Professional Documents
Culture Documents
Plaintiff alleges:
defendants Robert Ladd ("Ladd"), MGT Capital Investments, Inc. ("MGT") and Teri
defamatory articles about Plaintiff, beginning in September 2016 and continuing into
February 2017. Ladd is the President and Chief Executive Officer of MGT, a publicly-
"investigative journalist."
2. The articles, which were conceived by Ladd and MGT, authored by Buhl
and published on Buhl's website, contain assertions that Plaintiff, among other things, is
{00078520;!}
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 1
1 of
of 19
19
("SEC") investigation arising out of those, violations, and that "90%" of a SEC subpoena
served on MOT (the "Subpoena") is about Plaintiff. These statements, and many others,
3. Ladd and MOT concocted the scheme to defame Plaintiff in order to divert
attention away from MGT as the target of the very SEC scrutiny that the articles falsely
allege is directed at Plaintiff. By placing the blame on Plaintiff, Ladd and MGT sought to
deceive the public into believing there were no problems at MGT and that it was safe to
purchase MGT's stock. Ladd and MGT engaged in this market manipulation in an
attempt to boost the share price of MGT, which had substantially declined after MGT's
4. In order to carry out their scheme, Ladd and MGT enlisted Buhl to write
and publish false and defamatory articles regarding Plaintiff through Buhl's website.
Ladd and MGT knew they could turn to Buhl for assistance because she had participated
in a similar scheme with respect to another shareholder of MGT in the past. Specifically,
Iroquois Capital and its principal of securities violations similar to those allegedly
committed by Plaintiff. As was the case here, Ladd and MGT caused Buhl to publish the
article in order to manipulate the market for MGT's stock, maintain their control and also
Buhl's interests. Several months earlier, in May 2016, Buhl published another false and
{00078520;!} 2
sources, further extended Buhl's fanciful narrative demonizing Plaintiff, based solely on
Buhl's ill-informed conjecture, and efforts to drive traffic and associated revenue to her
website.
6, Defendants' conduct has injured Plaintiff in his trade and profession and is
continuing to cause him substantial harm. Accordingly, Plaintiff hereby asserts claims
PARTIES
7. Plaintiff Bariy Honig is a private investor who resides in, and is a citizen
Hill, North Carolina. Ladd is, and at all relevant times was, the President, Chief
10. Defendant Teri Buhl resides in and is a citizen and domiciliary of New
York,
11, Plaintiff is presently unaware of the identity of the defendants sued herein
as DOES 1-20, and will amend this complaint to identify them once Plaintiff learns of
{00078520;!} 3
herein as "Defendants."
12. On information and belief, Defendants, and each of them, were and are the
principals, and employers of the remaining Defendants and each of them are, and at all
times mentioned herein were, acting within the course and scope of that agency, license,
information and belief, the acts and conduct herein alleged of each of the Defendants
were known to, authorized by and/or ratified by the other Defendants, and each of them.
such allegation shall be deemed to mean the acts of the defendants named in the
particular cause of action, and each of them, acting indi vidually, jointly and severally.
14. This Court has personal jurisdiction over Defendants because they have
minimum contacts with the State of North Carolina and/or are domiciliaries of the State
of North Carolina.
15. The Court has subject matter jurisdiction pursuant to 28 ll.S.C. 1332(a)
because there is complete diversity of the parties to this action and the amount in
that Ladd and MGT reside here and a substantial part of the events or omissions giving
{00078520;!} 4
entitled "Micro cap Attorney Jaclin 's Co-Conspirator Turned DOJ Witness in Shell
Factory Scheme" (the "May 26, 2016 article"). A true copy of the May 26, 2016 article is
18. The May 26, 2016 article discusses SEC charges against a securities lawyer
and a 2014 plea deal by an executive who admitted to illegal trading in his own
company's securities, and contains the statement: "But it's possible more players in the
microcap space will be arrested by the DOJ or charged with an enforcement action by the
SEC. One name that comes to mind is microcap financer Barry Honig." This statement
is false and defamatory. Plaintiff is not the target of any such investigation or
enforcement action, and there is no basis to believe an arrest will be made by the DOJ or
19. Thereafter, on or about September 15, 2016, MOT was served with a non-
public subpoena by the SEC ("Subpoena"), which on February 9, 2017 was leaked
publicly by Buhl on her website after it was provided to her by Ladd and MGT. The
anyone else has broken the law. Also, the investigation does
{00078520;!) 5
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 5
5 of
of 19
19
not mean that we have a negative opinion of any person,
entity or security.
A true copy of the cover letter and Subpoena are attached hereto as Exhibit B.
20. On or about September 19, 2016, MGT issued a press release disclosing its
22. Between the time of MGT's receipt of the Subpoena on September 15,
2016, and September 23, 2016, Defendants knowingly, willfully and intentionally
time period, Ladd, acting on his own behalf and on behalf of MGT, stated to Buhl that the
Subpoena was targeted at Plaintiff, that 90% of the SEC's questions were about Plaintiff
and that Plaintiff was the target of an SEC investigation into his trading and investing in
MGT stock (the "Ladd Defamatory Statements"). The Ladd Defamatory Statements
{00078520;!} 6
Case
ase 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 6
6 of
of 19
19
were made by Ladd with the intention that they be reduced to writing and published by
Buhl.
23. The Ladd Defamatory Statements were in fact written and published by
about September 23, 2016, Buhl published a second article on teribuhl.com entitled
"Investor Barry Honig Target ofSEC MGT Capital Subpoena''' (the "September 2.3, 2016
article"). A true copy of the original version of the September 23, 2016 article is attached
hereto as Exhibit C.
24. The original version of the September 23, 2016 article contains the
d. "Honig has been calling SEC enforcement defense lawyers this week
h. Plaintiff's counsel allegedly "has been able to keep the SEC at bay".
{0007857.0; 1} 7
25. The statements in the original September 23, 2016 article are highly
defamatory. They accuse Plaintiff of committing serious violations of securities law by,
among other things, engaging in "pump and dump" schemes, secretly controlling publicly
traded companies, paying stock promoters without proper disclosures and secretly
teaming up with others to illegally trade MGT's stock as an affiliate. The original
September 23, 2016 article attempts to legitimize these false accusations by making
additional false statements, including that Plaintiff is under investigation by the SEC for
securities violations, that the SEC may charge Plaintiff for the violations, and that
Plaintiff is in the process of hiring counsel because he fears the SEC investigation.
26. In truth, the Subpoena mentions Plaintiff's name only once in the twenty
shareholders of MGT. Plaintiff is not the target of the Subpoena or an SEC investigation,
Defendants. Plaintiff has not been looking for an SEC enforcement defense lawyer.
Plaintiff is a passive investor and does not run things behind the scenes and is not
involved in "pump and dump" schemes. Plaintiff has never paid a stock promoter to tout
the company. He also has no affiliation with anyone in MGT's management or Board of
Directors.
Buhl identifying the foregoing false and defamatory statements about Plaintiff and
{00078520;!} 8
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 8
8 of
of 19
19
demanding a retraction and apology. Buhl refused to comply with the retraction and
apology. Instead, Buhl changed the title of the September 23, 2016 article to "Investor
Barry Honig Subject ofSEC MOT Capital Subpoena", an equally false statement
misleading readers into the belief Plaintiff is the sole the focus of the Subpoena, and
published an amended version of the article. A true copy of the amended September 23,
28. The amended September 23, 20 1 6 article repeated many of the defamatory
a. "Barry Honig is pulling out the big legal guns apparently worried about
29. The two new statements, added to the amended September 23, 201 6 article,
are false. Plaintiff is not worried about what is inside the Subpoena, and engaged a well-
known libel lawyer for the specific purpose of putting Buhl on notice of her false and
defamatory statements about Plaintiff, and demanding a retraction and apology of same.
Further, Plaintiff did not have two days to respond to Buhl's reporting. Buhl did not send
any written, request for comment to Plaintiff himself, but rather sent a very cryptic
statement to Plaintiff's representative that provided no information at all about what Buhl
intended to report, or what specifically she was asking Plaintiff to comment on. The
statements identified in Paragraph 15, above, certainly were not contained or referenced
{00078520;!} 9
namely, the two defamatory statements in the amended September 23, 2016 article, and
the defamatory statement in the May 26, 2016. Plaintiff counsel requested a retraction
and apology regarding same, as well as made a second request for a retraction and
apology of the defamatory statements listed above in Paragraph 16 herein. Ms. Buhl did
not retract any of the defamatory statements and did not apologize, and instead responded
and then again on or about February 9, 2017, Buhl published a third article on
teribuhl.com entitled " California DOJ investigating Honig and The Frost Group''' (the
claims made by a disgruntled executive in a lawsuit settled in 2013. A true copy of the
statements:
b. "The Northern California DOJ has been sniffing around asking tough
Phillip Frost, a former boxer turned penny stock investor Barry Honig, and
{00078520;!} 10
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 10
10 of
of 19
19
33. These statements are false. Plaintiff is not aware of any investigation of
him by the California DOJ, or of any tough questions that have been asked by the
Buhl published a fourth article on teribuhl.com entitled "Here it is: that MGT Capital
SEC Subpoena" (the "February 9, 201 7 article"). In connection with Buhl's publication
of the February 9, 2017 article, Ladd and MGT leaked a copy of the Subpoena to Buhl,
which she then posted along with the article. A true copy of the article is attached hereto
as Exhibit F.
35. The February 9, 2017 article republished several of the false and
defamatory statements in the September 23, 2016 article and contains the following
defamatory statement: "the regulator is looking for evidence that these people [including
Barry Honig] traded as a group and therefore became beneficial owners of the stock."
Articles." The defamatory statements identified in paragraphs 18, 24, 28, 32 and 35 are
36. This statement is false and defamatory for the reasons set forth paragraphs
25 and 26 above.
37. On February 20, 2017, Plaintiff, through his counsel, delivered a written
Statements, and demanding a retraction and apology. Buhl failed to comply with the
demand for a retraction and apology prior to the filing of this action.
{00078520;!} 11
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 11
11 of
of 19
19
38. The conspiracy described hereinabove was not the first conspiracy by
on teribuhl.com, based upon statements by Ladd and MGT, accusing Iroquois Capital of
engaging in similar securities violations as those falsely attributed to Plaintiff in this case.
In that instance, the article was published in an attempt by Ladd and MGT to gain the
upper hand in their dispute with Iroquois Capital and its principal, Josh Silverman, and by
Buhl to drive traffic and associated revenue to her website. A true and correct copy of the
article, entitled "Iroquois Capital's Josh Silverman Threatens Portfolio Stock CEO", is
39. Plaintiff hereby incorporates by this reference each allegation set forth in
40. Ladd, acting on his own behalf and on behalf of MGT, published the Ladd
Defamatory Statements to Buhl. The Ladd Defamatory Statements were authorized and
ratified by MGT, and made within the course and scope of Ladd's employment with
MGT.
41. The Ladd Defamatory Statements are false and defamatory statements of
42. The Ladd Defamatory Statements are defamatory because they wrongly
state that 90% of the SEC's questions in the Subpoena were about Plaintiff and accuse
Plaintiff of being the target of the Subpoena and SEC investigation. These false
{00078520;!} 12
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 12
12 of
of 19
19
statements tend to subject Plaintiff to hatred, distrust, contempt, aversion, ridicule and
disgrace in the minds of a substantial number in the community, and were calculated to
harm Plaintiff's social and business relationships, and did harm his social and business
relationships.
43. The Ladd Defamatory Statements constitute slander and libel because they
were made with the intention that they be reduced to writing by Buhl, and they were in
fact written and published by Buhl on teribuhl.com in the September 23, 2016 article.
44. The Ladd Defamatory Statements constitute libel and slander per se
because they disparage and discredit Plaintiff in the way of his profession and trade as an
investor.
45. The Ladd Defamatory Statements were false and no applicable privilege or
46. As a direct and proximate cause of the falsity of the Ladd Defamatory
investor.
constituting moral turpitude, particularly inasmuch as Ladd and MGT knew that the Ladd
Defamatory Statements were false at the time they were made. As such, in addition to
{00078520;!} 13
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 13
13 of
of 19
19
relating to publication of the Ladd Defamatory Statements, in an amount to be
determined at trial.
48. Plaintiff hereby incorporates by this reference each allegation set forth in
49. The Buhl Defamatory Statements are false and defamatory statements of
50. The Buhl Defamatory Statements are libelous because they wrongly accuse
Plaintiff of committing serious violations of securities law and seek to legitimize these
false accusations by falsely stating that Plaintiff is under investigation by the SEC for
securities violations, that the SEC may charge Plaintiff with a crime for the violations,
and that Plaintiff is in the process of hiring counsel because he fears the SEC
investigation.
distrust, contempt, aversion, ridicule and disgrace in the minds of a substantial number in
the community, and were calculated to harm Plaintiff's social and business relationships,
52. The Buhl Defamatory Statements also constitute libel per se because they
disparage and discredit Plaintiff in the way of his profession and trade as an investor.
53. The Buhl Defamatory Statements are false and no applicable privilege or
{01)078520;!} 14
investor.
55. The Defamatory Articles were widely disseminated on the Internet, in part
because Buhl distributed the May 16, 201 6 article and September 23, 2016 article via her
Twitter account, and in part because other individuals and companies, including news
organizations, come to teribuhl.com for financial news, and republish her stories for their
readers to read. The Defamatory Articles were re- published by others, and Buhl was
aware of this process and that republications of the Defamatory Articles would occur
56. Buhl's actions were intended to hold Plaintiff up to ridicule and to damage
58. Plaintiff has complied with the notice requirements set forth in of N.C. Gen.
Stat. Ann. 99-1 prior to filing this action by informing Buhl of her defamatory
statements, and requesting a retraction and apology, as least five days prior to filing this
{00078520;!} 15
59. Plaintiff hereby incorporates by this reference each allegation set forth in
economic advantages and to engage in unfair and deceptive trade practices, by causing
false and disparaging statements about Plaintiff to be published in the September 23,
trial.
63. Plaintiff hereby incorporates by this reference each allegation set forth in
{00078520;!} 16
expectation of entering into contracts related thereto, which would have been completed
65. On information and belief, Defendants' unlawful acts have induced third
66. Defendants acted solely out of malice, and/or used dishonest, unfair or
relationships.
70. Plaintiff hereby incorporates by this reference each allegation set forth in
{00078520;!} 17
72. As a direct and proximate result of Defendants' unfair and deceptive trade
73. Pursuant to N.C. Gen. Stat. Ann. 75-16, plaintiff also seeks treble
74. Pursuant to N.C. Gen. Stat. Ann. 75-16-1, plaintiff also seeks recovery of
trial;
(e) An order requiring Ladd and MGT to make a retraction of the Ladd
Defamatory Statements;
{00078520;!} 18
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
Document 1
1 Filed
Filed 03/03/17
03/03/17 Page
Paae 18
18 of
of 19
19
Defamatory Statements;
(j) Such other and further relief as the Court may deem just and proper.
{00078520;!} 19
Smashmouti i Investigative
& k Journalism
' A I
Home Abuul Contact
Microcap Attorney
May Donate with Bitcoin
Jaclin's Co-Conspirator
Turned DOJ Witness in Shell 10 USD
Document title. Microcap Attorney Jaclin's Cu-Conspirator Tut nod DOJ Witness In Shell Factory Schema
*V
John on
&
Microcap Attorney
Jaclin fights SEC fraud
case by Blaming
Everyone Else
I
Microcap Attorney
Jaclin fights SEC fraud
Cregg And |tll pclut case by Blaming
Everyone Else - The
Fraud Site
on
Jaclin previously co-owned a law firm. Anslovv & Jaclin, Microcap Attorney
Jaclin's Co-Conspirator
where he allegedly issued false SEC filings for the public
Turned DOJ Witness in
shell companies named in the government's complaint. Shell Factory Scheme
Jaclin's former partner Richard Anslow joined another top
microcap financing law firm, Ellenoff Grossman & Scholc
LP, in October 2013. Anslow acknowledged he was
interviewed in the SEC investigation of the shell factor)' State v. Buhl
Document title: Microcap Attorney Jaclin's Co-Conspirator Turned DOJ Witness In Shell Factory Schema
Capture URL: hUp://www.teribuhl.cam/2016/05/26/microcap-aUarney-jacllns-co-consplratar-tiirned-doj-wltness-In-shell-factory-schomK/
Capture timestamp (UTC): Mori, 26 Sep 2016 1448:04 GMT Page 2 of 13
The New Jersey L)OJ confirmed the RVPlus CEO, Cary Lee
Peterson, was unable to post bail last week and had to get
a public defender, which makes me wonder if the DOJ will
also uress him to turn Government witness aeainst laclin
Documen! litle: Microcap Attorney Jaclin's Co-Conspirator Turned DOJ Witness in Shell Factory Scheme
Capture URL: http://wivw.teribuhl.com/2016/a5/26/microcap-attorney-jaclins-eo-conspiratar-h.irned-doJ-wltness-ln-shell-factory-scheme/
Capture timestamp (UTC): Mon, 26 Sep 20 16 14:48:04 GMT Page 4 of 13
Case
Case 1:17-cv-00184
1:17-cv-00 Document 1-1 Filed 03/03/17 Page 5 of 10
I 111 il ^.yvntn il iv- Ji.i it sfV3 1 * ' t l luji. uv. it v. I i.j u iu). ui w u uivj
The New Jersey DO) confirmed the RVPlus CEO, Cary Lee
Peterson, was unable to post bail last week and had to get
a public defender, which makes me wonder if the DO) will
also press him to turn government witness against Jaclin
and others in the scheme. So far there are no public
criminal charges against Jaclin but the pressman for the
DO) in Northern Cat reminded me there could be a sealed
indictment against Jaclin that no one knows about.
Case
Case 1:17-cv-00184
1:17-cv-00 Document 1-1 Filed 03/03/17 Page 6 of 10
any portion of the firm name is unauthorized". Signing
the wrong law firm name could make an issuer's S-l filing
considered a false opinion in the eyes of the SEC.
Document title: Microcap Attorney Jaclin's Co-Conspirator Turned DOJ Witness In Shell Factory Schema
Capture URL: http://www.terlbuhl.com/2016/05/26/rnicrocap-aUorney-iaclins-co-conspirator-tumed-doj-witness-ln-shell-factory-scheme/
Capture tlrnestamp (LJTC): Mon, 26 Sep 2016 14:48:04 GMT Page 6 of 13
Case 1:17-cv-00184
1:17 Document 1-1 Filed 03/03/17 Page 7 of 10
in the SEC complaint. But it's possible more players in the
microcap space will be arrested by the L)OJ or charged
with an enforcement action by the SEC. One name that
comes to mind is microcap fmancer Barry Honig. I
reported for Growth Capitalistic CEO of YesDTC, one of
the issuers in the jaclin complaint, was also arrested and
made a plea deal with the DOJ in 2014. His name is joe
Noel. Noel and Husain both said in sworn testimony it was
Barry Honig who bought the shell (created by
Jaclin/Husain) that YesDTC merged into. The SEC
successfully charged YesDTC for being a pump and dump.
Noel then went on to say that Barry Honig 'made him' hire
a stock promoter to aid in the pump and dump of YesDTC
and alluded to the notion that Honig was also a control
person in YesDTC. This matters because it affects Honig's
9.99% investment in the company and his timing of when
he can sell his shares. Honig has gone on the record
through his attorney, Harvey Kesner, that he was not a
control person of YesDTC, that he was cheated by joe
Noel, and Noel is lying in his DOJ plea statement. Honig
has never been arrested or charged by the SEC for his role
in investing in microcap stocks.
Case 1:17-cv-00184
1:17-cv-0 Document 1-1 Filed 03/03/17 Page 8 of 10
somewhat threatening letter tu an editor. Shelly Kraft,
Sharif this:
Document title Microcap Attorney .laclin's Co-Conspirator 1 urned uOJ Witness In Sltull Factory .Schema
Capture URL: http:yAww.ter1buhl.com/2016/05/26/mlcrocep-attorrwy-jecliris-co-consplratDr-turried-dol-witnss8-iri-slnll-fBctory-schante/
Capture limestamp (UTC): Mort, 2G Sep 20 Hi 14:48:04 3MT Page 8 of 13
share this:
ryi) ~ /~anal
Related
Mt&
fthm F.co
rt)uai) Atttu1)ey
la&'ltf) llitl'Its .)L'L
I I do&i ca)tv
~ sts~aIi~ 23 'g+I
I')lrIBcr N ) 4) iors
Atl)ttr)) Tt)tlllliur s
bra)tI)or ituiicNnl t
~
I))'laol
Coll) tt'I0llis
s::I
Comments
Document title: Mlcrocap Attorney Jaclln's Co-Conspirator Tumed DOJ Witness ln Shell Factory Scheme
Capture URL: http:/Nt&ttttw,terlbuht.corn/201
6/06/26/mtcrocap-attorney-iacttns-co~nsplrator-turned-doj-witness-In-shell-factory-scheme/
Captute Umestamp (UTC): Mon, 26 Sep 2016 14)48:04 GMT Page 9 of 13
Rc: NY-09507
Please read the subpoena and this letter carefully. This lcttcr answers some questions you
may have about the subpoena. You should also read the enclosed SEC Foim 1662. You must
comply with the subpoena. You may be subject to a fine and/or imprisonment if you do not.
Producinu Documents
The subpoena requires you to provide us the documents described in the attachment to
the subpoena. You must provide these documents by September 28, 2016. The attachment to
the subpoena defines some terms (such as "document") before listing what you must provide.
You should produce each and every document in your possession, custody, or control,
including any documents that are not in your immediate possession but that you have the ability
to obtain. All responsive documents shall be produced as they are kept in the usual course of
business, and shall be organized and labeled to correspond with the numbered paragraphs in the
subpoena attachment. In that regard, documents should be produced in a unitized manner, i.e.,
delineated with staples or paper clips to identify the document boundaries.
For documents in paper format, you may send the originals, or, if you prefer, you may
send copies of the originals. The Commission cannot reimburse you for the copying costs. If
you are sending copies, the staff requests that you scan (rather than photocopy) hard copy
documents and produce them in an electronic format consistent with the Standards.
Alternatively, you may send us photocopies of the documents in paper format. If you choose to
send copies, you must secure and retain the originals and store them in a safe place. The
staff may later request or require that you produce the originals.
Whether you scan or photocopy documents, thc copies must be identical to the originals,
including even faint marks or print. Also, please note that if copies of a document differ in any
way, they are considered separate documents and you must send each one. For example, if you
have two copies of the same letter, but only one of them has handwritten notes on it, you must
send both the clean copy and the one with notes.
You should enclose a list briefly describing each item you send. The list should state to
which numbered paragraph(s) in the subpoena attachment each item responds. A copy of the
subpoena should be included with the documents that are produced.
Passwords for documents, files, compressed archives, and encrypted media should be
provided scparatcly either via email addressed to FNF-CPUCa)sec.nov, or in a letter mailed
separately from thc data.
Please include a cover letter stating whether you believe you have mct your obligations
under the subpoena by searching carefully and thoroughly for everything called for by thc
subpoena, and sending it all to us.
I have attached a Declaration Ceitifying Records; execution of the declaration may allow the
Commission to introduce documents provided by MGT in a judicial proceeding, without
requiring the testimony of your custodian of records should the documents be required at trial
lFhat if'o not send eve&ydiing described in the attaclinient to the subpoena7
The subpoena requires you to send all the materials described in it. If, for any reason
including a claim of attorney-client privilege you do not produce something called for by the
subpoena, you should submit a list of what you are not producing, The list should describe each
item separately, noting:
~ its author(s);
~ its date;
~ its 'subject rnatter;
~ the name of the person who has the item now, or the last person known to have it;
~ the names of everyone who ever had the item or a copy of it, and the names of
everyone who was told the item's contents;
the reason you did not produce the item; and
~ the specific request in the subpoena to which the document relates.
ENF-CPU
V.S. Securities and Exchange Commission
100 F St., N.E., Mailstop 5973
Washington, DC 20549-5973
For smaller electronic productions under I 0MB in size, the materials may be emailcd to
the following email address: ENF-CPUT'i&sec.~&ov.
Yes. You have the right to consult with and be represented by your own lawyer in this
matter. We cannot give you legal advice.
IIas the Commission determined that anyone has done anything ivrongv
subpoena do not mean that we have concluded that you or anyone else has broken the law. Also,
the investigation does not mean that we have a negative opinion of any person, entity or security.
Please note that, in any matter in which enforcement action is ultimately deemed to bc
warranted, the Division of Enforcement will not recommend any settlement to the Commission
unless the party wishing to settle certifies, under penalty of perjury, that all documents
responsive to Conunission subpoenas and formal and informal document requests in this matter
have been produced.
Sincerely,
Katherine S. Bromberg
Senior Counsel
Division of Enforcement
YOU MUST PRODUCE everything specified in the Attachment to t)us subpoena to officers of the
Securities and Exchange Commission, at the place, date and time specified below:
ENF-CPU, U.S. Securities and Exchange Commission, 100 F St., N.E., Mailstop 5973,
DC 20549-5973, no later than September 28, 2016 at 5:00 p.m.
Washington,
YOU MUST TESTIFY belbrc officers of the Securities and Exchange Commission, at the place,
date and time specified below:
1am an officer of thc U.S. Securities and Exchange Conunission authorized to issue subpoenas in this
matter. The Securities and Exchange Commission has issued a forrnal order authorizing this investigation
under Section 20(a) of the Securities Act of 1933, Section 21(a) of the Securities Exchange Act of 1934,
Section 209(a) of thc Investment Advisers Act of 1940, and Section 42(a) of the Investment Company Act of
1940.
NY-09507
A, Definitions
As used in this subpoena, the entities listed below shall have the following meanings:
l. Alpha Capital Anstalt ("Alpha" ) means the entity doing business under thc
name "Alpha Capital Anstalt" including parents, subsidiaries, affiiliatcs,
predecessors, successors, officers, directors, employees, agents, gcncral
partners, limited partners, partnerships and aliases, code names, or trade or
business names. used by any of the foregoing.
2. ATG Capital, LLC ("ATG") means the entity doing business under thc
name "ATG Capital, LLC" including parents, subsidiaries, affiliates,
predecessors, successors, officers, directors, employees, agents, general
partners, limited partners, partnerships and aliases, code names, or trade or
business names used by any of the foregoing.
D-Vasive, Inc. ("D-Vasivc") means the entity doing business under the
name "D-Vasivc, Inc." including parents, subsidiaries, aAiiiates,
predecessors, successors, officers, directors, einployees, agents, general
partners, limited partners, partnerships and aliases, code names, or trade or
business names used by any of the foregoing.
Demonsaw LLC ("Demonsaw") means the entity doing business under thc
name "Demonsaw LLC" including parents, subsidiaries, affiliates,
predecessors, successors, officers, directors, employees, agents, general
partners, limited partners, partnerships and aliases, code names, or trade or
business names used by any of the foregoing.
Graiider Holdings, Inc. ("Grander" ) means the entity doing business under
tile name "Grander Holdings, Inc." including parents, subsidiaries,
affiliates, predecessors, successors, offiiccrs, directors, employees, agents,
general partners, limited partners, parlnerships and aliases, code names, or
trade or business names used by any of the foregoing.
GRQ Consultants, Inc. means the entity doing business under the name
"GRQ Consultants" including parents, subsidiaries, affiliates,
predecessors, successors, officers, directors, employees, agents, general
partners, limited partners, partnerships and aliases, code names, or trade or
business names used by any of the foregoing.
"LFR Trust" ("LFR")means the entity doing business under the name
"LFR "I'rust" including parents, subsidiaries, affiliates, predecessors,
successors, officers, directors, employees, agents, general partners, limited
partners, partnerships and aliases, code names, or trade or business names
used by any of the foregoing.
As used in this subpoena, the words and phrases listed below shall have thc following
meanings:
"Document" shall include, but is not limited to, any written, printed, or
typed matter including, but not limited to all drafls and copies bearing
notations or marks not found in the original, letters and correspondence,
interoffice Communications, slips, tickets, records, worksheets, financial
records, accounting documents, bookkeeping documents, memoranda,
reports, manuals, telephone logs, telegrams, facsimiles, messages of any
type, telephone messages, voice mails, tape recordings, notices,
instructions, minutes, summaries, notes of meetings, file folder markings,
and any other organizational indicia, purchase orders, information
recorded by photographic process, including microfilm and microlihe,
computer printouts, spreadsheets, and other electronically stored
information, including but not limited to writings, drawings, graphs,
charts, photographs, sound recordings, images, and other data or data
compilations that are stored in any medium from which information can
be retrieved, obtained, manipulated, or translated.
Thc term "you" and "your" means the Person or entity to whom this
subpoena was issued,
To the extent necessary to bring within thc scope of this subpoena any
information or Documents that might otherwise be construed to be outside
its scope:
Instructions
For Documenis in paper format, you may send the originals, or, if you
prefer, you may send copies of the originals. The Comnussion cannot
reimburse you for the copying costs. If you are sending copies, the staff
requests that you scan (rather than photocopy) hard copy Documents and
produce them in an electronic format consistent with the SEC Data
Delivery Standards. Alternatively, you may send us photocopies of the
Documents in paper format. If you choose tn send copies, you must
secure and retain the originals and store them in a safe place. The staff
may later request or require that you produce the originals.
its author(s);
b. its date;
c its subject matter;
d. the name of the Person who has the item now, or the last Person
known to have it;
thc names of everyone who ever had thc item or a copy of it, and
thc names of everyone who'was told the item's contents;
thc basis upon which you are not producing the responsive
Document;
the specific request in the subpoena to which the Document relates;
thc attorney(s) and the client(s) involved; and
in thc case of thc work product doctrine, the litigation for which
the Document was prepared in anticipation.
70. All Docuinents and Communications between iVJGT and the following
individuals:
a. Michael Brauser;
b. Jolm H. Ford;
c. Barry Honig;
d. Mark Groussman;
g. Josh Silverman;
h, John Stetson; and
i. Jill Strauss.
Tip- To quickly find your search term on this page, press Ctrl+F or 3-F (Mac) and use the find bar.
TERI BUHL
J4 k
/
Smashmouth
Investigative Journalism
Menu
Document title: Investor Barry Honig Target of SEC MGT Capital Subpoena
Capture URL' hltp://webcache.googleuserc;ontent.com/search?q=cache:sYmEubfKACEJ:www.t9ribuhl.com/2016/09/23/investor-barry-hanig-larget-of-sec-...
Capture llmeslamp (UTC): Fri, 23 Sep 2016 21:44:58 GMT Page 1 of 1 1
Case
Case 1:17-cv-00184
1:17-cv-001 Document 1-3 Filed 03/03/17 Page 2 of 5
Microcap investor tsarry l. i lonig is tne target or an investigation ror
his role in trading and investing in shares of MGT Capital ($MGT). MGT
News of the SEC formal demand for answers from the company delighted
short sellers to the tune of a 40% drop in MGT's stock this week. The
company, currently run by CEO Robert Ladd, says it does not believe the
But one tiling that my reporting makes very clear is the SEC wants to
make sure Barry I lonig isn't' doing anything shady (or out right illegal)
with this company. According to insiders who saw the SEC subpoena,
90% of the regulator's questions are about 1 lonig. I can also confirm
I lonig lias been calling SEC enforcement defense lawyers this week
looking for representation. 1 first reported on 1 ionig's alleged illegal
actions in my "Attorney Gregg Jaclin blew up his life and got busted for
creating a shell factory scheme" story. The central theme of bad behavior
is Barry uses other people to run a company he is secretly controlling and
Document title: Investor Barry Honig Target of SEC MGT Capital Subpoena
Capture URL: http:/Avebcache.googleusercontent.com/search?q=cache:sYniEubfKACEJ:www,terlbuhl.com/2016/09/23/investar-barry-honig-target-of-sec-.,.
Capture tlmeslamp (UTC): Frl, 23 Sep 2016 21:44:58 GMT Page 2 of 1 1
Case
Case 1:17-cv-00184
1:17 Document 1-3 Filed 03/03/17 Page 3 of 5
90% of the regulator's questions are about 1 Ionig. 1 can also confirm
1 Ionig has been calling SEC enforcement defense lawyers this week
looking for representation. 1 first reported on I lonig's alleged illegal
actions in my "Attorney Gregg Jaclin blew up his life and got busted for
creating a shell factory scheme" story. The central theme of bad behavior
is Barry uses other people to run a company he is secretly controlling and
pays stock pumpers to tout the company without disclosure.
You can see here in a DOJ plea deal made by one of 1 lonig's puppet CEO's
how 1 Ionig allegedly runs things behind the scene. This plea deal was first
reported and unearthed by me in a story for Growth Capitalist m May.
The SEC has never been able to pin anything on I ionig. We do see a
FINRA action settled against him as a young trader in 2000 when he was
working for a questionable PIPE financing firm called Ramius Capital (or
Ramius Securities).
On June 14 2000 FINRA said I Ionig had acted as an affiliate trading with
others and hid it by running the trade through two people instead of one.
Document title. Investor Barry Honig Target of SEC MGT Capital Subpoena
Capture URL: http://webcache.googleuserconle!nt.c:om/search?q=cache:sYmEubfKACEJ:www.teribuhl.com/2016/09/23/lnveslor-barTy-honig-target-of-sec-...
Capture tlmeslamp (UTC): Fri, 23 Sep 2016 21:44:58 GMT Page 3 of 1 1
Case
Case 1:17-cv-00184
1:17-cv-0 Document 1-3 Filed 03/03/17 Page 4 of 5
capacity for 10 business days. 11 it bout admit ling or denying the
allegations, Ifonig consented to the described sanctions and to
the entry offindings that he sought to inappropriately
coordinate a trade report to ACT with another market participant
as two separate trades instead ofone.
i lonig lias a SEC deal lawyer, 1 larvey Kesner at www.siff.com . who lias
been able to keep the SEC at bay in tons of questionable pump and dump
deals 1 lonig invested in. I know from interviewing MGT's executives and
reviewing I lonig's financing transactions that he wasn't a control person
at MGT. CEO Rob Ladd, who use to run a hedge fund, put blockers in
Barry's finance deal that don't allow him to own a certain percent of the
company. What we don't know is whether Barry teamed up with his
favorite investing partner Michael Brauser and acted as an affiliate in
trading MGT stock, which blew up to a 700% gain when news of a John
McAfee merger was announced in May. Affiliate trading without
disclosure is a big SEC no-no, which 1 explain my story today at
www.growthcapitlist.com
For now it's a wait and see as MGT scrambles to get the SEC to clarify to
stock exchanges that the reverse merger deal is clean. And market
participants sit on the side line to see if the SEC can get the goods to
finally charge Barry I lonig.
Share this:
No Comments
O
Document title: Investor Barry Honlg Target ot SEC MGT Capital Subpoena
Capture URL: htlp:/Avebcache.gaogleusercontent.comfeearch?q=cache:sYrnEiibtKACEJ:www.terlhuhl.eom/2016/09/23/investor-barty-honig4arget-of-sec-...
Capture tlmestamp (UTC): Frt, 23 Sep 2016 21:44:58 GMT Page 4 of 1 1
Case
Case 1:17-cv-00184
1:17-cv-0018 Document 1-3 Filed 03/03/17 Page 5 of 5
EXHIBIT D
TERI BUHL
Youi Voice
Microcap investor Barry C. Honig is a lead subject of an SEC investigation
for his rote in trading and investing in shares of MOT Capital ($MGT).
California DOJ Investigating
MQff Capital is trying to complete a reverse merger With tamed teeh Homg and The Frost Group
entrepreneur John McAfee I am reporting exclusive news today tor on
Investor Barry Honig Subject of
Growth Capitalist on what's inside t he Securities and Exc hange SEC MGT Capital Subpoena
Commission subpoena MOT Capital announced was lobbed against them
late last week (tipped of Investor on
investor Barry Honiq Subject of
SEC MOT.Capital Subpoena
News of the SEC formal demand for answers from the company
delighted short sellers to t he tunc of a 40% drop in MGT's stock. The Fellow Researcher on
company, currently run by CEO Robert Ladd, says it does not believe the SEC knew Collecting SUIT; met
Hedgie Ribotsky fine Would Fail
SEC is targeting any of the company executives. But shareholders have
expressed doubt this week given the kick of details the company was
johu Miller on
allowed to disclose about the regulatory investigation. On top that the Hacked By XwoLfTn
NYSE, where MGT trades, announced it wouldn't accept the new shares
that are set to he issued in the reverse merger with Johi i McAfee's cyber John Miller on
Hacked By XwoLfTn
security companies. The national stock exchange was kind of a jerk
about it because they didn't offer up a reason for the share issuance halt.
Unfortunately, it's a big clusterf-k of unknowns for the company and
shareholders right now.
State v Buhi
But one tl hug that my reporting makes very clear is the SEC wants to
Learn How Connecticut
make sure Barry Honig isn't' doing anything shady (or out right illegal) Wants to Jail Me For
with this company. According to insiders who saw the St'C subpoena, a Protection Sources and
Document title* Investor Barry Honig Subject of SEC. MGT Capital Subpoena
Capture URL: hUpyAwtv.lerlbuhLcoin/201C/00/23/investor-bariy-honiy-tarrjet-of-SGc-nigt-i:npital"SUbpofm3/
Capture tlmestainp {UTCji Frl, 2.4 Feb 2(117 1 7:1 2:42 GMT Page 1 of 9
State v. Buhl
But one thing thdt my reporting makes very clear is the SEC wants to
Learn How Connecticut
make sure Barry Honig isn't' doing anything shady (or out right illegal) Wants to Jail Me Lor
with this company. According to insiders who saw the SEC subpoena, a Protecting Sources and
large portion of the regulator's questions are about Honig, his company Squash Speech
GRQ Consultants, and people who invest with him. I can also confirm
Honig has been calling SEC enforcement defense lawyers this week Read More
You can see here in a DOJ plea deal made by one of Honig's alleged
puppet CEOs how Honig allegedly runs things behind the scene, '['his
plea deal was first reported and unearthed by me in a story for Growth
Capitalist in May.
Reiser Report: Stripped To
Teeth (L2 92)
The SEC has never been able to pin anything on Honig. We do sec a
HNRA action settled against him as a young trader in 2000 when he was
working for a questionable PIPE financing firm called Ramius Capital (or More Videos
Ramius Securities). On June 14, 2000 FINRA said I lonig had acted as an
affiliate trading with others and hid it by running the trade through two
people instead of one. Trusted News
Document title: Investor Barry Honig Subject of SEC MGT Capital Subpoena
Capture URL: http://www.teribuhl.com/2016/09/23/investor-barry-honig-targelof-sec-mgt-capilal-subpQena/
Capture timestamp (UTC): Frl, 24 Feb 2017 17:12:42 GMT Page 2 of 9
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
D 1-4 Filed 03/03/17 Page 3 of 6
Honig has a SEC deal lawyer, Harvey Kesner at wvvvv.srfF.com , who
apparently has been able to keep the SEC at bay in tons ofquestionable
pump and dump deals Honig invested in. I know from interviewing
MGT's executives and reviewing Honig's financing transactions tbat he
wasn't a control person at MO T CEO Rob Ladd. who used to run a hedge
fund, put blockers in Barry's finance deal that don't allow him to own a
certain percent of the company. What we don't know is whether Barry
teamed up with his favorite investing partner Michael Brauser and acted
as an affiliate in trading MOT stock, which blew up to a 700% gain when
news of a John McAfee merger was announced in May. Affiliate trading
without disclosure is a big SEC no-no, which I explain my story today at
vvww.grovvthcapitlist.com. Honig through his attorney did not return a
request for comment.
For now it's a wait and see as MOT scrambles to get the .SEC to clarify to
stock exchanges that the reverse merger deal is clean. And market
participants sit on the side line to see if the SEC can get the goods to
finally charge Barry Honig.
Clarification 9.23.16: Burr)' Honig is pulling out the big leg.il guns
apparently worried about anyone reporting on what's inside that SBC
subpoena. As of '5:30pm I was contacted by a California attorney, Charles
I larder ( who repped Hulk Hogan), for Honig demanding to have the
story taken down and to write an apology. I refused and stand by the
sourcing in this story. I have spoken with people who have seen the
subpoena again and clarified a sentence in the story that relates to a large
portion ofthe SBC's questions are centered on Barry Honig, his company
and people he invest with. The original sentence said "90% ofthe SBC
questions are about Barry Honig. "Additionally, Honig had ft vo days to
respond to questions about the subpoena before the story ran and
refused to return a call and email for comment.
Update 10.7.16: One of the sentences in this story that Barry Honig has
denied through his attorney Charles Harder is that he invest with
Michael Brauser. Harder wrote in item II 9 in his demand letter they sent
me to get the story taken down:
"Implication that Mr. Honig "teamed up with his favorite investing
partner Michael Brauser". False; the two have not teamed up."
I'd like to take the chance to remind readers of this 2012-2013 litigation
against Barry Honig, Michael Brauser, and the Brauser Honig Frost Group
for their role in Biozone Pharmaceuticals, Inc. It was filed by the
O
Document title: Investor Barry Hnnlg Subject of SEC MGT Capital Subpoena
Capture URL: btlp:/Avww.teribuhl.com/2016/09/23/investor-barry-honlg-target-of-sec-mgt-capltal-subpaena/
Capture timestamp (UTC): Frl, 24 Feb 2017 17:12:42 GMT Page 3 of 9
Case
Case 1:17-cv-00184
1:17-cv-0018 Document 1-4 Filed 03/03/17 Page 4 of 6
I'd like to take the chance to remind readers of this 2012-2013 litigation
against Barry Honig. Michael Brauser, and the Branser Honig Frost Group
for their role in Biozone Pharmaceuticals, Inc. It was filed by the
company's former founder Daniel Fisher. This is from Fisher's amended
complaint filed in Northern California District Court on 11.22.12 . Case
number 3:I2-cv-037l6-\VHA
"In January 201 1. Plaintiff Fisher met with a group of investors, the
Defendant representing
itself as Brauser Honig Frost Group ("BHFG"). Overthe course of the
following six months, this
group of investors misled Plaintiff Fisher through an investment scheme
designed to divest
Plaintiff of all of the economic rights and goodwill he had built through
his company over the
course ofthe previous 22 years."
After Fisher beat their motion to dismiss and the case moved into
discovery we see the case was settled with the defendants paying Daniel
Fisher half a million dollars.
And that's just one reason why I stand behind my reporting, opinion, and
sourcing in this or any story of mine on Barry Honig!
Case
Case 1:17-cv-00184 Document 1-4 Filed 03/03/17 Page 5 of 6
i still need a pro bono lawyer to go up against Hulk Hogan's attorney
Charles Harder. Honig apparently tried to hire Harder (an expensive
lawyer who has been in the news for his anti -journalism legal work) to
scare me into stoping reporting and it didn't work. If you arc interested
in this easy to win suit please email mc at tcribuhl@gmail.com. I've been
told NY laws make it favorable to sue back for attorney fees in NY court
and this is an easy case to win given my sourcing and the fact a lot of
what I wrote here is opinion. Donations are also helpfully now in case I
have to defend my self pro se.
Sliare ihjs:
II Shut U G1 0 !
delated
I lore it is: that MOT Capital (. aliftimia DO] IriHjttttK Capital's |nsh
SEC Subpoena Investigating 1 lonig aotl Silverman Threatens
f'ebrnary 9.2017 The Prosit Group Portfolio Stock CX.O
I ti "Bjnksti rs Behaving l obulars 9,2017 (tint 11.2011
Barflv In *B<iiiktcrs Behaving lit "B.mksters Itohav ing
Barfly Barfly*
10 Comments
e
Document title: Investor Barry Honig Subject ol SEC MGT Capital Subpoena
Capture MRU: http://www.teribulil.com/2016/09/23/lnvestor-barry-honlg-targel of-sec-mgl-capilal-subpoena/
Capture timeslamp (UTC): Fri, 24 Feb 2017 17:12:42 GMT Page 5 of 9
Case
Case 1:17-cv-00184
1:17-cv-00184 Document 1-4 Filed 03/03/17 Page 6 of 6
EXHIBIT E
I
i TERI BUHL
Smashmouth Investigative Journalism
ji
The northern California DOJ has been sniffing around asking tough
questions about the investing activities of a billionaire, Phillip Frost, a
Your Voice
former boxer turned investor and stock promoter Harry Honig and
Honig's pal Michael Brauscr.
California DOJ investigating
Honig and The Frost Group
"The FBI told me when they interviewed me they arc investigating Honig, on
. j
potential victim of securities fraud. This person says the only securities
they have arc with the Frost Group's takeover of Biozonc. A check in the Terl Buhl on
Investor Barry Honig Subject of
FBI's victim notification systems, seen by this reporter this week, shows
SEC MGT Capital Subpoena
the investigation is still active but doesn't list specifically who the FBI is
investigating. C Mann on
Investor Barry Honig Subject of
SEC MGT Capital Subpoena
The investor said they had also been interviewed by the Securities and
Exchange Communion about their interactions in public companies with SKon
Barry Honig, his lawyer Harvey Kesner, and others the regulator thinks Investor Barry Honig Subject of
SEC MGT Capital Subpoena
invest with Honig.
Document title' California DOJ investigating Honig and The Frost Group
Capture URL: http://www.terlbuhl.eom/2016/1 1/08/california-do|-invasligating-honig-and-the-frost-group/
Capture timestamp (UTC):Wed, 09 Nov 2016 15:36:56 GMT Page 1 of 4
Case
Case 1:17-cv-00184
1: Document 1-5 Filed 03/03/17 Page 2 of 3
uitt i v j iti^ ictw^cri i vc) iwsi ici . rtiiu uliiwi a u tc iir^uidiui ouimb -* j
y - -.-J -
More Videos
The CEO of Equity Stock Transfer is Mohit Bhansali. The company avoids
listing any names of executives or owners on it's website. A search in
corporate records of publicly traded companies shows Mohit and Barry
Honig have both been on the hoard of public companies together. Trusted News
If you are an issuer who has taken investments from Barry Honig and it Christopher Fountain: Best
Source of Greenwich, CT News
was suggested you use Equity Stock Transfer by Flonig or his lawyer I
would love to hear from you. Ian Fraser: Investigative UK
Financial Journalist
An email for comment was sent to Harvey Kesner and Honig's media On the Case: Alison Frankel
lawyer Charles Harder. As of press time they did not respond. Honig in
RT Kesier Report
the past has tried to deny he invest with Michael Brauscr or that he is
under any SEC investigation.
Share thic
Related
Document title: California DOJ investigating Honig and The Frost Group
Capture URL: http://www.terihuhl.com/2016/11/Q8fcalifornla-doJ-lnvestigating-honlg-and-the-frost-group/
Capture timestamp (UTC): Wed, 09 Nov 2016 15:36:56 GMT Page 2 of 4
Case
Case 1:17-cv-00184
1:1 Document 1-5 Filed 03/03/17 Page 3 of 3
EXHIBIT F
' dB
k Smashmouth Investigative Journalism
Fellow Researcher on
The company is now on the OTC pink sheets waiting for the top-tier of SEC knew Collecting S14.5 mn
Hedgie Ribotsky fine Would Fail
the OTC markets to approve their listing. John McAfee was eventually
made a director of the company but the merger of his security assets isn't
John Miller on
completed yet. The company website says "MGT Capital Investments, Hacked By XwoLfTn
Inc. is in the process of acquiring a diverse portfolio of cyber security
technologies. With cyber security industry pioneer, John McAfee, at its John Miller on
Hacked By XwoLfTn
helm..."
In September MGT CEO. Rob Ladd, who signs all SEC filings, said in a
press release the company didn't think the SEC subpoena questions were
State v. Buhl
focused on 'the company'. Latter that month I was first to report on some
of the people named in the SEC subpoena for the trade publication I
Learn How Conneetici it
report for Growth Capitalist I reported Barry Honig. Michael Brauser and
Wants to jail Me For
Josh Silverman's hedge fund as being subjects of the subpoena Protection Sources and
Case
Case 1:17-cv-00184
1:17-cv-00 Document 1-6 Filed 03/03/17 Page 2 of 5
t r"' v
State v. Buhl
focused on 'the company'. Latter that month I was first to report on some
of the people named ill the SEC subpoena for the trade publication I
Learn How Connecticut
report for Growth Capitalist. I reported Barry Honig, Michael Brauserand
Wants to Jail Me For
Josh Silverman's hedge fund as being subjects of the subpoena
Protecting Sources and
questions. I had interviewed an executive at the company who said they Squash Speech
thought "the focus of the SEC subpoena was about Barry llonig and the
people he invested with." I then wrote an opinion piece at tcribuhl.com Read More
that Honig and friends were the subject of this subpoena.
Below is the subpoena for the reader to see and formulate their own
opinions. This is the first time it is being made public. The name of the Teri Buhl in the News
companies on page 7 arc all owned by the names of the people on page 7
?,
8, I was told by a person at the company all of these people invested with
MGT Capital and you need a flow chart to show their
interconnectedness. I have also researched other public filings and
found these people have invested in the same equities in the past. Most
of these people say they are passive investors and don't know each other
or don't 'invest together". It's my belief after a decade of proven
investigative reporting and based on knowing how to read a SEC Reiser Report: Stripped To
subpoena, along with interviews with people involved in the transaction Teeth (292)
RT Kesier Report
All Documents unci Communication concerning MG I 's
acquisition ofcertain technology and assets nil) Vasive, as
stated in Mt d "s I t irm 8-K tiled on May 9. 20l(>.
Case
Case 1:17-cv-00184
1:17-cv- Document 1-6 Filed 03/03/17 Page 3 of 5
Vasivc had had gotten a $850,000 bridge loan with convertible debt but
didn't disclose who did the bridge loan. John McAfee owns D-Vasive. I
was told by a person at MGT that some of the names on the SEC
subpoena had also done the bridge loan. If the merger had been
approved, these people would have likely had D-Vasivc stock warrants
that would have became MGT stock and while the stock was flying high
would have made a killing if they were able to sell. There are a lot of
unanswered questions about that transaction and since D-Vasivc is
private they don't have to answer them. Well unless a regulator asks. Like
the timing of the warrants being issued, share registration, and who is
holding the shares for the required 6 month period.
-9/
i
U< l KM It * AMI I V HAM,* I tlMMlVMltS
Isw.
m
* m*--'
I
WWl* Of *
tflili.Vh***
1 1, 2t)|6
NVW?
ifer 1 of tiiwwsk.
" > ol if*' te4#^*svr4 f thj* IrtUi cjtftdti!?) I hi* Kttcf *uwne tjtwif uwt*
my >v- urt It# Mtpiwcii Yew t?vT*ld ;*! g* SI. f 1 06.?. You mint
with Ibr Vm ww) be l a fin* if ytm $> not
e
il kat mtUriah tj frt*tmr * ,
Case
Case 1:17-cv-00184
1: Document 1-6 Filed 03/03/17 Page 4 of 5
~ "'* - -
ruiliiJni I'-omiah
K.3%
Scribd 1 0(1* (ti. <B( i < W *
Share this:
Related
No Comments
Subscribe
Email Address
Subscribe
O
Document tide: Here il is; lhal MGT Capital SEC Subpoena
Capture URL: htlp://www.teribuhl, com/201 7/02/09/here-il-isThat-rngt-capital-seosubpoena/
Capture timestamp (UTC): Fri, 10 Feb 2017 17:00:07 GMT Page 4 of 6
Case
Case 1:17-cv-00184
1:17-cv-00184 Document
D 1-6 Filed 03/03/17 Page 5 of 5
EXHIBIT G
Iroquois Master fund made a $l million PIPE investment into MGT in John Miller on
Hacked By XwoLfTn
October 2012. MGT also did a registered direct offering on the same day
as the PIPE deal with Jay Spinner's company, Ellis International, who
bought 200,000 shares of MGT via the RDO. Spinner has an office in
Iroquois NYC office but is not believed to be an employee ot the fund.
State v. Buhl
Iroquois has a 9.99% stake m MGT and Spinner had bought a 6.7% stake.
Ladd is alleging through a serious of transaction these two positions
Learn How Connecticut
acted as a group and Iroquois stake in his company was really more than
Wants to Jail Me f or
10%. Protection Sources and
(Document title: Iroquois Capitol's Josh Silverman Threatens Portfolio Stock CEO
Capture URL hllo://www leribuhl.com/201 4/00/1 l/iroquois-capitals-josh-sllveiman-threatens-portfollo-stock-coo/
Capture tlmestamp (IITO): Fri, 24 Feb 201 / 17:22:01 GMT Paqe 1 of 5
State v. Buhl
Iroquois has a 9.99% stake in MGT and Spinner had bought a 6.7% stake.
Ladd is alleging through a serious of transaction these two positions
Learn How Connecticut
acted as a group and Iroquois stake in his company was really more than
Wants to Jail Me For
10%.
Protecting Sources and
Squash Speech
It was during my month-long investigation into how this transaction was
set up I learned CEO Ladd and his CFO Robert Traversa had been Read More
verbally threatened by Silverman after Ladd refused to allow the hedge
fund activist to put his own people on the board of Ladd's public
company MGT Capital Investments, Silverman invited Ladd to come to
his New York City office and said. "I am going to crush you and drive Teri Buhl in the News
your stock down to 50 cents."
r
It's rare I hear a hedge fund manager be this aggressive and bold and .i
even rarer the CEO is willing to go on the record-but they did. After the
threat, Silverman then issued two public letters, filed with the SEC,
railing on Ladd's management choices and compensation. _
millions should have legally been reinvested into the company, but
without a regulator forcing the hedge fund to turn over trading records
this is going to be very costly and difficult for the small cap company Trusted News
CEO to prove.
to invest in his fund in the first place and get preferred stock with voting
fan Fraser: Investigative UK
rights. Ladd had previously run his own small hedge fund called Ladd Financial Journalist
Ladd's $MGT is now facing short selling pressure hut the CEO doesn't RT Kesier Report
have the legal means to investigate who is doing the shorting. Even in
the aftennath of Dodd-F'rank legislation it is still extremely tough to see a
hedge fund's trading records.
Silverman and jay Spinner refused to answer any questions for Growth
Capitalist hut two days before the story ran Silverman published a public
letter with the SEC calling out Ladd once again for what he views as poor
management choices and then alluded to Ladrl starting a 'smear O
campaign' against the hedge fund. I saw this as nothing more than a
Document title: Iroquois Capital's Josh Silverman Threatens Portfolio Stock CEO
Capture URUhttp://www.teribuhl,com/2014/06/11/iroquois-capitals-josh-silverman-lhreatens-portfolio-slock-ceo/
Capture timesiamp (UTC): Frl, 24 Feb 2017 17:22:0 1 GMT Page 2 of 5
Case 1:17-cv-00184
1:17-cv- Document 1-7 Filed 03/03/17 Page 3 of 4
VJII * V, I I I Itli I Ul 1U J t J VVJVII II IV- t I V I VI.IV. u Uli^ Vjni, Ji itJi <.! Ivji vjiutiiii
Capitalist but two days before the story ran Silverman published a public
letter with the SEC calling out Ladd once again for what he \ iews as poor
management choices and then alluded to Ladd starting a "smear
campaign' against the hedge fund. I saw this as nothing more than a
public relations move by Iroquois to get some spin into the news that bis
fund might have violated SEC laws. And a bully tactic against a CEO who
won't let him on his board.
To read the documented paper trail of how Silverman set up this possible
illegal investment strategy click here. It's free to register for the first 30
days and the excellent story reporting is a cautionary tale of how some
hedge funds can skirt the law for profit and sadly destroy company value.
Share this:
Related
1 1 en: it is: that MOT Capita! Investor Barry Honig I ledgie Investors file
SIT' Subpoena Subject of Sir MOT Securities Violations
f ibular) 2UI7 Capital Subpoena Complaint against Greg
In 'Bankstcis Behaving Scpli mlrer if. 20l(i Imbrnce with Texas
Flat IB* In "Bankuus Behaving Regulators
Badly" Juno 2&. 201}
In "Banksfers Behaving
Badly"
No Comments O
Oocument title: Iroquois Capital's Josh Silverman Threatens Portfolio Stock CEO
Capture URL: http://www.leribuhl.coniF2014/06/11liroquois-capllals-]osh-silvernian-threatens-portfallo-stock-ceo/
Capture limestamp (UTC): Fri, 24 Feb 2017 17:22:01 GMT Page 3 of 5
Case
Case 1:17-cv-00184
1:17-c Document 1-7 Filed 03/03/17 Page 4 of 4