RI Man Who Once Ripped Off Nuns' School - Now Arrested for Cybercurrency Extortion
GoLocalProv News Team
RI Man Who Once Ripped Off Nuns' School - Now Arrested for Cybercurrency Extortion
Hlday, who is also known as Michael Peters was charged by New York Federal prosecutors on Wednesday.
A complaint was unsealed Wednesday in federal court in Brooklyn charging Steven Nerayoff and Hlady with extortion.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAccording to federal prosecutors, Nerayoff, an attorney, and Hlady threatened to destroy a startup cryptocurrency company if they were not paid millions of dollars in the cryptocurrency Ether (ETH). Nerayoff was arrested this Wednesday, and was scheduled to make his initial appearance Wednesday afternoon before United States Magistrate Judge Steven L. Tiscione.
Hlady was arrested Wednesday in Rhode Island.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, announced the charges.
“As alleged, Nerayoff and Hlady carried out an old-fashioned shakedown, to be paid off with 21st century cryptocurrency,” stated United States Attorney Donoghue. “This Office and our partners at the FBI are committed to protecting businesses from extortion, whether the demands are for U.S. dollars or cryptocurrency.”
“When you peel back the layers of this case, an age-old extortion scheme is revealed with a modern day twist,” stated FBI Assistant Director-in-Charge Sweeney. “Imposing forceful demands on a company for personal gain is risky business, whether one's preference is to be paid off with cryptocurrency or cold hard cash. The FBI will continue to seek justice for victims who businesses have been targeted by these types of scams.”
Nerayoff once appeared on GoLocal LIVE to discuss the impact of Blockchain technology.
Hlday's Worcester Rip-Off
Hlady fleeced Venerini Academy in Worcester out of more than $360,000, was sentenced to 2½ years in jail In January of 2016 for violating the terms of his probation, as reported by the Telegram.
The House of Correction sentence was imposed by Judge Shannon Frison. The school's mission is "serves God by Educating to Save and Set Free. In partnership with families, we develop the whole child through rigorous academics in a safe and respectful environment."
The Venerini Sisters were never made whole by Hlday. The school was as "St. Rosa Venerini made it her mission in 17th century Italy to save girls from ignorance by leading them onto a path of salvation and liberation through education. In her honor, Venerini has dedicated over sixty years to provide academic, spiritual, and moral education to transform students into curious learners and enlightened leaders. We put them on a path of purpose-driven learning and success with the goal of forming them into engaged, faith-centered, and inspired students who are eager to know, love, and serve God and others."
The Justice Department alleges that, “Subsequently, Nerayoff introduced the executives to Hlady, who used the alias ‘Michael Peters’ and who Nerayoff described as his “operations guy.” Hlady told the executives that he had been part of the Irish Republican Army, the National Security Agency, the Central Intelligence Agency and the FBI, and that he had “taken down” a head of state.”
According to the government, “In March 2018, Nerayoff and Hlady threatened one of the executives with destruction of the company if not paid additional funds and company tokens. Later that month, Nerayoff demanded a purported loan of 10,000 ETH (worth approximately $4.45 million at the time), and Hlady followed up with a text message to the executive stating, “I promise I will destroy your community” if Nerayoff’s demands are not met. The company then transferred 10,000 ETH to Nerayoff. The “loan” was never repaid.”