Former ethereum advisor Steven Nerayoff has filed a lawsuit against Michael Hlady, also known as Michael Peters, and Marianna Shooshani in New York Supreme Court, Nassau County, in their quest for justice. The lawsuit alleges a fraudulent scheme orchestrated to deceive Nerayoff, resulting in substantial financial loss.
According to court documents, the plaintiff, Steven Nerayoff, accuses Hlady and Shooshani of creating a fictitious consulting company, North Star Ventures Corp. (“NSV”), for the purpose of providing specialized consulting services to Nerayoff, known for his contributions to the ethereum ICO protocols and his leadership at Alchemist Group LLC, a consulting and investment firm for blockchain companies.
The lawsuit, which delves into allegations of fraud and deception, details an elaborate scheme that allegedly defrauded Nerayoff of more than three-quarters of a million dollars through a non-existent consulting service. Via x, Nerayoff twitter.com/StevenNerayoff/status/1779840799422746823″ target=”_blank” rel=”noopener nofollow”>fixed:
I am pleased to announce that justice has finally been served against Michael Hlady, a government agent/provocateur who collaborated with FBI agents and others to wrongfully prosecute me for nearly four years. The FBI gave Hlady credibility, (…) Despite being aware of his fraudulent activities beyond my control, the government deliberately protected him from prosecution in 2018.
Nerayoff revealed on x (formerly twitter) that he has already initiated legal action against FBI agents, StormX and now Hlady. He also hinted that his legal activities are far from over, indicating that more developments are likely to follow. “And make no mistake, we will not stop until we have uncovered every detail of corruption, including within agencies like the SEC, involved in #EthGate. “Expect more to come and know that I am committed to holding everyone accountable for their actions,” he stated.
ethereum Insider exposes what happened
Nerayoff has filed lawsuits against Hlady and Shooshani for creating and promoting a fictitious entity called North Star Ventures Corp. (“NSV”). According to the complaint, in December 2017, Shooshani introduced Nerayoff to her then-boyfriend, Hlady, who posed as a former government agent with alleged affiliations with the NSA, FBI and CIA. The defendants claimed that Hlady's consulting company, NSV, was made up of a team of similar former government agents who could provide indispensable security and business verification services to Nerayoff's blockchain companies.
The legal document details that Shooshani and Hlady, under the guise of NSV, induced Nerayoff to enter into a consulting agreement that promised extensive services from individuals who allegedly possessed more than 125 years of combined experience in fields crucial to corporate and government operations. “The agreement also states that 'the North Star Venture team has been involved in providing consultations to corporations and deals with combined values exceeding one billion US dollars, all behind the scenes with the utmost confidentiality,'” the complaint quotes.
From January to October 2018, Nerayoff paid several hundred thousand dollars to NSV based on invoices and applications submitted by Hlady and Shooshani. These payments were intended to cover consulting fees, as well as alleged travel expenses and various expenses related to the services that NSV had contracted to provide. The lawsuit details a list of transactions that included significant sums wired or transferred under the belief that they were legitimate business expenses, illustrating the depth of the alleged fraud.
The turning point in this saga came in November 2018, when Nerayoff discovered that not only did NSV not exist, but that Hlady was also a convicted felon, recently released from prison after defrauding a Catholic school. The complaint highlights this shocking revelation with excerpts from Nerayoff's communications to Shooshani expressing his dismay and sense of betrayal. Upon discovering the truth, Nerayoff confronted Shooshani with messages that read: “This is the worst mistake of my life. He is a small-time scammer. How could you unleash this criminal on me!?
Legal Procedures and Claims
In response to these allegations, Nerayoff's legal team has presented a multi-faceted legal strategy seeking recovery of funds paid to Hlady and Shooshani, along with additional damages. The lawsuit articulates several causes of action, including fraudulent inducement and common law fraud, supporting the seriousness of the defendants' actions.
“Plaintiff only agreed to enter into the January 14, 2018 agreement with NSV upon express statements by Defendants Hlady and Shooshani that Defendant Hlady was a decorated former federal agent,” the suit states, detailing the former's reliance ethereum advisor on these misrepresentations.
Previously, the former ethereum advisor had gone public how the US Department of Justice, the US Securities and Exchange Commission and the FBI tried to hold him accountable for 3.5 years in a lawsuit for a crime they invented only to gain influence over other players in the crypto industry. .
At press time, ethereum (eth) was trading at $3,027.
Featured image from WJAR, chart from TradingView.com
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