THE INVENTOR
The inventor of the SES System, Steven Kanstoroom (“Inventor”), has over a 30-year history of developing innovative solutions to complex mechanical and efficiency problems, including massively scalable solutions. His experiences span a wide range of business, inventive and philanthropic efforts, including the founding and leading of two successful businesses – the Washington DC area’s Lotus business and Varidyne Corporation.
Early Career
Beginning in his teens, his career began with a focus on developing and commercializing exotic automotive and other mechanical products. At age 18, Kanstoroom completed flight school, where he first studied aerodynamics and aeronautics while becoming a licensed pilot. At age 21, his first patented invention was a Variable Ratio Drive System (“VRDS”).1 The core technology of the VRDS, infinitely variable ratio opposing pulleys, is virtually identical in mechanical design to the constant velocity transmission (“CVT”) that was patented nine years later for use as gearless automatic automobile transmissions. CVTs increase automobile fuel and mechanical efficiency while reducing CO2 emissions.2 Subaru was the first to mass produce vehicles using the CVT and was soon followed globally, and continuing to date, by more than 15 auto manufacturers such as Audi, BMW, Chevrolet and Ford.
LOTUS
Soon after filing the VRDS patent application, Kanstoroom purchased a Lotus automobile business where he performed and managed all phases of Lotus mechanical repair, built custom engines and designed, manufactured and distributed custom Lotus suspension products nationwide.
By 1980 at age 23, Kanstoroom was expanding his expertise beyond mechanics into information technologies through his solely owned Varidyne Corporation, including designing and running large-scale sensitive projects for the U.S. Department of Justice and U.S. Department of Labor.
In his late twenties, Kanstoroom focused on developing massively scalable expert systems to be used by some of the nation’s largest and most demanding systems customers. Later efforts include developing and commercializing a myriad of automated and copyrighted or trade secret business productivity processes.
“At age 13, my favorite teacher taught me to measure twice and cut once. In 1978, the Lotus engines I built for my customers had $7,000 worth of replacement parts. Consequently, I measured multiple times to the thousandth of an inch, and never had an engine fail. I used the same level of care in my systems work. When machines are processing nearly a billion operations per second, and more than $1 billion per day in credit decisions, as did ours, systems failures are unacceptable and my customers did not experience them — not because we were necessarily so smart, but rather exceedingly careful in our design, redundancy and implementation.”
– Steve Kanstoroom
IBM
By age 35, his company, Varidyne Corporation, was the largest IBM Business Partner in the Mid-Atlantic Region, offering enterprise-wide custom hardware and software solutions to Fortune 50 companies and Federal Government agencies.
AT&T
As a sole-source provider, Varidyne’s automated credit, fraud and bankruptcy risk detection processing and tracking system that Kanstoroom developed and ran, catapulted AT&T’s Universal Card from a startup to being recognized with a Malcolm Baldrige National Quality Award for which Kanstoroom received credit.3
Through Varidyne’s work on behalf of AT&T and other leading credit grantors using Kanstoroom’s trade secret technologies, he became nationally recognized as a leading expert in pattern recognition and fraud detection.
Kanstoroom attributes many of his career results to the opportunity of hiring, or having access to, the brightest minds in a given field.
“Our profitability enabled us to pay our staff 20% more than our competitors, each publicly traded on the NYSE. Consequently, I was fortunate to have superb employees with zero turnover. Moreover, IBM treated me like a golden child, giving me access to confidential technical information and its Chief Scientist, Dr. Frank Soltis.4 As a result, my team and I were able to commercialize solutions IBM said, “it had never conceived nor thought possible — an amazing partnership and win-win.”
– Steve Kanstoroom
Continued Innovation and Philanthropic Results
Kanstoroom’s business successes have allowed him to provide significant decades-long philanthropic technical and advocacy assistance nationwide to victims of catastrophic loss, and in Maryland to victims of domestic violence and civil rights abuse. His philanthropic work in creating solutions and advocating for others has resulted in recognitions bestowed by numerous governors, U.S. senators, congressmen, state officials and others. His expertise in creating solutions to complex problems has also been reported by CNN, MSNBC, ABC World News Tonight, The Washington Post, Money Magazine, countless regional TV and print outlets across the nation, and the Congressional Research Service to Congress.
Representative Recognitions, Honors and Awards
Sample recognitions Kanstoroom has received follow. Additional recognitions are available upon request.
AT&T Universal Card Services, October 14, 1992:
“Dear Mr. Kanstoroom: I am delighted to tell you that AT&T Universal Card Services has been named a 1992 Malcolm Baldrige Quality Award winner for exemplary quality service. This prestigious award would not be ours without your contribution and commitment to quality, which has helped us exceed our customers’ expectations since we opened less than three years ago. This highly coveted honor is the “Academy Award” for business quality and is given annually by the U.S. Department of Commerce. It recognizes excellence in American businesses that have made quality an integral part of their corporate strategy.
My personal thanks for contributing to our success. We look forward to working with you as we continue to delight our more than 16 million cardholders.”
Chemical Bank – Manufacturers Hanover Trust Company, Laura D’Ottone, V.P.:
“Manufacturers Hanover Trust Company entered into an agreement with Varidyne Corporation for the use of Varidyne’s credit data processing system, which agreement covered the period March 8, 1989 – March 8, 1992. At all times throughout our relationship, Varidyne provided a consistently high quality level of software, service and professionalism, and MHT was at all times fully satisfied with the quality and timeliness of Varidyne’s performance and service.”
Federal Insurance Administrator Anthony S. Lowe, Baltimore Sun – Andy Green, March 28, 2004:
“The National Flood Insurance Program relies on such a complex interaction of private insurance carriers, adjusting firms and third-party administrators that, despite decades of experience by top NFIP officials, no one in the program fully understood all the nuances of how the system works. But somehow, Kanstoroom has put together the big picture in a way that others haven’t.”
“Steve has done an excellent job”
Maryland General Assembly Official Citation, May 3, 2013:
“In recognition of your exemplary public service to the citizens of Montgomery County. The Montgomery County Civic Federation would like to present you with The Wayne Goldstein Award.”
Governor’s Citation, Robert L. Ehrlich, Jr., October 9, 2006:
“For your heroic efforts to help Maryland citizens to receive their compensation for catastrophic losses; your tireless efforts to publicize the plight of victimized citizens and your determination to uncover the sources of hardship. You are a true inspiration to us all.”
The Montgomery County Civic Federation Wayne Goldstein Award, May 3, 2013:
“For outstanding public service to the people of Montgomery County [for your work on behalf of the Farm Road Community].”
Community Hero Award, Montgomery County Civic Federation, Wayne Goldstein, President
October 9, 2006:
“In giving Steve this well-deserved recognition, I know that his determination to right wrongs for tens of thousands of victims on a national level will continue to help right wrongs in our county. We are very lucky to have him living in our county and in our country.”
Maryland Department of Community Development Recognition, Shawn Karimian, Acting Secretary, October 25, 2006:
“Your diligent research and volunteer support on behalf of [Maryland citizens], just to name two of the many you have assisted, is commendable and much appreciated by all. Again, thank you for your tireless advocacy on behalf of Maryland victims of Hurricane Isabel.”
Civil Justice Award, Presented by the Maryland Trial Lawyers Association and Maryland Governor Martin O’Malley, May 11, 2007:
“For efforts on and passage of Bad Faith Insurance legislation in the 2007 Maryland General Assembly, Fr compassion, commitment and advocacy on behalf of hurricane and flood victims, enabling them to obtain just compensation and to rebuild their homes and lives.”
Maryland Senator Sharon Grosfeld, Baltimore Sun, May 11, 2007:
“I think it’s egregious that people are still living in temporary, run-down environments,” Grosfeld said. “[The government] shouldn’t be waiting around for a person like Steve Kanstoroom to be putting together this information. The fact that these claims are still out there, that people are living in the way they are, demonstrates their needs have not been met.”
Maryland Senator Norman Stone, East Coast Times, August 10, 2004:
“I’m extremely concerned. Some of things hinted at are scary, and shameful. The fact that the process has dragged for so long… it should have been done and behind us. Steve [Kanstoroom] and Bernice have done a yeoman’s job.”
United States Senate Citation, Senator Barbara Mikulski, September 6, 2004:
“This citation is presented to Steve Kanstoroom in Honor of his outstanding service to the citizens of Maryland. Thank you for your untiring efforts on behalf of the victims of Hurricane Isabel.”
Governor’s Citation, Robert L. Ehrlich, Jr. Governor, Michael S. Steel, Lieutenant Governor, November 9, 2004:
“This certificate of appreciation and recognition is presented to Steve Kanstoroom for your efforts to help and assist citizens of Maryland recovering from Tropical Storm Isabel. Your efforts exemplify the spirit of volunteer service in Maryland and the State’s long tradition of the spirit of giving to those who need assistance.”
Governor’s Citation, William Donald Schaefer Governor, March 8, 1994:
“This Citation is presented in appreciation of your extraordinary commitment to domestic violence issues and for providing corporate leadership to support the Maryland Network of Domestic Violence to eliminate domestic violence in Maryland.”
Baltimore County Executive and Former Circuit Court Judge, Jim Smith, Baltimore Sun – Andy Green, March, 28, 2004:
“He’s part insider, part Deep Throat, and he showed ‘em the smoking gun,” said Baltimore County Executive James T. Smith Jr., who sat in on some of Kanstoroom’s meetings [with FEMA’s National Flood Administrator and FEMA’s Deputy Director] with the NFIP last week.
“As a former judge, I sat there watching this guy and thinking, this guy would be the best lawyer who ever argued in front of me. He was so organized,”
Smith said. “I just sat there as their jaws dropped and dropped. It was almost surreal.”
1 U.S. Patent number 4,179,946A
2 “With coming CAFE and CO2 emissions regulations requiring better fuel economy and lower emissions, the CVT gives the Nissan lineup an attractive alternative to conventional automatics that is more efficient on both fronts.” Steve Yaeger, Nissan North America, Source http://www.autoguide.com/auto-news/2012/05/should-you-buy-a-car-with-a-cvt-transmission.html
The CVT is also used by Cadillac, Honda, Jeep, Mitsubishi, Nissan, Renault, Saturn, Suzuki, Toyota and auto manufacturers who do not export their vehicles to the US. The CVT employs computer-controlled fluid hydraulics, technologies not developed or available at the time Kanstoroom patented the Variable Ratio Drive System.
3 AT&T’s Universal Card Services (“UCS”) received the Award primarily on the basis of a comprehensive data processing and tracking system that ensured fostering quality improvements. The system was developed by Kanstoroom and implemented and licensed to AT&T by Steven Kanstoroom’s Varidyne Corporation which ran all UCS credit processing operations. The AT&T subsidiary grew to the second largest US credit card grantor before its acquisition by Citibank.
4 Dr. Soltis is internationally regarded as one of the most significant computer scientists of the 20th century. Source: www.helpsystems.com/profile/dr-frank-soltis