Federal prosecutors said a Maine man has pleaded guilty to federal bank fraud charges arising from the Paycheck Protection Program implementation.
The US Department of Justice said the Skowhegan man obtained a $59,145 loan for his Bangor-based company using false employee pay information and false supporting payroll documents. The department said the man then spent the money on things and expenses he knew were not covered by the program.
Paycheck Protection Program loans are designed as cancelable loans for small businesses to help retain jobs and some other expenses during the COVID-19 pandemic. The Justice Department said the man pleaded guilty on Tuesday.
The man faces up to 30 years in prison and a fine of up to $1 million. The Ministry of Justice said he will be sentenced after completing the investigation report.