Brian DePeña, the mayor of Lawrence, Massachusetts, was arrested on Friday and charged with “one count of wire fraud and one count of money laundering,” according to a Justice Department announcement.
DePeña is accused of “fraudulently obtaining over $1.5 million in COVID small-business loans” and using the proceeds to fund his campaign account, pay personal taxes, and settle more than $880,000 in high-interest mortgages on properties he owned in Lawrence. A federal press release detailed these allegations.
Video footage showed DePeña being arrested at his home early Friday morning. After an initial appearance in Boston federal court that afternoon, DePeña was released under conditions including surrendering his passport and agreeing not to seek loans without court approval. His lawyer, Carlos Apostle, repeatedly declined comment when asked about the case. When questioned directly about resigning, DePeña responded with “God bless.”
Prosecutors allege that in 2020 and 2021, DePeña secured a government disaster loan for Tenares Tire Services Inc., a tire sales business in Lawrence. He initially used $150,000 from this loan. By early 2021, however, he faced cash shortages after purchasing a commercial property at 342 Broadway in Lawrence for $700,000 and owed $900,000 to private lenders. DePeña then requested multiple increases to the government loan and allegedly diverted $1.5 million from emergency relief funds to cover personal debts, campaign expenses, and mortgage payments.
The criminal complaint states that on August 16, 2021, $85,000 from EIDL funds was deposited into DePeña’s business account for personal tax liabilities, followed by an additional $90,000 used later that September for his mayoral campaign. Federal prosecutors allege he did not intend to use the Tenares Tire EIDL funds solely as working capital during the pandemic crisis.
United States Attorney Leah B. Foley condemned DePeña’s actions, stating: “Mayor DePeña was elected to be a leader for the City of Lawrence. He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies.” Thomas Demeo, Special Agent in Charge of the IRS Criminal Investigation, Boston Field Office, added: “CARES Act funds were created to help small businesses survive an unprecedented national crisis — not to bankroll personal debts, political ambitions, or real estate ventures.”