Former IRS Employee Allegedly Committed Fraud
Kayleigh McEnany has highlighted the case of Arios Williams, a former federal employee who is accused of defrauding the government out of over $3.5 million in relief funds intended for the coronavirus pandemic. Williams, working as an SBA loan officer, reportedly contacted people on Instagram, promising to approve fraudulent grant applications in exchange for a fee.
In related news, the mayor of a Boston suburb has been charged with federal wire fraud and money laundering. Lawrence Mayor Brian DePena is alleged to have misappropriated more than $1.5 million in pandemic-era small business loans for personal expenses, including campaign funds and to settle high-interest debts.
DePena, age 61, was arrested following an investigation into his misuse of the Economic Injury Disaster Loan (EIDL) program, which provides assistance to businesses affected by the COVID-19 pandemic. He was elected as mayor in November 2021 and is set to run for re-election in November 2025. Prior to this role, he served on the Lawrence City Council from 2016 to 2021.
U.S. Attorney Leah B. Foley commented on DePena’s arrest, emphasizing the breach of trust he committed as an elected official: “Today’s arrest is one example of our commitment to rooting out corruption, even among public servants, and to ensuring accountability for elected officials.”
In May 2020, DePena applied for an EIDL for his auto service and tire shop, Tenares Tire Service, Inc. These loans were meant to alleviate financial hardships caused by the pandemic. The initial approval was for $150,000 in June 2020, but after encountering cash flow issues, he sought additional funding. By October 2021, modifications had increased the total loan amount to $1.1 million.
Prosecutors allege that DePena misappropriated funds after receiving them. Between August and October 2021, he purportedly transferred nearly $90,000 from his business account to his personal account and wrote checks amounting to over $42,000 to the Brian DePena Selection Committee. Moreover, he also used the relief funds to pay off personal debts, including settling about $85,000 in unpaid taxes with the IRS and $883,293 on a personal mortgage.
Thomas DeMeo, Special Agent in Charge of the IRS Criminal Investigation Boston Field Office, criticized the misuse of the CARES Act funds, stressing that they were intended to support small businesses during a crisis, not to finance personal debts or political ambitions.
As of August 5, DePena had made only 16 payments totaling $130,160 toward the EIDL, leaving approximately $1.65 million still owed, as payments had gone mostly toward interest.
DePena’s first court appearance is scheduled for Friday afternoon, where he could face a prison sentence of up to 30 years. The mayor’s office has not yet responded to requests for comments regarding the allegations.
