A federal judge has scheduled a status conference later this month to try to answer the question of the status of the civil case against local brothers Shane and Sean Hvizdzak, accused of running a multi-million dollar cryptocurrency that faces the two federal criminals. fresh too.
The videoconference is scheduled for 9:30 a.m. Sept. 14 before Judge W. Scott Hardy of the U.S. District Court for the Western District of Pennsylvania in Pittsburgh.
The case is against Shane Hvizdzak, 33, of Bradford, Sean Hvizdzak, 35, of St. Marys, and the corporate entities through which they did business – High Street Capital, Hvizdzak Capital Management and High Street Capital Partners.
In an August 25 petition, the Securities and Exchange Commission requested a status conference, explaining that in February it provided the corporate defendants with a settlement offer “that would have allowed the parties to distribute the frozen funds to investors. defendants”. with the approval of this court.
In March, Sean Hvizdzak responded favorably to the proposal; Shane Hvizdzak did not respond at all.
On March 25, Shane Hvizdzak’s attorney, Efrem Grail, who was also representing the corporate defendants, asked to step down from the case. The court ordered Shane Hvizdzak and the corporate defendants to notify the court by April 8 whether they had retained new counsel. However, the motion notes, nothing was filed in response.
On April 26, the court held a status hearing in the criminal case against the brothers and allowed Grail to step down as an attorney. Shane Hvizdzak is now represented in criminal matters by Deputy Federal Public Defender Aaron Sontz.
He does not represent Hvizdzak in the civil case, the SEC petition continues.
There was no decision on Grail’s request to opt out of the civil case, the motion notes.
And the deadlines are approaching in the case.
“SEC expert reports are currently due September 2,” the motion reads, but adds that the court did not order a date for the defendants’ expert reports. “Shane’s deposition remains suspended. Given the uncertainty of Shane’s representation in this case, the SEC is requesting a status conference to discuss Shane’s retention of counsel in this case and the timeline for finding experts.
The SEC requested that the date for their expert reports be rescheduled and that the court require Shane Hvizdzak to attend the conference.
The Hvizdzak brothers have been accused of defrauding investors of millions of dollars. Investigators allege the two took money from investors, said it was invested in digital assets, and fabricated statements saying the investments were yielding huge returns.
However, the SEC said the brothers took about $26 million from investors, put it in their personal accounts, and then moved it out of the United States. Some of the funds were placed in untraceable digital accounts, the SEC alleged.
Sean Hvizdzak maintained his innocence, while Shane Hvizdzak asserted his Fifth Amendment right against self-incrimination through filings in the civil SEC case.
In August, the brothers were each hit with 65 criminal charges, alleging the same behavior as in the civil case.
At the time of the indictment, Acting U.S. Attorney Stephen R. Kaufman said the law provides a theoretical maximum total sentence of 810 years in prison, a fine of $12.5 million, or both for Shane Hvizdzak and a maximum total sentence of 550 years in prison. jail, a $7 million fine or both for Sean Hvizdzak.
Assistant United States Attorney Christian A. Trabold is prosecuting the case on behalf of the government.
Criminal investigators from the Federal Bureau of Investigation and the Internal Revenue Service conducted the investigation which resulted in the indictment.
- ZetrOZ Systems to Showcase sam® Technology at 2021 National Worker Compensation Conference
- Sonendo Announces Inaugural EndoCon Endodontic Innovation Conference in San Diego
- WyreStorm Introduces HALO 90 USB-C Conference Speaker with Docking Station to Provide All-in-One Solution for Home Office and Meeting Room
- FNB Corporation Expects Third Quarter 2021 Results Report and Conference Call | State