Norway Man Arrested On PPP Loan Fraud Charges

2/21/2023 by Brian Hamachek

Merton Weed Jr., 50, of Norway, Maine, was arrested on Tuesday on charges of Paycheck Protection Program (PPP) loan fraud and submitting a fraudulent Federal Housing Administration-insured mortgage application. According to court documents, Weed filed five PPP loan applications between May 2020 and January 2021, totaling $150,000. These applications allegedly listed false average monthly payrolls and numbers of employees, and were supported by false payroll records and bank records. The U.S. Attorney's Office, District of Maine, also alleges that Weed submitted a residential loan application in 2018 for an FHA-insured mortgage that included false employment and income information. Weed faces up to 20 years in prison, three years of supervised release, and a $250,000 fine, according to a news release. The FBI is reportedly investigating the case.

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