In the matter of FLIPPINGYOURMONEY.COM AND BRIAN KEITH MCLAIN Brian Mclain dba Vacuum City 3320 Hwy 365, Nederland, Texas 77627
EMERGENCY CEASE AND DESIST ORDER It is therefore ORDERED that Respondents immediately CEASE AND DESIST from offering for sale any security in Texas until the security is registered with the Securities Commissioner or is offered for sale pursuant to an exemption from registration under the Texas Securities Act.
2. It is further ORDERED that Respondents immediately CEASE AND DESIST from engaging in any fraud in connection with the offer for sale of any security in Texas.
He ran the first "vacuum cleaner fraud " that I've ever heard of.. perhaps others are aware of previous cases of vacuum cleaner fraud? It might be a first!
5. Respondents are describing the promissory notes as follows:
Respondents will use money tendered by investors to purchase robotic vacuums, vacuum cleaner supplies, clothing and other inventory. Respondents will sell the inventory at their retail stores for a profit, and the profit will be used to pay returns to investors.
The promissory notes have not been registered by qualification, notification or coordination, and no permit has been granted for their sale in Texas.
Respondents are offering the promissory notes to purchasers who are not accredited investors, and Respondents are not taking reasonable steps to verify that all purchasers are accredited investors.
But here's the kicker:
Respondents are intentionally failing to disclose material facts, including, but not limited to, the following:
On or about July 16, 2012, Chase Bank, USA, N.A., filed a civil complaint against Respondent Mclain in Case No. 1 :12-cv-00353, in the United States District Court for the Eastern District of Texas, Beaumont Division. The complaint alleged that Respondent Mclain was issued a business credit card, borrowed money on the account and failed to pay the balance of $507,313.10. Thereafter:
i. On or about June 3, 2013, Respondent Mclain and Chase Bank executed a settlement agreement. The settlement agreement required Respondent Mclain to make an initial payment and monthly payments to the plaintiff. On or about September 5, 2013, Chase Bank filed a Motion to Enforce the Settlement Agreement, claiming that Respondent McLain failed to remit the initial payment and the monthly payments.
iii. On or about October 15, 2013, the United States District Court for the Eastern District of Texas, Beaumont Division, granted the Motion to Enforce the Settlement Agreement and entered an Agreed Judgment previously executed by Chase Bank and Respondent McLain. iv. The Agreed Judgment ordered Respondent McLain to pay $507,313.10, attorney's fees and expenses of $26,840.27 and postjudgment interest.
On or about November 16, 2012, Bienvenu Investments 1, LLC, filed a lawsuit against Respondent McLain and M. McLain Investments, LLC, in Bienvenu Investments 1. LLC v. M. McLain Investments. LLC. et al., docket number C-20126195-A, in the 15th Judicial District Court of Lafayette Parish, Louisiana. The lawsuit alleged that the defendants leased a commercial building from the plaintiff and failed to tender timely payments. On January 22, 2013, the Court ordered judgment against Respondent McLain and M. McLain Investments, LLC, for $90,600.00 plus interest at a rate of eighteen percent plus $5,000 in attorney's fees. The judgment has been outstanding at all times material hereto. v. The judgment has been outstanding at all times material hereto.
"Rich people don't buy penny stocks. They're too smart." -Jordan Belfort, "Wolf of Wall Street"
