Bryan Reichel, 61, founder and former principal shareholder of PureChoice, Inc., was found guilty on 11 of 12 federal charges in a $25 million investment fraud scheme that spanned nearly a decade. The verdict, delivered November 3, 2016, by a federal jury in Minnesota, marks the end of a sprawling case built on lies, stolen funds, and regulatory deception—all orchestrated from the Burnsville-based company’s headquarters.
Reichel was indicted in July 2015 on a 12-count superseding indictment, charged with Wire Fraud, Bankruptcy Fraud, Concealment of Bankruptcy Estate Property, and making a False Statement Under Penalty of Perjury. Prosecutors proved at trial that from 2003 to 2011, Reichel lured investors with promises that their money would fund operations for PureChoice, a firm selling air quality monitors. In reality, he diverted millions for personal and unrelated corporate payoffs—while hiding that the company’s flagship product failed federal safety standards.
One key deception involved a $500,000 loan from Victim PH in October 2004, pitched as a bridge to sustain operations until a private stock offering closed in early 2005. Instead, Reichel used the cash to settle a breach-of-contract lawsuit and cover an overdue company loan. Similarly, in September 2005, he secured another $500,000 ‘bridge loan’ from Victim RB under false pretenses, then funneled $70,000 to himself and over $200,000 to earlier debts. By March 2006, he expanded the scam, convincing RB to open a $3 million line of credit—eventually siphoning more than $12 million from the victim alone.
As the scheme unraveled, Reichel doubled down on deception. He concealed assets during bankruptcy proceedings, lied under oath, and attempted to frame his victims as corporate raiders. The jury rejected that narrative outright. Assistant U.S. Attorneys David J. MacLaughlin and Joseph H. Thompson called the verdict a triumph of truth over manipulation: “The jury rejected the defendant’s false and callous argument that the main victims… were corporate raiders who had themselves victimized Reichel.”
Federal agencies hailed the outcome as a stark warning. “Justice is served, and Bryan Reichel is being held accountable,” said IRS Criminal Investigation’s Special Agent in Charge Shea Jones. FBI Special Agent in Charge Richard T. Thornton emphasized the bureau’s ongoing commitment: “The FBI will continue to pursue those who commit financial crimes.” Postal Inspector in Charge Craig Goldberg added that the use of the mail system to further the fraud was not overlooked—underscoring federal coordination in dismantling complex white-collar operations.
The conviction lays bare the anatomy of a long-running fraud: false promises, regulatory violations, and the systematic looting of investor trust. Reichel now faces years in federal prison as prosecutors move toward sentencing. For the victims, many of whom lost life savings, the verdict offers a measure of closure—but no return on what was stolen. The case stands as a grim reminder: in the world of high-stakes investment, the con sometimes wears a suit and calls himself a CEO.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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