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Maine business owner convicted of federal PPP fraud


A Skowhegan man was sentenced in federal court to 20 months in prison on Wednesday for a bank fraud scheme related to his applications for federal Paycheck Protection Program loans. Nathan Reardon, 44, pleaded guilty in July. He will have three years of probation upon his release from prison. Reardon was indicted by a federal grand jury in Bangor on May 13, 2021. He had faced up to 30 years in prison and a $1,000,000 fine. During sentencing, U.S. District Judge Lance E. Walker called Reardon’s conduct a “fundamental breach of public trust during a time of public crisis.” According to court records, Reardon owned and controlled Global Disruptive Technologies Inc., a Bangor-based company. . In April 2020, prosecutors say Reardon secured a $59,145 PPP loan for Global Disruptive Technologies Inc. using false employee salary information and false supporting payroll documents. 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 companies that had no active business operations, employees or mass salary. Under the Coronavirus Aid Relief and Economic Security Act, businesses were required to use proceeds from the Paycheck Protection Program loans for payroll costs, mortgage interest, rent and utilities. The Paycheck Protection Program allowed interest and principal to be waived if companies spent the proceeds of these expenses within a specified time frame and used at least a certain percentage of the funds for payroll expenses. WMTW also reported a history of wage violations involving Reardon. Two companies he ran were cited for 698 wage violations over the past two years by the Maine Department of Labor.

A Skowhegan man was sentenced in federal court to 20 months in prison on Wednesday for a bank fraud scheme related to his applications for federal Paycheck Protection Program loans.

Nathan Reardon, 44, pleaded guilty in July. He will have three years of probation upon his release from prison.

Reardon was indicted by a federal grand jury in Bangor on May 13, 2021. He had faced up to 30 years in prison and a $1,000,000 fine.

In imposing his sentence, U.S. District Judge Lance E. Walker called Reardon’s conduct a “fundamental breach of public trust during a time of public crisis.”

According to court records, Reardon owned and controlled Global Disruptive Technologies Inc., a Bangor-based company. In April 2020, prosecutors say Reardon secured a $59,145 PPP loan for Global Disruptive Technologies Inc. using false employee salary information and false supporting payroll documents. 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 companies that had no active business operations, employees or mass salary.

Under the Coronavirus Aid Relief and Economic Security Act, businesses were required to use proceeds from the Paycheck Protection Program loans for payroll costs, mortgage interest, rent and utilities. The Paycheck Protection Program allowed interest and principal to be waived if companies spent the proceeds of these expenses within a specified time frame and used at least a certain percentage of the funds for payroll expenses.

WMTW also reported a history of wage violations involving Reardon. Two companies he ran were cited for 698 wage violations over the past two years by the Maine Department of Labor.


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