By Matthew Russell Lee, Patreon Maxwell book
EDNY, May 5 – Indicted for using strong-arm tactics to shake down a startup company of the cryptocurrency ETH, Steven Nerayoff has been facing an October 2022 trial in the U.S. District Court for the Southern District of New York.
On September 9 the EDNY's Chief Judge Margo K. Brodie held a status conference. Inner City Press, now reporting from and on the EDNY, covered it.
Nerayoff's lawyer Marc A. Agnifilo of Brafman & Associates, speaking for both parties said that serious negotiations were ongoing, and asked that the trial be pushed back to February 2023.
Nerayoff's co-defendant Michael Hlady pled guilty.
Amplification of Oct 28: Inner City Press reported the above based on what was said at the September 9 conference. But to accommodate a request, Inner City Press is adding this docket entry, said to no(longer)t have a reference to "plea discussions" but only "discussions" - "09/09/2022 Status conference hearing held as to Steven Nerayoff on September 9, 2022, before Judge Margo K. Brodie. Assistant U.S. Attorney Jonathan and AUSA John ODonnell Enright appeared on behalf of the Government. Marc A. Agnifilo and Zach Intrater from Brafman & Associates, P.C. and Michael A. Scotto from Michael A. Scotto attorney at Law, appeared on behalf of Mr. Steven Nerayoff. Mr. Steven Nerayoff appeared. Case called. The parties made a joint request for adjournment of the trial. The parties are in discussions and working towards a resolution... (Court Reporter Stacy Mace.) (Townsend, Tasha) (Entered: 09/12/2022).
Duly noted. We also noted that the docket says "10/18/2022 ORDER granting 101 Motion to Withdraw as Attorney. Marc A. Agnifilo withdrawn from case. as to Steven Nerayoff. Ordered by Chief Judge Margo K. Brodie on 10/18/2022. (WV) (Entered: 10/18/2022)."
On December 1, it was emphasized that the discussions between Neyaroff and the EDNY prosecutors are about resolution, not a guilty plea. Again duly noted - and, for Inner City Press, resonant of the Truglia crypto sentencing taking place in SDNY, in which even after a guilty plea the mounting offer of restitution seems to be leading to a non-custodial sentence. Inner City Press Nov. 30 coverage here.
Meanwhile in this EDNY case, when Hlady pleaded guilty, the prosecutors said "Hlady and his co-conspirator Steven Nerayoff issued threats to Company executives that included destruction of the Company if it did not agree to demands for additional funds and Company tokens."
Then in March 2023, the prosecutors moved to dismiss the indictment.
And on May 5, the US motion was granted, with more papers (motions for ex parte subpoenas) forthcoming: "MEMORANDUM AND ORDER denying [105] Motion to Dismiss as to Steven Nerayoff; granting [112] Government's Motion to Dismiss with prejudice; granting [106] Motion to Seal Document as to Steven Nerayoff; denying [117] Motion to Vacate as to Steven Nerayoff; denying [117] Motion to Amend/Correct as to Steven Nerayoff. For the reasons discussed in the attached Memorandum and Order, the Court denies Nerayoff's motion to dismiss, and grants the Government's motion to dismiss the Indictment with prejudice. The Court also denies Nerayoff's motion to vacate the Protective Order. The Court grants in part and denies in part Nerayoff's request in the alternative to unseal the exhibits submitted in support of his motion to dismiss. The Court also grants Nerayoff's request to unseal the motion papers and decision related to the ex parte subpoenas the Court issued. The parties are directed to confer and propose redactions to the Court's [89] July 2022 decision and any motion papers related to the ex parte subpoena requests. Ordered by Chief Judge Margo K. Brodie on 5/5/2023."
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