Marc Cohodes Buys Stock & Vanishes From Overstock CEO’s Smear Site


The libel suit judgment also cites a recorded phone conversation in which Nazerali told Mitchell about errors in the Deep Capture post. After Nazerali enumerated the errors, Mitchell said “the arrangement that I usually have with sources is that if they’re helping with a story, I leave them out.”

In addition to using Deep Capture for blackmail, his surrogate Bagley attempted to blackmail an anonymous blogger who wrote several posts exposing Bagley’s cyber-stalking and smear campaign.

In the email below, Bagley threatened to “dox” the blogger if he did not desist (click on image to enlarge).


This attempt to blackmail the blogger, which received attention at the time in Dealbreaker, did not succeed because the blogger would not be scared off. Bagley made good on his threat two days after his extortion attempt was exposed. The blogger didn’t care. He kept up his good work for months afterwards.

I believe that this is important context in evaluating the removal of Cohodes’ name from Deep Capture. I don’t believe that Cohodes was blackmailed, but the foregoing shows that Byrne will go to any lengths to remove unflattering content from the Internet.

Conclusion

It is possible that Byrne removed Cohodes’ name from Deep Capture out of the goodness of his heart, without even thinking about how Cohodes was showering him with praise, and was driving up the price of a stock in which Byrne is the largest shareholder.

It is possible that Byrne was not aware that Cohodes was now a shareholder, was not aware of the Grant’s conference and Cohodes’ statement that the shares are “going way the fuck up.”

It is possible that Byrne did not know the share price climbed as much as 8.7% the day Cohodes pumped it at Grant’s.

It is possible that Byrne did not read the Bloomberg and Barron’s articles, and thus could not possibly have had any intent to compensate Cohodes for any of the foregoing.

It is possible that Cohodes had no idea his name was being cut out of the Deep Capture articles where he was under attack.

All this is possible, but not very probable.

Everyone who knows Cohodes can attest to his vanity and his sensitivity to criticism. Even his Twitter profile makes that clear, saying that “the best motivator is disrespect,” which suggests that the converse is true, that he craves stroking. Therefore I do not believe that his name was expunged from Deep Capture without Cohodes knowing about it.

If that indeed is his alibi, one has to wonder whether the rest of his due diligence on companies he analyses is equally incomplete and sloppy. I no longer have much respect for Cohodes’ judgment and character, but I find it hard to believe that he is that inept.

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I am a convicted felon and a former CPA. As the CFO of Crazy Eddie, I helped mastermind one of the largest securities frauds ...

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