Skowhegan man accused of using PPP loan to buy cowboy boots now faces state theft charge
The first Mainer accused of fraudulently obtaining a paycheck protection program loan also faces a state level charge of theft resulting in more than $ 10,000 he still owes plumbers, carpenters, electricians, construction workers and laborers.
Nathan Reardon, 43, of Skowhegan and formerly of Brewer reportedly refused to pay 17 people and two companies between August 14, 2020 and February 27, 2021, according to Somerset County Prosecutor Maeghan Maloney, who said his office would prove that Reardon owed over $ 22,000 in bills for renovations on a commercial property.
He was indicted Thursday by the Somerset County grand jury with theft of services.
An appearance date has not been set.
The service charge theft marks Reardon’s last court case this year.
Reardon filed for bankruptcy in April in an attempt to reorganize his debt after being accused of defrauding the Paycheck Protection Program, a business aid program adopted by Congress at the start of the pandemic.
His bankruptcy filing lists nearly 200 creditors, many of whom were listed as former employees who owed back wages. The claims register also showed he owed thousands of dollars to plumbers, electricians, security companies, construction companies, utilities, cable companies, cell phone providers and individuals who gave him personal loans.
Reardon owed $ 36,000 in federal and state tax arrears and over $ 55,000 in past rents for the Bangor and Brewer commercial properties. The bankruptcy filing also says he owes the government $ 90,000 for the P3 loan – $ 60,000 for the loan and $ 30,000 for the money it mistakenly received and spent.
The bankruptcy case was dismissed in July after Reardon failed to reimburse taxes to the state of Maine.
Reardon appears to have abandoned his plan to open a Taco Shack restaurant at 95 Center Street in Bangor, similar to the restaurant he operated in Newburgh, which is now closed.
Reardon applied for the Paycheck Protection Program loan for his company, Global Disruptive Technologies Inc., on April 3, 2020, a week after Congress passed the CARES Act that provided money for business loans. through private lending institutions, according to the affidavit.
Reardon applied for the loan from TD Bank in Bangor where he had a checking account.
In applying for the loan, Reardon allegedly lied about the company’s payroll and monthly expenses. When the loan was approved and the money transferred to his account on April 22, 2020, he had a negative balance of over $ 4,000, according to the complaint.
Eight days later, Reardon allegedly applied for a second PPP loan using the same false information. The bank denied that request but mistakenly paid an additional $ 59,145 into Reardon’s account on May 4, 2020, according to court documents. Two days later, TD Bank identified the error and froze the remaining $ 28,000 in the account.
Reardon’s purchases with the illegally obtained loan included a 14k yellow gold men’s wedding ring, clothing, shaving supplies, toys, an LED barber lamp and a pair of caiman skin cowboy boots, according to an affidavit from the court. Caymans are a related species to alligators found in Central and South America.
He listed some of these items as assets in his bankruptcy filing.
In May, Reardon pleaded not guilty in Bangor U.S. District Court to five counts of bank fraud, three counts of attempted wire fraud, two counts of misrepresenting a bank and one count of perjury.
The perjury charge stemmed from his first court appearance in April, not the loan process. Reardon allegedly lied about his income on the financial form used to determine whether a defendant qualified for duty counsel. He entered his income as zero on the form but entered monthly income when he filed for bankruptcy, according to the indictment.
If convicted in federal court, Reardon faces up to 30 years in prison and a fine of up to $ 1 million. He could also be ordered to repay the loan amount, including the money he received in error.
He faces up to 10 years in prison and a fine of up to $ 20,000 on the state charge. Reardon could also be ordered to pay restitution if found guilty.