An Arizona gym owner with a taste for exotic supercars allegedly posed as a high-flying arms dealer holding lucrative foreign military contracts, defrauding investors who loaned him more than $10 million to manufacture a proprietary weapons system that never existed, according to federal authorities.
The Alleged Scheme
Brandon Aaron Kreutz, 40, who competed in McLaren Trophy America Pro-Am events and won the Papaya Cup, instead spent the money on a race car, membership in a racing club, a million-dollar home, luxury travel, an extensive gun collection, and dozens of luxury vehicles, according to an FBI affidavit unsealed Tuesday. The affidavit, attached to a criminal complaint filed in Tucson federal court, states that Kreutz also concealed some victims' funds in health-and-wellness business ventures and bank accounts owned by close associates, resulting in charges of wire fraud and money laundering.
Investor Victims
Beginning in 2023, Kreutz, who held himself out as the owner of various companies in the firearms and fitness industries, embarked on a scheme to obtain loans from at least three victims through fraudulent pretenses. He falsely presented himself as a former subcontractor of the U.S. government, the holder of a patent-pending firearms device with contracts to produce it, and a party to multi-million-dollar contracts with foreign governments for its purchase. In reality, Kreutz did not apply for or obtain a patent, controls no manufacturing equipment, and is not party to any such contracts, the affidavit states.
Luxury Spending
Kreutz took in $10,917,822.13 from victims and spent the money on himself. For instance, one victim sent Kreutz $2.5 million to help fulfill alleged military contracts; about one month later, Kreutz wired $1,150,517.96 to an Arizona title company for the purchase of a home in Oro Valley, a Tucson suburb.
Stolen Valor Allegations
Kreutz has faced previous accusations of fraud. In 2018, he was exposed by Don Shipley, a former Navy SEAL who tracks down stolen valor. According to Kreutz's official service record, he served five years as an E-3 in the U.S. Navy from 2004 to 2009 but was never a SEAL, despite claiming to be part of the non-existent "SEAL Team 9." Shipley told The Independent, "When you're telling someone you're a SEAL and you weren't, it's fraud. You're defrauding people."
Arrest and Release
Kreutz was arrested Wednesday and released the next day on a personal recognizance bond. He is forbidden from owning firearms, must participate in mental health counseling, and cannot travel out of state without permission. If convicted of wire fraud, he faces up to 20 years in prison; the money laundering count carries a maximum of 10 years. Attorney Ryan Moore, a public defender, did not respond to a request for comment.
