A Skowhegan man charged with criminal fraud involving four alleged attempts to cash in on the federal Paycheck Protection Program was released on bond during an initial court appearance Thursday morning.
Nathan Reardon, 43, was charged last week with wire fraud and attempted wire fraud. Reardon allegedly submitted false information to apply for four of the PPP loans, the forgivable loans intended for small businesses struggling through the coronavirus pandemic, according to a criminal complaint filed Thursday at U.S. District Court in Bangor.
Reardon, who is being represented by lawyer Hunter J. Tzovarras of Bangor, was not asked Thursday to enter pleas on the charges because he had not been indicted by a federal grand jury, according to prosecutors.
Reardon posted a $5,000 bond Thursday and was released. The conditions of his release include turning over his passport to the court and not applying for any sort of pandemic-related financial assistance without the approval of Pre-Trial Services and U.S. Probation & Parole.
Reardon must also seek approval before opening new lines of credit or incurring new credit card charges. He must also continue to seek employment, report to his probation officer and notify the officer and Pre-Trial Services of any dealings with police.
Each of the four loans for which Reardon applied between April 3 and May 5, 2020, was for slightly more than $59,000. Of the four, one loan was granted. After using a majority of the funds on personal expenses, Reardon applied to have the loan forgiven.
The maximum penalty on each charge is 30 years in prison and a $1 million fine, according to officials. Additionally, the charges could up to five years of supervised release.
An affidavit released last week alleges Reardon bought a wedding band, men’s clothing, shaving products, toys and an LED barber pole light. The affidavit also alleges he donated $5,000 to his church.
The court document alleges little to none of the $59,000 was used to pay workers.
The affidavit, filed by Special Agent William Phelan of the U.S. Treasury Department, alleges that in addition to the fraud committed involving the PPP loan applications and forgiveness, Reardon attempted to commit wire fraud in a separate scheme in which he tried to obtain Small Business Administration Economic Injury Disaster Loans for two of his businesses — Choice Auto Sales and Membership Holdings. Neither of those businesses had employees, operations or gross revenues, according to Phelan.
Reardon has incorporated more than 20 businesses over the past decade, “many of which are inactive or have been dissolved,” according to court documents.
The complaint against Reardon also includes this from his Facebook page: “Nathan Reardon is possibly the most disruptive force in any arena he enters. Triple (automotive service excellence) master and owner of nearly 100 international businesses. He never settles for less than the best. Voted one of the worlds most noteworthy entrepreneurs.”
PPP loans are intended to be used for payroll costs, rent payments, utility payments and interest payments on mortgages and other debts, according to court documents. Reardon applied for the loans under the guise of Global Disruptive Technologies Inc., Choice Auto Sales Group LLC and Membership Holdings Inc. An affidavit signed by an investigator in the case alleges Reardon presented false information and submitted fabricated payroll information.
As part of Phelan’s investigation, individuals previously employed by Reardon were interviewed. One of the employees had worked as Reardon’s office assistant and performed bookkeeping functions on a part-time basis.
This employee claimed to have received minimum wage while working part time for Global Disruptive Technologies from January through March 2020, and was never paid for the first three months of 2020. Reardon still owes the employee money for the work, according to court documents.
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