A lawsuit is accusing the owner of a Virgin Islands equity firm of running a Ponzi scheme, and the V.I. Economic Development Authority distanced itself from the business in a statement issued Thursday.
The lawsuit was filed Monday in U.S. District Court by attorney Michael Sheesley on behalf of plaintiff Alex Gibson, and names defendants B. Matthew McClafferty, Mac Private Equity Inc., and MPE Clearing & Holdings, Inc.
The defendants did not respond to a request for comment sent via email to Mac Private Equity’s media contact Thursday.
According to the complaint filed in federal court, the plaintiff alleges that the defendants operated what amounted to a Ponzi scheme, a type of investment fraud in which money from new investors is used to pay earlier investors rather than being generated through legitimate business profits.
The allegations are contained in a civil complaint and have not been proven in court. As with all lawsuits, the claims represent the plaintiff’s assertions and will be subject to legal proceedings.
In response to questions surrounding the case, the Virgin Islands Economic Development Authority issued a statement distancing itself from the business. The agency stated that it has no affiliation with the firm or its operations.
Given the EDA’s role in promoting economic development and supporting businesses in the territory, the clarification was aimed at reinforcing that the authority is not connected to the company named in the lawsuit.
The case is now before the U.S. District Court, where further details may emerge as proceedings continue.