A Massachusetts mayor was arrested on Aug. 14 on allegations that he fraudulently secured more than $1.5 million in COVID-19 small-business loans to fund his election campaign and pay personal taxes and mortgages.
Lawrence Mayor Brian DePena, 61, was charged with one count of wire fraud and one count of money laundering, according to a statement by the U.S. Attorney’s Office for Massachusetts.
DePena has been released from custody following his initial appearance in federal court in Boston on Aug. 14, subject to several conditions, including turning over his passport.
According to his indictment, he allegedly applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence, between 2020 and 2021.
The Small Business Administration (SBA) offered those loans to eligible small businesses that were facing financial difficulties during the pandemic.
Prosecutors alleged that DePena obtained $150,000 in EIDL loans for Tenares Tire in June 2020, using most of the funds as working capital for his business. In early 2021, his mayoral campaign was struggling to pay bills, and he owed back taxes to the IRS and $900,000 to two private lenders.
DePena allegedly applied in April 2021 for an increase in his business’s EIDL loan, which the SBA later approved for an additional $350,000, according to the statement.
Prosecutors said DePena allegedly used $85,000 of the funds to pay off personal tax debts and transferred $120,000 to his personal account, of which $90,000 was later deposited into his mayoral campaign account.
In October 2021, DePena allegedly requested another EIDL loan increase, which the SBA approved for more than $1.15 million. He then transferred the entire amount to a personal account and used $42,112.96 of that fund for his mayoral campaign, prosecutors alleged. He also allegedly used over $883,000 to pay off his debts.
The mayor had made 16 payments on the Tenares Tire EIDL as of Aug. 5, 2026, leaving an outstanding principal balance of about $1.6 million, according to prosecutors.
“This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePena’s own personal ATM,” Ted E. Docks, special agent in charge of the FBI’s Boston Division, said in the statement.
“When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents—and breaking the law,” he said.
DePena has served as mayor since 2021. He was reelected in November 2025 and previously served on the Lawrence City Council.
He faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 if convicted of wire fraud. For money laundering, DePena could face up to 10 years in prison, three years of supervised release, and a $250,000 fine if found guilty.
The Epoch Times has reached out to DePena’s office for comment and did not receive a response by publication time.
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