PORTLAND, Maine – John J. Cavanaugh, Jr., 53, formerly of Yarmouth, is headed to federal prison after being sentenced yesterday in U.S. District Court for a calculated scheme of identity theft and outright lies to the Small Business Administration. Judge Nancy Torresen handed down a three-year sentence, followed by three years of supervised release, and ordered Cavanaugh to cough up over $244,000 in restitution to those he victimized.
The rot began in November 2016, when Cavanaugh attempted to swindle the Social Security Administration (SSA) by filing a disability insurance claim for his minor son. Court records show Cavanaugh fabricated a narrative of familial stability, falsely stating his son had lived with him since birth. The truth? Neither the child nor the boy’s mother had ever resided with Cavanaugh. He doubled down on the deception, forging a letter supposedly penned by the child’s mother, claiming they were all living together. She never wrote the letter, didn’t recognize the signature, and had no knowledge of the fraudulent application.
The SSA bought the lie, and Cavanaugh raked in benefits until June 2018, when the boy’s mother discovered the scheme and alerted authorities. But Cavanaugh wasn’t finished. Fast forward to April 2020, amidst the COVID-19 pandemic, and Cavanaugh was at it again, applying for an Economic Injury Disaster Loan through the U.S. Small Business Administration. These loans were a lifeline for legitimate businesses struggling during the crisis, but Cavanaugh saw an opportunity for more personal gain.
The online application bluntly asked if Cavanaugh was facing any criminal charges. He checked “No.” A blatant falsehood. At the time, he was already under indictment in the U.S. District Court for the District of Maine, and subject to release conditions that explicitly warned any new federal felony would trigger additional penalties. Cavanaugh knowingly risked it all, demonstrating a callous disregard for the law and a willingness to exploit a system designed to help those genuinely in need.
Federal investigators didn’t buy it. The FBI, with crucial assistance from the SSA Office of Inspector General and the U.S. Small Business Administration, pieced together the evidence and brought Cavanaugh to justice. This wasn’t a crime of desperation; it was a deliberate and calculated attempt to enrich himself through deceit. The judge’s sentence reflects the seriousness of his offenses and sends a clear message: exploiting federal programs for personal gain will not be tolerated.
The $244,000 in restitution ordered by Judge Torresen is a start, but it won’t fully compensate for the damage Cavanaugh inflicted. As he begins his three-year prison term, Cavanaugh will have plenty of time to contemplate the consequences of his actions – and the lives he impacted with his greed. This case serves as a stark reminder that even seemingly minor acts of fraud can have significant repercussions.
Related Federal Cases
- Yarmouth Man Cavanaugh Gets 3 Years for Fraud & Identity Theft · Maine
- Falmouth Fraudster Gets 5 Years for Stealing FEMA Funds · Maine
- Acosta-Joaquin Gets 14 Months for SSN Theft · Puerto Rico
- Lunn Gets 18 Months for $4M Bankruptcy Scheme · Massachusetts
- Haverhill Woman Gets 28 Months for ID Theft Scam · Massachusetts
Key Facts
- State: Maine
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
