ALEXANDRIA, Va. – A previously convicted felon was arrested
last night on charges related to defrauding investors of a local newspaper,
unlawful possession of firearms by a previously convicted felon, and making
false statements to the FBI.
According to allegations in the indictments, Brian Thomas
Reynolds, 52, of Leesburg, defrauded both investors and lenders to a company
that he controlled that operates a local newspaper in Loudoun County. As
alleged in that indictment, Reynolds made several materially false and
fraudulent representations to actual and potential investors and lenders
regarding the existence and value of advertising contracts held by the company,
and created fake advertising contracts when no such agreements existed.
Reynolds also allegedly made materially false and fraudulent representations
regarding the company’s historical advertising revenues and the amount of money
that Reynolds and others had invested in the company, falsely claimed that
another individual had agreed to “match” the investments of certain investors,
falsely claimed to at least one investor that the company lacked any debt,
understated the amount of debt owed by the company to other investors, and
materially overstated the amount of money held by the company in its bank
accounts.
The indictment further alleges that Reynolds created altered
loan documentation to defraud an individual who had lent money to the company
by changing the language of the loan agreement to conditions that were
materially more favorable to Reynolds and his company than had actually been
agreed to by the lender. According to the indictment, Reynolds also made
materially false representations regarding the number of issues previously
distributed by the newspaper, and falsely claimed that a prominent
businessperson served on the company’s advisory board, when in fact that
individual held no position on the board and played no role in the operation of
the business.
A second indictment charges Reynolds, who is a convicted
felon, with unlawfully possessing eight firearms and associated ammunition, and
with making false statements to the FBI regarding his use of firearms.
Reynolds is charged with 11 counts of wire fraud, one count
of unlawful possession of firearms by a convicted felon, and one count of
making false statements. If convicted, he faces a maximum penalty of 20 years
in prison for each count of wire fraud, a maximum penalty of 10 years in prison
for the unlawful possession of firearms, and a maximum penalty of 5 years in
prison for making false statements. Actual sentences for federal crimes are
typically less than the maximum penalties. A federal district court judge will
determine any sentence after taking into account the U.S. Sentencing Guidelines
and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which
is the centerpiece of the Department of Justice’s violent crime reduction
efforts. PSN is an evidence-based
program proven to be effective at reducing violent crime. Through PSN, a broad
spectrum of stakeholders work together to identify the most pressing violent
crime problems in the community and develop comprehensive solutions to address
them. As part of this strategy, PSN focuses enforcement efforts on the most
violent offenders and partners with locally based prevention and reentry
programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern
District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal
Division, FBI Washington Field Office, made the announcement. Assistant U.S.
Attorney Matthew Burke and Special Assistant U.S. Attorney Russell L. Carlberg
are prosecuting the case.
A copy of this press release is located on the website of
the U.S. Attorney’s Office for the Eastern District of Virginia. Related court
documents and information is located on the website of the District Court for
the Eastern District of Virginia or on PACER by searching for Case Nos.
1:19-cr-70 and 1:19-cr-71.
An indictment contains allegations that a defendant has
committed a crime. Every defendant is presumed to be innocent until and unless
proven guilty in court.
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