CD Media
Analysis

FBI Does Not Arrest Itself: Unaccountable Corruption Uncovered By LabMD

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“It’s 2022, so people think this is over…In a big way, everything is just beginning.”

Michael Daugherty, Founder, The Justice Society 


I’ve known Michael Daugherty for over a year, after meeting him at a function in Florida in early 2021.  I can say with certainty that Daugherty is driven, a man on a mission, to uncover and expose the corruption inside the FBI, the FTC and other parts of the Federal government.  After being attacked by corrupt government forces, he has dedicated his life to this agenda, and has been at it for a decade and a half.  

Parts of the story have been out in the press for over ten years as well, for anyone that wants to read it. But the story of what really went on has never been told.  According to Daugherty, most people don’t get why they should care.  

“Nobody cares until the tree falls on them.  Well, the tree fell on LabMD over a decade ago, and I am finally getting to the point where I may be able to hold these criminals accountable,” he says angrily. “People are only now understanding that the story isn’t about me or LabMD, the story is: “This is the country you live in today and it’s operated by a government without accountability or remorse”. The government willingly destroyed a medical laboratory that had over 700,000 patients. And they are fine with it. And their minions that depend on them won’t report it or fight it. That includes the media and politicians from both parties. If they will do that to a cancer detection lab, they will do worse to you and your children. You need to wake up.” 

We have interviewed Michael Daugherty several times at CDMedia.  So, I won’t go deep into the details of his case, suffice to say he ran a successful cancer detection facility, LabMD, with 700,000 patients in 2008, when a firm called Tiversa called him demanding money to ‘fix’ a problem where they claimed 9,000 of his patient’s medical records had been found on the internet, which the FTC states violates their data security rules.  Daugherty knew it was a shakedown but it took a decade to show that the FBI gave Tiversa software that it used to hack into private business networks and steal data, in order to demand protection money to make the problem and the legal liability go away.  

Daugherty states, “People think this is HIPAA, HIPPA, HIPPA. This had nothing to do with that. Health and Human Services even put out a statement that it didn’t. There was never proven exposure, there was never a victim. But people slap a HIPAA label on everything, completely missing the elephant in the room.”. 

When Daugherty refused to be shaken down, Tiversa put him on their enemies list, which meant they were turned over to the government as a company with poor data security practices. In 2015 Congress would report that the FTC had a “quid pro quo” relationship with Tiversa, tell Tiversa who they were investigating so Tiversa could make money off of selling services and Tiversa would send the FTC “violators”. 

The FTC then sued Daugherty and Daugherty replied with what, at the time, sounded like preposterous allegations against the FTC. They later turned out to be true and even worse, he frustratingly outlines.  

“I had to start my own investigation, and write a book, to start getting some attention to the problem.  People need to know that in our judicial system, in civil matters, you are guilty until you prove yourself innocent.  The Bill of Rights isn’t about civil law. They intentionally drain you dry with drawn out, expensive processes and media attacks. The media is more than happy to help them along. They despise successful businesses unless you are Bill Gates”. 

“You will be punished and destroyed under civil oppression. They have no conscience.” 

After years of fighting, losing his company, writing a book on the ordeal, and seriously needing a break, Daugherty got one.  A whistleblower contacted him and told him, “I am the one that broke into your computer and illegally downloaded your files; I destroyed your company.  You patients are not and never have been floating around on the internet.” 

The whistleblower’s name was Richard Wallace. He immediately became a victim of witness tampering and intimidation to shut up. It wasn’t until 2019 that he testified he used the software called E2P2 provided by the FBI to break into corporate computers, steal data, and falsely claim the data was found on the internet, to shake down private businesses for service to solve a breach that in reality never happened. 

Daugherty further explains, “Laws don’t require you to secure yourself against government software that’s otherwise illegal to use or possess. But the FBI let their weapon run loose and harm others and they have been whistling past the graveyard ever since. LabMD isn’t the only company buried in that graveyard.” 

“Wallace had a conscious,” says Daugherty.  “He was able to override his fear for a while, with his great uncle pushing him to make things right. But then the powers of the criminal enterprise that he was exposing moved hard against him to shut him up. It worked in many ways. Justice has been denied for years. But keep in mind, Tiversa stole thousands of files on behalf of the feds. LabMD isn’t the only victim. We are just the only victim to fight back. Those in Washington still mock our resilience.” 

Wallace testified he did this dirty work at the behest of Tiversa and its CEO of Tiversa, Robert Boback.

2019 Deposition of Richard E. Wallace 

Pg. 75-76 

Q Mr. Wallace, are you familiar with the term “EP2P”?

A Yes.

Q What is your understanding of EP2P?

A It is an enhanced peer to peer application.

Q Is it commercially available?

A No.

Q Where is it — who developed it, to your knowledge?

A It was a collaboration of law enforcement.

Q Have you ever used EP2P?

A Yes.

Q Did you like using EP2P?

A Depending on what I was looking for.   

Depended — when I was directed to look for financial documents or something like that, sometimes it would help.

Q Did you prefer to use LimeWire or EP2P?

LabMD Attorney: Object to the form.

A Again, it depends on what —

Q How did you gain access to EP2P, if in your view it wasn’t commercially available?

A It was given to me.

Q By whom?

A By the FBI.

Q Who at the FBI?

A Greg Frankhauser.   

Boback denied this, running offense as defense as he portrayed Wallace as the criminal, claiming he had no knowledge of the crimes against LabMD.  Congress states otherwise.

Wallace then testified that after he told Boback that he would not participate in a coverup if he was questioned in court, Boback embarked on a campaign to personally destroy him.  

Wallace also testified: 

●     Defendant Mr. Boback directed Plaintiff Mr. Wallace to lie at his deposition;

●     Defendant Mr. Boback threatened Plaintiff Mr. Wallace with a gun to lie under oath;

●     Defendant Mr. Boback followed Plaintiff Mr. Wallace at a high rate of speed and attempting to run him off the road;

●     Defendant Mr. Boback logged onto Plaintiffs Mr. and Mrs. Wallace’s minor daughter’s Facebook without their permission or knowledge and deleted all of her friends who were not Caucasian;

●     Defendant Mr. Boback falsely told Plaintiff Mr. Wallace that Plaintiff Mrs. Wallace was having multiple affairs;

●     Defendant Mr. Boback placed a recording device on Plaintiffs Mr. and Mrs. Wallace’s property;

●     Defendant Mr. Boback opened the garage door of the Plaintiffs Mr. and Mrs. Wallace’s home many times seemingly randomly

●     Defendant Mr. Boback sent many intimidating messages to Plaintiffs Mr. and Mrs. Wallace’s home for more than a year to convince them to lie when Plaintiff Mr. Wallace testified at a federal administrative proceeding.  

Daugherty then received anonymous emails from ‘an insider’ at Tiversa regarding this case.  He believes the emails were from Boback.   Below is one example.    

From: Insider

To: Michael J Daugherty 

Sent: Fri, Mar 16, 2018 4:19 pm

Subject: Re: Tiversa – Puppet master 

I had my contact follow up with him to see if I could find out more.  He said that several years ago Wallace contacted him claiming that he quit Tiversa because he they had stolen his “invention” of p2p file sharing and that he was going to “take the company down.”  He claimed that he was a founder of Tiversa and that they stole his money.  Wallace claimed that he discovered this problem long before Tiversa and was downloading military secrets before Tiversa was formed.  Wallace wanted him to write a story about it.  He said that when he starting asking questions, Wallace started to mix-up his stories then unexpectedly said “talk to my wife, she’ll tell you” and he put his wife on the phone.  He thought that was very strange.  He later found out that he reached out to several journalists with a similar request.  He contacted a friend at the FBI and found that Wallace had been fired from Tiversa and was making threats against an FBI agent.  Wallace tried to reach him several times after and he let it go to voicemail, with no messages.  He made no mention of Labmd.  My contact asked if there was any way that he would consider writing a story highlighting the FTC’s aggressive action against Labmd as it would be good for other business to know that the FTC can do this.  Unfortunately, he said “HELL NO.”  Sorry it didn’t help the cause, but I thought that you should know.  

Also, I heard today that Tiversa sued Boback.  Not sure if true or for what or how much.         

Sent with ProtonMail Secure Email. 

Daugherty says one of his lawsuits survived a motion to dismiss last month in Florida. The case will soon be in the discovery stage, giving Daugherty the ability to issue subpoenas and take depositions about the FBI’s role in the scandal, reported The Epoch Times in a recent article.  

“At some point during Tiversa’s engagement, [the FBI] delivered to four Tiversa employees’ proprietary software with enhanced internet search capabilities developed exclusively for the FBI and for national security purposes,” Daugherty’s legal filings declare.  

“I need help holding them accountable.  We are training Davids to fight Goliaths at The Justice Society.  Your donation will have an impact; it has already had an impact restraining the FTC.  Now I’m trying to restrain the FBI.  We are suing the FBI. The arsonist was the FBI, they gave Tiversa the tools to destroy my business. We aim to start litigating bullies, not just this bully, to hold them accountable.

We aim educate the public how difficult accountability is when it’s one man vs the beast. They seek to divide and conquer; we seek to unite and fight back.” 

Daugherty has created a 501(c) 3 non-profit called The Justice Society, TheJusticeSociety.com.  Donations can be made to help Davids Defeat Goliaths at TheJusticeSociety/support-us.

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7 comments

D3F1ANT May 24, 2022 at 9:12 pm

Hannity was on last night reminding us that “only the top 1% of FBI leadership is corrupt.” Evidently he’s such a boot-licker he’s still covering for the rank corruption of the agency. But then, Hannity loves having the likes of Lindsey Graham and Oz, and Bill Barr on and yucking it up as if these cretins aren’t literally destroying the country. Hannity is way out of touch.

Reply
Frosty May 27, 2022 at 7:27 am

A Thousand “Thumbs Up”

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Amuzed_Traveler May 29, 2022 at 2:26 pm

Why are you watching Hannity?

Reply
Steven May 24, 2022 at 10:52 pm

I don’t think it’s likely there will be a receipt anywhere showing authorized release of the software from the FBI to Tiversa.
Where was the money going?

Reply
william May 25, 2022 at 3:51 am

No such animal anymore regarding “privacy” of patient medical data. Personally, I’ve learned to give very little info to my own doctor and neither do I subscribe to or order up “tests” of any type peddled online.

Reply
Dana May 29, 2022 at 8:33 am

I googled Tiversa, this is “THE NEW YORKER MAGAZINE”S headline about it: A Cybersecurity Firm’s Sharp Rise and Stunning Collapse
Tiversa dominated an emerging online market—before it was accused of fraud, extortion, AND MANIPULATING THE FEDERAL GOVERNMENT. Written by: A Reporter at Large November 4, 2019 Issue By Raffi Khatchadourian.

Reply
Viteye June 4, 2022 at 1:41 pm

I hope your suit stays out of DC. When President Trump is back in office I hope he gets his new DOJ to sick the US marshals to raid the FBI. I would love to hear a loud voice yell, “RAISE YOU HANDS AND BACK AWAY FROM YOUR COMPUTER SCREEN”! I would be great as that happens, the traitor Ray is in the oval office and President Trump tells him not to bother going back to his office and hand over his cell phones on the spot. His personal items are in a cardboard box just inside the White House gate exit. Call him an uber or his wife to come pick him up. I still do not understand why a federal employee is not indicted for crimes?

Reply

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