DD Support Board and Research Team

[nodummy]

MGT under an SEC investigation is great to see.

That has been the most blatant pump&dump being run on a Big Board ticker that I have seen.

Between John McAfee pumping the stock on twitter on an almost daily basis to try to get his bonus money for keeping the share price above a certain level, the paid promotions (like StockBeast.com and others) while Barry Honig and Michael Brauser were dumping shares into the market back in May and June, and all the misleading information MGT has been putting in press releases it's just amazing it has been allowed to go on this long.

MGT was set-up as a pump&dump starting in September/October of 2015 when MGT got involved in another Barry Honig/Michael Brauser ticker - FNCX.

Last fall Honig/Brauser set up the future Insider Enrichment pump&dump scheme by creating Units consisting of Common Shares and Warrants which were sold at $.25/share unit mostly to Honig and Brauser. Then they did an S-1 registration to register those shares to be free trading which was made effective in February of 2016.

The holders of the Warrants were supposed to wait 1 year before exercising the Warrants, but MGT worked out a deal in May (the same time the pump&dump action started) with the Warrant Holders (like Barry Honig and Michael Brauser) that if they paid more than the original $.25/unit price they could "accelerate" the conversion of the Warrants into shares to sell into the market. So the Warrant holders paid $.41/share a Unit instead so they could get their free trading shares from the Warrants sooner to take advantage of all pump&dump action that was being created. During May of 2016 all the warrants were converted into 5,600,000 free trading shares of stock which had already been registered to be free trading by the S-1 that was made Effective in February.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11548682



Then they kicked off the pump&dump action in May by bringing in John McAfee and announcing a bunch of proposed (not completed) acquisitions and hiring some paid promoters (like StockBeast.com) and John McAfee who pumped away daily on Twitter.

During the pump&dump action from May through July, Barry Honig (GRQ Consultants, Inc/Melechdavid, Inc) sold at least 3,000,000 shares he received through that financing agreement he did with MGT back in the fall of 2015 easily netting around $8m million from the sale of those shares. During the pump&dump action from May through July, Michael Brauser (Grander Holdings, Inc) sold at least 1,200,000 shares he received through the financing agreement he did with MGT back in the fall of 2015 easily netting him around $3.6m.

All of the Series A Convertible Preferred stock was also converted into common shares of MGT stock during the pump&dump action. I haven't had time to try to figure out who owned those shares.

And no doubt that since July of 2016, these insiders have continued to enrich themselves through the ongoing John McAfee led MGT pumping.

MGT has mislead investors in a majority of their press releases beginning right from the start with the May 9th press release that kicked all the pump&dump action off by saying that John McAfee sold his anti-virus company to Intel for $7.6 billion which was a flat out lie.

http://ih.advfn.com/p.php?pid=nmona&article=71402537

Then they worded several press releases in a way that made it sound like they had were making progress with business operations related to Demonsaw and D-Vasive when in reality they hadn't even acquired Demonsaw or D-Vasive yet so the information was very misleading.

In this May 19th press release they worded it like the acquisition of D-Vasive already happened

http://ih.advfn.com/p.php?pid=nmona&article=71487382

In this June 30th press release MGT said gained control of a location to build a bit coin mining center

http://ih.advfn.com/p.php?pid=nmona&article=71860946

But the new bit coin operations did not get mentioned in the 10Q filed on August 15, 2016 (more than six weeks later)

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11548682

On July 15th MGT announced they acquired a new product from Cyberdonix Inc which they renamed Sentinel MGT

http://ih.advfn.com/p.php?pid=nmona&article=71979365

The acquisition was not mentioned in the 10Q filed on August 15, 2016 (more than 4 weeks later)

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11548682

On August 4, 2016, MGT announced they were developing a revolutionary new platform designed to allow a company to implement a layer of security for data stored in the Cloud called Clear Skies. Problem is that it wasn't MGT developing the platform it was Demonsaw, a company that to this date still has absolutely nothing to do with MGT outside of a proposed acquisition announced in May of 2016 that never closed.

http://ih.advfn.com/p.php?pid=nmona&article=72142149

On August 9, 2016, MGT announced that they had released DemonSaw 3.0, but it wasn't MGT releasing Demonsaw 3.0 it was Demonsaw releasing DemonSaw 3.0. Problem is that to this date MGT still has absolutely nothing to do with DemonSaw outside of a proposed acquisition from May of 2016 that never closed.

http://ih.advfn.com/p.php?pid=nmona&article=72175441

On September 9, 2016, MGT announced that all 8 proposals from the shareholder meeting (proxy vote) passed

http://ih.advfn.com/p.php?pid=nmona&article=72397709

A few days later they had to clarify that the information in the September 9th press release was false

http://ih.advfn.com/p.php?pid=nmona&article=72429636

On September 13, 2016, MGT announced that they had launched their Bit Coin operations, but I don't believe anything they say at this point.

http://ih.advfn.com/p.php?pid=nmona&article=72419861

To date, MGT is a company with no proven business operations and no revenues - just a bunch of misleading hype that the company provided that was focused around two proposed acquisitions (DemonSaw and D-Vasive) that never happened. During all the misleading hype Barry Honig and Michael Brauser made at least $11.6m selling stock and John McAfee got some nice bonus money by helping to pump the share price and keep it above $3.00/share for so long.

MGT was just an elaborate pump&dump done right out in the open and I hope that something big comes of this SEC investigation. I've watched Barry Honig and Michael Brauser set-up dozens of public tickers as their own cheap ATM machines and use them as pump&dumps. They have been getting away with it for far too long.