While there has been talk about potential plea deals in the alleged $31 million cryptocurrency scheme case against Shane and Sean Hvizdzak, preparations for an October federal trial are well underway.

A joint trial for the brothers Hvizdzak — Shane, 37, of Bradford, and Sean, 39, of St. Marys — is scheduled to begin Oct. 20 in federal court in Pittsburgh before District Judge W. Scott Hardy.

Shane Hvizdzak

The brothers, both charged in the alleged cryptocurrency scheme, filed sealed documents with the court July 11. According to the schedule of the court, the Hvizdzaks were to file sealed witness lists and offers of proof by that day.

Sean Hvizdzak

A status conference is scheduled for July 23 for Shane Hvizdzak in Courtroom 3B before Hardy. Hvizdzak is required to be present.

The current court schedule would have the brothers filing proposed jury instructions and proposed voir dire by Aug. 22, disputed exhibit charts by Aug. 25, pre-trial motions regarding disputes over exhibits by Sept. 8 with responses due by Sept. 15.

Pre-trial motions unrelated to specific exhibits are due by Aug. 8, with responses due by Aug. 15.

The FBI raided the home of the brothers’ parents in June 2020. Shane Hvizdzak was questioned by FBI agents, and gave a lengthy statement about an alleged Ponzi scheme, accepting money from investors but using it for personal purposes and to pay back earlier investors rather than investing in the hedge fund.

He named his brother, Sean, an attorney who is now suspended, and a second man as being involved, but said neither of them knew what he was doing, according to his statement.

“I misrepresented the returns and profits the fund was making because I wanted investors to be excited,” he wrote in the statement.

He created an audit showing huge returns on investment to attract more investment, which was false, the criminal complaint alleged.

“The audit I created was not representative of actual money in the fund. The weekly reports were also not accurate. Some investors were paid gains that were not actually gains, but instead deposits from other investors.”

In the statement, Shane Hvizdzak acknowledged that he knew what he was doing was against the law, and that he regretted his actions.

He later attempted to have the statement suppressed, but was unsuccessful.

The brothers are also facing a civil lawsuit by the Securities and Exchange Commission for the same conduct. That is on hold during the prosecution of this case.