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South Carolina Man Pleads Guilty to $1.2 Million COVID Relief Fraud

David Breen pleaded guilty to one count of theft of government property, for misappropriating COVID-19 funds for personal use.

Worcester, MA — Inspector General Jeffrey S. Shapiro joined United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England in announcing a that a South Carolina businessman has pleaded guilty in federal court in Worcester to COVID relief fraud.

David Breen, 54, of Mount Pleasant, S.C., pleaded guilty to one count of theft of government property, for misappropriating COVID-19 funds for personal use. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for June 25, 2026.

Breen spent more than $1.2 million in Economic Injury and Disaster Loan (EIDL) money that he obtained from the U.S. Small Business Administration (SBA) to build a home and purchase motor vehicles. Through the EIDL program, the SBA provided loans to small businesses that suffered substantial economic injury due to the COVID-19 pandemic.

“During the COVID-19 pandemic the government acted swiftly to provide financial aid to business owners impacted by the global pandemic. This defendant used this public health emergency to enrich himself and diverted $1.2 million from businesses with legitimate needs,” said IG Shapiro. “The abuse of government resources will never be tolerated, and I commend our investigative team and our partners in the U.S Attorney’s Office and the Department of Homeland Security for bringing this matter to a just conclusion.”

The Office of the Inspector General led the investigation.

For more information, see the press release from the US Attorney’s Office.

District of Massachusetts | South Carolina Businessman Who Operated Bowling Entertainment Business in Massachusetts Pleads Guilty to $1.2 Million COVID Relief Fraud | United States Department of Justice

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