Marina Owner Faces Jail Time For Lying To Receive Disaster Loan

OLD SAYBROOK, CT — The owner of a marina in Old Saybrook faces up to two years in prison for lying to the Small Business Administration to receive a disaster loan in connection to Hurricane Sandy, according to authorities. Scott Sundholm, 39, of Old Saybrook, waived his right to be indicted and pleaded guilty Monday in federal court to one count of making false statements for the purpose of obtaining a Small Business Administration loan, U.S. States Attorney for Connecticut John H. Durham and Hannibal “Mike” Ware, Inspector General, Small Business Administration, announced in a joint press release.

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 Oct. 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, according to authorities.

“An investigation revealed that certain claims made by Sundholm about damage that Hurricane Sandy caused his marina were not true,” officials wrote in a press release. “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.”

Sentencing has been scheduled for Sept. 6, at which time Sundholm faces a maximum term of two years in prison and a fine. Sundholm has paid full restitution of $1,653,257.10 to the Small Business Administration, officials said. He has been released pending sentencing.