general manager of products Ingolf Sander. The company was headquartered in New York. By early 2000, Yaakov was no longer chairman, and in 2001 (when he was 75 years old) it was reported that he had been arrested in Israel being accused for espionage. He was charged, and tried on two national security offenses: the first, and more severe charge, being “high espionage,” passing secret information with intent to harm national security, while the second, lighter one, was disclosing secret information to unauthorized people. Ya’tza was eventually acquitted by the district court of the more serious offense, but found guilty of the lesser charge. He was given a two-year suspended sentence and was immediately released. His arrest and trial became known in Israel as the “Ya’tza Affair.” The company announced a demonstration at the COMDEX trade show in November 2000. Various numbers of layers were predicted. Besides a disk intended to store feature-length films at high definition, the company planned a ClearCard the size of a credit card that would store 5 to 10 gigabytes for use on a computer or other device. By the end of 2000, the company was losing over $20 million a year, and still had no revenue. By early 2001, the company had offices in New York City and Massachusetts, with labs in California, Israel and Russia, and had an agreement with Lite-On for manufacturing. In August 2001 the company debuts First HDTV Compatible Fluorescent Multilayer Disc. Nonetheless, according to Sander, "C3D found a unique way for storing data in up to 20 layers using fluorescent materials - however stability problems in the material could not be overcome". On November 17, 2001, Target Invest Consulting LLC, based in Switzerland, registered in Saint Kitts and Nevis, had agreed to a debt financing of $15 million, with a bridge load of $2 million, through Constellation 3D Technology Limited which provided collaterals for the bridge loan. By January, 2002, the financing was still not complete. In March, 2002, a manufacturing joint venture was announced with Russia-based Sistema called OAO Kontsern Nauchny Tsentr. However, about the same time the company started to cut staff after the funding was delayed. Target Invest Consulting LLC reassured several times that the investment though delayed would take place, including such a confirmation sent to the SEC by the attorney of Target Invest Consulting LLC. Despite the reassurances, Target Invest Consulting LLC failed to