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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. 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.
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