Bangor, Maine: A Skowhegan man pleaded guilty today in federal court to a bank fraud scheme stemming from his applications for Paycheck Protection Plan (PPP) loans, U.S. Attorney Darcie N. McElwee announced.
According to court records Nathan Redon, 44, formerly of Brewer, Maine, owned and controlled Global Disruptive Technologies Inc., a Bangor-based company. In April 2020, Reardon secured a $59,145 PPP loan for Global Disruptive Technologies Inc. using false employee salary information and false payroll documentation. Reardon then inappropriately spent PPP funds on items and expenses he knew were not covered by the program. After receiving the first loan, Reardon submitted further fraudulent PPP applications to the same bank in April and May 2020. Two of the applications were for businesses that had no active business operations, employees or mass salary.
The CARES Act (Coronavirus Aid Relief and Economic Security Act) is a federal law, enacted in March 2020, that was designed to provide emergency financial assistance to millions of Americans who have suffered the economic effects of the COVID pandemic. -19. One of the sources of relief provided by the CARES Act was the authorization of repayable loans to small businesses for the maintenance of employment and certain other expenses through the PPP.
Businesses were required to use PPP loan proceeds for payroll costs, mortgage interest, rent and utilities. The PPP allowed interest and principal to be waived if companies spent the proceeds of these expenses within a set time frame and used at least a certain percentage of the funds for payroll expenses.
Reardon was indicted by a federal grand jury in Bangor on May 13, 2021. He faces up to 30 years in prison and a $1,000,000 fine. He also faces up to five years of probation. Reardon will be sentenced after the completion of a pre-sentence investigation report by the US Probation Office. A federal district judge will determine any sentence after considering US sentencing guidelines and other statutory factors.
The matter was investigated by the Treasury Inspector General for Tax Administration and the US Small Business Administration.
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