BANGOR, Maine (AP) — A Maine man pleaded guilty to federal bank fraud charges stemming from a Paycheck Protection Program application, federal prosecutors said.
The U.S. Department of Justice said the Skowhegan man obtained a $59,145 loan for his Bangor-based company using false employee wage information and false supporting payroll documentation. The department said the man then spent the money on items and expenses he knew weren't covered by the program.
Paycheck Protection Program loans were designed to be forgivable loans for small businesses to help with job retention and some other expenses during the COVID-19 pandemic. The man pleaded guilty on Tuesday, the Justice Department said.
The man faces up to 30 years in prison and a fine of up to $1 million. The Justice Department said he will be sentenced after an investigation report is completed.