Service Credit Union (SCU) filed a civil lawsuit in Grafton Superior Court on June 24 alleging that a former loan officer and several developers engaged in a coordinated fraud scheme involving a $30 million construction loan for an unfinished senior living campus in Littleton.
The lawsuit, which runs 35 pages and contains 10 counts, names as defendants former SCU loan officer David Weed, of Littleton; developers George Papadimatos and his brother Michael Papadimatos; mortgage broker Shawn Harressey and his company CTC Commercial LLC; and others. The claims include breach of contract, fraud, civil conspiracy, and gross negligence. SCU seeks to recover the full loan amount plus damages and assets it says were improperly transferred to avoid repayment.
The loan was issued to finance an assisted living facility at 1262 St. Johnsbury Road that was planned to include more than 100 living units, cottages, apartments, and a medical office building. According to the complaint, Weed falsely represented that the developer, Granite Senior Services LLC (GSS), had provided its required $9.3 million equity stake. George Papadimatos is alleged to have submitted false invoices for spray foam insulation at a time when no buildings existed on the property. The defendants are also accused of using loan funds for personal benefit and transferring real estate interests to shield assets.
SCU had advanced more than $27.4 million of the loan by March 2025. Weed was fired in July 2025 but allegedly continued to make false statements on behalf of GSS. “What happened here was wrong, and we are pursuing every available legal remedy to make it right,” said SCU President and CEO David Araujo.
NEK will be looking into the status of the related bankruptcy proceeding for the campus and any further court filings.
Photo: KATRIN BOLOVTSOVA via Pexels. Photo is illustrative and not from the scene.
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