Massachusetts mayor charged with wire fraud over $1.5 million in COVID relief funds
LAWRENCE, Mass., Aug. 15. Federal prosecutors charged Lawrence Mayor Brian DePena, 61, with wire fraud and money laundering Friday, alleging he diverted more than $1.5 million in pandemic-era Small Business Administration loans to his campaign committee, personal back taxes, and private mortgage debt. DePena was arrested Friday morning and faces up to 30 years in prison, the U.S. Department of Justice said. He is scheduled for an initial appearance in Boston federal court Friday afternoon.
Key takeaways
- Federal prosecutors charged Lawrence, Massachusetts Mayor Brian DePena, 61, with wire fraud and money laundering on Friday, Aug. 15.
- Prosecutors allege DePena diverted more than $1.5 million in pandemic-era SBA Economic Injury Disaster Loans to his campaign committee, personal back taxes, and private mortgage debt.
- DePena was arrested Friday morning, faces up to 30 years in prison, and was scheduled for an initial appearance in Boston federal court Friday afternoon.
- The loans were obtained for Tenares Tire Service Inc., DePena's Lawrence auto and tire shop, starting with $150,000 approved in June 2020 and growing to $1.1 million through two modifications.
- Prosecutors say DePena directed $85,000 to the IRS for back taxes, more than $42,000 to his campaign committee, and $883,293 toward high-interest mortgages on personal Lawrence properties.
LAWRENCE, Mass., Aug. 15. Federal prosecutors charged Lawrence Mayor Brian DePena, 61, with wire fraud and money laundering Friday, alleging he diverted more than $1.5 million in pandemic-era Small Business Administration loans to his campaign committee, personal back taxes, and private mortgage debt. DePena was arrested Friday morning and faces up to 30 years in prison, the U.S. Department of Justice said. He is scheduled for an initial appearance in Boston federal court Friday afternoon.
The alleged scheme centered on Economic Injury Disaster Loans issued under the CARES Act, a program the SBA created to help businesses cover pandemic-related losses. DePena applied in May 2020 on behalf of Tenares Tire Service Inc., an auto service and tire shop he operated in Lawrence. The SBA approved $150,000 in June 2020. Two modifications followed, in April 2021 and October 2021, raising the total to $1.1 million, the complaint shows.
After the October 2021 modification, DePena was unable to access the funds for a month, prosecutors said. In a text message to a financial advisor assisting with the loan, translated from Spanish, DePena allegedly wrote: "Brother, call me, I'm in trouble. I don't want to pressure you, but I don't have time to wait for this loan. I'm in your hands."
Alleged diversions
Between August and October 2021, prosecutors say DePena transferred nearly $90,000 from Tenares Tire accounts to personal accounts, then wrote checks totaling more than $42,000 to the Committee to Elect Brian DePena. He directed $85,000 to the Internal Revenue Service to settle personal back taxes, according to prosecutors, and paid $883,293 toward high-interest mortgages on personal properties he held in Lawrence.
DePena was first elected mayor of Lawrence in November 2021, having served on the Lawrence City Council from 2016 to 2021. He won reelection in November 2025. "He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies," U.S. Attorney Leah B. Foley said. Thomas Demeo, special agent in charge of the IRS Criminal Investigation Boston Field Office, said the funds were created to help small businesses survive a national crisis, not to "bankroll personal debts, political ambitions, or real estate ventures."
As of Aug. 5, DePena had made 16 payments on the Tenares Tire loan totaling $130,160. Because those payments covered only accrued interest, the outstanding balance remained at approximately $1.65 million, the complaint states.