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John McAfee is arrested in Spain and charged with tax evasion

John McAfee was arrested in Spain on Monday after federal prosecutors unsealed an indictment against the creator of the eponymous anti-virus software over charges that he evaded taxes and willfully failed to file tax returns.

The US Justice Department announced the charges shortly after the Securities and Exchange Commission (SEC) revealed it had brought civil charges against McAfee, 75, alleging that he made over $23.1million in undisclosed compensation from recommending seven cryptocurrency offerings on Twitter that were materially false and misleading. 

The indictment, filed under seal in June, was unsealed following his arrest in Spain where the United States is seeking to extradite him.

John McAfee was arrested in Spain on Monday after federal prosecutors unsealed an indictment against the creator of the eponymous anti-virus software over charges that he evaded taxes and willfully failed to file tax returns

The Securities and Exchange Commission (SEC) revealed it had brought civil charges against McAfee, alleging that he made over $23.1million in undisclosed compensation from recommending seven cryptocurrency offerings on Twitter that were false and misleading

The Securities and Exchange Commission (SEC) revealed it had brought civil charges against McAfee, alleging that he made over $23.1million in undisclosed compensation from recommending seven cryptocurrency offerings on Twitter that were false and misleading

Despite this income, the Justice Department said he failed to file any tax returns from 2014 to 2018

Despite this income, the Justice Department said he failed to file any tax returns from 2014 to 2018

He is alleged to have earned millions in income from promoting cryptocurrencies, as well as through consulting work, speaking engagements, and selling the rights to his life story for a documentary. 

Despite this income, the Justice Department said he failed to file any tax returns from 2014 to 2018. 

According to the court papers, McAfee allegedly registered a number of purchases under someone else’s name, including a yacht, car and property that he bought, in a bid to avoid paying taxes. 

The SEC has alleged that from at least November 2017 through February 2018, McAfee recommended cryptocurrencies he was paid to promote, while falsely denying such payments.

‘McAfee leveraged his fame to make more than $23.1million in undisclosed compensation’ by recommending at least seven initial coin offerings or ICOs to his Twitter followers, the SEC said.

McAfee’s recommendations were ‘materially false and misleading,’ in that he tried to sell ‘virtually worthless’ cryptocurrency tokens by encouraging investors to buy the securities without disclosing his own holdings, the SEC alleged.

According to the court papers, McAfee allegedly registered a number of purchases under someone else’s name, including a yacht (pictured), car and property that he bought, in a bid to avoid paying taxes

According to the court papers, McAfee allegedly registered a number of purchases under someone else’s name, including a yacht (pictured), car and property that he bought, in a bid to avoid paying taxes

The SEC has alleged that from at least November 2017 through February 2018, McAfee recommended cryptocurrencies he was paid to promote, while falsely denying such payments. McAfee is seen enjoying a pool day at a property

The SEC has alleged that from at least November 2017 through February 2018, McAfee recommended cryptocurrencies he was paid to promote, while falsely denying such payments. McAfee is seen enjoying a pool day at a property

The SEC is seeking to impose on McAfee (pictured) a civil penalty as well as disgorgement of ill-gotten gains, with interest

The SEC is seeking to impose on McAfee (pictured) a civil penalty as well as disgorgement of ill-gotten gains, with interest

The SEC is seeking to impose on McAfee a civil penalty as well as disgorgement of ill-gotten gains, with interest. 

The agency also wants to ban him permanently from serving as an officer or director of any listed company or any company that files reports to the agency.

The SEC is also pursuing charges against Jimmy Gale Watson Jr, a bodyguard to McAfee, on charges he aided and abetted the sale of the digital currencies, among other allegations.

‘Potential investors in digital asset securities are entitled to know if promoters were compensated by the issuers of those securities,’ said Kristina Littman, the SEC’s cyber unit chief.

‘McAfee, assisted by Watson, allegedly leveraged his fame to deceptively tout numerous digital asset securities to his followers without informing investors of his role as a paid promoter.’ 

If convicted of all charges, McAfee could face up to 30 years in prison.

McAfee was released from detention in the Dominican Republic in July 2019 after he and five others were suspected of traveling on a yacht carrying high-caliber weapons, ammunition and military-style gear, officials in the Caribbean Island said at the time.

Read more at DailyMail.co.uk


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