Lawrence Mayor Brian DePeña was arrested at his home by the FBI on federal charges of wire fraud and money laundering. Authorities allege he fraudulently obtained more than $1.5 million in COVID-19 pandemic relief loans for his tire business and diverted the funds for personal and political expenses.
Federal Charges Stem from Pandemic Relief Loans
The federal case centers on Economic Injury Disaster Loans obtained through the Small Business Administration. Federal investigators allege that Brian DePeña secured the funding for his automotive business, Tenares Tire Service Inc., using statements that investigators describe as false.
Over the following months, that initial financial assistance expanded significantly. Court documents show the funding increased to $500,000 in July 2021 before a subsequent modification pushed the total loan amount to approximately $1.65 million. Under the rules governing the federal relief program, these emergency loans were strictly designated as working capital to help struggling enterprises survive the economic disruption of the pandemic. Federal guidelines prohibited using the funds for personal debts, real estate refinancing, or political campaigns.
Alleged Misuse of Funds for Personal Debts and Campaign Financing
According to the criminal complaint filed in federal court in Boston, the municipal leader transferred roughly $1.15 million from the tire company’s bank accounts into personal accounts. Investigators assert that a portion of those funds went toward paying $85,000 in personal tax obligations owed to the Internal Revenue Service.
Additional funds were distributed for prohibited private and political purposes:
- $883,293 utilized to settle high-interest private mortgage loans secured by multiple properties owned by DePeña in Lawrence.
- $132,000 directed toward contributions and checks for his mayoral campaign.
- $42,000 in additional funds routed specifically to support his political campaign activities.
The complaint outlines how funds were tracked through specific property transactions in Lawrence, including a payment of $538,109.03 to clear a mortgage used to finance a property purchase and a second real estate debt payment. Court documents note that the underlying private loans carried high interest rates, far exceeding the interest rate attached to the federal EIDL funds. Records also show that prior to the influx of additional federal money deposited on August 16, 2021, the company bank account held a balance of 20.23 dollars.
Law Enforcement Response and Political Background
Federal law enforcement officials sharply criticized the alleged misuse of emergency funds intended to sustain struggling businesses during a public health crisis.
Ted E. Docks, Special Agent in Charge of the FBI Boston Division, stated that today the FBI arrested Mayor Brian Depena for allegedly profiting from a public health crisis and flagrantly defrauding a government program meant to keep businesses afloat during the pandemic.
Ted E. Docks further stated that the emergency financial aid was meant to serve as a safety net for struggling enterprises rather than functioning as a personal cash machine.
Thomas Demeo, Special Agent in Charge of the Boston Field Office for IRS Criminal Investigation, stated that today’s arrest highlights the ongoing commitment of the IRS Criminal Investigation Division to protecting emergency relief programs and holding those who abuse them accountable.
Thomas Demeo added that CARES Act funds were established to help small businesses navigate an unprecedented national crisis rather than supporting political ambitions, personal debts, or real estate projects. Zachariah Marino, an IRS criminal investigation special agent, also detailed how portions of the diverted money were applied toward personal tax obligations.
DePeña, who is 61 years old and of Dominican descent, has a political history in Lawrence. He served on the Lawrence City Council from 2016 until his election as mayor in November 2021, and he was re-elected in November 2025. He faced scheduled proceedings before a federal court in Boston following the morning arrest at his residence.
