CHARLESTON, W.Va. – A Charleston man is facing the consequences after attempting to game the system designed to keep businesses afloat during the height of the COVID-19 pandemic. Malik Breckenridge, 26, was ordered to pay $41,666 in restitution and sentenced to five years of federal probation, including eight months of home detention, after pleading guilty to wire fraud.
Breckenridge’s scheme revolved around the Paycheck Protection Program (PPP), a lifeline created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Between April and August of 2021, he submitted applications for two PPP loans totaling $41,666 on behalf of a phantom business called “Malik Breck.” Court documents reveal Malik Breck wasn’t a legitimate, registered business in West Virginia, and hadn’t even been operational before February 15, 2020 – a key requirement for PPP eligibility.
The lies didn’t stop there. Breckenridge fabricated business records, claiming Malik Breck had been established in 2014 and actively operating in early 2020. He further bolstered his fraudulent applications with a falsified IRS Form 1040, reporting a bogus gross income of $180,489 for 2019. A Florida-based lender processed the applications, unaware of the deception. Once the funds were secured – $20,833 per loan – Breckenridge attempted to have them forgiven, despite never using the money for legitimate business expenses.
The Small Business Administration (SBA) initially approved the loan forgiveness in August 2021, but the scheme unraveled thanks to the investigative work of the West Virginia State Police and the U.S. Secret Service. The CARES Act, enacted in March 2020, aimed to provide emergency financial assistance to those impacted by the pandemic, and Breckenridge’s actions represent a brazen attempt to exploit that aid for personal gain.
U.S. Attorney Will Thompson announced the sentencing, praising the collaborative efforts of law enforcement. U.S. District Judge Irene C. Berger handed down the sentence, with Assistant U.S. Attorney Kathleen Robeson leading the prosecution and Assistant U.S. Attorney Jessica Nathan coordinating the restitution process. This case is part of a broader initiative led by the Attorney General’s COVID-19 Fraud Enforcement Task Force, dedicated to combating pandemic-related fraud.
Anyone suspecting COVID-19 related fraud is urged to report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or through their online complaint form. Court documents related to this case can be found on PACER under Case No. 2:22-cr-84. This isn’t just about money; it’s about holding accountable those who preyed on a crisis and stole from programs meant to help struggling Americans.
Related Federal Cases
- Daniela Rendon, COVID-19 Relief Fund Fraud, FL 2024 · Virginia
- Alexandra Acosta, COVID-19 Relief Fraud, Florida 2024 · West Virginia
- Alexander Alli, COVID-19 Relief Wire Fraud, Florida 2024 · West Virginia
- Cheyenne Couple, Covid-19 Relief Fraud, Wyoming 2022 · Michigan
- Bradley Temple, COVID-19 Relief Money Embezzlement, Wheeling WV, 2023 · Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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