Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A South Carolina businessman has been charged in federal court in Worcester, Massachusetts with theft of government property related to alleged COVID-19 relief fraud.
David Breen, 54, of Mount Pleasant, South Carolina, faces one count of theft of government property. Prosecutors allege that Breen misused more than $1.2 million from the Economic Injury and Disaster Loan (EIDL) program, which is administered by the U.S. Small Business Administration (SBA). The EIDL program was designed to provide loans to small businesses affected by the economic impact of the COVID-19 pandemic.
According to court filings, Breen applied for EIDL funds in March 2022 on behalf of “Fun Zone,” an entity through which he operated “Pinz,” a bowling alley and entertainment venue in Milford, Massachusetts. In his application and loan agreement with the SBA, Breen agreed to use the loan as working capital for his business. Authorities allege that after receiving about $1.5 million from the SBA, Breen used over $1.2 million between March 2022 and June 2023 for personal expenses including building a home in Mount Pleasant, purchasing a $111,000 truck, and making a down payment on a Mercedes costing nearly $100,000.
If convicted, Breen could face up to ten years in prison, three years of supervised release, and a fine up to $250,000. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines.
The announcement was made by 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. The U.S. Small Business Administration Office of Inspector General provided assistance in the investigation. Assistant U.S. Attorney Brendan D. O’Shea is prosecuting the case.
The Department of Justice established the COVID-19 Fraud Enforcement Task Force on May 17, 2021 to coordinate efforts across agencies against pandemic-related fraud schemes and support investigations into misuse of relief funds. More information about these efforts can be found at https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Reports about suspected COVID-19 relief fraud can be submitted through the National Center for Disaster Fraud’s web complaint form or hotline.
Prosecutors emphasized that “the details contained in the charging documents are allegations” and that “the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.”
