Lawrence Mayor Brian DePeña was arrested in the Massachusetts mayor COVID loan case on Aug. 14 after federal agents accused him of turning pandemic relief money into personal and political spending, according to authorities. The FBI said the long-running probe centered on more than $1.5 million in federal funds that prosecutors say were diverted away from a struggling business and used for other purposes.
DePeña, 61, was charged with wire fraud and money laundering after an FBI operation at his home, according to WCVB5 in Boston. FBI Boston Special Agent in Charge Ted E. Docks said in a statement that the arrest stemmed from alleged abuse of a public aid program meant to help businesses survive the pandemic. Prosecutors say DePeña first secured a $150,000 federal disaster loan in 2020 for Tenares Tire Services, Inc., the Lawrence tire and auto service business he owns, through a Small Business Administration program.
Authorities allege that by the following year his finances had tightened, with campaign expenses, tax obligations and high-interest loans connected to several Lawrence properties creating pressure on his finances. According to the affidavit, DePeña repeatedly sought higher loan amounts until the government-backed funding grew to roughly $1.5 million. Prosecutors say the money did not stay in the tire business. Instead, they allege more than $880,000 went to pay high-interest mortgages on other properties and businesses, while another $90,000 was directed into his mayoral campaign before the 2021 election.
Federal officials said DePeña appeared in Boston federal court on Aug. 14 and was released with conditions. Those conditions include surrendering his passport, reporting to probation and remaining in Massachusetts. He also cannot apply for loans without court approval. DePeña is a dual citizen of the United States and the Dominican Republic.
