BATON ROUGE, La. — On June 23, 2025, Lydia Breighner pled No Contest to charges of Government Benefits Fraud in the 19th Judicial District Court. Judge Louise Hines (Section 3, Division F) sentenced Breighner to two years of probation with the following conditions:
- Payment of court costs
- Restitution of $15,000 to the Louisiana Department of Treasury
- Completion of 64 hours of community service
- Monthly payments of $55 to the Office of Probation and Parole
The conviction stems from Breighner’s actions involving the Main Street Recovery Program (MSRP), a state initiative designed to support small businesses facing pandemic-related economic hardship. According to officials, Breighner intentionally misrepresented or concealed information in order to illegally obtain government benefits through the MSRP, which was administered by the Louisiana Department of Treasury.
While this incident highlights an unfortunate case of fraud, the overall integrity of the program remained strong. The Louisiana Legislative Auditor reported a fraud rate of only 1.32%, significantly lower than the national average of 15.2% for similar programs.
“We are proud of the work of our department in helping small businesses,” said Louisiana State Treasurer John Fleming, M.D. “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 sentencing is part of a broader effort led by the Louisiana Department of Treasury and the Office of the Louisiana Inspector General, under the leadership of Stephen Street, to investigate and recover funds related to MSRP fraud. To date, these efforts have resulted in the recovery of more than $1.3 million.
Launched in response to the COVID-19 crisis, the Main Street Recovery Program disbursed over $262 million to Louisiana small businesses impacted by the pandemic. Key outcomes of the program include:
- 20,751 grants awarded, averaging $12,675 per business
- 70% of recipients received the full $15,000 grant
- $160 million awarded to minority- and veteran-owned businesses—more than four times the amount required by statute
- Average processing time from application to award: 46.38 days
The program’s execution exceeded legislative expectations and provided critical support to businesses across the state during a time of unprecedented economic disruption.