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.