Retired Mass. State Police sergeant pleads responsible in PPP fraud scheme
Native Information
Prosecutors say Damian Halfkenny, 54, of Boston, submitted false payroll info to get a COVID-19-era Paycheck Safety Program mortgage.
A retired Massachusetts State Police sergeant has agreed to plead responsible in reference to an alleged scheme to fraudulently receive a federal pandemic reduction mortgage, prosecutors introduced Friday.
Damian Halfkenny, 54, of Boston, was charged with one depend of wire fraud, U.S. Lawyer Leah Foley’s workplace mentioned. A plea listening to has not but been scheduled.
Prosecutors say Halfkenny, whereas working full-time as a state police sergeant in 2021, utilized for a Paycheck Safety Program (PPP) mortgage for an actual property enterprise by means of which he owned and rented a number of properties. Nevertheless, the enterprise had no workers.
In accordance with charging paperwork, Halfkenny claimed his enterprise had month-to-month payroll bills of $8,488 and submitted what authorities say was a fraudulent IRS Schedule C kind as a part of the applying.
Based mostly on these claims, the Small Enterprise Administration accepted a $21,220 mortgage, which was later forgiven, prosecutors mentioned.
The PPP was created throughout the COVID-19 pandemic to assist companies cowl payroll and different bills. This system distributed tons of of billions of {dollars} in assist however has since been the main focus of widespread fraud investigations nationwide, together with circumstances in Massachusetts.
In one current case, 4 individuals have been accused of fraudulently acquiring $7 million in PPP funds by means of pretend purposes and tax paperwork.
Halfkenny faces as much as 20 years in jail, three years of supervised launch, and a wonderful of as much as $250,000 if convicted, in accordance with Foley’s workplace.
Join the As we speak publication
Get all the pieces it’s worthwhile to know to begin your day, delivered proper to your inbox each morning.
