SCOTT SUNDHOLM, the 39-year-old owner of S&S Marine, LLC, has pleaded guilty to making false statements in order to obtain a Small Business Administration loan. The charge stems from Sundholm’s admission that he lied about damage to his marina in Old Saybrook, Connecticut, following Hurricane Sandy.
According to court documents and statements made in court, Sundholm claimed that the hurricane caused significant damage to his facilities, including docks, ramps, a bath house, and other structures. However, an investigation revealed that these claims were not true. Sundholm had demolished the marina’s pre-existing bath house in September 2012, months before Hurricane Sandy struck.
Furthermore, it was discovered that no floating boat docks or boat ramps existed at the marina prior to the hurricane. Sundholm also claimed that the new bath house he built after the storm was of similar size and quality to the one destroyed. However, court records show that this was not the case.
Sundholm applied for and received a disaster loan from the Small Business Administration in 2016. He has now paid full restitution of $1,653,257.10 to the SBA. Sentencing is scheduled for September 6, 2019, where Sundholm faces up to two years in prison and a fine.
The investigation into Sundholm’s actions was conducted by the Small Business Administration Office of Inspector General, with prosecution handled by Assistant U.S. Attorney John T. Pierpont, Jr.
Sundholm has been released pending sentencing, where he will have to answer for his fraudulent claims and the subsequent misuse of federal disaster relief funds.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
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