John McAfee

[ArthurWankspittle]

Update - hat tip to the Fogbow.
https://twitter.com/officialmcafee/stat ... 1015462914
I suggest Hannibal's last naval tactical idea.
https://en.wikipedia.org/wiki/Hannibal# ... %93196_BC) Last paragraph of "Exile". Large pots of venomous snakes fired at the opposing ships.

[Jeffrey]

I like Fogbow linking to this thread as if there’s anything more than guessing.

[Burnaby49]

McAfee's apparently been "detained" for unspecified reasons but the source is somewhat dubious.

According to Alex Jones they'll wish that they'd left him alone. Release those payloads!

@Loggiaonfire suggests McAfee has a “dead man’s switch” in place in case he’s disappeared.

“If John misses his next check-in, events will be set into motion that I cannot prevent once they have begun,” the person who took over the account wrote. “John has secreted data with individuals across the world. I know neither their identities or locations. They will release their payloads if John goes missing.”

https://www.infowars.com/report-john-mc ... nting-him/

[notorial dissent]

If McAfee has been detained I would expect it to be for mental evaluation and undoubtedly alcohol and drug detox before anything else.

I'm afraid that just about anything coming from Lyin' Alex would be highly suspect as to being reality based. Lying, misrepresentation, and fantasy are his stock in trade.

[Jeffrey]

I haven’t seen any evidence yet that any of this is real.

[Arthur Rubin]

From what I've seen, I consider it quite plausible that McAfee has installed a "dead man's switch".

Whether the payload is of interest to anyone other than forensic psychiatrists remains to be seen.

[ArthurWankspittle]

I haven’t seen any evidence yet that any of this is real.

It is being reported by slightly better sources than infowars. Although it appears to be fundamentally the same story, his campaign manager is running his Twitter account.

[notorial dissent]

While I don't doubt that McAfee is more than capable of doing what is claimed, I really doubt he has anything that is remotely as claimed. I guess we'll see.

[The Observer]

The Sun is claiming that McAfee is now in Lithuania, complete with a tin-foil-covered "safehouse."

[jcolvin2]

Arrested in Spain, for possible extradition to the US

https://www.justice.gov/opa/pr/john-mca ... ax-evasion

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, October 5, 2020

John McAfee Indicted for Tax Evasion

Allegedly Hid Cryptocurrency, a Yacht, Real Estate and Other Properties in Nominee Names to Evade Taxes

An indictment was unsealed today charging John David McAfee with tax evasion and willful failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. The June 15, 2020 indictment was unsealed following McAfee’s arrest in Spain where he is pending extradition.

According to the indictment, John McAfee earned millions in income from promoting cryptocurrencies, consulting work, speaking engagements, and selling the rights to his life story for a documentary. From 2014 to 2018, McAfee allegedly failed to file tax returns, despite receiving considerable income from these sources. The indictment does not allege that during these years McAfee received any income or had any connection with the anti-virus company bearing his name.

According to the indictment, McAfee allegedly evaded his tax liability by directing his income to be paid into bank accounts and cryptocurrency exchange accounts in the names of nominees. The indictment further alleges McAfee attempted to evade the IRS by concealing assets, including real property, a vehicle, and a yacht, in the names of others.

If convicted, McAfee faces a maximum sentence of five years in prison on each count of tax evasion and a maximum sentence of one year in prison on each count of willful failure to file a tax return. McAfee also faces a period of supervised release, restitution, and monetary penalties.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney William Guappone of the Tax Division and Assistant U.S. Attorneys Matthew Wilson and Damon Griffin, who are prosecuting the case.

Link to indictment:
https://www.justice.gov/opa/press-relea ... 6/download

[ArthurWankspittle]

Hid Cryptocurrency

Isn't that the point of cryptocurrency?

Think we need that "oh boy this is going to be fun" meme.

[AnOwlCalledSage]

I do like this quote from the IRS

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

And members of the jury, I present to you the lead witness for the prosecution, John McAfee's big mouth...

Millionaire anti-virus software tycoon John McAfee unleashed a barrage of criticism of the IRS in a series of tweets Thursday and bragged that he has not filed a tax return in eight years.

"I have not filed a tax return for 8 years," McAfee wrote before calling taxes illegal and complaining about government services. He noted that he lives off the money made from McAfee Inc. - the company he founded and resigned from in 1994 - and called himself a "prime target" for the IRS before writing "Here I am."

https://www.foxnews.com/us/john-mcafee- ... -of-tweets

And isn't the wrongful death case against him still "live"?

https://regmedia.co.uk/2018/11/15/faull ... ruling.pdf

[jcolvin2]

SEC accuses McAfee of ICO fraud:
https://www.sec.gov/news/press-release/2020-246

SEC Charges John McAfee With Fraudulently Touting ICOs
FOR IMMEDIATE RELEASE
2020-246

Washington D.C., Oct. 5, 2020 —
The Securities and Exchange Commission today charged businessman and computer programmer John McAfee for promoting investments in initial coin offerings (ICOs) to his Twitter followers without disclosing that he was paid to do so. McAfee’s bodyguard, Jimmy Watson, Jr., was also charged for his role in the alleged scheme.

According to the SEC’s complaint, McAfee promoted multiple ICOs on Twitter, allegedly pretending to be impartial and independent even though he was paid more than $23 million in digital assets for the promotions. When certain investors asked whether he was paid to promote the ICOs, McAfee allegedly denied receiving any compensation from the issuers. The complaint alleges that McAfee made other false and misleading statements, such as claiming that he had personally invested in some of the ICOs and that he was advising certain issuers. The complaint alleges that Watson assisted McAfee by negotiating the promotion deals with the ICO issuers, helping McAfee cash out the digital asset payments for the promotions, and, for one of the ICOs McAfee was promoting, having his then-spouse tweet interest in the ICO. Watson was allegedly paid at least $316,000 for his role. According to the complaint, while McAfee and Watson profited, investors were left holding digital assets that are now essentially worthless.

McAfee and Watson also allegedly engaged in a separate scheme to profit from a digital asset security by secretly accumulating a large position in McAfee’s accounts, touting that security on Twitter while intending to sell it, and then selling McAfee’s holdings as the price rose.

“Potential investors in digital asset securities are entitled to know if promoters were compensated by the issuers of those securities,” said Kristina Littman, Cyber Unit Chief. “McAfee, assisted by Watson, allegedly leveraged his fame to deceptively tout numerous digital asset securities to his followers without informing investors of his role as a paid promoter.”

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges McAfee and Watson with violating antifraud provisions of the federal securities laws, McAfee with violating the anti-touting provisions, and Watson with aiding and abetting McAfee’s violations. The complaint seeks permanent injunctive relief, conduct-based injunctions, return of allegedly ill-gotten gains, and civil penalties. The SEC also seeks to bar McAfee from serving as a public company officer and director.

The Tax Division of the Department of Justice announced today that it brought criminal charges against McAfee.

The SEC’s investigation was conducted by David H. Tutor, Jon A. Daniels, Christopher Ferrante, and Diego Brucculeri, and supervised by John O. Enright and Ms. Littman. The litigation will be led by Jorge G. Tenreiro, Mr. Tutor, and Mr. Daniels. The SEC appreciates the assistance of the Internal Revenue Service Criminal Investigation Division.

The SEC’s Office of Investor Education and Advocacy cautions investors to be wary of celebrity endorsements and to always independently research investment opportunities.

[jcolvin2]

Government accuses McAfee of cryptocurrency fraud:
https://www.justice.gov/usao-sdny/pr/jo ... -manhattan

Department of Justice
U.S. Attorney’s Office
Southern District of New York
FOR IMMEDIATE RELEASE
Friday, March 5, 2021
John David McAfee And Executive Adviser Of His Cryptocurrency Team Indicted In Manhattan Federal Court For Fraud And Money Laundering Conspiracy Crimes
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JOHN DAVID MCAFEE, the founder of the McAfee antivirus software company, and JIMMY GALE WATSON JR., who served as an executive adviser of MCAFEE’s so-called cryptocurrency team (the “McAfee Team”), with conspiracy to commit commodities and securities fraud, conspiracy to commit securities and touting fraud, wire fraud conspiracy and substantive wire fraud, and money laundering conspiracy offenses stemming from two schemes relating to the fraudulent promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities. WATSON, who was arrested last night in Texas, will be presented later today before a federal magistrate judge in the Northern District of Texas. MCAFEE is currently detained in Spain on separate criminal charges filed by the United States Department of Justice’s Tax Division.

Manhattan U.S. Attorney Audrey Strauss said: “As alleged, McAfee and Watson exploited a widely used social media platform and enthusiasm among investors in the emerging cryptocurrency market to make millions through lies and deception. The defendants allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives. McAfee, Watson, and other members of McAfee’s cryptocurrency team allegedly raked in more than $13 million from investors they victimized with their fraudulent schemes. Investors should be wary of social media endorsements of investment opportunities.”

FBI Assistant Director William F. Sweeney Jr. said: “As alleged, McAfee and Watson used social media to perpetrate an age-old pump-and-dump scheme that earned them nearly two million dollars. Additionally, they allegedly used the same social media platform to promote the sale of digital tokens on behalf of ICO issuers without disclosing to investors the compensation they were receiving to tout these securities on behalf of the ICO. When engaging in illegal activity, simply finding new ways to carry out old tricks won’t produce different results. Investment fraud and money laundering schemes carry a strict penalty under federal law.”

According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment against JOHN DAVID MCAFEE and JIMMY GALE WATSON JR. and an earlier-filed criminal Complaint against MCAFEE:[1]

During the period from in or about December 2017 through in or about October 2018, JOHN DAVID MCAFEE and JIMMY GALE WATSON JR., and other members of the McAfee Team, perpetrated two fraudulent schemes relating to the promotion to investors of cryptocurrencies qualifying under federal law as commodities or securities.

The first scheme involved a fraudulent practice called “scalping,” which is sometimes referred to as a “pump and dump” scheme. This scalping scheme generally consisted of the following. First, MCAFEE, WATSON, and other McAfee Team members bought large quantities of publicly traded cryptocurrency altcoins, which qualified as commodities or securities, at inexpensive market prices with advance knowledge that MCAFEE planned to publicly endorse them via his widely followed Twitter account (the “Official McAfee Twitter Account”). Second, after these purchases, MCAFEE published false and misleading endorsement tweets via his Official McAfee Twitter Account recommending those altcoins to members of the investing public for investment in order to artificially inflate (or “pump” up) their market prices without disclosing that MCAFEE owned large quantities of the promoted altcoins, even though MCAFEE had given false assurances that he would disclose such information in various tweets and public statements during the scalping scheme. Third, MCAFEE, WATSON, and other McAfee Team members then sold (or “dumped”) their respective investment positions in the promoted altcoins into the temporary but significant short-term market price increases that MCAFEE’s deceptive tweets typically generated, often for significant profits. From in or about December 2017 through in or about January 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $2 million in illicit profits from their altcoin scalping activities while the long-term value of the recommended altcoins purchased by investors declined substantially as of a year after the promotional tweets. From in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their scalping activities into United States currency.

In the second scheme, MCAFEE, WATSON, and other McAfee Team members also used MCAFEE’s Official McAfee Twitter Account to publicly tout fundraising events called “initial coin offerings” (“ICOs”) in which startup businesses (“ICO issuers”) issued and sold digital tokens qualifying as securities to the investing public, without disclosing and, in fact, concealing that the ICO issuers were compensating MCAFEE and his team for his promotional tweets with a substantial portion of the funds raised from ICO investors. As the United States Securities and Exchange Commission had publicly warned, and as MCAFEE and WATSON well knew, the federal securities laws required them to disclose any compensation paid by ICO issuers for touting securities offerings styled as ICOs. From approximately on or about December 20, 2017 through on or about February 10, 2018, MCAFEE, WATSON, and other McAfee Team members collectively earned more than $11 million in undisclosed compensation that they took steps to affirmatively hide from ICO investors. In each instance, MCAFEE and WATSON failed to disclose to ICO investors that the ICO Issuers were paying the McAfee Team a substantial portion of the funds raised from ICO investors for their touting efforts, despite knowing that they were required to disclose such compensation under federal securities laws. Furthermore, in several instances during this ICO touting scheme, MCAFEE and WATSON took active steps to conceal their secret compensation arrangements with ICO issuers from ICO investors, and MCAFEE made false and misleading statements and omissions to hide such deals from ICO investors. From approximately in or about December 2017 through in or about October 2018, MCAFEE, WATSON, and other McAfee Team members engaged in various efforts to liquidate the digital asset proceeds of their ICO touting activities into United States dollars.

During the period from in or about December 2017 through in or about October 2018, MCAFEE and WATSON caused another McAfee Team member to engage in banking transactions to launder proceeds of the fraudulent ICO touting scheme.

In separate parallel enforcement actions, the United States Securities and Exchange Commission (the “SEC”) and Commodity Futures Trading Commission (“CFTC”) have filed civil charges against MCAFEE and WATSON.

* * *

MCAFEE, 75, and WATSON, 40, are United States citizens. Both of them are charged in a seven-count Indictment with one count of conspiracy to commit commodities and securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit securities and touting fraud, which carries a maximum potential sentence of five years in prison; two counts of conspiracy to commit wire fraud and two counts of substantive wire fraud, each of which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum potential sentence of ten years in prison. In addition to potential prison sentences, each of these charges also carries potential financial penalties. The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences to be imposed on the defendants will be determined by the judge.

Ms. Strauss praised the work of the FBI on the investigation of this case and thanked the SEC and CFTC, both of which conducted separate parallel investigations, for their assistance.

This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer and Elizabeth Hanft are in charge of the prosecution.

The allegations contained in the charging documents in this case are merely accusations, and the defendants are presumed innocent unless and until proven guilty.


[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and Indictment and the description of those charging documents set forth herein constitute only allegations, and every fact described should be treated as an allegation.

CFTC Complaint:
https://www.justice.gov/usao-sdny/press ... 6/download

Indictment:
https://www.justice.gov/usao-sdny/press ... 1/download

[notorial dissent]

So they're going after him for securities and commodities fraud.... Who'd a thunk it? Johnny's been a busy bad boy it seems. I would suspect there'll be some wire and postal fraud charges tacked on as well. I wonder if banking fraud was included in the money laundering or if it would come a separate bit? Of all the things I could think of him getting himself in trouble over this wasn't one of them. I wonder if the EU will have similar complaints to file since I seem to recall they are crankier about things this than we are.

[Jeffrey]

I’m going off the press release with my half baked comments but I think everyone knew he owned altcoins. Not sure how that’s deceptive.
And since when are coins securities? Are they going after Musk for buying then pumping Bitcoin and dogecoin?

[AnOwlCalledSage]

And since when are coins securities? Are they going after Musk for buying then pumping Bitcoin and dogecoin?

I don't see why not. The SEC went after him for his pumping of Tesla share comments and he paid a $20m fine.

Tesla CEO Elon Musk is reportedly under SEC investigation over Dogecoin tweets

[Arthur Rubin]

Although some of these have already been reported, he is indicted for securities fraud (hyping ICOs without revealing he was paid to do so, and pump-and-dump in cryptocurrencies), and a 2020 arrest for tax evasion in Spain. (The articles are unclear whether he was arrested in Spain on Spanish or US charges.) To avoid copyright violation, I will not quote the article in source 1 in full, it having only three paragraphs.

Sources:

1. https://www.caltax.com/spidellweb/publi ... ibune.html (an amusing tax-related newsletter with little actual tax content, during the tax season)
2. http://www.forbes.com/sites/rachelsandl ... pto-scheme
3. http://www.justice.gov/opa/pr/john-mcaf ... ax-evasion

[jcolvin2]

McAfee is apparently cooling his heels in a Spanish jail, while he awaits a court decision on extradition:
https://www.deccanherald.com/internatio ... 28575.html

Interesting selections from the article:

The 75-year-old has been held at a prison near Barcelona since he was arrested in the Spanish city in October just as he was about to board a flight to Istanbul.

***

Spain's National Court rejected McAfee's appeal against his remand in custody, arguing that given the lengthy prison sentences he is facing there was a "serious risk" he would seek to escape justice as he has in the past.

***

When the police found him living with a 17-year-old girl and discovered a large arsenal of weapons in his home, McAfee disappeared on a month-long flight. The dead neighbour's family later filed a wrongful death suit against McAfee and last year a court in Florida found against him, ordering him to pay the family more than $25 million.

In 2015, McAfee was arrested in the United States for driving under the influence. He again disappeared from view until January 2019, when he fled the country

[notorial dissent]

Methinks Johnny picked the wrong country to play fast and loose with the tax laws. Spain has a reputation for seriousness about them, he should maybe have hid out in Greece where not so much. I also hear that Spanish jails/prisons, not so nice, maybe even worse than Italian ones.