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Old Saybrook Marina Owner Admits Lying to Receive Disaster Loan

Published June 10, 2019

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John H. Durham, United States Attorney for the District of Connecticut, and Hannibal "Mike" Ware, Inspector General, Small Business Administration, announced that Scott Sundholm, 39, of Old Saybrook, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of making false statements for the purpose of obtaining a Small Business Administration loan.

According to court documents and statements made in court, Sundholm owns and operates S&S Marine, LLC, a marina located in Old Saybrook.  In 2016, Sundholm applied for and received a disaster loan from the Small Business Administration after claiming that Hurricane Sandy, which struck Connecticut in late October 2012, caused a tidal surge at the marina and damaged floating boat docks, a boat ramp, a bath house, a metal shop building and other structures.  Sundholm also claimed that the bath house he had replaced after the hurricane was of the same size and quality as to what was in place prior to the storm.

An investigation revealed that certain claims made by Sundholm about damage that Hurricane Sandy caused his marina were not true.  Sundholm had demolished the marina's pre-existing bath house in September 2012, more than a month before Hurricane Sandy, and the bath house was dilapidated and not similar in size and quality to the new bath house that Sundholm subsequently built.  In addition, no floating boat docks or boat ramps existed at the marina prior to the hurricane.

Judge Shea scheduled sentencing for September 6, 2019, at which time Sundholm faces a maximum term of imprisonment of two years and a fine.  Sundholm has paid full restitution of $1,653,257.10 to the Small Business Administration.

Sundholm is released pending sentencing.

This matter has been investigated by the Small Business Administration Office of Inspector General and is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

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