Tuesday, September 11, 2007

Overstock.com CEO Patrick Byrne and his Black Ops

Recently, the O-Smear blog has provided evidence that Judd Bagley, the Director of Communications at Overstock.com, is actually running a "black ops" operation on behalf of Patrick Byrne, CEO of Overstock.com. My blog and other blogs have detailed Patrick Byrne's war waged against his critics and perceived enemies. Patrick Byrne has conducted a despicable smear campaign that includes the use of intimidation, threats, harassment, blackmail, and anti-Semitism in his efforts to silence his critics and further his agendas.

According to the O-Smear blog, Judd Bagley has a hard drive on his home computer labeled "black ops." In addition, certain edits made to antisocialmedia.net smear web site, once run anonymously by Bagley for Byrne, were made from Overstock.com's computer servers. Many of Bagley's activities in furtherance of Patrick Byrne's "back ops" occurred during normal weekday business office hours. Judd Bagley has posted anonymous messages on internet message boards smearing, threatening, and attacking critics with Patrick Byrne's knowledge and support.

The actions of both Patrick Byrne and Judd Bagley in connection with Overstock.com's "black ops" violate the company's Code of Business Conduct and Ethics and give rise to serious 8-K disclosure issues with the Securities and Exchange Commission.

Patrick Byrne, is the admitted target of a formal Securities and Exchange Commission investigation of possible accounting manipulations at Overstock.com, in contrast to his previous denials. In addition, Overstock.com delayed the disclosure of a personal subpoena that Patrick Byrne received from the SEC, for almost a year.

Patrick Byrne has repeatedly claimed that there is no relationship between the antisocialmedia.net smear web site and Overstock.com. In addition, he has claimed that Judd Bagley's activities relating to antisocialmedia.net and attacking his critics on internet message boards are conducted on Bagley's personal time. Those claims by Patrick Byrne have been discovered to be bold faced lies.

I have notified both Clay Corbus and Joseph J. Tobacco Jr. (independent members of Overstock.com's Audit Committee) regarding the vile, malicious, and despicable actions of both Patrick Byrne and Judd Bagley in violation of Overstock.com's Code of Business Conduct and Ethics and the SEC reporting issues arising from their actions. So far, Overstock.com's Audit Committee seems to have its head in the sand. If Overstock.com's Audit Committee does not act soon regarding the actions of Patrick Byrne and Judd Bagley, they may end up as fish in the government's net.

Apparently, an insider is talking. Gary Weiss notes in his blog "Some insights from a person familiar with Overstock from the inside." See below:

Prior to being caught using spyware, Bagley had been spending most of his time surfing the web and working on Byrnes Jihad. Now he "apparently" just surfs the web from 9-5. (And his fingers just happen to slip onto the keyboard by accident from time to time.)
Byrne is trying to distance himself figuratively and literally from Bagley, and has moved Bagley from the executive suites down to a small cubical in the marketing department.
This person believes that Byrne is only to glad to have his misdeeds "deflected to the more visible Bagley."
This person has heard, but cannot prove, that Yahoo banned Overstock IPs for 24 hours because of the spyware revelations, most of which were from O-Smear.

The Securities and Exchange Commission investigation of Overstock.com continues.

Written by:

Sam E. Antar (former Crazy Eddie CFO & convicted felon)

O-Smear Blog (Black Ops Series)

Overstock “Black Ops” Part 1: The Summary

Overstock "Black Ops" Part 2: The Home Version

Overstock “Black Ops” Part 3: Wikipedia/SlimVirgin Edition

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