The Mayor of Lawrence, Massachusetts, Brian DePena, was arrested on Friday, August 14th by the Federal Bureau of Investigation (FBI) on charges of fraudulently obtaining over 1.5 million dollars in COVID relief loans for small businesses. It is alleged that he used part of the funds for campaign activities, personal tax payments, and repaying high-interest private mortgages.
The FBI’s Boston Division posted on social media platform X, stating that FBI agents, along with the Criminal Investigations Unit of the Internal Revenue Service (IRS-CI), arrested DePena at his residence in Lawrence on Friday morning.
The U.S. Attorney’s Office for the District of Massachusetts subsequently issued a statement formally announcing the charges.
DePena, 61 years old, was elected as the Mayor of Lawrence in November 2021 and was re-elected in November 2025. Prior to holding public office, he served as a city councilor in Lawrence from 2016 to 2021. Apart from his public duties, he owns and operates Tenares Tire Services Inc., a tire sales and auto service company in the area.
According to the criminal complaint and federal prosecutors, DePena’s company applied for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) between 2020 and 2021. The EIDL program was aimed at assisting small businesses severely impacted by the COVID-19 pandemic.
In May 2020, his company received a $150,000 EIDL loan, which was deposited in June.
In 2021, DePena purchased a commercial property at 342 Broadway Street in Lawrence for $700,000 and applied for an increased loan amount to fund the purchase. The SBA approved an additional $350,000 around July 2021, bringing the total EIDL amount to $500,000, which was deposited in August.
Subsequently, DePena requested another increase in the loan amount, with the SBA approving an additional approximately $1,154,188 by November 30, 2021, bringing the total EIDL amount to around $1.65 million.
The prosecution alleges that DePena did not use all of these funds for business operations to alleviate the impact of the pandemic. The indictment states that he misappropriated funds to pay personal tax debts (around $85,000), fund his mayoral campaign (multiple transfers and checks totaling tens to over $90,000), and repay two high-interest private mortgages (used for properties under his name) totaling approximately $883,293.
The indictment also cites text messages between DePena and a financial advisor. In July 2021, he wrote: “Brother, give me a call, I’m in trouble. I don’t want to pressure you, but I can’t wait for this loan. I can only count on you.” Another message reads: “I know I’ve been causing you trouble, but I have no other choice. Only you can give me what I need.”
As of August 5, 2026, DePena had only repaid 16 installments on the EIDL loan amounting to approximately $131,600, all of which went towards paying accumulated interest. Approximately $1,654,420 of the principal still remains outstanding.
DePena appeared in federal court in Boston on the afternoon of August 14. The judge ordered him to surrender his passport, refrain from contacting witnesses in the case, and not apply for any loans without court approval. He faces charges of wire fraud and money laundering. If convicted, wire fraud carries a maximum sentence of 20 years imprisonment, while money laundering carries a maximum sentence of 10 years.
The U.S. Department of Justice and the FBI emphasize that EIDL funds were intended as emergency assistance to help small businesses affected by the pandemic, not for personal or campaign use. Prosecutors state that if the SBA had prior knowledge that the funds would be used to repay private mortgages or campaign expenses, they would not have approved the loans.
This case is still in the charging stage, and DePena is presumed innocent until proven guilty in court. The Lawrence city government and DePena have not yet issued detailed responses to the charges.