Shane Hvizdzak named in alleged money laundering scheme

Bradford man Shane Hvizdzak has been named in an Ohio investigation into an alleged drug trafficking and money laundering scheme involving illegal THC vape cartridges.

A federal Complaint in Forfeiture was filed last month in Cleveland against assets owned by six people in a probe that includes Dank Vapes.

In the 40-page complaint, Hvizdzak and Hvizdzak Capital Management are among several third parties that the U.S. Attorney’s office claims were laundering money from the illicit drug sales.

When asked if Hvizdzak is under investigation regarding the Ohio case, Assistant U.S. Attorney Henry DeBaggis of the Northern District of Ohio said, “I can neither confirm nor deny that there is an ongoing investigation.”

Hvizdzak, 32, and his brother, Sean, 34, of St. Marys, currently are in settlement discussions with the Securities and Exchange Commission as a result of a multi-million-dollar cryptocurrency hedge fund fraud allegation here last year.

The Ohio case mentions Shane Hvizdzak and the company Hvizdzak Capital Management, but does not mention Sean Hvizdzak.

The brothers’ attorneys both commented on the matter in Ohio.

“The forfeiture complaint names dozens of innocent persons and businesses unknowingly swept up in financial transactions which the Cleveland U.S. Attorney is alleging are part of a drug trafficking investigation of two Ohio/California residents,” said attorney Efrem Grail, representing Shane Hvizdzak. “To believe any of these innocent persons or businesses knowingly assisted or helped in any of the alleged criminal conduct in that case does them a grave disservice.”

Attorney David Bernardinelli said, “Sean Hvizdzak is not alleged to have been a participant in the conduct discussed in the Complaint in Forfeiture and, indeed, he was not. Nor, did he have knowledge of the underlying conduct alleged in the complaint. Sean Hvizdzak did not participate in any money laundering activity or conspiracy.”

The Ohio complaint alleges that Eyton Senders and several associates were operating a multi-million-dollar business of selling THC vape cartridges across the country. In an attempt to make the proceeds appear legitimate, Senders used numerous third parties to conceal the source and nature of the funds, the complaint stated.