EarthFirst Chairman John Stanton put out a news release in April trumpeting U.S. Sustainable's revolutionary biofuel process.

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In the days before the release EarthFirst's trading volume spiked to 5 million shares from several hundred thousand and the stock price bounced to 17 cents, briefly arresting a long slide to a nickel a share.

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EarthFirst, John Stanton's firm, claims to be at "the forefront of alternative energy sources, " according to its Web site, but still gets most of its revenue from moneylosing waste-disposal and biodiesel-import businesses, and recently filed to allow Laurus Capital to sell 76 million shares, whose proceeds would be used to retire convertible debt held by Laurus.

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