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The mayor of Lawrence, Massachusetts, Brian DePena, has been arrested on federal charges of wire fraud and money laundering. Authorities allege that DePena misappropriated over $1.5 million in pandemic relief loans intended to support small businesses during COVID-19, instead using the funds to finance his mayoral campaign, pay personal taxes, and settle high-interest real estate debts.
DePena, 61, was taken into custody Friday morning after an investigation revealed the misuse of Economic Injury Disaster Loans (EIDL), a federal program overseen by the Small Business Administration (SBA) under the CARES Act. The program was designed to assist businesses struggling financially amid the pandemic.
Having been elected mayor in November 2021 and reelected in November 2025, DePena previously served on the Lawrence City Council from 2016 to 2021. U.S.
Attorney Leah B. Foley condemned the alleged actions, stating that DePena betrayed the trust of his constituents and emphasizing the commitment to hold public officials accountable for fraud.
According to federal prosecutors, DePena applied for EIDL funds in May 2020 on behalf of his auto service business, Tenares Tire Service Inc. Initially approved for a $150,000 loan, he later secured modifications that increased the total loan amount to $1.1 million by October 2021. The funds, meant to support pandemic-related business hardships, were allegedly diverted soon after being received.
Investigators claim that between August and October 2021, DePena transferred nearly $90,000 from business accounts to personal accounts and wrote checks exceeding $42,000 to his political campaign committee. Additionally, he reportedly used approximately $85,000 to pay off personal back taxes and over $880,000 to reduce mortgages on his personal properties.
IRS Criminal Investigation special agent Thomas Demeo highlighted the misuse of CARES Act funds, stressing the agency’s dedication to protecting taxpayer money and pursuing those who exploit federal relief programs.
As of early August, DePena had made limited repayments on the loan, with payments covering accrued interest, leaving an outstanding balance of about $1.65 million.
DePena is scheduled for his initial court appearance in Boston federal court on Friday afternoon. He faces up to 30 years in prison if convicted. Representatives from the mayor’s office have not yet commented on the charges.