Investor Files Lawsuit Against Alleged Pyramid Scheme in the US Virgin Islands

An investor has initiated legal action against a company in the US Virgin Islands, accusing it of operating a pyramid scheme. The lawsuit was lodged in the Virgin Islands District Court by Puerto Rican resident Alex Gibson against B. Matthew McClafferty, the principal behind Mac Private Equity Inc., and its associated entities. Gibson claims he is owed in excess of $100,000 following an initial $50,000 investment made in 2022.

Mac Private Equity Inc. describes itself as specializing in blockchain technology projects, purporting to be a registered Economic Development Company (EDC) in the U.S. Virgin Islands via MPE Clearing & Holdings, Inc. However, Gibson’s complaint asserts that these firms are merely fronts, lacking real business operations, a claim seemingly supported by their absence from the EDC’s list of recognized companies.

The dispute traces back to an agreement in August 2022, wherein Gibson was to receive staggered, high-interest repayments on his $50,000 investment. According to the lawsuit, the arrangement quickly devolved into a series of reinvestment requests from McClafferty, characteristic of Ponzi schemes. Despite initial repayments, subsequent promises of profit sharing and principal returns were allegedly met with evasion, delays, and further solicitation for reinvestment.

As the situation escalated, Gibson’s demands for his funds led to a purportedly obstructive response from McClafferty, including the issuance and then cancellation of a payment check, misdirection of a second check, and refusal to conduct wire transfers. Legal demands for payment initiated by Gibson’s legal team in January 2024 were met with disdain and threats of counter-litigation from McClafferty.

Gibson’s lawsuit encompasses claims for breach of agreement, fraudulent misrepresentation, and violation of the covenant of good faith, among others. It seeks to directly implicate McClafferty and other shareholders for the financial obligations of Mac Private Equity and MPE Clearing & Holdings, citing their operational and financial deficiencies as just cause. The court is asked to hold these individuals personally liable for the repayment of Gibson’s investment, including damages, interest, and legal fees.

No response to the lawsuit has been filed by McClafferty or his associated companies at the time of reporting.