Yarmouth Man Cavanaugh Gets 3 Years for Fraud & Identity Theft

PORTLAND, Maine – John J. Cavanaugh, Jr., 53, formerly of Yarmouth, Maine, is headed to federal prison after being sentenced yesterday in U.S. District Court for a calculated scheme involving identity theft and fraudulent applications to the Small Business Administration (SBA). Judge Nancy Torresen handed down a three-year prison sentence, followed by three years of supervised release, and ordered Cavanaugh to pay back over $244,000 to those he victimized.

The case, pieced together from court records, reveals a pattern of deceit stretching back to 2016. Cavanaugh brazenly filed for Social Security disability benefits for his minor son, falsely claiming the boy had lived with him since birth. This was a complete fabrication; neither the child nor the child’s mother had ever resided with Cavanaugh. To bolster his fraudulent claim, Cavanaugh forged a letter purportedly from the boy’s mother, stating they were both living with him – all without her knowledge or consent. This charade continued until June 2018, when the mother discovered the illicit benefits and alerted the Social Security Administration.

As if that wasn’t enough, Cavanaugh doubled down on his criminal behavior during the COVID-19 pandemic. In April 2020, he applied for an Economic Injury Disaster Loan (EIDL) through the SBA, intended to support legitimate businesses struggling through the crisis. The application specifically asked if he was facing any criminal charges. Cavanaugh lied, answering “No.” The truth? He was already under indictment in federal court and aware that committing another federal felony while on release would trigger additional penalties. He gambled, and he lost.

The investigation, led by the FBI with crucial assistance from the SSA Office of Inspector General and the U.S. Small Business Administration, exposed Cavanaugh’s web of lies. Federal investigators meticulously documented the forged documents, the false statements, and the financial gains Cavanaugh reaped from his deceit. The evidence painted a clear picture of a man willing to exploit the system and steal from those who needed help.

“This isn’t just about money,” stated a source close to the investigation who wished to remain anonymous. “It’s about a complete disregard for the law and a willingness to exploit vulnerable programs designed to help people in need. Cavanaugh’s actions eroded public trust and diverted resources from legitimate claims.” The $244,000 in restitution is intended to partially offset the damage caused by his crimes, though full recovery for all victims remains uncertain.

Cavanaugh’s sentence sends a clear message: defrauding the government and stealing identities will not be tolerated. He will serve his time, and hopefully, this case will serve as a deterrent to others contemplating similar schemes. The Grimy Times will continue to follow this case and report on any further developments.