John McAfee's MGT Capital Subject to SEC Subpoena

By Austen Hufford 

Technology pioneer John McAfee's MGT Capital Investments Inc. said Monday that it received a subpoena last week from the Securities and Exchange Commission and that it is fully cooperating with the regulator.

Shares fell up to 13% to $2.85 in premarket trading.

The company, which is in the process of acquiring a portfolio of cybersecurity technologies, said it has no indication or reason to believe it will be subject to enforcement proceedings.

Mr. McAfee was a founder of the computer security firm that shares his name. He sold his interest in its key assets in the 1990s.

In 2011, Intel Corp. bought McAfee Inc. for $7.68 billion. In September, Intel reached a deal to sell a majority stake in the McAfee unit to private-equity firm TPG. Mr. McAfee recently filed a suit against Intel, seeking a declaration that he has the right to use his name in connection with security products. Intel had warned him in a letter that his use of the name would constitute a trademark violation.

MGT Capital said it is currently in the process of buying D-Vasive, a maker of anti-spying software, and Demonsaw, a provider of anonymous file sharing. After that purchase, it plans to change its corporate name to "John McAfee Global Technologies Inc."

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

September 19, 2016 09:37 ET (13:37 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.