Skowhegan man pleads guilty to defrauding federal pandemic loan program
A Skowhegan man who has portrayed himself as “probably the most disruptive force in any arena he enters” pleaded guilty in Bangor U.S. District Court on Tuesday to five counts of bank fraud related to the misuse of funds from a federal pandemic loan program.
Nathan Reardon, 44, pleaded guilty to the charges before Judge Lance E. Walker after accepting a plea deal on Saturday that includes a maximum prison term of one year, according to federal court records.
The plea deal led federal prosecutors to drop several other charges against Reardon. He had pleaded not guilty last year not only to the bank fraud charges, but also to the counts of wire fraud, making false statements to a bank and perjury.
Reardon is the first Maine person charged with defrauding the Paycheck Protection Program that was intended to encourage businesses to retain employees during the early months of the coronavirus pandemic. The loans were intended to cover payroll costs, rent, utility costs, and interest payments on mortgages and other debts.
He was living in Brewer in 2020 at the time he submitted fraudulent documents for federal loans and rented office space in the Bangor area, according to an affidavit filed in court by a US Treasury Department official. He then moved to Skowhegan.
Reardon described himself on his Facebook page as the owner of nearly 100 international businesses, according to the affidavit. He claimed he had been voted “one of the worlds [sic] most outstanding entrepreneurs.
He incorporated a company in Florida called Global Disruptive Technologies, but it was primarily based in Bangor, according to the affidavit.
In his PPP loan application, Reardon claimed his monthly payroll was just under $24,000, which was later proven to be untrue. Reardon “knew that figure was inflated” and knew that the tax documents submitted “misrepresented the actual wages” paid to employees through Global Disruptive Technologies, according to the affidavit. He also incorporated a company in Florida called Choice Auto Sales Group.
“(Reardon) knowingly and materially falsely certified that the information and documents he provided were correct,” according to court documents.
Messages left with Reardon’s attorney were not returned on Tuesday.
Reardon was first charged in April 2021 with submitting false information to apply for four PPP loans, according to the affidavit. Of the four loans Reardon requested from April to May 2020, one was granted. He is accused of using nearly $60,000 to cover personal expenses rather than payroll or business-related needs, including a wedding ring, men’s clothing, shaving products, toys and a lamp led for barber.
Prosecutors say his scheme ended in March 2021 when Reardon submitted a loan forgiveness application to TD Bank that included false and fraudulent documents.
Outside of the federal case against him, Reardon has come under scrutiny for several of his business dealings, the Bangor Daily News reported. He had businesses listed under his name that failed to pay the salaries of nearly 100 employees, as well as tax and code violations, the newspaper reported. He paid about $100,000 in fines for labor violations.
Office space for Global Disruptive Technologies was condemned in April by Bangor officials after they deemed the space unsuitable due to lack of heat and a functioning sprinkler system, according to the newspaper.
Reardon was also the owner of a number of properties, but not the landlord, in Dexter, Solon and elsewhere. Some of the properties were found to be in poor condition, with tenants saying they had no toilets when they moved in, the newspaper reported.
Authorities will provide a pre-sentence report before Reardon is sentenced and that is expected to take about three months, according to a spokesperson for the U.S. Attorney’s Office in Maine.
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