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International Automated Systems
Twenty Years of Fraud is Enough

To: xxxx@sec.gov
From:xxx@gmail.com
RE: Multiple violations of fraud regulations by International Automated Systems, Neldon Johnson, Randale Johnson,  John doe 1-10.


This  is a summary  of allegations of  corporate and individual  stock  fraud  by  International  Automated  Systems  (trading symbol IAUS-Pink Sheets),  by  corporate  principals Neldon Johnson  and Randale Johnson, and by persons unknown referenced as John Doe 1-10. Details and documentation of each allegation are contained in subsequent pages.

ALLEGATION 1-VIOLATION OF COURT INJUNCTION FOR PREVIOUS STOCK FRAUD

Both Neldon and Randale Johnson, principals of IAUS are under permanant court injunction to refrain from violations of US securities law. Both these persons are in flagrant violation of this injunction, and should be found in contempt of court.


ALLEGATION 2-FRAUD ON THE COURT

Both Neldon and  Randale Johnson  avoided the payment of millions of dollars inl fines and disgorgement of ill gotten gains by swearing under oath as to their inability to pay such fines and disgorgement. In fact both Neldon and Randale had substantial assets hidden in offshore accounts and in corporate accounts-used as personal piggy banks-making their sworn statement a fraud on the court, and meriting a charge of contempt.  Subsequent to the grant of relief by the court both parties acquiired substantial real estate holdings and a $300,000 Cessna aircraft with no visable means of support or income. The relief defendants named in the SEC complaint, all immediate family members of Neldon Johnson, were let off scott free, despite their illegal profits from the scam.


ALLEGATION 3-MULTIPLE 10-B FRAUD OFFENSES

Since 2001 or therabouts, both Neldon Johnson and Randale Johnson have been engaged in an elaborate fraud scheme to deceive the investing public through the repeated release of public statements regarding their supposed "solar technology".  These public statements at all times used the instrumentalities of interstate commerce, and were not only false and misleading but in most cases were blatant lies. The Johnsons were aided and a betted in this fraud by John Does 1-10, who used e-mail and telephone  lists to further the fraud. On knowledge and belief at least five Does personally profited from such efforts.

ALLEGATION 4-SALE OF UNREGISTERED SECURITIES

In each and every filing with the Securities and Exchange Commission International Automated Systems has alluded to and documented the sale of securities from an "Escrow Account," the proceeds of which were used to fund corporate operations.  In fact, International Automated Systems has not registered securities for sale to the public, nor have they stated that such securities were exempt from registration. This is a clear violation of the Act.

On or about 2005, International Automated Systems began marketing a security sold as a tax shelter to the general public, and has collected close to one million dollars in "deposits"  on these unregistered securities. The claims made in this unregistered offering were not, and could not be fulfilled, since International Systems has no functioning solar technology for which the tax credit could be claimed.

International Automated Sysems was aided and abetted in this offering by John Doe 1, believed to be Greg Shephard, a resident of Utah, and a nationwide network of commissioned sales persons recruited by Shephard, none of whom, on knowledge and belief, were registered brokers. Shephard went so far as to include detailed tax return preparation instructions in the sales and promotional materials for these unregistered securities, which were illegally sold in flagrant violation of the Act, and in flagrant violation of Internal Revenue Service regulations. Lincoln  Pearson AKA John Doe 2 and a resident of Arkansas was one of many participants in the illegal marketing of these securities, going so far as to incorporate an entity to further his illegal activities, and actively used the insstumentalities of interstate commerce to further his scheme. The illegal acttivities of this network are extensively documented and can be obtained by contacting xxx@xxx.

ALLEGATION 5-RAMPANT VIOLATIONS OF REGULATION FD and STOCK MANIPULATION

Neldon Johnson, Randale Johnson, and John Doe 1-10 have at all times since 2001 maintained a clandestine list of e-mail and telephone contacts used to disseminate supposed "insider" information regarding upcoming corporate announcements. This communication has been used to manipulate the stock price of International Automated Systems on multiple occasions as detailed in the graphs and data lists below.  On knowledge and  belief Greg Shephard and an anonymous message board poster with the alias MaddDawg were active and paid participants in this scheme, and profited both by direct payment for services, and by the illegal use of insider information to profit from stock trading. Other John Does were also involved in this illegal scheme. Extensive documentation of this illegal activity is available to the SEC from xxx@xxx.com, and such documentation will show a clear pattern of manipulation of the price and trading volume of IAS stock.

ALLEGATION 6-CORPORATE LOOTING

On at least two occasions Neldon Johnson has looted the corporation of shareholder funds for his exclusive and personal benefit.  I n one case  he awarded himself 100 million favorably priced options in exchange for "patents and patents pending" which in fact remained the property of the Johnson Family Trust. Some of the referenced options have been excersised and sold for Johnson's beneficial interest.

In another case Johnson used corporate funds to capitalize a failed "self check" grocery, including the purchase of a building which the company now leases from Johnson for an amount grossly exceeding it's fair market value. On knowledge and belief, one half of that leasehold payment is applied to Johnson's alimony payments to his former spouse.

ACTION IS REQUIRED

The ongoing fraud committed by Neldon Johnson, Randale Johnson, and John Does 1-10 has resulted in the theft of tens of millions of dollars from the investing public.  If the SEC is committed to maintaining integrity in public markets, then they will act with all deliberate speed to end this fraudulent activity. The SEC has recently claimed to  be taking a more aggressive approach to  fraud investigations.  We will believe that when we see it.