David Breen, 54, Pleads Guilty to $1.2M COVID Relief Fraud
Summary
David Breen, 54, of Mount Pleasant, S.C., pleaded guilty to one count of theft of government property in federal court in Worcester, Massachusetts, for misappropriating $1.2 million in Economic Injury and Disaster Loan (EIDL) funds. The SBA provided these loans to small businesses harmed by the COVID-19 pandemic, but Breen used the money to build a home and purchase motor vehicles. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for June 25, 2026.
SBA EIDL loan fraud remains an active enforcement priority — businesses that received COVID-19 relief funds should ensure documentation of legitimate economic injury is current and defensible. The Massachusetts OIG's lead role indicates state-level OIG cooperation with federal prosecutors in COVID relief fraud cases.
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GovPing monitors Massachusetts OIG for new government & legislation regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 3 changes logged to date.
What changed
David Breen pleaded guilty to one count of theft of government property for diverting $1.2 million in SBA EIDL COVID-19 relief funds for personal use. This is a completed enforcement action in which the defendant admitted criminal conduct, though sentencing remains pending. The case demonstrates continued federal enforcement of COVID relief fraud involving SBA loan programs.
Government agencies administering federal relief programs and firms that received or administer EIDL funds should note this as an active enforcement priority. The guilty plea signals a finalized prosecution for misappropriation of government pandemic assistance funds.
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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- Office of the Inspector General
Press Release
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.
For immediate release: 3/30/2026
- Office of the Inspector General
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.
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Carrie Kimball, Communications Officer
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Office of the Inspector General
The Office of the Inspector General (OIG) is an independent, non-partisan oversight agency mandated to prevent and detect fraud, waste, and abuse of public resources at the state and municipal level across the Commonwealth of Massachusetts. We serve the residents of Massachusetts, state and local governments, and those who work with the government.
Media Contact
Carrie Kimball, Communications Officer
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Online
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