An Arlington-based business owner has admitted to wire fraud in a scheme that defrauded eight companies of over $2 million. Kiel Brendan Brandt, 34, who operated Epsilon Acquisition Services, a mergers and acquisitions advisory firm, pleaded guilty to the charges yesterday.

Court documents reveal that between January 2020 and December 2022, Brandt misled clients about the status of deals and the financial state of Epsilon. He falsely promised refunds if deals did not close and claimed refunds had been or would soon be issued.

Brandt allegedly told clients that delays were due to lenders or partners needing additional documentation. In one case, an Argentine company paid approximately $275,000 for a deal that never closed. Instead of returning the funds, Brandt provided excuses involving bank processing issues and technical complications with fund transfers. He even fabricated a confirmation number by initiating then canceling a bank transfer.

To further complicate matters, Brandt created a fictitious employee named "Steph" to explain internal miscommunications at Epsilon. He suggested opening U.S. bank accounts as a solution but failed to provide any refund payments.

In another instance from September 2021, Brandt secured a $1 million bridge loan under false pretenses regarding Epsilon's debts. Instead of using the funds for their intended purpose, he redirected over $700,000 towards repaying other clients and used remaining funds for personal expenses.

Brandt also collected upfront fees under various names such as "good faith deposits" and "loan commitment fees," using these payments for operating expenses and personal accounts rather than their designated purposes.

Overall, Brandt defrauded eight companies out of $2,002,750 while repaying only $193,323. Additionally, Epsilon failed to return $175,000 in advances to another company. As part of his plea agreement, Brandt will pay restitution totaling $1,984,426.

He is scheduled for sentencing on April 3, 2025. Although federal crimes carry severe penalties—up to 20 years in this case—actual sentences are often less than the maximum allowed by law after considering U.S. Sentencing Guidelines and statutory factors.

The announcement was made by Jessica D. Aber from the Eastern District of Virginia's U.S. Attorney's Office alongside Sean Ryan from the FBI Washington Field Office’s Criminal and Cyber Division following acceptance of the plea by U.S District Judge Patricia Tolliver Giles.

Prosecutors handling this case include Assistant U.S Attorneys Jack A Morgan and Kenneth R Simon Jr., with related court documents available through official district websites or PACER using Case No:1:24-cr-250