Full Breakdown
Lawrence Mayor Brian DePeña Arrested on Federal Fraud Charges
8/19/2026, 2:56:04 AM
Core Event
Federal agents arrested Lawrence, Massachusetts Mayor Brian DePeña on Friday and charged him with one count of wire fraud and one count of money-laundering. Prosecutors allege DePeña obtained more than $1.5 million in Economic Injury Disaster Loans (EIDL) for his tire-sales business, Tenares Tire Services Inc., and diverted the funds to his mayoral campaign, personal tax liabilities, and high-interest mortgages on properties he owned in the city. He appeared in federal court in Boston, was released on conditions that include surrendering his passport and seeking court approval before any further borrowing, and was photographed smiling and saying “God bless you” when asked if he would resign.
Background & Context
The EIDL program, administered by the U.S. Small Business Administration under the CARES Act, provided low-interest loans to small businesses disrupted by the COVID-19 pandemic. Loans were restricted to working-capital needs and could not be used for political campaigns, personal taxes, or mortgage payments. DePeña, a Dominican-born immigrant who became a U.S. citizen, was first elected mayor of Lawrence in November 2021 and re-elected in November 2025 after serving on the city council from 2016 to 2021.
Data & Statistics
- Loan amount: more than $1.5 million in EIDL funds.
- Campaign spending: roughly $90,000 transferred to the mayoral campaign.
- Mortgage pay-offs: about $880,000 used to retire high-interest hard-money loans.
- Personal tax payments: a portion directed to cover back-tax liabilities.
- Potential penalties: up to 20 years for the wire-fraud count and up to 10 years for the money-laundering count, each with three years of supervised release and fines of $250,000.
Official Statements & Responses
U.S. FBI Special Agent in Charge Ted E. DePeña’s attorney, Carlos Apostle, declined to comment, repeatedly responding “no comment” to reporters.
Conflicting Reports & Gaps
- Sentencing exposure: Fox News and a White House press release cite a possible 30-year term, while AP-derived reports and the Daily Mail specify separate maximums of 20 years (wire fraud) and 10 years (money laundering).
- Exact loan figure: Some outlets refer to “over $1 million” in pandemic loans, whereas others specify “more than $1.5 million.” Both figures appear in source material without reconciliation.
- Council appearance: It is unknown whether DePeña will attend the Lawrence City Council meeting scheduled for Tuesday night.
What’s Next
The Lawrence City Council is slated to convene Tuesday night for its first session since the mayor’s arrest. The meeting may address the vacancy created by DePeña’s legal situation and consider interim governance measures. Federal prosecutors continue to investigate the alleged misuse of EIDL funds, and the case will proceed through the federal court system.
Verbatim Quotes
- “The FBI arrested Mayor Brian DePeña for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic,” — Ted E. Docks
- “When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents — and breaking the law,” — Ted E. Docks
- “I believe Chief Castro acted assertively and quickly in an attempt to safeguard the citizens of Lawrence,” — Brian DePeña, since lawrence mayor
