The timeline in the criminal case against Shane and Sean Hvizdzak has been extended by U.S. District Judge W. Scott Hardy.
On Friday, Hardy entered an order extending the timeline to file pretrial motions by 90 days, until April 22.
“The Court finds that the ends of justice served by granting this continuance outweigh the best interest of the public and defendants’ right to a speedy trial,” the order read in part.
The Hvizdzak brothers, Sean, 35, of St. Marys, and Shane, 33, of Bradford, are facing a federal indictment of 65 counts each for allegedly bilking investors out of millions of dollars in a cryptocurrency hedge fund scheme. The indictment came down last August.
In asking for the continuance, attorneys for the brothers said, “This is a complex criminal matter which allegedly took place over a number of years and involv(ed) multiple series of transactions and occurrences and affecting a number of different persons.”
Evidence is voluminous, and electronic evidence is still in the process of being made available to the defense, the motion stated. Either defendant may ask for another continuance after 90 days’ time should it be necessary, the motion continued.
The judge also ordered the attorneys to turn over a Joint Status Report when the discovery process is completed, and a status conference will be scheduled.
In June 2020, the federal Securities and Exchange Commission filed a complaint against the Hvizdzaks, along with a company the two co-owned, High Street Capital LLC of Bradford. The complaint at the time alleged the two took money from investors, said it was being invested in digital assets and fabricated statements saying the investments were earning huge returns. However, the SEC alleges the brothers took about $31 million from investors, put it in their personal accounts and then moved it outside the United States.
Sean Hvizdzak has maintained his innocence, while Shane Hvizdzak has claimed his Fifth Amendment right against self-incrimination through filings in the SEC case, which is a civil matter.
The civil case is essentially on hold until the criminal case proceeds.
At the time of the criminal indictment, Acting U.S. Attorney Stephen R. Kaufman said the law provides for 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, a fine of $7 million or both for Sean Hvizdzak.
“Under the federal sentencing guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant,” the press release stated.
Assistant U.S. Attorney Christian A. Trabold is prosecuting the case on behalf of the government.
The Federal Bureau of Investigation and Internal Revenue Service criminal investigators conducted the investigation leading to the indictment.
