EQCO2, Inc. (CLNO) Form 10-Q, CEO Faces Legal Complaint for Fraud

A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk.

In many Ponzi schemes , the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.

The SEC investigates and prosecutes many Ponzi scheme cases each year both to prevent new victims from being harmed and to maximize the recovery of assets to investors. The majority of such cases are brought as emergency actions, which often seek a temporary restraining order and an asset freeze.

To learn more about Ponzi scheme go to www.sec.gov

Crown Equity Holdings Inc. (CRWE) was awarded a TRO (Temporary Restraining Order) against Discovery Carbon and EQCO2, Inc. (CLNO) CEO Billy Barnwell from a judge on August 13, 2013 in Las Vegas Regional Justice Court.

The court ordered TRO effectively shuts down Billy Barnwell from engaging in any activity that might be damaging to EQCO2, Inc. (CLNO) shareholders.

The TRO was awarded related to an ongoing Fraud, Misrepresentation, Non Performance & Breach of Contract lawsuit between Discovery Carbon, EQCO2, Inc., Billy Barnwell Vs. Crown Equity Holdings Inc. and Zaman & Co that is based on an Exchange Agreement .

You can find the Entire Lawsuit at ( http://crownequityholdings.com/CRWE_vs_EQCO2.pdf ) with the Case No. A-13-687800-C ( http://crownequityholdings.com/CaseDetail.aspx.htm ) and Current SEC Filings at http://crownequityholdings.com/sec_filings.html

One of the actions in the TRO is to prevent EQCO2, Inc. (CLNO) CEO Billy Barnwell from issuing more shares to unsuspecting investors and diluting the company even more.

The TRO also effectively locks him out of the corporate bank account and stops any and all transactions and issuance of stock certificates at the transfer agent that handles EQCO2?s stock transfers.

SARBANES-OXLEY ACT 2002

An act passed by U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations . The Sarbanes-Oxley Act (SOX) mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud.

On Sept 16, 2013 EQCO2, Inc. (CLNO) CEO Billy Barnwell and CFO Arnold F. Sock signed off on the company’s FORM 10-Q . The filing was received on Sept 23, 2013. The entire 10-Q can be found http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9520301

Under the Sarbanes-Oxley Act Section 302 ‘Corporate Responsibility for Financial Reports’, EQCO2, Inc. (CLNO) CEO Billy Barnwell and CFO Arnold F. Sock could face significant penalties if they certified in the FORM 10-Q that the company’s books are accurate when they are not.

Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as the Company or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, such statements in this release that describe the company’s business strategy, outlook, objectives, plans, intentions, or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include among other things, product price volatility, product demand, market competition, and risk inherent in the operations of a company.