Brian DePena, the mayor of Lawrence, Massachusetts, was arrested on federal charges for allegedly fraudulently obtaining over $1.5 million in COVID-19 small-business loans. The U.S. Attorney’s Office for the District of Massachusetts announced the charges, which include one count of wire fraud and one count of money laundering. DePena is expected to appear in federal court in Boston.
Prosecutors claim that DePena acquired the funds through the Small Business Administration’s Economic Injury Disaster Loan program for his business, Tenares Tire Services. The program was designed to provide low-interest loans to businesses affected by the pandemic, with funds intended for working capital and eligible business expenses.
Initially, DePena received a $150,000 loan in June 2020, which he reportedly used for legitimate business expenses. However, by 2021, he faced significant personal tax debts and campaign expenses. Prosecutors allege that he sought increases to the loan, eventually receiving a total loan amount exceeding $1.65 million. Allegedly, he diverted substantial portions of this money for personal debts and his political campaign.
According to authorities, DePena used approximately $883,000 of the loan proceeds to pay off high-interest mortgages on properties he owned. The loan reportedly still has an outstanding balance of around $1.65 million as of August 5. The wire fraud charges could result in a maximum sentence of 20 years in prison, while the money laundering charges could lead to up to 10 years.
DePena was elected mayor in November 2021 and was reelected in 2025, having previously served on the Lawrence City Council from 2016 to 2021.