St. Thomas restaurateur Brett McClafferty arrested in $888,500 fraud case

Brett McClafferty, a St. Thomas restaurateur, was arrested Saturday on fraud charges tied to $888,500 in alleged counterfeit transactions. His business partner disputes the charges; attorney Kye Walker says she does not represent him.

St. Thomas restaurateur charged with twelve fraudulent transactions totalling $888,500

ST. THOMAS — Brett McClafferty, a restaurateur based in St. Thomas, was arrested Saturday in connection with an $888,500 fraud investigation, viconsortium.com reports. The V.I. Police Department's Economic Crime Unit executed an arrest warrant at his residence in St. Joseph & Rosendahl, with assistance from the Special Operations Bureau, Criminal Investigation Bureau, the United States Postal Service, and the Federal Bureau of Investigation.

The investigation was opened in June 2024 after Banco Popular de Puerto Rico filed a complaint alleging that between January and June 2024, McClafferty deposited counterfeit and fraudulent checks drawn from entities in the British Virgin Islands. He also allegedly issued bank drafts from his Discover account that were later subject to stop-payment requests or returned for insufficient funds. Investigators determined that funds were withdrawn and wired to third parties before the financial instruments were returned unpaid.

Police identified twelve fraudulent transactions totalling approximately $888,500 conducted through McClafferty's business and personal accounts. Banco Popular reported a confirmed financial loss exceeding $80,000. Several counterfeit checks originating from the British Virgin Islands were flagged before funds could be withdrawn, preventing additional losses.

Magistrate Judge Julie S. Todman issued an arrest warrant on December 30, 2025, with bail set at $150,000. McClafferty was transported to the Richard Callwood Central Command for processing following his arrest. Unable to post bail, he was remanded to the custody of the Bureau of Corrections pending his Advice of Rights hearing.

He faces charges of grand larceny, passing or possession of forged bills, obtaining money by false pretenses, making and passing fictitious bills and notes, and drawing and delivering worthless checks.

Business partner disputes charges

Sunil Sharma, Executive Chef and Partner of St. Thomas Social, issued a statement asserting that the arrest stemmed from a 2024 banking deposit made by the establishment's former general manager — not by McClafferty. According to Sharma, the deposit involved a check for a private event rental at St. Thomas Social, "for which we do dozens a year." He stated that McClafferty "did not make the deposit in question, nor did he have any involvement with the client relating to the event."

Sharma added that the event was never held because "the check continuously bounced and the client subsequently passed away." He further argued that it was "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." Sharma concluded that "Mr. McClafferty committed no crime" and said the restaurateur is represented by attorney Kye Walker.

Attorney denies representation

Attorney Kye Walker later contradicted that claim during an interview on Sunday. "As far as my official statement is, I do not represent Brett McClafferty in this matter," Walker said. "Nor would I ever advise a client to issue a press statement following an arrest, especially an arrest that has yet to be reported this soon."

The case remains pending before the court. The VIPD has asked anyone with additional information to contact the Economic Crime Unit or dial 911. McClafferty is presumed innocent unless and until proven guilty in a court of law.

Source: Google News VG — Crime