A Skowhegan man who touted himself as “possibly the most disruptive force in any arena he enters” pleaded guilty Tuesday in U.S. District Court in Bangor 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 in front of Judge Lance E. Walker after agreeing to a plea deal Saturday that includes a prison sentence of no more than a year, according to federal court records.
The plea agreement resulted in federal prosecutors dropping several other charges against Reardon. He had entered a not guilty plea last year to not just the bank fraud charges but also counts of wire fraud, making false statements to a bank and perjury.
Reardon is the first person from Maine 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 meant to cover payroll costs, rental payments, utility fees, and interest payments on mortgages and other debt.
He was living in Brewer in 2020 at the time he submitted fraudulent paperwork to obtain federal loans and had leased office space in the Bangor area, according to an affidavit filed in court by an agent for the U.S. Department of the Treasury. He later moved to Skowhegan.
Reardon described himself on his Facebook page as the owner of nearly 100 international businesses, the affidavit said. He claimed that he was voted “one of the worlds [sic] most noteworthy entrepreneurs.”
He incorporated a business in Florida called Global Disruptive Technologies but it was principally based in Bangor, the affidavit said.
In his application for the PPP loan, Reardon claimed his monthly payroll was just under $24,000, which was later proven to be false. Reardon “knew this 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 in Florida a company called Choice Auto Sales Group.
“(Reardon) knowingly and materially falsely certified that the information and documentation he had provided was correct,” according to court documents.
Messages left with Reardon’s attorney were not returned 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 applied for from April to May 2020, one was granted. He is accused of using nearly $60,000 to cover personal expenses rather than for payroll or business-related needs, including a wedding band, men’s clothing, shaving products, toys and an LED barber pole light.
Prosecutors say his scheme came to an end in March 2021 when Reardon submitted an application for loan forgiveness to TD Bank that included false and fraudulent documents.
Outside of the federal case against him, Reardon has faced scrutiny for several of his business dealings, the Bangor Daily News has reported. He has had companies listed under his name that have failed to pay wages to nearly 100 employees, as well as tax and code violations, the newspaper reported. He’s paid about $100,000 in fines for labor violations.
Office space meant for Global Disruptive Technologies was condemned in April by Bangor officials after they deemed the space unfit because of a lack of heat and a working sprinkler system, according to the newspaper.
Reardon also was the landlord for a number of properties, although not the owner, in Dexter, Solon and elsewhere. Some of the properties were found to be in poor condition, with tenants reporting not having a toilet when they moved in, the newspaper reported.
Authorities will provide a pre-sentencing 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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