Service Credit Union v. Weed (Granite Senior Services / Artemis Living at Littleton Construction-Loan Fraud Suit)
Service Credit Union filed a ten-count fraud and conspiracy suit in Grafton Superior Court against the sponsors of a stalled Littleton, New Hampshire senior living project and against SCU's own former commercial loan officer, alleging the group diverted draws from a $30 million construction loan for personal use. The project, Artemis Living at Littleton, stalled in September 2025 and has since gone into foreclosure, with SCU valuing the collateral at roughly $22 million against the $30 million owed. SCU has also sought an ex parte attachment of the defendants' real estate and other assets.
Why it matters
The case illustrates how construction-loan fraud risk can originate inside a lender's own loan-administration function, not just on the borrower side, and underscores why draw-disbursement controls need independent oversight on large, multi-draw commercial construction loans. Lenders financing ground-up commercial and senior-living development should treat the case as a prompt to review segregation-of-duties controls between loan origination, draw approval, and construction monitoring.
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