On June 23, 2025, Lydia Breighner pled “No Contest” to Government Benefits Fraud. Judge Louise Hines, Section 3, Division F of the Louisiana 19th Judicial District Court, sentenced her to two years of probation with the following conditions:
- Pay court costs
- Pay LA Dept of Treasury restitution of $15,000
- 64 hours of community service
- Pay $55 per month to Probation and Parole
This significant case involved the act of intentionally misrepresenting information or concealing facts to illegally obtain, or misuse government benefits distributed by the Main Street Recovery Program (MSRP), which the Louisiana Department of Treasury operated.
While this case was unfortunate, the Louisiana Legislative Auditor’s Office reported an exceedingly low fraud rate of only 1.32 percent in the MSRP. This rate is significantly lower than the national average of 15.2 percent for similar programs.
Louisiana State Treasurer John Fleming, M.D., said, “We are proud of the work of our department in helping small businesses. Fortunately, 98.68 percent of the funds distributed by MSRP were spent on legitimate purposes. However, those who committed fraud must be prosecuted. Our department will continue to assist law enforcement agencies in prosecuting individuals who have committed fraud. This is essential to obtain both justice and restitution.”
The Louisiana Department of Treasury resolution and collection efforts combined with the efforts of the Office of the Louisiana Inspector General, led by Stephen Street, to recover more than $1.3 million from individuals who committed fraud and those who attempted to do so but were caught before receiving funds.
Overall, MSRP disbursed $262 million to businesses in Louisiana suffering from pandemic-related operating losses, with an average timeframe from application submission to award disbursement of 46.38 days. Over $160 million, more than four times the amount required by law was administered to minority and military small business owners.
A total of 20,751 grants were awarded, with an average of $12,675 per business. The program exceeded the expectations outlined in the statute, with 70 percent of businesses receiving the maximum $15,000 grant award.