CHARLESTON, S.C. (WCSC) — A South Carolina businessman pleaded guilty in federal court in Massachusetts to misusing COVID funds.
David Breen, 54, pleaded guilty to one count of theft of government property and misappropriation of COVID-19 funds for personal use.
The U.S. Department of Justice said he spent more than $1.2 million in Economic Injury and Disaster Loan funds that he obtained from the U.S. Small Business Administration to build a home and purchase motor vehicles. The SBA provided loans to small businesses that suffered economic injury because of the COVID-19 pandemic.
He applied for Economic Injury and Disaster Loan funds in March 2022 on behalf of “Fun Zone,” an entity through which he operated “Pinz,” a bowling alley and entertainment venue in Milford, Massachusetts. Breen entered into a loan agreement with the SBA in which he agreed to use the loan proceeds as working…
This category refers to crimes committed by employees or insiders against their own organizations. It is often the most damaging because the perpetrator has authorized access to systems.
- Asset Misappropriation: The most common form, involving the theft of company resources. This ranges from simple “skimming” (taking cash before it’s recorded) to complex schemes involving the theft of inventory or intellectual property.
- Payroll Fraud: Employees may create “ghost employees” on the system, falsify their own timesheets to claim unworked overtime, or divert salary payments to their own accounts.
- Financial Statement Fraud: Management deliberately misrepresents the company’s financial health by inflating revenue or hiding liabilities to attract investors or meet performance bonuses.