Massachusetts mayor charged with wire fraud in $1.5M COVID relief scheme

The mayor of a Boston suburb is facing federal wire fraud and money laundering charges for allegedly using more than $1.5 million in pandemic-era small business loans to pad his campaign account, pay personal taxes, and settle high-interest real estate debts.

Lawrence Mayor Brian DePena, 61, was arrested Friday morning following an investigation into his alleged misuse of Economic Injury Disaster Loans (EIDL) — a program administered by the U.S. Small Business Administration (SBA) under the CARES Act to assist struggling businesses during the COVID-19 pandemic.

DePena was elected mayor of Lawrence in November 2021 and won reelection in November 2025. He previously served on the Lawrence City Council from 2016 to 2021.

"Mayor DePena was elected to be a leader for the City of Lawrence," said U.S. Attorney Leah B. Foley. "He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies. Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials, and hold elected officials accountable."

DISGRACED DEM CUT OFF FROM DOING BUSINESS WITH GOVERNMENT AFTER ALLEGED ‘OUTRIGHT FRAUD’ UNCOVERED

In May 2020, DePena applied for an EIDL on behalf of his business, Tenares Tire Service Inc., an auto service and tire shop in Lawrence. The EIDL funds, which carried a 3.75% interest rate, were only to be used to alleviate pandemic-related financial struggles for businesses.

The SBA initially approved a $150,000 loan for Tenares Tire in June 2020. However, DePena sought additional funding months later upon facing cash flow issues. In April 2021, he applied for an increase and was approved for a $350,000 modification. A second loan modification followed in October 2021 that brought the total to $1.1 million.

Upon the second loan modification, DePena was unable to access the funds for a month, resulting in panic, officials said.

"Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands," DePena allegedly wrote in a translated Spanish text message to a financial advisor assisting with the loan application.

"I know I’m bothering you a lot, but I have no other option," he added. "Only you can give me what I need."

ALLEGED FEEDING OUR FUTURE FRAUD RINGLEADER TRANSFERRED FROM SOMALIA TO FACE US CHARGES

Upon receiving the funds, prosecutors claim DePena began diverting them. Between August and October 2021, he allegedly transferred nearly $90,000 from his business accounts to personal accounts, subsequently writing checks totaling over $42,000 directly to "The Committee to Elect Brian DePena".

In addition, officials said he used the taxpayer funds to pay off personal debts, including $85,000 paid to the Internal Revenue Service (IRS) to settle personal back taxes and another $883,293 to pay off high-interest mortgages on personal properties he owned in Lawrence.

"CARES Act funds were created to help small businesses survive an unprecedented national crisis — not to bankroll personal debts, political ambitions, or real estate ventures," said Thomas Demeo, special agent in charge of the IRS Criminal Investigation Boston Field Office. "IRS Criminal Investigation remains committed to protecting taxpayer dollars, pursuing those who exploit federal relief funds, and ensuring that financial integrity is upheld at every step."

As of Aug. 5, DePena had made only 16 payments toward the Tenares Tire EIDL, totaling $130,160. Since the payments went toward the accrued interest, the outstanding loan balance remains at approximately $1.65 million, the complaint states.

DePena is scheduled to make his initial appearance in Boston federal court on Friday afternoon. He faces up to 30 years in prison.

The mayor's office did not immediately respond to Fox News Digital's request for comment.