The V.I. Attorney General’s Office has requested a transcript of Brett “Mac” McClafferty’s arraignment and show cause hearing held Friday in Magistrate Court on St. Thomas, to determine whether he violated his bond conditions with a comment to the Source after the proceeding that the government said defamed its investigating witness.
“This comment, made directly to the media and specifically about this case, included improper legal arguments, attempted to defame and malign the character of the investigating witness, and further demonstrated McClafferty’s attempts to try this case in the media. This flies in the face of the Court’s order and clear instructions given to the Defendant in court,” according to the motion filed on the Superior Court docket Tuesday.
The motion for the transcript is to “ensure the language of the prohibition from Magistrate Judge [Julie Smith] Todman before filing further proceedings regarding the Defendant’s direct violation(s) of the conditions placed against him regarding his media and social media presence,” it states.
“Furthermore, the transcript from the Magistrate Court proceeding may include relevant and necessary testimony from either party in preparing for trial,” it said.
The government is also seeking an order from Smith Todman, specifying the conditions of McClafferty’s release.
McClafferty, 37, the co-owner of St. Thomas Social in Yacht Haven Grande and head of the McClafferty Family Foundation, which he bills as a private philanthropic organization, was arrested Feb. 21 by the Virgin Islands Police Department’s Economic Crime Unit in connection with what authorities describe as an $888,500 fraud investigation. He has pleaded not guilty.
Authorities allege that between January and June 2024, McClafferty deposited counterfeit and fictitious checks — including instruments drawn on entities in the British Virgin Islands — and issued bank drafts that were later returned for insufficient funds or subject to stop-payment requests. Police say funds were withdrawn and wired to third parties before the instruments were returned unpaid.
Charged with grand larceny, passing or possession of forged bills, obtaining money by false pretense, making and passing fictitious bills or notes and drawing and delivering worthless checks, McClafferty is free on $150,000 bail, with 10% of the bond in cash and the rest unsecured.
As a condition of his release on Feb. 23, McClafferty, a prolific social media poster, was ordered not to discuss the case in posts on social media. Smith Todman expanded those conditions Friday to include any members of his staff or foundation.
At issue at Friday’s hearing was whether McClafferty authored more than a dozen Facebook posts on his foundation and restaurant social media pages following his arrest that could be perceived as broadly referencing his case. They were the basis of the government’s motion to show cause why he should not be sanctioned or have his bail revoked.
McClafferty denied authorship, testifying in court that upon his arrest, he made his business partner, Sunil Sharma, acting director of the foundation and recused himself from running St. Thomas Social until his case is resolved.
At the conclusion of the hearing, Todman Smith warned McClafferty against violating his bail conditions.
“I am going to be clear to not use the McClafferty Family Foundation, and anyone who works for the foundation or St. Thomas Social or Hospitality Group, to post anything about this case,” Smith Todman said, warning that if her order is violated, she may impose a gag order. “Any companies that he is associated with are prohibited from posting about the facts of this case and the incidents and the evidence,” she added.
“Mr. McClafferty cannot hide behind his business partner, behind his businesses, when they post” on social media. “What happens is an attempt to prejudice the jury pool. This is a small community,” she said, and Sharma may be called as a witness in the case.
“Mr. McClafferty, to be clear, a violation of your release order could result in your bail being forfeited,” she said. “A word to the wise is sufficient.”
After the hearing, which lasted roughly two hours, McClafferty contacted the Source and other media outlets to rail against the government’s investigating witness, a V.I. Police detective, claiming she “committed blatant perjury and should be held accountable. She made a material representation to the court that only my name was on the DLCA business license in an effort to hold me responsible for statements made by my business partner. She, herself, should be in handcuffs, and my attorneys and I are considering all remedies available to us under the law.”
McClafferty gave the same comment to the Virgin Islands Daily News, in a story published Monday. While it is a print paper, it also has an e-edition.
Additionally, McClafferty posted a photo of himself leaving the Magistrate Court with fist raised on his Facebook page, with a comment praising his attorney, Nicole-Lynn King-Richardson. “Blessed to have the best,” he wrote, with a prayer emoji.
The government’s fraud case is not the only legal issue for McClafferty, who arrived in the Virgin Islands after serving time in Ohio for grand theft, cocaine possession and theft across several different cases, according to court documents.
Several civil cases have been filed in District Court in the Virgin Islands accusing him or his businesses of fraud and running a Ponzi scheme. Meanwhile, McClafferty also has active petitions for Chapter 13 and Chapter 7 bankruptcy in Delaware.
Social Hospitality Group, operator of St. Thomas Social, has also filed a $10 million lawsuit against Banco Popular related to McClafferty’s February arrest, claiming the bank wrongly reported fraudulent activity connected to the checks deposited in the company’s account.
Additionally, an attorney for McClafferty sent Gov. Albert Bryan Jr. a letter, asking the administration to investigate whether relationships between Banco Popular employees and law enforcement influenced the charging decision in the case. McClafferty, who has also announced a run for the V.I. Legislature since his arrest, has appeared with some frequency with the governor on social media posts, even attending the State of the Territory in January as a guest, despite having an outstanding warrant for his arrest since Dec. 30.
In a statement emailed to the press Monday night, Government House said it had forwarded the correspondence to the VIPD’s Internal Affairs Division for review.
“Government House respects the integrity of the investigative process and believes any allegation involving the conduct of public officials or law enforcement personnel should be reviewed by the proper authorities. As this is now in the hands of the appropriate investigatory body, Government House will have no further comment at this time,” it said.
McClafferty responded with a statement Wednesday night that said, “The prosecutors know damn well there’s never been a prohibition on speaking to the news media. If that were the case why did VIPD and AG Rhea issue press statements when I was arrested? It’s just pure hypocrisy. Nonetheless, we welcome the release of the transcript so Internal Affairs can see Detective Tiffany Tyson’s perjury with their own eyes and take the appropriate action.”
