Scheme to Make Millions From Old Tires Goes Flat

It was a dream invention--a machine that would convert old vehicle tires into $1 million worth of oil, methane gas, carbon, ammonia and steel wire every year. And potential Southland investors were told that anyone who wanted one would have to pay a franchise fee of only $100,000, officials said Monday.

But after investigators from the Los Angles County district attorney’s office obtained evidence that the machines will not do what they are supposed to do, Craig F. Velasco, 50, of Huntington Beach, and Joseph A. Gennitti, 44, of Rancho Santa Fe, were arrested last week in Newport Beach on suspicion of theft.

Officials are now seeking information from anyone who invested in the scheme. Investigators said the suspects operated under various names, including Genesa Foods, Genesa Oil and Gas, Consolidated Petroleum and Refining Co., and Charisal Corp.