Fraud charges can really put a strain on even the closest of familial relations. And as Civil War buffs can and will tell you if you make the mistake of showing interest in their expertise, pitting brother against brother creates the cruelest sort of conflict.
This is especially true when one brother decides to sell the other up the river. And it only gets more so if the turncoat brother, in this sordid tale one Sean Hvizdzak of St. Marys, Pa., is also allegedly lying about his innocence in doing so, and in such an easily provable way, thereby risking not only the fraternal relationship but a certain number of very awkward years sharing a prison yard.
Both brothers allegedly diverted investors’ funds meant for their hedge fund into their personal accounts, lied to CNB Bank when questioned about the activity in a non-hedge fund account, directed investors to deposit funds into their personal accounts and misappropriated the money, the filing indicated…. The filing noted that Sean Hvizdzak had written checks to himself and his brother from the accounts where the investors’ money had been sent, and used the money for their personal investments….
Despite knowing that financial statements regarding the hedge fund were fabricated, Sean Hvizdzak continued to facilitate the process for investors to join the fund, the complaint stated.
The SEC cited text messages between the brothers, as well, in which the two conspired to hide fund losses from an investment advisor.
SEC amends fraud complaint against Bradford brothers [Olean Times Herald]