Kyle William Brenizer, Wire Fraud and Money Laundering, Minnesota 2020

ST. PAUL, MN – Kyle William Brenizer, 32, of St. Paul, is facing serious federal charges after allegedly pilfering $841,000 in Paycheck Protection Program (PPP) funds. U.S. Attorney Erica H. MacDonald announced the unsealing of the indictment today, accusing Brenizer of a brazen scheme to exploit COVID-19 relief intended for struggling small businesses. The indictment, initially returned August 19, 2020, details two counts of wire fraud and two counts of money laundering.

Brenizer, the alleged owner and manager of True-Cut Construction LLC, located in Brooklyn Park, Minnesota, was already in hot water with authorities before the PPP application. The Minnesota Department of Labor and Industry issued a cease and desist order against True-Cut in August 2018, and the company’s contractor license expired in December 2019, remaining unrenewed. Despite this shaky foundation, Brenizer attempted to secure a massive $841,000 loan, first submitting a rejected application on May 1, 2020.

Undeterred, Brenizer allegedly doubled down, submitting a second application on May 12, 2020, this time masking his involvement by falsely claiming another individual owned 90% of True-Cut. The application fabricated payroll figures, claiming an average monthly payroll of $336,400 for 30 employees, backed by falsified bank statements and IRS documents. Crucially, the indictment alleges Brenizer knowingly lied about not facing any pending criminal charges, despite multiple felony charges in Minnesota for check forgery, identity theft, and theft by swindle. This deception proved successful; the second application was approved on May 13, 2020, and the $841,000 landed in his hands.

But the funds weren’t used to save a legitimate business. According to the indictment, Brenizer allegedly transferred approximately $650,000 to an account unrelated to True-Cut. He then splurged on personal luxuries: a $29,000 Harley-Davidson motorcycle, over $1,000 in golf expenses, and a slew of other retail and entertainment purchases. This isn’t just about bad business; it’s about stealing from a program designed to keep families afloat during a crisis.

The Paycheck Protection Program, authorized under the CARES Act passed on March 29, 2020, aimed to provide a lifeline to businesses reeling from the economic impact of the COVID-19 pandemic. The program offered forgivable loans with low interest rates, but with strict requirements for how the funds could be spent – payroll, rent, utilities, and mortgage interest. Brenizer’s alleged actions represent a direct betrayal of that intent.

Brenizer was taken into custody today and appeared before Magistrate Judge Becky R. Thorson. He is being held pending a formal detention and arraignment hearing scheduled for Wednesday, August 26. The Department of Justice urges anyone with information regarding COVID-19 fraud to report it immediately. This case serves as a stark reminder that those who attempt to exploit crisis for personal gain will be pursued and held accountable.

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