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June 11, 2019

Feds: Marina owner lied to get disaster loan after Hurricane Sandy

Facebook S & S Marine in Old Saybrook
By Michelle Tuccitto Sullo

An Old Saybrook marina owner faces possible prison time for allegedly lying about damage his business sustained from Hurricane Sandy in 2012 so he could get a $1.7 million federal loan.

Scott Sundholm, 39, of Old Saybrook, pleaded guilty Monday to one count of making a false statement for claims he made to the U.S. Small Business Administration (SBA).

Sundholm entered the plea in U.S. District Court in Hartford before Judge Michael P. Shea.

Sundholm faces up to two years’ imprisonment and a fine at his sentencing, currently scheduled for Sept. 6. According to the U.S. Attorney’s office, Sundholm has already paid $1.7 million in restitution to the SBA.

Sundholm is the founder and president of S&S Marine, LLC. The business provides sundry services to boaters, including mechanical repairs, electrical work, restoration and painting.

According to federal prosecutors, Sundholm in 2016 successfully applied to the SBA for a disaster loan. In his application, Sundholm claimed the October 2012 storm had caused considerable damage to his business.

Sundholm specifically claimed the storm’s tidal surge damaged his marina’s floating boat docks, a boat ramp, a bath house, metal shop building and other structures. Following the storm, Sundholm had a new bath house put in at his property, and he asserted to the SBA that it was similar in size and quality to what he had before the storm, according to prosecutors.

Sundholm subsequently sought and obtained multiple increases to the loan amount, and he ultimately was given $1.7 million.

“An investigation revealed that certain claims made by Sundholm about damage that Hurricane Sandy caused his marina were not true,” the U.S. Attorney’s office stated in an announcement.

According to prosecutors, Sundholm actually had demolished the marina’s dilapidated, pre-existing bath house in September 2012, a full month before the storm hit. Investigators further determined that there hadn’t been any floating boat docks or boat ramps at Sundholm’s marina before the hurricane.

Attorney Thomas Murphy of Cowdery & Murphy in Hartford, who is representing Sundholm, said his client has accepted responsibility for his actions.

“Scott is doing everything to make this right,” Murphy said. “He has arranged to fully repay the loan, and he has accepted responsibility by pleading guilty today.”

Sundholm is free pending his sentencing.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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