The planned senior living campus called Granite Senior Services LLC and Artemis Living at Littleton along St. Johnsbury Road in Littleton has gone into foreclosure, following construction that stalled in September and alleged lack of payments to the lender and contractors. (Photo by Robert Blechl)
As Service Credit Union’s lawsuit proceeds against the owners and lending officer involved in the unfinished senior living community in Littleton that went into default on a $30 million construction loan, the North Country’s executive councilor said there has been a ripple effect.
In short, the Littleton case has dried up some commercial lending in northern New Hampshire for businesses that need it, said District 1 Executive Councilor Joe Kenney.
“Unfortunately, this is the case that has precipitated Service Credit Union from not moving forward with commercial lending in the North Country,” said Kenney. “And that’s been disappointing because we have so many businesses that need commercial loan lending in the North Country.”
When that happens, other potential lenders from southern New Hampshire learn about what occurred in Littleton and decide that they’re not going to invest in the North Country because it looks like there are unsettled financial deals, so they hold off, he said.
“That ripple effect is real and alive,” said Kenney. “It’s very disappointing, that’s for sure. This is not something that’s going to be resolved overnight, from what I can gather. Any time there’s investigations and lawsuits, who knows where that’s going to go.”
Headquartered in Portsmouth, founded more than 60 years ago, and today having more than $6 billion in assets, SCU is the largest credit union in the Granite State and among the largest in New England.
SCU has been a big partner in the North Country, said Kenney, who added that he hopes to see its continued commitment to commercial lending in the region.
SCU is working through the challenge
In a statement issued Wednesday, David Araujo, CEO of SCU, said, “Service Credit Union remains committed to serving the North Country and supporting our members throughout New Hampshire.”
As for the litigation, some of the defendants have responded in recent days to SCU’s lawsuit, which was filed in June.
In the 10-count civil case at Grafton Superior Court, SCU alleges coordinated fraud and embezzlement involving its $30 million loan.
The credit union has filed claims for breach of contract, fraud, civil conspiracy, unlawful conversion, unjust enrichment, and fraudulent transfer against the primary defendants who include brothers George and Michael Papadimatos, owners of Granite Senior Operations LLC; ex-SCU loan officer David Weed, who at the time oversaw the loan for SCU and who is also facing an additional claim of gross negligence for acting beyond the scope of his employment; Shawn Harressey, a mortgage broker and owner of CTC Commercial LLC, who acted as a representative for Granite Senior Operations; and the David and Tina Weed Revocable Trust and the George Papadimatos Revocable Trust of 2025.
The loan was issued to George and Michael Papadimatos through Granite Senior Operations to finance the construction of a senior living campus at 1262 St. Johnsbury Road, on property owned by George Papadimatos.
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.
Repayment was guaranteed by Granite Senior Operations, George Papadimatos, and Michael Papadimatos.
According to the lawsuit, they defaulted on the loan in September 2025.
SCU accuses the defendants of engaging in misrepresentations to obtain loan approval, improper and fraudulent use of millions of dollars in loan proceeds, and asset transfers aimed at avoiding repayment.
According to the allegations, the Papadimatoses, Weed, and Harressey “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.”
SCU seeks the recovery of all outstanding loan amounts, interest, fees, and costs as well as the recovery of assets that it alleges were transferred by several defendants, through deliberate steps, to avoid repayment.
From Granite Senior Operations, George and Michael Papadimatos, Weed, and the Papadimatos and Weed trusts, SCU seeks $30 million. From Shawn and Alicia Harressey and CTC Commercial, the credit union seeks $1.5 million.
Through a motion for ex parte attachment regarding real estate and assets filed with its lawsuit, SCU seeks to post those amounts at the Grafton County Registry of Deeds and/or the New Hampshire Secretary of State’s office.
The amounts include all real estate owned by the defendants as well as some business assets, including from Blue Lodge Spray Foam, which is owned by George Papadimatos.
In court filings, representatives for SCU said the credit union will likely never be made whole from the defaulted loan because the Littleton property is currently valued at $22 million.
On July 31, attorneys for the Harresseys and CTC Commercial objected to SCU’s motion, arguing that SCU’s fraud claim stemming from a mortgage broker’s commission in the amount of $850,470 paid to Shawn Harressey through CTC in 2022 is barred under a three-year statute of limitations.
A Grafton Superior Court hearing on the ex parte attachment is scheduled for Aug. 12.
On July 28, through their attorney, George and Michael Papadimatos responded to SCU’s lawsuit and have contested some of the allegations, with one argument alleging that the damages were caused by third parties or SCU.
On Monday, SCU filed a notice with the court that it intends to reply to Harressey’s objection.
As of Wednesday, Weed had not provided a response to SCU’s lawsuit.
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