South Carolina Businessman Charged with $1.2 Million COVID Relief Fraud
Summary
An SBA OIG news release published December 10, 2025 reports that David Breen, 54, of Mount Pleasant, S.C., was charged by an Information in federal court in Worcester with one count of theft of government property. According to court filings, Breen allegedly applied in March 2022 for EIDL funds on behalf of Fun Zone, through which he operated Pinz, a bowling alley in Milford, Mass. After receiving approximately $1.5 million from the SBA, Breen allegedly used more than $1.2 million, through June 2023, to build a home, purchase a $111,000 truck and make a downpayment on a Mercedes. The charge carries a maximum penalty of up to 10 years in prison. The release states that the charges are allegations.
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“South Carolina Businessman who Operated Bowling Entertainment Business in Massachusetts Charged with $1.2 Million COVID Relief Fraud | U.S. Small Business Administration.”
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OIG news release South Carolina Businessman who Operated Bowling Entertainment Business in Massachusetts Charged with $1.2 Million COVID Relief Fraud Published on December 10, 2025 by Office of Inspector General Click Here to Sign Up for SBA OIG Email Updates on Recent Investigative Cases, Audit Oversight Reports, and General News Click Here to View the Original U.S. Department of Justice (DOJ) Press Release 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. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Massachusetts Inspector General S. Jeffrey Shapiro made the announcement. Valuable assistance was provided by the U.S. Small Business Administration, Office of Inspector General, Boston Region. Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form . The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Related programs: COVID EIDL, Pandemic Oversight
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