BOSTON — Back in March 2021, Damian Halfkenny was working full-time as a Massachusetts State Police sergeant when he emailed a Boston bank a signed application for a $21,220 PPP loan, court documents show.
In the pandemic-era loan application for his real estate business, Halfkenny falsely represented that he had a monthly payroll expense of $8,488, prosecutors said.
One reason for the loan was to cover the business’s payroll costs, his application stated. Halfkenny, who owned and rented several real estate properties, had no employees, prosecutors said.
Halfkenny, 54, of Boston, who has since retired from his state police job, has agreed to plead guilty to one count of wire fraud in connection with the pandemic fraud scheme, the U.S. Attorney said in a statement on Friday.
According to the charging documents, on March 3, 2021, the day after submitting the loan application, Halfkenny emailed the bank president a fabricated Schedule C for tax year 2019.
Based on his alleged misrepresentations, the U.S. Small Business Administration issued Halfkenny a $21,220 PPP loan, which it later forgave.
A few days later, on March 6, 2021, Halfkenny opened a new checking account at the bank, prosecutors said. On March 8, 2021, the bank deposited $21,220 in PPP loan proceeds into the account.
Halfkenny spent the loan proceeds in less than two months. Prosecutors said between March 8, 2021 and May 3, 2021, Halfkenny paid himself two $7,000 checks; he withdrew $5,000 in cash; and he paid $2,118.28 in mortgage interest on one of his rental properties.
For the wire fraud charge, Halfkenny faces up to 20 years in prison, 3 years of supervised release, and a $250,000 fine.
Halfkenny earned a salary of $119,189.98 in 2023 as a state police sergeant prior to retiring from the department, according to online payroll records.
This is a developing story. Check back for updates as more information becomes available.
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