Square Chain Corp. (SQCC)

[tutankhamuns]

$SQCC IS A HIJACKED INSIDER ENRICHMENT SCHEME

From “Note 1: Basis of Presentation and Summary of Significant Accounting Policies” under Organization:

On March 5, 2018, Small Cap Compliance, LLC was appointed Custodian of the Company by the Eighth Judicial
District Court of Clark County, Nevada.

https://backend.otcmarkets.com/otcapi/company/financial-report/212386/content

In 2014, Rhonda Keaveney started hijacking public shells via Small Cap Compliance, LLC. She has been using attorney Peter L. Chasey, who was also involved with one of her former private corporate restructuring firms—Shareholder Advocates, LLC.

http://www.smallcapcompliance.com/

https://www.linkedin.com/in/rhonda-keaveney-663771116

http://ecorp.azcc.gov/Details/Corp?corpId=L19136380

In my opinion, she hijacks shells just to flip them for a profit. It costs very little in court filing fees to “steal” these shells, which enables them to set up convertible debt using the legal fees charged for services rendered. This solidifies the infrastructure for an insider enrichment P&D scam.

On April 1, 2018, the Company entered into a Consulting Agreement with Jimmy Wayne Anderson for a term of one month. Mr. Anderson completed the services to be completed under the Agreement on April 30, 2018. On April 30, 2018, the Company issued Mr. Anderson a Promissory Note in the amount of Thirty Thousand and NO/100 Dollars ($30,000) for the compensation due Mr. Anderson for completion of his services.

Jimmy Wayne Anderson was involved with another ticker that was suspended in 2017.
https://www.sec.gov/litigation/opinions/2018/34-82555.pdf

On March 6, 2018, the Custodian of the Company appointed Jeffrey J Parker as the Company’s sole officer and director. All past officers and directors were terminated from their position for abandonment of the Company.

https://squarechain.io/team/

The following statement from the most recent Quarterly filing is highlighted in yellow.

On March 27,2018, the Company executed a Promissory Note (the “Note”) payable to Jeffrey J. Parker, in the principal amount of $73,978. The Note has a term of five (5) months and bears interest at 5% annually. The balance owed at December 31, 2018 is $73,978.

Here’s a link to the official terms of the note: https://www.sec.gov/Archives/edgar/data/1027235/000149315218008771/ex10-1.htm

Now, is it a coincidence that this note was converted just ONE DAY before MLHC acquires a majority interest in SQCC?

From “Subsequent Events”:

On February 19, 2019, the Company issued Jimmy Wayne Anderson 786,155 shares of its common stock as payment against a Promissory Note issued to Mr. Anderson on April 30, 2018.

On February 19, 2019, the Company issued Jeffrey J. Parker 1,931,503 shares of its common stock as payment against a Promissory Note issued to Mr. Parker on March 27, 2018.

On February 20, 2019 The Company signed a Letter of Intent with M Line Holdings, Inc. to acquire two Companies in the property, restaurant and event center business. This transaction is due to close before the end of February.

On February 22, 2019, Mr. Anthony L. Anish was appointed as a Director of the Company and Jeffrey J. Parker resigned all his positions as an officer and Director of the Company. In full and final settlement of all amounts due, Mr. Parker will receive $125,000 payable over 18 months and four million restricted shares of Common Stock of the Company

On February 25, 2019 Anthony Anish was appointed as CEO and Secretary of the Company.

Anish is now creating the illusion that SQCC has no debt, despite the fact that there was $103,978 in convertible notes on the books shortly before he took over the entity.

Here’s where it gets interesting...

On July 22, 2013, the Company entered into a Regulation S Stock Purchase Agreement (“Agreement”) with a group of 34 non-US individual purchasers (“Purchasers”). Under the Agreement, the Company issued a total of 125,788,400 shares of common stock to Purchasers for a total price of $628,943 ($0.005 per share). The issuance of the 125,788,400 shares is pursuant to the exemption provided by Regulation S. None of the Purchasers is a US person and the transactions underlying the Agreement are carried out outside US. Accordingly, July 29, 2013 125,788,400 shares of common stock have been issued.

The current O/S is 189,948,159. Lol

Then go look at the volume on the chart over the last couple of years...

Highest volume day since 2013 was 280K.

They needed a pump artist to run the company so that they can finally dump shares. That’s why Anish was brought in.

Anish’s past and present history on Twitter is a perfect example of how fraudulent Anish is...

New:

https://mobile.twitter.com/mlinehc

Old:

https://mobile.twitter.com/MLineHoldings

Notice how he’s using the SAME strategies to pump his companies, including similar captions and media content.

He also has many pessimistic business ratings on several reputable websites.
https://www.mylife.com/tony-anish/e15366015516

This man and his business partner Jitendra "jitu" banker are both frauds. Do a FULL background check on these men including ALL RECORDS. They conduct fraudulent business, close down the companies, then take off with your money. They have a LOT of lawsuits against them. Do you due diligence please!

That’s the biggest red flag, but I think this supports their intent to dump stock.

On March 7, 2018, the Company filed a Certificate of Designation to its Amended and Restated Articles of Incorporation for a new series of preferred stock titled Series B Super Voting Preferred Stock whose par value is $.001. Under the terms of the designation, the Company is authorized to issue 10,000 shares and the holder of the Series B Super Voting Preferred Stock has voting rights equal to 20 times the sum of: i) the total number of shares of Common stock which are issued and outstanding at the time of voting, plus ii) the total number of shares of all Series of Preferred stocks which are issued and outstanding at the time of voting. As of December 31, 2018, there are 10,000 shares of Series B Preferred stock issued and outstanding.

Now look at the Unregistered Sales of Equity...

In March 2018, the Company issued 10,000 shares of its Series B Preferred stock to an officer for services rendered on behalf of the Company.

https://www.nvsos.gov/sosentitysearch/corpActions.aspx?lx8nvq=SqJRoTpsUiT3FjVNq65VCQ%253d%253d&CorpName=SQUARE+CHAIN+CORPORATION

Essentially, Jeffrey J. Parker still retains voting control over SQCC since he was the only officer at the company when the above mentioned issuance occurred.

Furthermore, the approved $4M Reg-A (up to a total of 80M shares) will be dumped to fund Anish’s shells and those non-U.S. insiders aren’t going to wait around for that...

This confirms that SQCC is both an insider enrichment scheme and a near-term share selling scam.

For those who are unfamiliar with the new CEO, it has already been PROVEN that CEO Anish is a CONVICTED LIAR who has pleaded GUILTY to numerous crimes.

Here’s the proof:

Local News in Brief : 2 Men Sentenced to Prison in $257,000 Fraud Scheme

Another man, Anthony Anish, 39, of Laguna Niguel, who helped supply the credit references, pleaded guilty to aiding and abetting mail fraud and was put on three years probation, Lincenberg said. A fourth defendant, Byron Foster, 28, of Los Angeles, was acquitted.
http://articles.latimes.com/1988-08-30/local/me-1426_1_credit-references

Let’s not forget how he stole money from kids...

AYSO Official Charged in $100,000 Theft

A regional commissioner with the American Youth Soccer Organization has been charged with stealing more than $100,000 from the nonprofit's Newport Beach office, authorities said.

Anthony Leon Anish, 55, surrendered to Newport Beach police about 1 p.m. Wednesday, department spokesman Sgt. Steve Shulman said. Bail was set at $50,000.

"The detectives are very satisfied that they were able to get [an arrest] warrant," Shulman said. "But from a community standpoint, we are certainly disappointed that money that was to benefit these kids was lost."

Anish, a Costa Mesa resident, oversaw the finances of AYSO Region 97, which serves more than 1,500 children in Newport Beach and Costa Mesa and had a reserve fund of $120,000, from February 2001 until May.

According to a civil lawsuit filed in June, he squandered most of the money on personal investments, house payments and four Los Angeles Galaxy season tickets with preferred parking, leaving the organization with less than $20,000 in the bank.

"We haven't recovered the money," Shulman said. "I don't know where it went."

Other AYSO officials said they became suspicious about a year ago, when Anish refused to provide financial information or show monthly reports.

Local AYSO officials were in "disbelief because it was something for the kids and the community," Chris Sarris, a coach and board member who took over Anish's position, said when the civil suit was filed. "We had to start from zero again."
http://articles.latimes.com/2003/oct/02/local/me-ayso2

Here are several cases involving CEO Anish in which he failed to carry out responsible fiduciary duties:

Based on the foregoing findings, the California Corporations Commissioner is of the opinion that Money Line Capital, Inc., M Line Capital, Inc., Anthony L. Anish and George M. Colin have engaged in the business of a finance lender and/or broker without having first obtained a license from the Commissioner in violation of California Financial Code section 22100.
http://www.dbo.ca.gov/ENF/pdf/2010/MoneyLineCapital_dr.pdf

1. Donald Yu v. M Line Holdings, Inc., et al.; Case No. 30-2012-00574019-CU-BC-CJC

This is an employment dispute asserted by a former employee against M Line Holdings and two corporate insiders, Jitu Banker and Anthony Anish, in their respective individual capacities. The action was filed in Orange County Superior Court on June 4, 2012. The parties entered into a settlement agreement and stipulation for judgment against M Line Holdings, only, on about May 12, 2013. Pursuant to the terms and conditions of the settlement agreement, M Line agreed to pay $21,450.00 in three (3) equal installments. M Line Holdings failed to make payment on a timely basis, and plaintiff filed a stipulated judgment against M Line Holdings on June 12, 2013. Plaintiff also filed default judgments against Messrs. Banker and Anish.
In response, defendants filed a motion to set aside the defaults and vacate the default judgments against Messrs. Banker and Anish as well as renegotiate the terms of the prior settlement with Plaintiff. On or about September 30, 2013, the parties entered into a supplemental settlement agreement and mutual release wherein the Company agreed to pay plaintiff the sum of $24,000 in two (2) equal installments. The first installment of $12,000 has already been paid.
The final installment of $12,000 was due on or before October 30, 2013, and has not been paid at this time. A judgment remains outstanding against the Company in the sum of $12,000 as of December 31, 2018.

2. Can Capital Asset Servicing, Inc. v. E.M. Tool Company, Inc., et al.; Case No. 30-2014-00727606- CU-CL-CJC

This is a breach of contract and related claims arising out of a business loan that alleges that E.M. Tool failed to pay Can
Capital all amounts due under the loan agreement in the principal sum of $58,313, plus interest, costs and attorneys’ fees.
On or about November 2014, the parties entered into a settlement agreement and stipulated judgment. Pursuant to the terms and conditions of the settlement agreement, the Company agreed to pay plaintiff the sum of $50,000 in installments on or before May 15, 2015.
As of May 13, 2015, the defendants have made partial payments, and still owe plaintiff $25,500. Plaintiff provided notice of its intent to file the stipulated judgment on May 7, 2015, and commence collection efforts if payment of $10,000 is not paid prior thereto and those payments have been made. Since May, a payment of $1,500 has been made. The balance as of August 17, 2015 and as at December 31, 2018 is $24,000.

3. Fadal Machining v. All American CNC Sales, et al., Los Angeles Superior Court, Los Angeles, California,Case No. BC415693.

The Complaint was filed on June 12, 2009.
The Complaint alleges causes of action for breach of contract and common counts against All American CNC seeking damages in the amount of at least $163,579 and arises from a claim by Fadal that All American failed to pay amounts due. On June 26, 2009, Fadal amended the complaint to include M Line Holdings, Inc. as a defendant.
A settlement agreement in the amount of $60,000 was signed on May 31, 2011.
The Company had made a provision in the sum of $210,000 in the financial statements as of September 30 and June 30, 2014 as no payments that were due under the settlement agreement have been made. Judgment was entered on June 16, 2011, and a Writ was issued on February 24, 2012. The balance outstanding as of December 31, 2018 is $210,000.

4. C. William Kircher Jr. v. M Line Holdings, Inc. Orange County Superior Court Case No. 00397576

A former attorney for M Line Holdings, Inc. has sued seeking damages for failure to pay legal fees in the amount of
$120,166.
The parties reached a settlement. The terms of the settlement call for 12 payments of $5,000 per month commencing August 25, 2011 and the issuance of 150,000 shares of common stock. The Company has issued the 150,000 shares of common stock and made two payments to date. The Company has a provision in the sum of $50,000 in the financial statements as of December 31, 2018 and June 30, 2018.
The Company currently is in default of its payment obligations under the settlement. Plaintiff currently is seeking to obtain a judgment as a result of the breach of the settlement agreement.

5 Timothy D. Consalvi v. M Line Holdings, Inc. et.al., Orange County Superior Court Case No, 00308489.

A former president of All American CNC Sales, Inc. has filed suit against the Company seeking payment on an alleged severance obligation by the Company. The Complaint does not specify the damages sought. The parties then reached a settlement in the principal sum of $40,000 to be documented in due course. Meanwhile a default was entered against the Company, which management believes was in error because a settlement was already reached by the principal parties involved. The default has since been vacated, and the Company has answered the complaint and has filed a motion for leave to file a cross complaint.
A settlement of $50,000 was reached in this case, requiring payments commencing on March 11, 2011 for 10 months. The first two month’s payments were made; however, the Company currently is in default of the terms of this settlement agreement. Mr. Consalvi filed his stipulated judgment on March 5, 2012. Abstract of judgment and Writ were issued on March 13, 2012.
A provision in the sum of $40,000 has been made in the financial statements as of December 31, 2018 and June 30, 2018. To date there has been no further action on this case,

6. TCA Global Credit Master Fund, L.P. vs M LI ne Holdings, Inc. EM Tool Company, Inc. dba Elite Machine Tool, Precision Aerospace and Technologies, Inc., Anthony Anish and Jitendra Banker case # CACE-14-012871

Plaintiff filed this case on July 1, 2014 in Broward County, Florida.
The complaint alleges that the Company owes the Plaintiff the amount due under the revolving note, and is claiming foreclosure of the collateral, breach of the credit agreement and a claim against the individuals under the validity agreement due to the non-payment.
The Plaintiff obtained a default judgment however due to a settlement agreement reached on September 5, 2014 ceased any further legal activity. The Defendants were unable to honor the agreement and Plaintiff continued to obtain sister state judgments in California and Nevada.
In June 2016 a agreement was reached between the parties under which plaintiff agreed to dismiss the current action and rewrite the loan. The loan was written at a lower rate of interest. Further details are included in the subsequent events section.
The Company has accrued $2,786,030 and 2,633,030 in the financial statements that includes all interest and fees due to Plaintiff through December 31, and June 30, 2015.
Due to the loss of documentation that was removed from the building by a lender (see the going concern and subsequent events notes) it is possible that there is litigation that is not included in this list.
The Company has accrued $3,245,030 and 3,245,030 in the financial statements that includes all interest and fees due to Plaintiff through December 31, 2018 and June 30, 2018.
Litigation is subject to inherent uncertainties, and unfavorable rulings could occur. If an unfavorable ruling were to occur in any of the above matters, there could be a material adverse effect on the Company’s financial condition, results of operations or liquidity.
The related provisions for these litigations are reported under litigation payable, accounts payable and accrued expenses and other in the consolidated balance sheets.
All documents and files relating to lawsuits were removed by TCA.

https://backend.otcmarkets.com/otcapi/company/financial-report/211618/content

MLHC’s acquisition of SQCC is worthy of an SEC investigation...

From the PR announcing the initial LOI:

The new entity we plan to acquire currently generates over $12 million in revenue and is expected to grow to over $17 million revenue this year.

And from the PR announcing the closing of the acquisition:

Newport Beach, CA, March 15, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- M Line Holdings, Inc. (OTC Pink: MLHC; "M Line" or the “Company”) announces that it has sold its real estate assets and its interest in the Caravel Group to Square Chain Corp. (OTC Pink Stock Symbol “SQCC”) for stock in Square Chain Corporation (“SQCC”),  a significant portion of which will be issued to M Line shareholders as a dividend.

As of the most recent filing for SQCC:
- $0 in revenues
- $979 in cash
- $233,318 in liabilities
- -$631,361 negative cash flows from operations
- $10,381,179 in Accumulated Deficits

Companies report negative retained earnings as accumulated deficit in the balance sheet. The accumulated deficit is a note to the original retained earnings account. For any more asset and operation losses, companies continue to report them in retained earnings to increase the accumulated deficit, while maintaining the balances of other capital accounts as initially recorded. However, the accumulated deficit is compared to balances of the contributed capital accounts. A company could be in an imminent danger of bankruptcy if the accumulated deficit has exceeded the amount of contributed capital.

https://smallbusiness.chron.com/accumulated-deficit-vs-retained-earnings-23194.html

Why did Anish lie about the revenues that SQCC is currently generating?

To file an SEC complaint to help expose this scam: https://www.sec.gov/oiea/Complaint.html

$SQCC