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Levant man pleads responsible to pandemic enterprise mortgage fraud


Craig Franck, 40, pleaded responsible to wire fraud and cash laundering expenses in federal court docket on Tuesday.

BANGOR, Maine — A Levant man pleaded responsible to wire fraud and cash laundering expenses within the U.S. District Court docket in Bangor on Tuesday in connection to receiving greater than $300,000 in fraudulent pandemic aid loans.

Court docket paperwork revealed Craig Franck, 40, is dealing with three counts of wire fraud expenses and one depend of cash laundering. He’s accused of falsely stating in pandemic aid purposes that he owned CCF Acoustics, LLC and CCF Acoustical Methods. Franck previously owned each corporations, however neither had been in enterprise in 2020 or 2021.

Franck submitted two fraudulent mortgage purposes to the U.S. Small Enterprise Administration in the summertime of 2020 for Financial Damage Catastrophe Loans (EIDL). Within the purposes, he claimed the funds could be used to alleviate financial damage brought on by the pandemic. He obtained $177,400 in funds from these purposes.

RELATED: Maine man faces as much as 30-year sentence in PPP fraud case

Within the purposes, Franck additionally claimed he was not topic to felony expenses when, round that point, he had been arrested on felony fraud expenses in Florida. He then illegally used the funds he obtained from the EIDL loans to rent a felony protection legal professional and publish bail in that case.

Franck additionally used a few of the funds he obtained to purchase a brand new pickup truck and different private bills. 

In March of 2021, he obtained extra Paycheck Safety Plan (PPP) funds after submitting a fraudulent utility for a mortgage to a non-public lender, presenting false IRS types and checking account statements. Franck used the $145,060 he obtained from that PPP mortgage to purchase one other pickup truck, and extra private gadgets.

Andrew Lizotte, assistant U.S. legal professional, is the prosecutor on this case.

“This, and different circumstances prefer it, are essential circumstances,” Lizotte stated. “They come up from the pandemic, they’re extraordinarily cynical, and so they’re opportunistic. And what we wish individuals to know is we’re persevering with to analyze these and that anybody who has violated federal legislation to get pandemic funds we proceed to take a look at this.”

Lizotte provides that Congress not too long ago prolonged the statute of limitations for these misuse of federal funds circumstances from six years to 10 years. He says this offers federal investigators extra time to look into pandemic fraud. 

Franck faces as much as 20 years in federal jail, a $250,000 fantastic, and three years of supervised launch.

Lizotte says Franck’s sentencing is predicted to occur in a pair months. A presentence investigation report should first be filed earlier than the choose, Lance Walker, makes his ultimate ruling.

Franck is now the second man from Maine to be charged for profiting from pandemic aid fund applications. Nathan Reardon, of Skowhegan, faces as much as 30 years in federal jail after pleading responsible to taking PPP cash he was not eligible for.

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