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Maine business owner facing federal PPP fraud charges also has history of wage violations

SKOWHEGAN, Maine (WMTW) — A Maine businessman facing federal charges in connection with alleged Paycheck Protection Program fraud also has a history of wage violations.

According to the Maine Department of Labor, two companies led by Nathan Reardon have been cited for failing to pay workers in a timely manner on multiple occasions over the past two years.

Bankruptcy papers also show that these workers aren’t the only people Reardon may have owed money to.

The website nathanreardon.com said, “Mr. Reardon is an active advocate for business excellence, service and safety in all aspects of his business and business practices. »

The site lists a portfolio of more than 60 entities including property management companies, restaurants and automotive companies.

Several of these companies list addresses for the former Sears location at the Bangor Mall. The space was recently condemned due to a lack of heat coverage and sprinklers. The notice, under Bangor’s code, was not appealed; however, a permit may be requested to address the issues raised.

Reardon’s federal trial on allegations of Paycheck Protection Program fraud is scheduled to begin on June 7.

Federal prosecutors accuse Reardon of obtaining a nearly $60,000 loan at the start of the pandemic, funds intended for business and salary expenses, but using much of the money for personal expenses.

Reardon pleaded not guilty. His attorney, Hunter Tzovarras, had no comment.

According to data from the Maine Department of Labor, two companies run by Reardon have been cited for 698 wage violations over the past two years through restaurants Global Disruptive Technologies and Taco Shack.

Documents filed by Florida LLC show that Global Disruptive Technologies is not currently doing business.

Taco Shack remains registered with the Maine Secretary of State’s office, but no location is in operation.

State records show that these companies failed to issue multiple paychecks and, at the request of the Department of Labor, failed to provide all payroll records as required by law.

The total cost of the penalties imposed is $104,175, according to data from the Maine Department of Labor. The companies owe a combined salary arrears of $45,797.80. According to the agency’s recent datasets, nothing has been refunded.

Decisions on these violations, the agency said, are final.

8 Investigators contacted Reardon several times but received no comment.

The DOL says attempts to appeal the violations for Global Disruptive Technologies in 2021 have been dropped and for Taco Shack they have been dismissed.

As of 2022, the violations have not been appealed, according to the agency.

Beyond the citations, the Maine Department of Labor has not indicated any intention to take disciplinary action against Reardon’s companies.

The Department of Labor told 8 investigators it could not comment on specific cases.

“The Maine Department of Labor has the authority to issue stop-operation orders when employers fail to comply with labor laws. This is a powerful tool that the Department uses in the most serious circumstances after a thorough investigation,” said agency spokeswoman Jessica Picard.

In 2020, the Department of Labor ordered a career center in Sanford, which state documents said owed more than $34,000 in back wages, to cease operations. The agency took similar action again last year against an Augusta call center that records show owed $170,000 in back wages. These are the only times the agency has forced a company to suspend operations.

Court records show Reardon claims dozens of former employees and contractors are owed hundreds.

A 2021 bankruptcy filing in Maine lists liabilities of $384,499.47 and debts estimated at between 100 and 199 creditors. The filing also said Reardon had already filed for bankruptcy twice in Florida in 2014 and 2017. Both of those issues were eventually resolved.

Maine’s filing lists dozens of people owed “wages, salaries and commissions.” Maine’s bankruptcy case was ultimately dismissed with Reardon’s consent.

8 Investigators asked the Maine Department of Labor about workers who owed money.

The agency told 8 Investigates that it is staying in contact with people who have filed complaints resulting in violations and advising them of next steps if they do not receive back wages owed.

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