Sniffex
Encyclopedia
Sniffex is a now debunked, portable explosives detection system produced by Homeland Safety International.
An article in The Dallas Morning News
in April 2007 explained that Sniffex is a divining rod and states that "In a test by the U.S. Navy, Sniffex didn't register when two trucks passed within 20 feet, hauling a half ton of explosives." The Navy's counterterrorism technology task force tested Sniffex and concluded "The Sniffex handheld explosives detector does not work." Despite this, the military bought eight for $50,000.
Although high performance is claimed in advertising for Sniffex, such claims have not been verified by objective double blind testing. Although the tests were conducted at a public meeting by the president of the company, Sniffex did not detect test explosives when the user did not know in advance where they were located. Additionally, James Randi
publicly called into question the validity of Sniffex and exchanged correspondence with the CEO offering one million dollars if Sniffex can do what the press releases claim.
The Sniffex device must not be confused with SniffEx
, a prize-winning sensor developed at Oak Ridge National Laboratories (ORNL). That sensor was originally called "Sniffex" until Homeland Safety International enforced its trademark and asked ORNL to stop using the name.
In July 2008 the Securities and Exchange Commission filed lawsuits against six company officers for driving "the share price from 80 cents to about $6 by issuing 33 news releases that contained mostly false information about the product and the company's financial situation to earn a combined $32 million in illegal profits." In mid-July one suit was settled. In addition, the SEC charged Homeland Safety International, promoters of Sniffex, "of being little more than the front for a $32 million stock fraud
scheme that enriched insiders
at the expense of unsuspecting investors". The SEC complaint said the company "installed a figurehead CEO, named Paul B. Johnson, to hide the involvement of two Bulgaria
n residents who actually controlled the company" and "then issued a series of what the SEC alleges were false press releases." One of the press releases included a claim of "'impressive'" results from tests conducted by the New Mexico Institute of Mining and Technology
. In reality, the tests were conducted by Johnson himself and the results were inconclusive". While the stocks rose the insiders sold, and the stock was trading at one tenth of a penny as of July 17, 2008. In July Mark B. Lindberg settled with SEC and a week later pled guilty to wire fraud
.
The HEDD1, reportedly a "Sniffex with a battery stuck on it," is marketed by Unival Group of Bonn, the same company that marketed Sniffex in Europe.
An article in The Dallas Morning News
The Dallas Morning News
The Dallas Morning News is the major daily newspaper serving the Dallas, Texas area, with a circulation of 264,459 subscribers, the Audit Bureau of Circulations reported in September 2010...
in April 2007 explained that Sniffex is a divining rod and states that "In a test by the U.S. Navy, Sniffex didn't register when two trucks passed within 20 feet, hauling a half ton of explosives." The Navy's counterterrorism technology task force tested Sniffex and concluded "The Sniffex handheld explosives detector does not work." Despite this, the military bought eight for $50,000.
Although high performance is claimed in advertising for Sniffex, such claims have not been verified by objective double blind testing. Although the tests were conducted at a public meeting by the president of the company, Sniffex did not detect test explosives when the user did not know in advance where they were located. Additionally, James Randi
James Randi
James Randi is a Canadian-American stage magician and scientific skeptic best known as a challenger of paranormal claims and pseudoscience. Randi is the founder of the James Randi Educational Foundation...
publicly called into question the validity of Sniffex and exchanged correspondence with the CEO offering one million dollars if Sniffex can do what the press releases claim.
The Sniffex device must not be confused with SniffEx
Sniffex
Sniffex is a now debunked, portable explosives detection system produced by Homeland Safety International.An article in The Dallas Morning News in April 2007 explained that Sniffex is a divining rod and states that "In a test by the U.S...
, a prize-winning sensor developed at Oak Ridge National Laboratories (ORNL). That sensor was originally called "Sniffex" until Homeland Safety International enforced its trademark and asked ORNL to stop using the name.
In July 2008 the Securities and Exchange Commission filed lawsuits against six company officers for driving "the share price from 80 cents to about $6 by issuing 33 news releases that contained mostly false information about the product and the company's financial situation to earn a combined $32 million in illegal profits." In mid-July one suit was settled. In addition, the SEC charged Homeland Safety International, promoters of Sniffex, "of being little more than the front for a $32 million stock fraud
Microcap stock fraud
Microcap stock fraud is a form of securities fraud involving stocks of "microcap" companies, generally defined in the United States as those with a market capitalization of under $250 million. Its prevalence has been estimated to run into the billions of dollars a year...
scheme that enriched insiders
Insider trading
Insider trading is the trading of a corporation's stock or other securities by individuals with potential access to non-public information about the company...
at the expense of unsuspecting investors". The SEC complaint said the company "installed a figurehead CEO, named Paul B. Johnson, to hide the involvement of two Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...
n residents who actually controlled the company" and "then issued a series of what the SEC alleges were false press releases." One of the press releases included a claim of "'impressive'" results from tests conducted by the New Mexico Institute of Mining and Technology
New Mexico Institute of Mining and Technology
New Mexico Institute of Mining and Technology is a university located in Socorro, New Mexico....
. In reality, the tests were conducted by Johnson himself and the results were inconclusive". While the stocks rose the insiders sold, and the stock was trading at one tenth of a penny as of July 17, 2008. In July Mark B. Lindberg settled with SEC and a week later pled guilty to wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
.
The HEDD1, reportedly a "Sniffex with a battery stuck on it," is marketed by Unival Group of Bonn, the same company that marketed Sniffex in Europe.
External links
- Securities and Exchange Commission Official website
- Former Official website by Homeland Safety International (Domain expired in July 2008)
- Questions about Sniffex, an informative blog
- Discussion with Bruce Schneier, security analyst
- Wired "Danger Room" discussion with national security expert Noah Shachtman
- Wired "Danger Room" discussion with national security expert Sharon Weinberger (May 2007)
- Irving-based firm's device, stock trades under scrutiny, an article from the Dallas Morning News about an SEC investigation of possibly illegal stock trading related to Sniffex
- Stocklemon Reports on Sniffex (SNFX.pk), the original Stock Lemon article regarding the suspicious nature of the origins of Sniffex and Homeland Safety International
- SNIFFEX REPORT, an email exchange between James Randi, an investigator, and Paul Johnson, president of HSI
- "SEC: Bomb Detector—Bought by Military—Was Front for Scam" --a Pro Publica article, July 17, 2008 by Michael Grabell, formerly with the Dallas Morning News.