Lawrence Mayor Brian DePena was arrested and charged with fraudulently obtaining over $1.5 million in COVID-19 small-business loans and using the proceeds to fund his mayoral campaign, settle personal tax debts, and pay off high-interest mortgages on properties he owned in Justice.
Lawrence Mayor Brian DePena Arrested on Federal Fraud and Money Laundering Charges
Brian DePena, 61, faces one count of wire fraud and one count of money laundering following an investigation. He was scheduled to make an initial appearance in federal court in Boston. DePena was elected as Mayor of Lawrence in November 2021, reelected in November 2025, and previously served on the Lawrence City Council from 2016 until 2021.
Alleged Misuse of COVID-19 Economic Injury Disaster Loans
According to charging documents, DePena applied for Economic Injury Disaster Loans (EIDL) in 2020 and 2021 for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence. The EIDL program was administered by the U.S. Small Business Administration (SBA) under the CARES Act to assist struggling businesses during the COVID-19 pandemic.
Federal prosecutors stated that DePena initially caused Tenares Tire to apply for and obtain a $150,000 EIDL in June 2020, using the majority of those funds as working capital. However, by early 2021, investigators allege his mayoral campaign was struggling to pay bills, he owed the IRS for back taxes, and he owed nearly $900,000 to two private, hard-money lenders charging 12% and 8% interest on loans encumbering various properties he owned in Lawrence.
In April 2021, DePena requested an increase to the Tenares Tire EIDL, which the SBA approved on July 14, 2021, adding $350,000 to bring the total loan to $500,000. Prosecutors claim DePena then diverted the funds as his own personal slush fund. Between August and October 2021, he allegedly transferred nearly $90,000 from business accounts to personal accounts, writing checks totaling over $42,000 directly to The Committee to Elect Brian DePena.
Officials also stated that DePena used the taxpayer funds to pay $85,000 to the IRS for personal tax debts and paid off over $880,000 in high-interest mortgages on properties he owned in Lawrence.
Reactions and Broader Political Context in Lawrence
Federal officials condemned the alleged actions. 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,
said United States Attorney Leah B. Foley.
Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division, stated that the relief was intended as an emergency safety net rather than a personal fund. “It’s alleged the Mayor fraudulently obtained over $1.5 million in small business loans which he then used as his own slush fund to pay his personal taxes, fund his mayoral campaign, and pay off $883,000 in high-interest mortgages on several properties he owned,” Docks said.
The arrest adds to a history of controversy in Lawrence municipal leadership. Jonathan Guzman, a member of the city’s School Committee, called the situation deeply unfortunate and noted that public office carries enormous responsibility. Past controversies in the city included legal issues under former mayor William Lantigua, as well as recent criminal charges and investigations involving other local officials and former mayoral staffers, including former chiefs of staff William Castro and Jhovanny Martes-Rosario.
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