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PureChoice founder indicted on fraud charges [Star Tribune (Minneapolis)](Star Tribune (Minneapolis, MN) Via Acquire Media NewsEdge) Sept. 18--The founder of Burnville-based PureChoice, a company now out of business that once made indoor air testing equipment, has been indicted by a federal grand jury on charges of defrauding investors of more than $2.5 million. The indictment, returned Tuesday in U.S. District Court, accuses Bryan Reichel, 59, the founder and CEO of the company, of lying to two investors about the company's prospects during a period from 2007 to 2009, inducing them to invest and then using the money to pay off other investors, purchase stock in other companies or pay off his personal credit card debt. Reichel, who faces seven counts of wire fraud, is scheduled to appear on the charges Oct. 1 before Magistrate Judge Steven E. Rau in St. Paul. "Mr. Reichel denies any impropriety and wrongdoing in regard to these accusations," said his attorney, Charles Hawkins of St. Paul. PureChoice, founded in 1992, sold air quality monitors for commercial buildings. A 2010 Star Tribune article about the company said it had 15 employees and annual revenue of $800,000 with expectations for major growth. The Better Business Bureau says the company is no longer in business. According to the charges, Reichel concealed from investors that its "Nose Monitors" didn't pass federal testing for electromagnetic emissions. He also sent investors a U.S. General Services Administration publication that had been altered to indicate it mentioned PureChoice by name, implying an agency endorsement, the indictment said. Reichel also told investors that PureChoice was working to expand its relationship with 3M in 2008, a time when that company had given notice not to renew its agreements to work with PureChoice, the indictment said. While making these promises Reichel encouraged two unnamed investors repeatedly to loan the company money or invest in its stock, the indictment said. The indictment said the government will seek at least $3.4 million in forfeiture from Reichel. A news release issued by the U.S. attorney's office said the fraud amounted to more than $2.5 million. "Protecting the citizens of Minnesota from financial predators is one of my top priorities," U.S. Attorney Andrew Luger said in a statement. David Shaffer -- 612-673-7090 -- @ShafferStrib ___ (c)2014 the Star Tribune (Minneapolis) Visit the Star Tribune (Minneapolis) at www.startribune.com Distributed by MCT Information Services |