A South Carolina businessman has been charged in federal court in Worcester, Massachusetts, with theft of government property related to COVID-19 relief funds.
David Breen, 54, of Mount Pleasant, South Carolina, is accused of misusing more than $1.2 million in Economic Injury and Disaster Loan (EIDL) funds obtained from the U.S. Small Business Administration (SBA). According to court documents, Breen applied for EIDL funds on behalf of ‘Fun Zone,’ a business through which he operated ‘Pinz,’ a bowling alley and entertainment venue located in Milford, Massachusetts.
Prosecutors allege that after receiving approximately $1.5 million from the SBA in March 2022 under an agreement to use the money as working capital for his business, Breen instead used over $1.2 million between March 2022 and June 2023 for personal expenses. These reportedly included building a home for himself in Mount Pleasant, purchasing a $111,000 truck, and making a down payment on a Mercedes valued at $98,289.
The charge carries a maximum penalty of up to ten years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentencing will be determined by a federal district court judge according to the U.S. Sentencing Guidelines and relevant statutes.
United States Attorney Leah B. Foley stated: “United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Massachusetts Inspector General S. Jeffrey Shapiro made the announcement.” The investigation received assistance from the U.S. Small Business Administration Office of Inspector General’s Boston Region.
Assistant U.S. Attorney Brendan D. O’Shea is prosecuting the case out of the Worcester Branch Office.
The Department of Justice created the COVID-19 Fraud Enforcement Task Force on May 17, 2021 to coordinate efforts across agencies aimed at investigating and prosecuting pandemic-related fraud schemes as well as assisting agencies responsible for administering relief programs by improving mechanisms for identifying fraudulent activity and sharing information gained from prior enforcement actions. More details about these efforts can be found at https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Individuals with information regarding attempted fraud involving COVID-19 relief programs are encouraged to report it through the Department of Justice’s National Center for Disaster Fraud Hotline or via its web complaint form.
It is important to note that all details provided are allegations at this stage; David Breen is presumed innocent unless proven guilty beyond reasonable doubt in court.