The Democratic mayor of Lawrence, Massachusetts, has been arrested on charges of fraudulently acquiring over $1.5 million in small business loans during the pandemic and misusing those funds, according to an announcement from the Justice Department.
Brian DePeña, aged 61, faces a charge of wire fraud and another of money laundering. His initial court appearance is set for Friday in Boston, as stated by the Justice Department. Reports indicate that he allegedly used the pandemic relief loan to settle more than $880,000 in campaign expenses, personal taxes, and high-interest mortgages.
“Mayor DePeña was a well-respected leader in Lawrence, and these allegations reflect a significant betrayal of the trust placed in him,” U.S. Attorney Leah Foley commented. “Today’s arrest underscores our commitment to tackle corruption wherever it occurs, including in public office.”
According to court documents, between 2020 and 2021, DePeña applied for an Economic Injury Disaster Loan (EIDL) for Tenares Tire Service, an auto service and tire business based in Lawrence. The EIDL program aimed to help businesses recover from the economic fallout of the pandemic. It’s important to note that using these funds for political campaigns, personal tax payments, or mortgage repayments is against the rules, the Justice Department clarified.
DePeña’s office has not yet responded to requests for comments regarding the situation.
🚨Breaking news: #FBI boston & @IRS_CI Special agents arrested Brian DePena, the mayor of Lawrence, Massachusetts, on suspicion of fraudulently obtaining more than $1.5 million. #COVID-19 (new coronavirus infection) @SBAgov He took out a loan and used the proceeds to fund his campaign, pay personal taxes and pay off $883,000. pic.twitter.com/lYUSIMPhSZ
— FBI Boston (@FBIBoston) August 14, 2026
“We are dedicated to protecting emergency relief programs,” stated Thomas DeMeo, Special Agent in Charge of the IRS Criminal Investigation’s Boston Field Office. “Funds from the CARES Act were designed to assist small businesses in overcoming an unmatched national crisis, not to support personal debts or political goals.”
He added that the IRS Criminal Investigation Division will continue to safeguard taxpayer funds and ensure those misusing federal relief resources are held accountable.
During a court session on Friday, when queried about DePeña’s potential resignation, his attorney responded, “No, he’s been doing a great job in Lawrence,” as reported by WCVB.
This announcement comes amid ongoing concerns that various pandemic relief programs have been abused by scammers, a point previously noted by some experts.
