Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A South Carolina businessman pleaded guilty on March 26 in federal court in Worcester to charges of COVID relief fraud involving over $1.2 million, according to the U.S. Attorney's Office.
David Breen, age 54 and a resident of Mount Pleasant, South Carolina, admitted to one count of theft of government property for misusing funds from the Economic Injury and Disaster Loan (EIDL) program. The sentencing is scheduled for June 25 before U.S. District Court Judge Margaret R. Guzman.
According to prosecutors, Breen applied for EIDL funds in March 2022 on behalf of 'Fun Zone,' which operated 'Pinz,' a bowling alley and entertainment venue in Milford, Massachusetts. He agreed with the Small Business Administration (SBA) that the loan proceeds would be used as working capital for his business but instead spent more than $1.2 million between March 2022 and June 2023 building a home in Mount Pleasant and making down payments on two vehicles—a truck costing $111,000 and a Mercedes priced at $98,289.
The charge carries a maximum penalty of up to ten years in prison, three years supervised release, and a fine up to $250,000. Sentencing will be determined based on federal guidelines.
The announcement was made by United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations New England; and Massachusetts Inspector General Jeffrey S. Shapiro with assistance from the SBA’s Office of Inspector General Boston Region.
In May 2021, the Department of Justice established the COVID-19 Fraud Enforcement Task Force to strengthen efforts against pandemic-related fraud by coordinating investigations across agencies and sharing enforcement information (more information). Reports about attempted COVID-19 fraud can be submitted through the National Center for Disaster Fraud hotline or web complaint form.
