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Prosecutors say Damian Halfkenny, 54, of Boston, submitted false payroll information to get a COVID-19-era Paycheck Protection Program loan.
A retired Massachusetts State Police sergeant has agreed to plead guilty in connection with an alleged scheme to fraudulently obtain a federal pandemic relief loan, prosecutors announced Friday.
Damian Halfkenny, 54, of Boston, was charged with one count of wire fraud, U.S. Attorney Leah Foley’s office said. A plea hearing has not yet been scheduled.
Prosecutors say Halfkenny, while working full-time as a state police sergeant in 2021, applied for a Paycheck Protection Program (PPP) loan for a real estate business through which he owned and rented several properties. However, the business had no employees.
According to charging documents, Halfkenny claimed his business had monthly payroll expenses of $8,488 and submitted what authorities say was a fraudulent IRS Schedule C form as part of the application.
Based on those claims, the Small Business Administration approved a $21,220 loan, which was later forgiven, prosecutors said.
The PPP was created during the COVID-19 pandemic to help businesses cover payroll and other expenses. The program distributed hundreds of billions of dollars in aid but has since been the focus of widespread fraud investigations nationwide, including cases in Massachusetts.
In one recent case, four people were accused of fraudulently obtaining $7 million in PPP funds through fake applications and tax documents.
Halfkenny faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 if convicted, according to Foley’s office.
Morgan Rousseau is a freelance writer for Boston.com, where she reports on a variety of local and regional news.
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