Date: 09-13-2024

Case Style:

United States of America v. Stanislav Bril, aka “Stan Bril” and “Slava Bril”

Case Number: 2:18-cr-00309

Judge: John M. Younge

Court: The United States District Court for the Eastern District of Pennsylvania

Plaintiff's Attorney: The United States Attorney’s Office for Philadelphia

Defendant's Attorney:

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Description:

Philadelphia, Pennsylvania criminal defense lawyer represented the Defendant charged with Running Ponzi Schemes, Money Laundering, and Stealing Over $6 Million in Federal Pandemic Relief Funds
Bucks County Man Sentenced to Over 11 Years in Prison for Running Ponzi Schemes, Money Laundering, and Stealing Over $6 Million in Federal Pandemic Relief Funds

Stanislav Bril, aka “Stan Bril” and “Slava Bril,” age 41, of Jamison, Pennsylvania, was charged with engaging in multiple fraud schemes, including the theft of more than $6 million in federal pandemic relief funds. Judge Younge also ordered that Bril be remanded into custody following the hearing.

On October 30, 2023, Bril pleaded guilty to three counts of mail fraud, 11 counts of wire fraud, five counts of bank fraud, and five counts of money laundering, all arising from his operation of two different Ponzi schemes, his false applications for bank loans, his defrauding of the Small Business Administration’s Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program, and related conduct.

From October 2011 to August 2014, Bril operated a Ponzi scheme through his company, Mortgage Consultant Group (“MCG”), obtaining over $1 million from investors and using much of these funds for his own benefit and to perpetuate the scheme. In his marketing materials and his sales pitches to investors, Bril falsely claimed that these investments would enable MCG to make loans on real estate and construction projects or enable MCG to make short-term, high interest loans. Bril falsely promised that investors would obtain regular returns, or “interest,” on their capital loan investments in MCG. Rather than use investors’ funds as promised, Bril used the vast majority of the money to pay himself, his family, and his personal expenses – including his gambling losses at casinos – and to perpetuate his scheme by occasionally making “interest” payments to some investors.

From October 2018 to June 2021, Bril fraudulently obtained a $750,000 line of credit from a bank headquartered in Scranton, Pa., for another company he created, The Bril Group, Inc. (“TBG”). In order to secure the line of credit, Bril made false statements about TBG’s business, the number of TBG employees he was hiring, and the intended use of the line of credit. Once he obtained the line of credit, Bril caused those funds to be spent on unauthorized purchases and laundered a significant portion of those funds through various bank accounts.

From April 2020 to March 2021, Bril fraudulently obtained over $6.7 million from the Small Business Administration’s Economic Injury Disaster Loan (“EIDL”) and Paycheck Protection Programs (“PPP”) by making false statements about the number of employees of, the wages and payroll taxes paid by, and the intended use of the loan proceeds by several companies that he created. Bril falsely claimed that these companies – TBG, MCG LOAN, and SAB Services LLC – had several hundred employees, when, in reality, none of these companies had more than one employee.

In his PPP and EIDL applications, Bril submitted purportedly historical tax forms with inflated payroll information for nonexistent employees that had never actually been filed. In addition, Bril falsely denied that there were criminal charges pending against him at the time of his applications. In fact, federal charges were already pending against Bril for his perpetration of the Ponzi scheme detailed above. Once he fraudulently obtained these government funds, Bril wired them to other individuals, cryptocurrency platforms, and a title company towards the purchase of a Los Angeles condominium. In addition, Bril spent fraud proceeds on luxury vehicles, a boat, and extravagant vacations. He also laundered a significant portion of those funds through various bank accounts and transactions.

From July 2019 to at least August 2021, Bril revived MCG and used it to perpetrate yet another Ponzi scheme, obtaining millions of dollars in loans from several investors and using these funds for his own benefit – including paying for his own home renovations – and to perpetuate the scheme. Bril initially took short-term loans from investors and repaid investors with high interest rates to lull them into a false sense of security and to obtain larger loans from them. In his sales pitches to investors, Bril falsely claimed that their loans would enable MCG to make loans on real estate and construction projects and/or enable MCG to make short-term, high-interest loans. However, Bril provided investors with few details of these purported projects and declined to identify his purported borrowers. He often encouraged investors to “roll over” their loans into new deals, rather than take their payouts per their agreements with Bril.

When investors asked him whether he had any claims, lawsuits, or legal proceedings filed against him, Bril falsely answered in the negative, despite his knowledge that federal charges were already pending against him for his perpetration of the earlier Ponzi scheme. When Bril began missing the agreed repayments to investors, he provided bogus explanations for his theft of their loans, including that he was waiting for a wire to clear, that he waiting for a check to be mailed from his bank, that he was looking for a new bank, that his new bank was giving him a “hard time,” and that he was suffering from a variety of health emergencies and personal tragedies that were somehow preventing him from making timely paying to the investors. Rather than use investors’ funds as promised, Bril used the funds to pay himself, his family, and his personal expenses – including trading in digital currencies – and to perpetuate his schemes by occasionally making “interest” payments to some investors.

“Stanislav Bril is a rampant and remorseless scammer,” said U.S. Attorney Romero. “Over the course of a decade, he blithely defrauded everyone from individual investors — many of whom lost their life savings or kids’ college funds — to a community bank, to the U.S. government and the millions of taxpayers who fund it. Meantime, he was shopping for Bentleys and boats. We and our partners are committed to holding con artists like Bril accountable, both to keep them from claiming more victims and to reinforce that crime truly doesn’t pay in the end.”

“While conducting his various schemes, the defendant stole over $6 million. The money was intended to support legitimate businesses suffering losses due to the COVID-19 pandemic,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Philadelphia. “The FBI, in collaboration with our law enforcement partners, will continue to hold accountable those who exploit government programs for personal gain.”

The case was investigated by the FBI and IRS - Criminal Investigation and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Matthew T. Newcomer.

Outcome:

Defendant was found guilty and sentenced to 135 months in prison, three years of supervised release, over $14 million in restitution, and a $2,400 special assessment

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Defendant's Experts:

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