A North Carolina man was convicted this week of conspiring to defraud a local bank and the U.S. Small Business Association out of $.17 million stemming from a business loan he sought to establish a tire recycling plant in Troy.

Paul David Musgrave, 57, of Waxhaw, had been on trial since Jan. 28 before U.S. District Judge Timothy S. Black. The jury deliberated for three days before convicting Musgrave of one count of conspiracy, two counts of wire fraud, and one count of bank fraud. The verdict was returned Thursday.

Musgrave faces up to 30 years in prison, a $1 million fine, and five years of supervised release on each count. Black set sentencing for June 13.

According to trial testimony, Musgrave and others in November 2008 organized Dayton International Tire Recycling as a small business intending to construct and operate a tire recycling plant at 1400 Lytle Road in Troy.

Musgrave owned 81 percent interest in the company. The rest was held by a Singapore-based corporation known as Intercontinental Trading of the British Virgin Islands.

In 2010, Musgrave applied for an SBA-backed loan for $1,715,650 from the Mutual Federal Savings Bank of Troy. In the loan application documents, he falsely certified that he would put money from his personal savings, home equity and from a home equity line of credit toward the project, according to trial testimony.

The lender required proof that the tire shredding/recycling equipment and machinery they claimed to have purchased from an Australian company had actually been shipped before releasing the loan proceeds. The jury found that Musgrave provided the lender fabricated financial documents, packing lists, commercial invoices and bills of lading, which are documents used when shipping overseas.