MINNEAPOLIS — While none of the fraud victims who talked to KARE 11 Investigates had ever met Charles Fields, they all knew his voice.
They took countless phone calls and recorded voice messages from a man who called himself Michael Brunn, convincing them the company Watertek Marketing was offering a great money-making opportunity selling water filtration systems.
While pleading guilty to wire fraud in federal court in Minneapolis on Wednesday, Fields admitted "Michael Brunn" was one of several aliases he used to falsely give his companies an air of credibility.
In one recorded voice message while posing as Michael Brunn, Fields said: "We're not like some company in a garage that said, 'Send us money.' That's not what it is."
At his change of plea hearing, however, Fields admitted that is essentially what his companies amounted to. He would frequently change company names — from Watertek Marketing to Water Innovations Group to Mile High H20 to The New H20.
In the end, Fields scammed 250 people out of $638,739 between 2015 and 2020, he admitted to Judge David Doty.
The victims responded to job postings on Craigslist that promised guaranteed salaries for selling Kangen water ionizers as sales representatives under the umbrella of the legitimate company Enagic.
Fields now admits he misrepresented his role with that company.
Enagic told KARE 11 Investigates in 2019 that they had “terminated” Fields' companies after discovering “unscrupulous and unauthorized business activities.”
The victims each paid Fields $3,000 to $6,000 for the water ionizer machine that they'd be trained to sell. Those water machines never arrived and the training and guaranteed salaries never materialized either.
Those victims felt comfortable sending the money because Fields assured them he offered a 90-day refund policy and their money would be held in escrow.
"I feel like I was Ponzi-schemed," Doug Pierce from Kansas City told KARE 11 News after he never received his money.
In court, Fields admitted operating a Ponzi scheme of sorts by partially paying back some victims with money provided by others — all while living a normal suburban family life in his home in Blaine.
In his own words, Fields told the judge, "I enacted a scheme fraudulently that recruited individuals to income opportunities that never materialized... Promises never kept. Those victims didn't receive refunds or compensation."
"I hope they throw the book at him. I hope he gets everything he deserves. Sorry," Pierce said.
At Fields' sentencing hearing, which has yet to be scheduled, the U.S. Attorney's Office will argue the sentencing guidelines call for 63-78 months (about 5 to 6 years) in prison, while Fields' attorney Joe Friedberg will argue the guidelines call for 33-41 months (2 to 3 years) in prison.
The main point of dispute between the sides is the number of victims who suffered "significant financial hardship." Prosecutors pin that number on 25 or more victims while the defense claims it's closer to 10.
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