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Thursday , December 8 2016
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BOOM! Tiversa’s Court Manuever Backfires in #FTC vs. #LabMD Case

Former Tiversa Employee Granted Immunity and Tiversa’s Notice of Information Filing Will Not Be Considered in FTC vs. LabMD Case.

The latest ruling in the Federal Trade Commission’s complaint against Atlanta cancer detection laboratory, LabMD, delivered a one two punch to Tiversa, Inc., the cyber security firm at the center of the FTC’s case.

The presiding Administrative Law Judge, Judge, D. Michael Chappell, requested the Attorney General grant him the authority to compel a witness in the FTC’s complaint against LabMD to testify and be granted immunity.

The witness…Richard Wallace, a former employee of Tiversa, Inc.

According to the Judge’s request,

‘Mr. Wallace… is expected to testify that (1.)  a key piece of evidence upon which complaint counsel relies in this case, an insurance aging file of LabMD referred to by the parties as the “1718 file,” was not found anywhere outside LabMD; (2.)  Mr. Wallace fabricated the CX 19, which was introduced by Complaint Counsel in its case-in-chief as evidence that the 1718 file was found at four internet protocol (“IP”) addresses; and (3.)  Mr. Wallace created CX 19 because an attorney from the FTC told Tiversa that finding the 1718 file only on a LabMD workstation was insufficient’.

Tiversa’s CEO, Robert Boback contacted LabMD about his company’s discovery of the ‘1718 file’ in 2010. When the firm’s owner, Michael Daugherty, requested additional information from Tiversa about how they discovered its file, Tiversa offered more information if LabMD signed a service agreement for upwards of $400 per hour.

When LabMD declined to take up Tiversa on its mitigation services, they turned over the ‘1718 file’ to the FTC, and the investigation of LabMD ensued.

In the November 19, 2014 ruling Judge Chappell denied Tivera’s Notice of Information and recognized it for what it was, ‘an improper attempt to place evidence on public record, unilaterally, and with the transparent purpose of impugning the credibility of Mr. Wallace’s testimony, and/or influencing the immunity process.

We will continue covering the FTC’s case against LabMD as it progresses.

Additional information about the case is found in the book by Michael J. Daugherty, Devil Inside the Beltway.

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About Stacy Rush

Stacy is the creator and editor of TheRightRush.com. She is a common sense conservative who decided she could no longer stand on the sidelines and watch the country fall apart.

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