Full Breakdown
Lawrence Mayor Brian DePeña Arrested on Federal Fraud and Money-Laundering Charges
8/16/2026, 12:15:18 AM
The Arrest and Charges
On August 14, 2026, FBI agents arrested Lawrence, Massachusetts Mayor Brian DePeña, 61, in his home. He faces one count of wire fraud and one count of money laundering in U.S. District Court. Prosecutors allege DePeña obtained more than $1.5 million in COVID-19 Economic Injury Disaster Loans (EIDLs) for his business, Tenares Tire Services Inc., and diverted the money to personal debts, mortgages, and his mayoral campaign. The wire-fraud count carries a maximum of 20 years in prison and a $250,000 fine; the money-laundering count carries up to 10 years and a similar fine.
Background of the Economic Injury Disaster Loan (EIDL) Program and DePeña’s Business
The SBA’s EIDL program, created under the CARES Act, provides low-interest working-capital loans to businesses affected by the pandemic. Loans must be used for business expenses only. DePeña’s tire and auto-service company received its first EIDL on May 4 2020, a $150,000 loan disbursed on June 17 2020.
Financial Trail: Loans, Increases, and Alleged Misuse
- July 14 2021: SBA approved a $350,000 modification, raising the total to $500,000.
- August 16 2021: The $350,000 was deposited, leaving the account balance at $20.23.
- November 30 2021: SBA added $1,154,188, bringing the cumulative loan to roughly $1.65 million (approval on Oct 27).
According to the indictment, DePeña allocated the proceeds as follows:
- $85,000 for personal IRS taxes.
- $883,293 to pay high-interest mortgages on his Lawrence properties.
- $42,000 (rounded) to his mayoral campaign from the October increase.
As of August 5 2026, court records show only 16 payments totaling $130,160 toward the outstanding principal of about $1.65 million.
Official Statements from Prosecutors and Law Enforcement
U.S. FBI Special Agent in Charge Ted E. and IRS Criminal Investigation Special Agent Thomas Demeo emphasized that CARES Act funds were intended for business survival, not personal or political use.
Local Officials React
City Council President Jeovanny Rodriguez said he was “surprised” by the charges and did not expect the mayor’s private business to be implicated.
Conflicting Reports and Outstanding Questions
- Some outlets cite $1.5 million as the total loan amount; others reference $1.6 million-$1.65 million after modifications.
- The campaign-fund allocation is reported as either $90,000 or $42,000 from the October increase.
These discrepancies remain unresolved pending trial.
Verbatim Quotes
- “Mayor DePeña 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,” — U.S. Attorney Leah Foley
- “When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents — and breaking the law,” — Ted E. Docks
- “This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePeña’s own personal ATM,” — Ted Docks
- “That was a bad decision on his part,” — Paul MacMillan
