Lawrence Mayor Brian DePena has been arrested on federal charges alleging that he diverted money from a COVID-19 relief loan intended for his tire business to cover personal financial obligations and support his political campaign.
Federal authorities announced the arrest Friday, accusing the 61-year-old mayor of wire fraud and money laundering in a case involving more than $1.5 million in government-backed funding.
Prosecutors Allege Relief Money Was Diverted
According to prosecutors, DePena obtained disaster assistance through the Small Business Administration for Tenares Tire Services Inc., his Lawrence-based tire sales and automotive services company.
The business initially received $150,000 in government assistance during the pandemic. Prosecutors allege that DePena subsequently sought multiple increases to the loan and ultimately obtained approximately $1.5 million.
Rather than using the expanded funding for eligible business expenses, authorities allege that he directed substantial portions of the money toward unrelated financial obligations.
More Than $880,000 Allegedly Used on Mortgages
Federal prosecutors allege that more than $880,000 from the loan proceeds was used to pay high-interest mortgages connected to various businesses and properties.
Authorities further allege that another $90,000 was transferred into DePena’s mayoral campaign fund ahead of the 2021 election.
The allegations indicate that the money was obtained through a federal program established to help businesses survive the financial consequences of the COVID-19 pandemic.
FBI Agents Raid Mayor’s Home
The arrest unfolded dramatically Friday morning when FBI agents arrived at DePena’s home.
Neighbors told local media that they woke to agents shouting through a bullhorn outside the property. Authorities reportedly used a battering ram to gain entry.
DePena was subsequently taken into custody and brought before a federal court in Boston later that afternoon.
Mayor Released Under Court Conditions
After making his initial court appearance, DePena was released subject to several conditions.
Among them, he agreed to surrender his passport and obtain court approval before taking out new loans.
As he left the courthouse, his attorney, Carlos Apostle, repeatedly declined to comment when questioned by reporters.
DePena himself offered little explanation. When asked whether he would resign as mayor, he responded, “God bless,” before leaving without making further substantive comments.
DePena’s Political Career Under Scrutiny
DePena has served as Lawrence’s mayor since winning election in November 2021. He was reelected last November.
Before becoming mayor, he served on the Lawrence City Council from 2016 through 2021, establishing a lengthy political career in the Massachusetts city.
The federal allegations now place his political future under intense scrutiny as the criminal case moves forward.
FBI Accuses Mayor of Exploiting Pandemic Crisis
Ted Docks, special agent in charge of the FBI’s Boston Division, accused DePena of exploiting a program designed to help struggling businesses during the public health emergency.
The FBI said elected officials who misuse federal funds for personal benefit undermine the trust placed in them by their constituents.
Authorities emphasized that the investigation reflects a broader effort to pursue alleged fraud involving federal pandemic relief programs, regardless of whether the accused person holds public office.
U.S. Attorney Says Public Officials Must Be Held Accountable
U.S. Attorney Leah B. Foley also condemned the alleged conduct, saying DePena was elected to serve and lead Lawrence but had allegedly betrayed the confidence of his constituents.
Foley said the arrest demonstrates the government’s determination to investigate and prosecute alleged corruption involving public officials.
The allegations remain accusations at this stage, and DePena is presumed innocent unless proven guilty in court.
Potential Prison Sentences Could Be Significant
The federal wire fraud charge carries a potential sentence of up to 20 years in prison, along with supervised release and a possible fine of as much as $250,000 if DePena is convicted.
The money laundering charge carries a potential maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000.
The case will now proceed through the federal court system as prosecutors pursue their allegations against the sitting Lawrence mayor.
