Federal prosecutors said a St. Paul man received nearly $ 841,000 based on a bogus P3 loan application.
MINNEAPOLIS – Federal charges have been laid against St. Paul contractor and construction company owner accused of fraudulently obtaining nearly $ 841,000 in Paycheck Protection Program (P3P) loans for small businesses businesses affected by the COVID-19 pandemic.
US lawyer Erica MacDonald has announced that Kyle William Brenizer, 32, has been charged with two counts of wire fraud and two counts of money laundering.
Brenzier was taken into custody and first appeared before a federal judge on Friday.
According to an unsealed federal indictment, prosecutors allege that Brenzier submitted “false and misleading” PPP requests asking for $ 841,000 for his company, True-Cut Construction LLC, twice in May 2020.
Prosecutors said the first request, submitted on May 1, was denied.
The indictment says Brenzier’s second claim, submitted on May 12, was filed under the name of a different person, who was falsely claimed to own 90% of the company. Federal prosecutors said Brenzier also falsely reported the amount of his company’s payroll and falsely stated that he was not the subject of any pending criminal charges, despite pending felony cases for forgery. checks, suspected identity theft and theft in the state of Minnesota. Federal investigators said the false statements led to the approval of the second request.
The indictment then alleges that Brenzier used funds for unprofessional expenses. Prosecutors say Brenzier transferred around $ 650,000 to an unrelated account and also purchased a $ 29,000 motorcycle, along with other personal retail and entertainment expenses.
PPP loans are limited to payroll charges, mortgage interest, rent, and utilities.
Brenzier was taken into custody until an arraignment hearing on Wednesday August 26.
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