Retired Mass. State Police Sergeant Pleads Guilty to Pandemic Loan Fraud

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Damian Halfkenny, a 54-year-old former Massachusetts State Police sergeant, has agreed to plead guilty to one count of wire fraud in connection with a pandemic fraud scheme. Halfkenny falsely represented on a PPP loan application that his real estate business had a monthly payroll expense of $8,488, despite having no employees. The U.S. Small Business Administration issued Halfkenny a $21,220 PPP loan, which he later spent within two months on personal expenses.

Why it matters

This case highlights ongoing concerns about fraud and abuse of pandemic relief programs, which have faced scrutiny for lax oversight and improper payments. As a former law enforcement officer, Halfkenny's actions undermine public trust and raise questions about the integrity of those entrusted to uphold the law.

The details

According to court documents, in March 2021 while still employed as a state police sergeant, Halfkenny emailed a Boston bank a signed application for a $21,220 PPP loan for his real estate business. In the application, he falsely claimed to have a monthly payroll expense of $8,488, despite having no employees. The next day, Halfkenny emailed the bank a fabricated Schedule C tax form. Based on these misrepresentations, the SBA issued Halfkenny the PPP loan, which was later forgiven. Halfkenny then opened a new bank account and spent the funds on personal expenses within two months.

• On March 3, 2021, Halfkenny submitted the fraudulent PPP loan application.
• On March 6, 2021, Halfkenny opened a new bank account.
• On March 8, 2021, the bank deposited the $21,220 PPP loan proceeds into Halfkenny's new account.
• Between March 8 and May 3, 2021, Halfkenny spent the loan funds on personal expenses.

What’s next

Halfkenny faces up to 20 years in prison, 3 years of supervised release, and a $250,000 fine for the wire fraud charge. The judge will determine his final sentence.