An Arlington-based business owner, Kiel Brendan Brandt, has pled guilty to wire fraud in a scheme that defrauded eight companies of over $2 million. Brandt, 34, operated Epsilon Acquisition Services, a mergers and acquisitions advisory firm. Between February 2021 and December 2022, he deceived clients about deal statuses and the company's finances.
Court documents reveal that Brandt falsely promised refunds if deals did not close and misled clients with various excuses when deals fell through. For instance, a client in Argentina paid Epsilon approximately $275,000 for services never rendered. Instead of refunding the money, Brandt fabricated stories about bank issues and technical complications.
Brandt further complicated matters by inventing an employee named "Steph" to explain internal miscommunications at Epsilon. He also suggested clients open U.S. bank accounts to facilitate fund transfers. Despite signing a contract acknowledging his debts in September 2022, Brandt failed to repay the funds owed.
In another case from September 2021, a company provided Epsilon with a $1 million bridge loan based on false representations by Brandt regarding Epsilon's debts. Instead of using the funds appropriately, he diverted over $700,000 for repayments to other clients and personal expenses.
Brandt solicited upfront fees under various names but used these payments for operating expenses and personal gains instead of their intended purposes. Overall, he defrauded eight companies out of $2,002,750 while repaying only $193,323. A ninth company was left without repayment for advances totaling $175,000.
Under his plea agreement, Brandt is required to pay restitution amounting to $1,984,426. He faces up to 20 years in prison with sentencing scheduled for April 3, 2025. Sentences for federal crimes are typically less than maximum penalties as determined by U.S. Sentencing Guidelines and statutory factors.
Jessica D. Aber from the Eastern District of Virginia's U.S Attorney’s Office announced the plea acceptance alongside Sean Ryan from the FBI Washington Field Office's Criminal and Cyber Division after it was accepted by U.S District Judge Patricia Tolliver Giles.
Assistant U.S Attorneys Jack A Morgan and Kenneth R Simon Jr are prosecuting this case.
Further information can be found on websites associated with both the U.S Attorney’s Office for Eastern District Virginia or via PACER under Case No: 1:24-cr-250.