The Mayor of Lawrence, Massachusetts was taken into police custody and charged with fraudulently obtaining over $1.5 million in COVID-19 small business loans. He then used the funds he pilfered to pay for his political campaign, personal taxes, and to pay off a staggering $880,000 in high-interest, hard-money mortgages that encumbered a number of properties he owned in the city.
Brian DePena, 61, has been charged with one count of wire fraud and a single count of money laundering for stealing emergency relief funds. DePena was first elected as Mayor of Lawrence in November 2021. He was subsequently reelected in November 2025. He has also served on the Lawrence City Council from 2016 to 2021.
“Today’s arrest highlights IRS CI’s continued commitment to safeguarding emergency relief programs and holding accountable those who abuse them,” Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office, went on to say about DePena’s arrest. “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.
“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,” Demeo added. Special Agent in Charge of the FBI’s Boston Division, Ted E. Docks, also commented on the arrest of the Democrat mayor.
“Today, the FBI arrested Mayor Brian DePena for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic. 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.
“This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePena’s own personal ATM. When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents – and breaking the law. Together, with our partners, the FBI will continue to doggedly pursue anyone who defrauds the federal government. You’ll be prosecuted to the fullest extent of the law, and that ‘easy money’ won’t seem so easy after all,” Docks explained.
A report from the Justice Department revealed that the charging documents said that DePena applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Service Inc., a shop dedicated to repairing and replacing tires and performing other automotive services, which the mayor owned. Tenares Tire applied for and ultimately obtained emergency funds that were set aside only for businesses that were economically damaged by the COVID pandemic, in the amount of $150,000.
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However, the charging documents say the money was used as working capital for the company. His mayoral campaign was struggling to make ends meet and he owed the IRS a large sum in back taxes, plus $900,000 to two private, hard money lenders on loans for several properties DePena owned in Lawrence. In April 2021, DePena caused a request for an increase of Tenares Tire EIDL.
In July 2021, the SBA approved an increase of the loan by a whopping $250,000, bringing the total his business received up to $500,000. The SBA did not release those funds for another month. While waiting on the money, DePena sent text messages to his accountant who had been helping him with the EIDL applications, asking for further assistance.
After the $350,000 hit his bank account, DePena paid $85,000 to the IRS. He then allegedly transferred $120,000 of that money to a personal bank account and wrote checks for $90,000 to “The Committee to Elect Brian DePena.” In October 2021, the SBA approved another loan modification that increased the loan by $1,154,400 to bring the total EIDL awarded to Tenares Tire to $1,654,400.
The charges of wire fraud that DePena is facing carry a maximum prison sentence of 20 years, up to three years of supervised release, and a fine of up to $250,000 each. The charges of money laundering could come with a prison sentence of 10 years, along with three years of supervised release, and a fine of $250,000.
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