David Breen, a 54-year-old businessman from Mount Pleasant, South Carolina, pleaded guilty on March 26 in federal court in Worcester to theft of government property related to COVID-19 relief funds.
Breen admitted to misusing more than $1.2 million obtained through the Economic Injury and Disaster Loan (EIDL) program from the U.S. Small Business Administration (SBA). The EIDL program was designed to help small businesses suffering substantial economic injury due to the COVID-19 pandemic.
According to court documents, 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. After receiving approximately $1.5 million from the SBA, he used over $1.2 million of these funds through June 2023 for personal expenses including building a home for himself in Mount Pleasant and making down payments on two vehicles—a truck costing $111,000 and a Mercedes valued at $98,289—instead of using them as working capital for his business as required by the loan agreement.
The charge carries a maximum penalty of up to ten years in prison, up to three years of supervised release, and a fine up to $250,000. Sentencing is scheduled for June 25 before U.S. District Court Judge Margaret R. Guzman.
United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Massachusetts Inspector General Jeffrey S. Shapiro announced the plea agreement with assistance from the SBA’s Office of Inspector General.
The Department of Justice established the COVID-19 Fraud Enforcement Task Force on May 17, 2021 to coordinate efforts across government agencies against pandemic-related fraud schemes and support enforcement actions targeting misuse of relief programs.