New lawsuit alleges coordinated fraud

As Service Credit Union (SCU) seeks a new chapter of federal bankruptcy for an unfinished senior living campus in Littleton, it filed a lawsuit in state court last month against the owners and lenders, whom it accuses of coordinated fraud and embezzlement involving a $30 million SCU construction loan.

The loan was issued to finance the construction of an assisted living facility at 1262 St. Johnsbury Road. Planned were more than 100 living units, including 24 cottages, 40 apartments, 35 assisted-living units, 20 memory care units and a medical office building.

The 35-page, 10-count civil case filed Wednesday, June 24, at Grafton Superior Court asserts claims for breach of contract, fraud, civil conspiracy, unlawful conversion, unjust enrichment, fraudulent transfer and, on the part of David A. Weed, who at the time oversaw the loan for SCU, gross negligence.

SCU seeks recovery of all outstanding loan amounts, interest, fees and costs; damages from the alleged misconduct; and recovery of assets that it claims were transferred by several defendants, through several deliberate steps, to avoid repayment.

It names David Weed, the former SCU loan officer who is alleged to have acted beyond the scope of his employment before he was terminated from SCU in July 2025, as an individual defendant; Weed as a trustee of the David and Tina Weed Revocable Trust; and Tina Weed as a trustee of the trust.

It also names George Papadimatos, of Littleton, both individually and as a trustee of the George Papadimatos Revocable Trust of 2025; Blue Lodge Spray Foam LLC, a drywall and insulation business owned by Papadimatos; Granite Senior Operations LLC, owned by George Papadimatos; and Michael Papadimatos, George’s brother, of Brookline, NH.

In addition, it names CTC Commercial LLC, owned by Shawn L. Harressey, a mortgage broker who, since 2019, had been acting as a representative of Granite Senior Operations, and Shawn Harressey and Alicia Harressey as individuals.

According to the lawsuit, George and Michael Papadimatos, Shawn Harressey and David Weed “conspired to defraud SCU into issuing the loan and, together with CTC, as to various disbursements of loan funds, which they unlawfully used for their own personal benefit.”

In 2018, George Papadimatos created Granite Senior Services LLC (GSS) for the development.

Weed, said SCU attorneys, falsely claimed that GSS, which was supposed to put up $9.3 million of its own equity into the development, had provided its required funding.

“When SCU Business Services staff and ASI raised concerns to David about the shortfall, David quieted these concerns with misrepresentations, including that GSS’s $9 million in equity was forthcoming and that GSS would be securing additional funding from an investor,” Timothy Britain, Bridget Denzer and Deborah Notinger, the attorneys for SCU, wrote in the lawsuit.

“As the members of GSS, George and Michael knew, or reasonably should have known that, in entering into a construction contract that exceeded the total loan amount, after over $6 million in loan funds had already been disbursed, GSS would be incurring debts beyond its ability to pay, thereby potentially jeopardizing SCU’s secured interest in the property,” they said.

George Papadimatos is alleged to have submitted false invoices, including for loan funds used to pay Blue Lodge for spray foam, at a time when there were no buildings on the property and the foam had a short shelf life.

“George and/or Michael used loan funds for their own personal benefit and for the personal benefit of David,” said the SCU attorneys.

As of March 2025, SCU had advanced more than $27.4 million under the loan, which equated to nearly all of the balance.

After Weed’s firing from SCU in 2025, and despite his separation agreement with SCU, he remained involved in the project “and continued to make false representations to third parties concerning the project for GSS’s benefit and to SCU’s detriment,” they said.

In November and December, after problems with the loan and the GSS development began to emerge, David Weed, Shawn Harressey and George Papadimatos are alleged to have transferred interests in personal real estate holdings to avoid repayment.

“What happened here was wrong, and we are pursuing every available legal remedy to make it right,” said David Araujo, SCU’s president and CEO. “A former member of our team violated the trust we placed in him. That is not something we take lightly, and it is not something we will let stand.”

In the lawsuit, Weed, GSS, Blue Lodge Spray Foam, and the Papadimatos brothers are on the hook for $30 million. SCU seeks $1.5 million from CTC Commercial and the two Haresseys.

With the property valued at $22 million, SCU attorneys told the court that even a property liquidation will likely not make SCU whole from the defaulted loan.

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