Replies to post #247497 on 1812 Brewing Company Inc (KEGS)

[THall]

Brian McLain is a known fraudster like KEGS CEO, Tom Scozzafava. He is paid to run promotion (IR) for this scam. Ask BoscoLives21 about it since he is employed by McLain. Obviously he is not very good at his job since this POS has been NO BID for 2 years.

https://www.ssb.texas.gov/sites/default/files/files/news/1734.pdf

TE SECURITIES BOARD

In the matter of
FLIPPINGYOURMONEY.COM
AND BRIAN KEITH MCLAIN
Brian Mclain dba Vacuum City
3320 Hwy 365, Nederland, Texas 77627

3. Respondents are offering promissory notes in Texas through webpages
accessible by the general public at www.flippingyourmoney.com and
www.flippingyourmoney.net.
4. Respondents are representing that:
a. Respondent FlippingYourMoney is "an investment company that works
with clients throughout the world."
b. The promissory notes are "investment[s] for the common man."
c. The promissory notes yield profits that are "generally higher than any
bank, savings account, or stock investment."
d. Principal and returns are guaranteed and that "[e]verything [investors] do
with us is risk-free."
5. Respondents are describing the promissory notes as follows:
a. Investors may purchase promissory notes that have a fixed term of 30, 60
or 90 days and that pay 10% interest over the term of the investment.
b. The investments are "business agreements" that Respondents "back with
a guaranteed promissory note against [their] current assets, which consist
of real estate holdings and retail businesses."
c. 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.
d. Investors will be entitled to the stated returns regardless of whether the
inventory is sold for a profit.
6. Respondents are providing investors with sample promissory notes that contain
the following terms:
a. They provide that investors are entitled to "the repayment of [p]rincipal
plus 10% interest per month on the initial investment plus compounded
interest on principal and interest combined unless the interest is withdrawn
monthly."
b. They contain an example of the payment structure. They provide that an
investment of $50,000 will entitle investors to "$50,000 [p]rincipal plus
$5,000 interest for the month, then the next month interest would be
Emergency Cease and Desist Order/FlippingYourMoney.com and Brian Keith McLain/Page 2
accrued on $55,000, equaling $5,500 in interest. Then the new total
would be $60,500."
c. They are unsecured, insofar as they are not collateralized, secured or
guaranteed by real estate holdings, retail businesses or other assets.
7. The promissory notes have not been registered by qualification, notification or
coordination, and no permit has been granted for their sale in Texas.
8. Rule 506 of Regulation D under the Securities Act of 1933 authorizes an issuer
to engage in general solicitation in offering and selling covered securities without
first complying with state securities registration requirements, provided that,
among other things, all purchasers of the securities are accredited investors and
the issuer takes reasonable steps to verify that such purchasers are accredited
investors.
9. 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.
10. In connection with the offer of the promissory notes, Respondents are
intentionally failing to disclose material facts, including, but not limited to, the
following:
a. Respondent Mclain's business experience and qualifications.
b. An accounting of assets, liabilities and other financial information that
reflect Respondents' ability to repay principal and pay interest to investors.
c. The identity and financial information relating to real estate holdings, retail
businesses or other assets used to "back" or "guarantee" the offering
made by Respondents.

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.