIONS, INC .

and ANTHONY K. WELCH,

Respondents.

APPL I CAT ION OF THE SECURITIES AND EXCHANGE COMMISSION

FOR AN ORDER TO SHOW CAUSE AND FOR AN ORDER R EQUIRING
RESPON DENTS TO C OMPLY WITH ADMINI STRATIVE SU BPOENAS

The United States Securities and Exchange Commission (the

"Commission") requests that the Court enter an Order directing Respondents

eHydrogen Solutions, Inc . ("eHydrogen") and Anthony K . Wench ("Welch") to

show cause as to why they have not complied with the Commission's

administrative subpoenas . The commission also seeks an Order requiring

Respondents to comply with the Commission's subpoenas . In support of its

application, the Commission shows the fo llowing :

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1 . Respondents eHydrogen and Welch have failed to comply with validly

issued and served subpoenas for documents and testimony in connection with the

Commission's ongoing investigation into violations of the federal securities laws

includin g, but not limited to , making false statements of material fact or failing to

disclose material facts concerning, among other things, proprietary technology

purportedly controlled by eHydrogen or ChromoCure Inc . ("ChromoCure"), in

press releases and other documents, and manipulative trading activity involving the

common stock of eHydrogen and ChromoCure .

2 . The Commission is investigating whether the Respondents and various

individuals and entities with whom the Respondents are affiliated had any

involvement in the possible fraudulent activity under investigation .

3 . The Commission hereby applies to this Court for an Order requiring the

Respondents to show cause why they should not be ordered to provide certain

documents and testimony pursuant to subpoenas properly issued by the

Commission and served upon them in connection with an ongoing Commission

law enforcement investigation . The Commission further requests that the Court

thereafter enter an Order requiring the Respondents to obey the subpoenas .

4 . Jurisdiction is conferred upon this Court, and venue properly lies within

the Northern District of Georgia, pursuant to § 21(c) of the Securities Exchange

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Act of 1934 ("Exchange Act"), 15 U.S .C . § 78u(c), which provides that "[i]n case

of contumacy by, or refusal to obey a subpoena issued to, any person, the

Commission may invoke the aid of any court of the United States within which the

jurisdiction of which such investigation or proceeding is carried on . . . in requiring

the attendance and testimony of witnesses and the production of books, papers,

correspondence, memoranda, and other records . . . ."

5 . In support of this Application, the Commission submits the

accompanying declaration of Staff Attorney Penny J . Morgan ("Morgan Decl ."),

the exhibits thereto, and a Memorandum in Support of its Application for an Order

to Show Cause and for an Order Requiring Respondents to Comply with

Administrative Subpoenas .

6 . On July 15, 2010, pursuant to Section 20(a) of the Securities Act, 15

U .S .C . § 77t(a), and Section 21(a) of the Exchange Act, 15 U.S .C . § 78u(a),

the Commission issued an Order Directing Private Investigation and Designating

Officers to Take Testimony in In the Matter of eHydrogen Solutions, Inc . (the

"Formal Order") . (Morgan Decl . ¶ 8 & Ex . A .) The Formal Order designated

Staff Attorney Penny J . Morgan, among other Commission staff members, as an

officer of the Commission for purposes of the In the Matter of eHydrogen

Solutions, Inc . investigation, and empowered each person so designated to

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subpoena witnesses and to require the production of any evidence deemed relevant

or material to the inquiry . (Id. ¶ 10 .)

7 . On July 27, 2010, Ms . Morgan, acting on behalf of the Commission

pursuant to the Formal Order, caused the service of duplicate original subpoenas

on Anthony K . Welch, as President of eHydrogen, at eHydrogen's Registered

Agent's office and at Wench's last known home address . (Id. ¶ 12.) The

subpoenas required Respondents to produce documents to the Commission's

Atlanta Regional Office by August l l , 2010 and for Welch to appear for testimony

at the Atlanta Regional Office on August 11, 2010 at 9 :00 am. (Id.) Respondents

have not produced any documents in response to the subpoenas, and Welch failed

to appear on August 11, 2010 . (Id. ¶¶ 18, 19 & 23 .)

8. The documents and testimony sought by the Commission are relevant to

matters under investigation and may provide evidence as to whether Respondents

and/or others violated the federal securities laws . The documents and testimony

sought by the Commission are therefore relevant and important to the

Commission's investigation and their obtainment by subpoena is authorized by the

Formal Order . (Id. ¶ 22 .)

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WHEREFORE, the Commission respectfully requests :

I.

That the Court enter an Order to Show Cause, directing Respondents to

show cause why this Court should not enter an Order requiring their production of

the requested documents and Respondent Welch's appearance for testimony ;

II.

That the Court enter an Order requiring Respondents to comply fully with

the subpoenas ; and

III.

That the Court order such other and further relief as may be necessary and

appropriate to achieve compliance with the subpoenas .

This l 0th day of February, 201 1 .

Respectfully submitted,

LvwA x'r' joy .

Kristin B . Wilhelm
Senior Trial Counsel
Georgia Bar No . 759054

Securities and Exchange Commission

3475 Lenox Road, N .E., Suite 500
Atlanta, GA 30326-1232
(404) 842-7655
wilhelmk@sec .gov

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CERTIFICATE OF SERVICE

I hereby certify that the foregoing Application of the Securities and

Exchange Commission for an Order to Show Cause and for an Order Requiring
Respondents to Comply with Administrative Subpoena was served by U .S . Mail on
February 10, 2011 upon the following :

eHydrogen
c/o Corporate Service Center, Inc .
5190 Neil Road
Suite 430
Reno, Nevada 89502

Anthony K . Welch
1231 State Road 30
Etta, Mississippi 38627

Kristin B . Wilhelm
Senior Trial Counsel