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North Berwick Man Faces 30 Years for Bank Fraud
A 49-year-old North Berwick man has admitted to submitting fake loan applications for over $215,000, claiming he was the owner of a travel agency he sold years prior.
Frederick Avery pleaded guilty in U.S. District Court in Portland to filing fraudulent applications for loans from the Paycheck Protection Program (PPP).
According to court records, Avery submitted two applications for PPP loans between April 2020 and September 2021, claiming he was the 100% owner of Superior Cruise and Travel LLC. However, he sold the agency to a limited liability company in Pennsylvania in November 2019.
Avery submitted falsified bank statements from a non-existent account to support one of the applications, which claimed the loans were for payroll, lease/mortgage interest, utilities, and other items.
The FBI investigated the case after discovering Avery’s deceitful actions. Avery faces up to 30 years imprisonment and a maximum fine of $1 million, followed by up to five years of supervised release.
A federal district judge will determine Avery’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Paycheck Protection Program (PPP) was a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans to small businesses for job retention and certain other expenses.
The PPP permitted participating third-party lenders to approve and disburse SBA-backed PPP loans to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills incurred by qualifying businesses during, and resulting from, the COVID-19 pandemic.
PPP loans were fully guaranteed by the SBA, making them attractive targets for scammers like Avery, who took advantage of the program’s leniency to commit his crimes.
Key Facts
- State: Maine
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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