Mac McClafferty Arrested on Multiple Fraud Charges

A.J. Pike 

St. Thomas - Despite a great deal of public sympathy and outpouring of cries of  innocence and judicial misconduct, well-known restaurateur, owner of St. Thomas Social in Yacht Haven Grande, Brett “Mac” McClafferty sits in a jail cell after being arrested on multiple charges linking him to a sprawling fraud investigation that involves nearly $900,000 in fictitious financial instruments.

The probe was sparked by a complaint in June 2024 by Banco Popular de Puerto Rico that alleges between January and June 2024, Mr. McClafferty engaged in a series of fraudulent activities including:

• Depositing counterfeit checks drawn from entities in the British Virgin Islands (BVIs);

• Issuing bank drafts from a personal Discover account that were later subject to stop payment requests or returned for insufficient funds;

• Withdrawing and wiring funds to third parties before the financial instruments could be flagged and returned unpaid.

During the course of the investigation, there were 12 fraudulent transactions identified totaling $885,500 that passed through Mr. McClafferty’s personal and business accounts. Banco Popular reported a confirmed loss of over $80,000 from the fraudulent transactions.

V.I. Attorney General Gordon C. Rhea announced on February 23, 2026, Mr. McClafferty, 37, was arrested and was advised of his rights during a hearing held at V.I. Supreme Court. He is charged with Grand Larceny, Passing or Possession of Forged Bills, Obtaining Money by False Pretense, Making and Passing Fictitious Bills and Notes, and Drawing and Delivering Worthless Checks. The matter is being prosecuted by the Virgin Islands Department of Justice (DOJ) White Collar Crime and Public Corruption Unit. Mr. McClafferty’s bond was set at $150,000, however the Court authorized him to pay $15,000 cash (10%). 

Attorney Nicole Lynn King-Richardson appeared as counsel on his behalf for the Advice of Rights proceedings. No court dates were set at the time.

On December 30, 2025, Superior Court of the Virgin Islands Honorable Magistrate Julie S. Todman issued a warrant for Mr. McClafferty’s arrest. It wasn’t until February 21, 2026, the arrest warrant was executed at his residence in St. Joseph & Rosendahl, St. Thomas, by the Virgin Islands Police Department (VIPD) Economic Crime Unit, Special Operations Bureau, and Criminal Investigation Bureau, with assistance from the United States Postal Service (USPS) and the Federal Bureau of Investigation (FBI).

“Financial crimes undermine trust in our banking institutions and harm our community,” said AG Rhea. “The Virgin Islands Department of Justice remains committed to aggressively prosecuting individuals who engage in fraudulent schemes and ensuring those responsible are held accountable under the law.”

The DOJ stated in their press release on the alleged crime: As with all criminal matters, the defendant is presumed innocent unless and until proven guilty in a court of law.

Mr. McClafferty, who was once affiliated with a community-police executive committee and is well-respected in several philanthropic circles in the islands, was recently greeted by Governor Bryan at the State of the Territory Address, is allegedly embroiled in multiple lawsuits along with a federal bankruptcy case in which dozens of investors have accused him of operating a multi-million dollar Ponzi scheme through his firm, Mac Private Equity, and its subsidiary, MPE Clearing & Holdings Inc. 

Plaintiffs in the case allege Mr. McClafferty solicited investments by promising high returns but failed to repay investors, instead using the funds from new investors to pay earlier ones. Mr. McClafferty subsequently filed for bankruptcy protection under his firm’s name in the U.S. Bankruptcy Court for the District of Delaware.  

His business partner and Executive Chef at St. Thomas Social, Sunil Sharma claims the arrest is absurd  and disputes certain aspects of the case, attributing the issue of fraud to a 2024 banking deposit made by the establishment’s  former General Manager.

“It is absurd that Social or its individual owners would be held responsible for deposits made in the course of ordinary business which exceeds 2 million dollars annually,.. The deposit was a check for a private event rental at STT Social, for which we do dozens a year. Mr. McClafferty did not make the deposit in question…Mr. McClafferty committed no crime,” said Mr. Sharma in a statement to the press. “We look forward to his prompt release from custody. He is represented by attorney Kye Walker.”

In turn, Kye Walker denies representing Mr. McClafferty.

“As far as my official statement is, I do not represent Brett McClafferty in this matter.”

In the meantime, Mac McClafferty was able to post bail on Monday and was released from prison, The case remains pending before the Superior Court of the Virgin Islands.