A Norway man was sentenced to 24 months in prison for filing eight fraudulent Paycheck Protection Program loan applications.
U.S. District Judge Nancy Torresen handed down the sentence to 52-year-old Merton Weed Jr. on Friday, March 22, 2024. He was also ordered to pay $253,646 in restitution and serve three years of supervised release.
Weed pleaded guilty to the charges on October 23, 2023. Between May 2020 and January 2021, the defendant filed the fraudulent applications with four different lenders and received $243,745 in PPP funds.
The applications listed false average monthly payrolls and numbers of employees for phony businesses that did not exist. Weed supported the applications with falsified bank records. The FBI investigated the case.
“Motivated by greed, Merton Weed took advantage of a program intended to help small businesses survive economic uncertainty during the COVID-19 pandemic,” said U.S. Attorney Darcie N. McElwee. “Mr. Weed has a lengthy history of enriching himself through fraud, so it is perhaps not surprising that he made not one but eight attempts to take advantage of a time of international turmoil.”
The Paycheck Protection Program was a COVID-19 pandemic relief program administered by the Small Business Administration that provided forgivable loans to small businesses. The program 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 the pandemic.
Weed’s sentence is a reminder that the Department of Justice will continue to bring to justice those who seek to capitalize on crises for personal gain.
Related Federal Cases
- Norway Man Lands 2 Years for PPP Loan Scam · Maine
- Rockport Swindler Mark Haley Pleads Guilty to PPP Loan Fraud, Faces Up to 30 Years · Maine
- Brooklyn Men Cashed In on Maine Credit Card Scam · Maine
- NY Duo Sentenced in $179K Credit Card Scam · Pennsylvania
- Robert Murray Sentenced for Fitbit Stock Scam · Maine
Key Facts
- State: Maine
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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