Miles City man charged with defrauding investors

MILES CITY (AP) – A Miles City man faces six felony charges alleging he got people to invest $2 million in his “house flipping” business, but used most of the money for his personal expenses.

The Miles City Star reports Richard Brandt is charged with exploitation of an elderly person, theft by embezzlement, failure to register a security and as a security salesperson, fraudulent practices and operating a pyramid scheme.

Charging documents allege Brandt told investors he was going to buy, remodel and sell homes in Nebraska and Missouri.

In June, a state judge issued a restraining order preventing Brandt from seeking any more investments. The state securities commissioner alleged he had written $73,000 in unauthorized checks on a 100-year-old woman’s checking account.

Before the charges were filed, Brandt agreed to pay more than $2 million in restitution.