Retired Massachusetts State Police Sergeant Agrees to Plead Guilty in $21,000 PPP Loan Fraud Case

BOSTON – A retired Massachusetts State Police sergeant has agreed to plead guilty to federal wire fraud charges after fraudulently obtaining a Paycheck Protection Program (PPP) loan of more than $21,000. The U.S. Attorney's office for Massachusetts announced on April 11, 2026, that Damian Halfkenny, 54, of Boston, submitted false information to secure the pandemic-era relief funds, which were later fully forgiven. According to charging documents, Halfkenny was employed full-time as a state police sergeant in 2021 while also owning and operating a real estate business. Prosecutors allege that in March 2021, he submitted a PPP loan application for his real estate enterprise despite having no employees. The application falsely claimed a monthly payroll expense of $8,488 and was supported by a fabricated IRS Schedule C form. Based on these fraudulent claims, the U.S. Small Business Administration (SBA) approved a $21,220 loan, which was later forgiven, effectively converting the loan into a tax-free grant. This case is a stark reminder that the government's pursuit of pandemic-era fraud is far from over. While many business owners who made honest mistakes on complex applications are understandably nervous, cases like this typically involve clear, deliberate misrepresentation. The submission of fabricated documents is a red flag that investigators actively pursue. Under the terms of his plea agreement, Halfkenny faces a single count of wire fraud. The charge carries a potential sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. A date for the plea hearing has not yet been scheduled. The Paycheck Protection Program was a cornerstone of the CARES Act, designed to provide a lifeline to small businesses struggling to retain employees during the economic shutdowns of the COVID-19 pandemic. The program distributed hundreds of billions of dollars in forgivable loans, but its rapid rollout and simplified application process also made it a prime target for fraud. The diversion of these funds by fraudulent actors meant less capital was available for legitimate businesses that were desperate to keep their doors open and their staff employed. Halfkenny’s case is the latest in a series of criminal actions involving current and former members of the Massachusetts State Police, raising broader questions about conduct within the agency. Although the other cases are unrelated to PPP fraud, they collectively point to a pattern of public officials allegedly exploiting their positions for financial gain. In a separate matter, former State Police Sergeant Gary Cederquist was sentenced in October 2025 to six years in prison for orchestrating a bribery and extortion scheme involving commercial driver’s licenses. Federal prosecutors have also secured numerous convictions in a widespread overtime abuse scandal, where troopers were found to have collected pay for hours they never worked. We have seen firsthand the long-term damage that results from cutting corners on financial compliance. The federal government has a long memory and significant resources for prosecuting fraud, even years later. Building a business on a foundation of sound financial practices is non-negotiable, which is why our approach to tax preparation and compliance focuses on establishing a transparent and defensible record. For business owners concerned about pandemic-era filings or seeking to ensure their current practices are sound, professional guidance is crucial. You can learn more by contacting C&S Finance Group LLC at csfinancegroup.com. The prosecution of PPP fraud remains a top priority for the Department of Justice, which has established COVID-19 Fraud Enforcement Task Forces across the country. These task forces, working with the SBA's Office of Inspector General and other federal agencies, have utilized advanced data analytics to identify suspicious loan patterns and uncover fraudulent networks. The sheer volume of applications has made this a complex undertaking, but federal authorities have consistently stated their commitment to holding perpetrators accountable. The legacy of these massive relief programs will be felt for years, not just in their economic impact but in the prolonged enforcement cycle. This ongoing activity should prompt all business owners to review their records and ensure their compliance is airtight. As Damian Halfkenny awaits his formal plea hearing, federal prosecutors continue to investigate thousands of similar cases nationwide. With a 10-year statute of limitations for wire fraud, the government has a long runway to bring charges against those who defrauded the PPP and other pandemic relief programs. Business owners can expect enforcement actions to remain a fixture of the financial and legal landscape for the remainder of the decade.