U.S. Attorney Darcie N. McElwee | U.S. Department of Justice
A Kennebunk resident, Meghan Martell, has entered a guilty plea to charges of wire fraud in U.S. District Court in Portland. The charges stem from an incident in April 2021, when Martell submitted a falsified application for a Paycheck Protection Program (PPP) loan through a lender based in California.
Court records reveal that Martell claimed to be the sole proprietor of a beauty salon with a gross income of $99,870 in 2019. To support her application, she provided fraudulent documentation, including a false tax form. As a result, the lender transferred $20,806 in PPP funds to her bank account located in Maine.
Martell could face up to 20 years of imprisonment and a maximum fine of $250,000. Additionally, she may be subject to up to three years of supervised release. The final sentence will be determined by a federal district judge after evaluating the U.S. Sentencing Guidelines and other statutory considerations.
The investigation was conducted by IRS Criminal Investigation.
The Paycheck Protection Program was part of COVID-19 pandemic relief efforts managed by the Small Business Administration (SBA). It offered forgivable loans to small businesses for maintaining payroll and covering certain expenses during the pandemic. Participating lenders were allowed to approve and distribute SBA-backed loans for qualifying business costs such as payroll and fixed debts.
