Lawrence, Massachusetts Mayor Brian DePeña Indicted Over COVID Small-Business Loan Fraud
DePeña, 61, faces one count of wire fraud and one count of money laundering. He made an initial appearance in federal court in Boston the same day and was released on conditions that include reporting to probation, remaining in Massachusetts, and having no contact with witnesses.
By SyndicatedNews | SNN.BZ
BOSTON – Lawrence, Massachusetts Mayor Brian DePeña was arrested Friday, August 14, 2026, and charged with fraudulently obtaining more than $1.5 million in COVID-era small-business loans and diverting the proceeds to personal and political uses, according to the U.S. Attorney’s Office for the District of Massachusetts.
Brian DePeña was first elected mayor in November 2021 and reelected in November 2025 after previously serving on the Lawrence City Council from 2016 to 2021.
According to charging documents, DePeña applied in 2020 and 2021 for Economic Injury Disaster Loans (EIDLs) through Tenares Tire Services Inc., a Lawrence tire sales and automotive services business he owns. The U.S. Small Business Administration provided these taxpayer-funded loans at a 3.75% interest rate to help eligible small businesses cover working-capital needs caused by pandemic disruptions. Prosecutors allege the funds were instead used for unauthorized purposes.
Court papers state that DePeña obtained an initial $150,000 EIDL in June 2020. In 2021, while his mayoral campaign faced financial strain, he owed the IRS back taxes, and nearly $900,000 in high-interest (8% and 12%) hard-money mortgages on Lawrence properties remained outstanding, he sought loan increases. The SBA approved a $350,000 increase (total $500,000), with funds deposited in August 2021 into an account that previously held about $20. Prosecutors allege $85,000 went to personal IRS tax debts and that $120,000 was moved to a personal account, from which checks totaling about $90,000 were written to “The Committee to Elect Brian DePena.”
A further modification later raised the total EIDL to approximately $1.65 million. After a large deposit in late November 2021, prosecutors say nearly the entire amount was quickly transferred to a personal account that had held roughly $1,400. Additional campaign transfers of about $42,000 and payments totaling $883,293 to satisfy the hard-money mortgages followed via treasurer’s checks in December 2021. As of early August 2026, only 16 payments (mostly applied to interest) had been made on the loan, leaving an outstanding principal balance of roughly $1.65 million.
U.S. Attorney Leah B. Foley stated that DePeña “was elected to be a leader for the City of Lawrence” and was “looked up to and trusted by his constituents,” but “betrayed that trust through his alleged corruption and lies.” FBI Boston Special Agent in Charge Ted E. Docks described the alleged conduct as treating emergency assistance “as his own personal ATM.” IRS Criminal Investigation officials emphasized that CARES Act funds were intended to support struggling businesses, not personal debts, political campaigns, or real-estate obligations.
Wire fraud carries a maximum of 20 years in prison and a $250,000 fine; the money-laundering charge carries up to 10 years and a $250,000 fine. The charges remain allegations. DePeña is presumed innocent unless and until proven guilty beyond a reasonable doubt. The case is being prosecuted by the U.S. Attorney’s Office Public Corruption Unit with assistance from the FBI, IRS-CI, and other agencies.
The criminal complaint and supporting affidavit are publicly available.
