A retired Massachusetts State Police sergeant, Damian Halfkenny, was charged on April 10 with wire fraud and has agreed to plead guilty to allegations of fraudulently obtaining a Paycheck Protection Program (PPP) loan.
The case centers on the misuse of pandemic relief funds. Prosecutors allege that Halfkenny submitted false information in order to receive and later have forgiven a $21,220 PPP loan intended for businesses affected by the COVID-19 pandemic.
According to charging documents, in March 2021 while employed full-time as a state police sergeant, Halfkenny applied for a PPP loan for his real estate business. He allegedly claimed he had monthly payroll expenses of $8,488 and provided what prosecutors say was a fabricated IRS Schedule C form. Authorities say his business had no employees at the time. Based on these alleged misrepresentations, the U.S. Small Business Administration issued and later forgave the loan.
The charge of wire fraud carries a potential sentence of up to 20 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 federal guidelines.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division announced the charges. Assistant U.S. Attorney Christine Wichers is prosecuting the case.
Officials emphasize that “the details contained in the charging document are allegations” and that “the defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.”