BRADFORD, Pa. — An attorney accused of taking part in a cryptocurrency hedge fund scheme has been temporarily suspended from practicing law, according to the Pennsylvania Supreme Court.
In an order issued Wednesday, Sean Hvizdzak, 35, of St. Marys, had his law license temporarily suspended under Rule 208(f). This rule refers to misappropriation of funds or “other egregious conduct” in violation of disciplinary rules, according to the Pennsylvania Rules of Disciplinary Enforcement.
The suspension will continue until the Supreme Court acts to relieve it.
Also spelled out in the suspension order, the President Judge of the Court of Common Pleas of Elk County — Shawn McMahon — “shall enter such orders as may be necessary to protect the rights of (Hvizdzak’s) clients or fiduciary entities with which he is involved.”
Any fiduciary funds not already frozen as a result of the federal civil action against Hvizdzak and his brother Shane were frozen by this disciplinary order. Hvizdzak was also ordered to inform the U.S. District Court for the Western District of Pennsylvania and the Securities and Exchange Commission of his license suspension.
He was also ordered to inform the Office of Disciplinary Counsel and McMahon “of any modifications to the federal court’s asset freeze order or the consent order concerning the operation of (his) law practice within 10 days,” the order stated.
He operates a law firm Hvizdzak Law with offices in St. Mary and Bradford, according to his website.
Hvizdzak and his brother Shane, 33, of Bradford, are facing a civil suit from the SEC for allegedly bilking investors out of millions of dollars in a cryptocurrency hedge fund scheme. The suit was filed in June 2020. A 65-count criminal indictment against the brothers came down Aug. 10.
Both cases remain ongoing in federal court.