Lawrence, Massachusetts Mayor Brian DePeña, 61, was arrested Friday on federal charges of wire fraud and money laundering, stemming from allegations he fraudulently secured more than $1.5 million in federal COVID-19 relief funds. Authorities assert that DePeña, a Democrat, diverted a substantial portion of these funds, originally intended for his tire sales and automotive services business, to his political campaign and other unrelated expenses.
"When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents – and breaking the law." — Ted Docks, Special Agent in Charge, FBI’s Boston Division
The arrest unfolded Friday morning at DePeña’s home in Lawrence, where neighbors reported waking to the presence of FBI agents using a bullhorn. According to local media, agents subsequently used a battering ram to gain entry to the property. DePeña appeared in federal court in Boston later that day and was released under several conditions, including the surrender of his passport and a prohibition on seeking new loans without court approval. His attorney, Carlos Apostle, declined to comment to reporters outside the courthouse. When asked if he planned to resign, DePeña reportedly smiled and responded, "God bless."
The case revolves around government assistance DePeña received for Tenares Tire Services Inc., his business in Lawrence, through a federal disaster loan program administered by the Small Business Administration (SBA) during the COVID-19 pandemic. The SBA offered these loans to businesses experiencing financial losses due to the public health crisis. Prosecutors allege DePeña initially obtained a $150,000 loan for his business in 2020. By 2021, as he pursued the Lawrence mayor's office, his financial situation reportedly changed.
Federal authorities claim that DePeña’s mayoral campaign was facing financial constraints, while he also contended with outstanding back taxes and pressure from high-interest loans associated with several properties in Lawrence. In response to these pressures, he allegedly requested multiple increases to the government loan. Prosecutors contend that approximately $1.5 million derived from these loan increases was ultimately redirected to expenses unrelated to Tenares Tire Services. Among the specific allegations, more than $880,000 was purportedly used to pay off high-interest mortgages connected to various businesses. Additionally, $90,000 was allegedly transferred directly to DePeña’s mayoral campaign prior to the November 2021 election, which he ultimately won.
DePeña has a history in Lawrence politics, having served on the City Council from 2016 until his election as mayor in 2021. He was reelected to the mayoral office last November. His current term is set to expire in January 2026.
Federal law enforcement officials issued strong statements following the arrest. Ted Docks, special agent in charge of the FBI’s Boston Division, accused DePeña of exploiting a public health crisis. "When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents – and breaking the law," Docks stated, adding that the FBI would continue to pursue anyone who defrauds the federal government. U.S. Attorney Leah Foley echoed these sentiments, asserting that DePeña "betrayed that trust through his alleged corruption and lies." Foley emphasized the commitment of federal authorities to "root out fraud by anyone, even public officials and holding elected officials accountable."
If convicted, DePeña faces significant penalties. The wire fraud count carries a maximum sentence of 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The money laundering count carries a maximum of 10 years behind bars, up to three years of supervised release, and a potential $250,000 fine. DePeña has not yet been convicted of either charge, and the legal process is ongoing.
