Frederick Avery, a 49-year-old North Berwick man, has pleaded guilty to filing fraudulent applications for loans from the Paycheck Protection Program (PPP).
According to court records, between April 2020 and September 2021, Avery submitted two applications for PPP loans that claimed he was the 100% owner of Superior Cruise and Travel LLC. However, Avery sold the agency to a limited liability company in Pennsylvania in November 2019.
Avery claimed on the applications that the loans, which totaled more than $215,000, were for payroll, lease/mortgage interest, utilities, and other items. He submitted falsified bank statements from a non-existent account to support one of the applications.
The FBI investigated the case, revealing a brazen attempt to deceive the PPP system and secure funds for a business he no longer owned.
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 any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Paycheck Protection Program 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 FBI’s investigation sends a clear message that those who would seek to exploit the PPP system for personal gain will be held accountable.
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Key Facts
- State: Maine
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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