South Carolina Businessman who Operated Bowling Entertainment Business in Massachusetts Charged with $1.2 Million Covid Relief Fraud

BOSTON – A South Carolina businessman has been charged today in federal court in Worcester with COVID relief fraud. David Breen, 54, of Mount Pleasant, S.C., was charged by an Information with one count of theft of government property, for allegedly misappropriating COVID-19 funds for personal use. According to court filings, Breen allegedly 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. Specifically, it is alleged that in March 2022, Breen applied for EIDL funds on behalf of ‘Fun Zone,’ an entity through which he operated ‘Pinz,’ a bowling alley and other entertainment venue in Milford, Mass. To obtain the loan, Breen allegedly entered into a loan agreement with the SBA in which he agreed, among other things, to use the loan proceeds as working capital for his business. After receiving approximately $1.5 million from the SBA, Breen allegedly used more than $1.2 million of this money, through June 2023, to build a home for himself in Mount Pleasant, S.C., to purchase a $111,000 truck and for a downpayment on a $98,289 Mercedes. The charge of theft of government property carries a maximum penalty of up to 10 years in prison, up to three years of supervised release and a fine up to $250,000.