In a contentious, nearly two-hour-long show-cause hearing and arraignment Friday in Magistrate Court on St. Thomas, Brett “Mac” McClafferty denied violating the terms of his release on bank fraud charges and pleaded not guilty to the same.
At issue in the hearing was whether McClafferty authored more than a dozen Facebook posts that could be perceived as broadly referencing his case and that were the basis of the government’s motion to show cause why his bail should not be revoked, which it filed with the court on Thursday.
McClafferty was arrested Feb. 21 by the Virgin Islands Police Department’s Economic Crime Unit in connection with an $888,500 fraud investigation. 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 Police say funds were withdrawn and wired to third parties before the instruments were returned unpaid.
McClafferty — charged with grand larceny, passing or possession of forged bills, obtaining money by false pretenses, making and passing fictitious bills and notes, and drawing and delivering worthless checks — is free on $150,000 bail and a condition of his release is that he not post about the case on social media, which was the subject of Friday’s hearing.
“Absolutely not,” McClafferty said from the witness stand Friday when asked if he authored any of the social media posts in an exhibit the government filed with its motion. His business partner, Sunil Sharma, had been called to testify as a defense witness until Assistant Attorney General Brenda Scales objected because Sharma had been sitting in the courtroom from the start of the proceeding instead of being sequestered.
“If you’re going to testify in court, you don’t get to sit and listen” to the proceedings beforehand, Scales said and suggested he could file an affidavit.
McClafferty’s attorney, Nicole-Lynn King-Richardson, who was appearing remotely via video, said she hadn’t realized Sharma was present in the courtroom and called McClafferty to testify instead.
He told the court that following his arrest on Feb. 21 he made Sharma acting director of the McClafferty Family Foundation, which he bills as a private philanthropic organization, and recused himself from running St. Thomas Social, the restaurant business they co-own at Yacht Haven Grande on St. Thomas, until his case is resolved.
“Is someone in charge of social media?” King-Richardson asked.
“It is Sunil Sharma,” said McClafferty.
“Have you posted about this case at all?” his attorney asked.
“No,” McClafferty said, several times. “No, I have not posted anything about this incident whatsoever.”
Running through the various posts, King-Richardson hit upon one that said, “Never underestimate the power of name recognition,” and asked if it was speaking about the case.
“No,” said McClafferty, who began to explain that post was referencing his campaign for a V.I. Senate seat, which he announced after his arrest. That prompted a rebuke from Magistrate Judge Julie Smith Todman.
“Please do not use this courtroom for self-aggrandizement. We are not here for self-aggrandizement or to promote your run for Senate,” she said. Earlier, she cautioned him against expressing himself with his hands, telling McClafferty, “Please maintain your composure. You do have counsel who will speak on your behalf.”
Indeed, McClafferty appeared agitated at times, nervously jiggling his left leg and at one point muttering “This is madness” under his breath from his seat in the public gallery as a recess was called because the government’s key witness was running late.
That witness, V.I. Police Detective Tiffany Tyson, who is the case agent for the McClafferty complaint and compiled the exhibit of Facebook posts, admitted under questioning from King-Richardson that she could not prove that McClafferty authored the posts though he is the head of his family foundation and Social Hospitality Group, the parent company of St. Thomas Social.
Referencing a post by St. Thomas Social the day of McClafferty’s arrest, titled “Addressing the Silly Rumors” and signed by Sharma, King-Richardson asked Tyson why that would be included in the exhibit.
“I can’t say he didn’t post it, but it was signed by Sharma,” Tyson replied.
“Did you make any effort to discover if Sharma did post it?” King-Richardson asked. “Is it reasonable to make a post on behalf of their business?”
“Yes,” said Tyson.
After more back and forth about the posts in the exhibit, King-Richardson told Tyson, “We’ve established you don’t know who posts,” which earned an admonishment from the judge to not make statements to Tyson.
While some of the responses to the posts may have spoken of the case, McClafferty did not, and did not violate the terms of his release, King-Richardson told the court.
Objecting to that characterization, Scales conceded that the posts “are made in such a way it’s difficult to be certain who is posting them, but they are being done under Mr. McClafferty.”
That raised questions about who is on the St. Thomas Social business license with the Department of Licensing and Consumer Affairs. While Tyson testified that only McClafferty is listed as the owner, the license in fact is under the name of the parent company, Social Hospitality Group, Inc., and does not list McClafferty or Sharma by name, which McClafferty stated when he testified.
“Detective Tiffany Tyson 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 said after the hearing.
Meanwhile, in the courtyroom, Scales told the judge after both sides rested, “It’s difficult when someone uses these various entities. We would submit that any entity in which Mr. McClafferty has an interest, that he should instruct people who work there not to post. I’m uncertain what other remedies [to suggest]. Normally telling someone not to post is sufficient.”
King-Richardson argued that the posts in the government’s exhibit did not explicitly reference the case, and there is nothing showing that McClafferty made the posts. “He hasn’t violated what this court said to do. … He stepped back of his own volition. Mr. McClafferty can’t control what people are posting. He no longer has the leadership role. He has not violated the release conditions,” she said and asked that the motion be denied.
“The people are not stupid, your honor,” said Scales, clearly exasperated. “We believe it is clear what Mr. McClafferty is trying to do, with his Facebook page, his foundation,” she said. “Your honor, we believe we have proven our case.”
“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. “Participants who may be witnesses are not to post,” beyond stating their innocence, she said.
That prompted King-Richardson to ask the judge whether McClafferty can still post about his Senate run.
“He’s running for Senate?” Smith Todman said, sounding incredulous, before adding, “He cannot use that to post about the case unwittingly.”
“Speak to your social and marketing group,” the judge told McClafferty.
“Understood,” he said.
“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.”
McClafferty’s arraignment followed the hearing. He pleaded not guilty and requested a speedy trial. A discovery conference is set for May 7 at 9:30 a.m. in the Superior Court, with jury selection currently scheduled to begin Nov. 3.
Within the hour, McClafferty had posted on social media, “Shout out to my attorneys at King & King. Nicolelynn King-Richardson is maybe the best defense attorney I’ve ever seen in a courtroom. Incredible! Blessed to have the best,” with a prayer emoji.
