Arizona man arrested for allegedly defrauding victims out of $10.9M in firearms scheme

An Arizona man was arrested Tuesday after allegedly defrauding three victims out of approximately $10.9 million through a phony firearms production and government contract scheme, federal authorities said.

Brandon Aaron Kreutz, 40, of Oro Valley, faces federal charges of wire fraud and money laundering following his arrest by federal agents. Kreutz, who was formerly known as Brandon Aaron Moushey, made his initial appearance in federal court on Wednesday.

According to a criminal complaint, Kreutz operated under multiple business entities, including Brandon Kreutz Custom LLC (doing business as BKC Firearms), Balor Defense LLC, Vice Manufacturing, and Vice Fitness Inc.

Investigators allege that between May 2023 and the present, Kreutz convinced victims to loan him millions of dollars by falsely claiming to be a former U.S. government subcontractor. He allegedly told investors he held a patent-pending firearms device and had secured lucrative, multi-million-dollar manufacturing and sales contracts with foreign governments.

Kreutz promised victims high returns and loan repayments once the device was produced and sold, federal prosecutors said.

In reality, authorities said Kreutz never applied for a patent, lacked the equipment needed to manufacture the device and had no contracts in place with any foreign entities.

Instead of funding production, Kreutz allegedly used the $10.9 million to bankroll a lavish lifestyle. According to the complaint, the stolen funds were spent on a million-dollar home, extensive residential upgrades, dozens of luxury and exotic vehicles, a race car, and a membership at a racing club. Prosecutors also allege he used the money to buy firearms, accessories and travel.

To hide the illicit funds, Kreutz allegedly funneled portions of the victims’ money into health and wellness business ventures and bank accounts owned by close associates, investigators said.

The case is being investigated by the FBI Phoenix Division’s Tucson Office and IRS-Criminal Investigation. Assistant U.S. Attorney Mary Sue Feldmeier is handling the prosecution for the District of Arizona.

Authorities believe there may be additional victims. Anyone with information regarding the alleged scheme or who believes they may have been defrauded is urged to contact the FBI at 1-800-CALL-FBI or submit a tip online.

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