A South Carolina businessman has been federally charged in Worcester for allegedly misusing COVID relief loans, with authorities saying he diverted more than $1.2 million in Economic Injury and Disaster Loan funds for personal purchases and home construction.
A South Carolina businessman was charged today in federal court in Worcester with COVID relief fraud, according to court filings. The defendant, David Breen, 54, of Mount Pleasant, S.C., faces a single count of theft of government property tied to allegations he used pandemic-era loan money for his own benefit rather than for business needs.
The filings say Breen applied for Economic Injury and Disaster Loan assistance in March 2022 on behalf of an entity identified as ‘Fun Zone’, which operated ‘Pinz,’ a bowling alley and entertainment venue in Milford, Massachusetts. The EIDL program, run by the U.S. Small Business Administration, provided loans intended to help small businesses that suffered substantial economic injury because of the COVID-19 pandemic.
Prosecutors allege Breen received approximately $1.5 million through the SBA loan program and then diverted more than $1.2 million of those funds for personal uses through June 2023. Those alleged expenditures include building a home in Mount Pleasant, South Carolina, purchasing a $111,000 truck, and making a down payment on a $98,289 Mercedes, according to the charging papers.
The Information filed charges Breen with theft of government property, a federal offense that can carry significant penalties if the defendant is convicted. The charge carries a maximum sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000, with actual sentencing determined by a federal judge guided by the U.S. Sentencing Guidelines and governing statutes.
Investigative and prosecutorial authorities named in the announcement include 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, Boston Region, provided valuable assistance, and Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office is prosecuting the case.
The Department of Justice continues to prioritize pandemic-related fraud through a coordinated approach, rooted in an enforcement structure established on May 17, 2021. That COVID-19 Fraud Enforcement Task Force was set up to marshal DOJ resources and work with partner agencies to investigate and prosecute the most culpable domestic and international actors who targeted relief programs.
The Task Force effort is intended to strengthen investigations, assist agencies that administer relief, and to identify techniques and resources to uncover schemes that misuse relief dollars. Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
