A 33-12 months-previous St. Paul male has pleaded responsible to fraudulently acquiring $841,000 in loans from the federal Paycheck Defense Program designed to aid little organizations harmed by COVID-19.
Kyle W. Brenizer admitted Monday in U.S. District Court in St. Paul to wire fraud, money laundering and aggravated identification theft in connection with the loans for his defunct construction enterprise.
Sentencing has still to be scheduled. In the meantime, Brenizer remains in federal custody without bail in the Sherburne County jail.
Protection attorney Kevin DeVore reported Tuesday that “just after reviewing the proof … the choice was built that the authorities had ample proof to establish its scenario. As a final result, it was better to concentration our strength on the sentencing difficulties like decline [amount] calculation somewhat than on the difficulty of guilt or innocence.”
DeVore reported the plea settlement has a huge variety of sentencing options “due to the decline calculation, which will be a level of rivalry at the sentencing hearing.”
In accordance to the charges, Brenizer’s Brooklyn Park-primarily based Legitimate-Slice Building experienced been purchased by the point out to cease and desist from carrying out company in August 2018, and in December 2019, its contractor license lapsed and was not renewed.
Brenizer initial submitted a bank loan software for the Paycheck Safety Software (PPP) program trying to get $841,000 on May 1, 2020, and was denied. Under the software, authorised by Congress at the beginning of the pandemic, qualifying smaller organizations could get two-year loans to protect payroll prices, property finance loan, hire or utility charges.
Brenizer again experimented with to obtain the money 10 times later, but this time he used the identify of an additional particular person, according to the federal indictment. He allegedly falsely represented that the other, unidentified person owned 90% of the business. He also falsely mentioned that the company’s typical every month payroll was $336,400 for about 30 employees, the indictment mentioned.
Prosecutors alleged that Brenizer utilized phony lender statements and IRS files in his bank loan purposes, and was permitted for a PPP financial loan on his 2nd try out.
Brenizer purchased a $29,000 Harley-Davidson motorcycle, transferred the bulk of the financial loan that he received to a bank account unrelated to his corporation, and “compensated for many retail and amusement expenditures for his particular advantage,” the costs versus him go through.
Brenizer also has been named in several point out felony fees of verify forgery, identity theft and theft by swindle, the indictment pointed out, but he denied obtaining any pending felony expenses in his application.
State court data also exhibit that Brenizer has formerly been convicted of prison sexual perform, unlawful drug possession and violating a domestic abuse no-make contact with get.
Star Tribune team author Stephen Montemayor contributed to this report.
