Full Breakdown
Lawrence Mayor Brian DePena Charged with Fraud Over $1.5 Million COVID Relief Loans
8/15/2026, 1:43:48 AM
Core Event: Arrest and Federal Charges
On a Friday in early 2024, Lawrence, Massachusetts Mayor Brian DePena was taken into federal custody in Boston and charged with one count of wire fraud and one count of money laundering. Prosecutors allege that DePena obtained Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) totaling $1.5 million for his tire-sales business, Tenares Tire Services Inc., and then diverted the funds to personal and political expenses. The alleged misappropriations include more than $880,000 used to pay off high-interest hard-money mortgages, $90,000 contributed to his mayoral campaign, and payments toward personal tax liabilities.
Background & Context
The SBA’s EIDL program was created under the CARES Act to provide low-interest working capital to small businesses suffering pandemic-related revenue loss. Eligible borrowers could receive loans at a 3.75 % interest rate, but the funds were restricted to business operating expenses—not political campaigns, personal taxes, or mortgage repayment.
DePena, a dual citizen of the United States and the Dominican Republic, has served on the Lawrence City Council (2016-2021) and was first elected mayor in November 2021, winning reelection in November 2025. His tire business applied for an initial $150,000 EIDL in June 2020 and later sought increases.
Data & Statistics
- Total alleged EIDL proceeds: $1,654,400 (initial $150,000 plus later increases).
- Mortgage repayments: $883,293 (approximately).
- Campaign contributions: $90,000 (initial) + $42,112.96 (later).
- Personal tax payments: $85,000.
- Personal transfers: $120,000 to a personal account.
- Potential sentences: up to 20 years for wire fraud and up to 10 years for money laundering, each with a fine of $250,000 and three years of supervised release.
Official Statements & Responses
- Thomas Demeo, Special Agent in Charge of the IRS Criminal Investigation Boston Field Office, highlighted the agency’s commitment to protecting emergency relief programs and prosecuting those who “abuse federal funds.”
Verbatim Quotes
- “When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents — and breaking the law,” — City Council. Ted Docks
- “Mayor DePena 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,” — United States Attorney Leah
- “Today’s arrest highlights IRS CI’s continued commitment to safeguarding emergency relief programs and holding accountable those who abuse them,” — Thomas Demeo
Conflicting Reports & Gaps
The charging documents provide a detailed chronology of alleged fund transfers, but independent verification of each transaction is not available in the public record. Specific dates for many transfers (e.g., the August 2021 deposit of $350,000) are described only in the indictment, leaving a gap in external confirmation.
What’s Next
DePena made his initial appearance before a federal judge in Boston and was released on conditions that include surrendering his passport and refraining from seeking additional loans without court approval. The case will proceed through the federal district court, where a trial date has not yet been set. If convicted, DePena faces the statutory maximum penalties outlined above.
