Lawrence, MA mayor arrested on pandemic fraud charges
Brian DePena, 61, faces one count of wire fraud and one count of money laundering. He was scheduled to make an initial appearance in federal court in Boston later Friday. If convicted on both counts, DePena faces a combined maximum sentence of up to 30 years in prison, along with fines and supervised release.
DePena was first elected mayor of Lawrence in November 2021 and was reelected to the office in November 2025. Before serving as mayor, he was a member of the Lawrence City Council from 2016 until 2021. He also owns and operates Tenares Tire Service Inc., a tire sales and automotive services business in Lawrence that he incorporated in Massachusetts in 2014.
According to federal charging documents, DePena applied for Economic Injury Disaster Loans through the U.S. Small Business Administration in 2020 and 2021, listing Tenares Tire as the borrowing business. The CARES Act, enacted in March 2020, authorized the SBA to provide EIDLs to eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic. The loans carried a favorable interest rate of 3.75% and were legally restricted to use as working capital to help businesses survive the economic fallout of the pandemic. They were not permitted to be used to fund political campaigns, pay personal taxes, or retire private mortgage debts.
Prosecutors allege DePena initially obtained a $150,000 EIDL for Tenares Tire in June 2020 and used the majority of those funds appropriately as business working capital. But by early 2021, according to the charging documents, his financial situation had grown increasingly precarious. His mayoral campaign was struggling to pay bills, he owed back taxes to the IRS, and he was carrying nearly $900,000 in debt to two private hard-money lenders charging interest rates of 12% and 8% — rates dramatically higher than the 3.75% available through the federal loan program.
In April 2021, DePena allegedly sought an increase to the Tenares Tire loan. The SBA approved a $350,000 increase on July 14, 2021, bringing the total to $500,000. The funds were deposited into the Tenares Tire bank account on August 16, 2021, at which point the account held a balance of just $20.23. Prosecutors allege DePena quickly moved to redirect the money: $85,000 allegedly went to the IRS to cover personal tax debts, and $120,000 was transferred to a personal account, from which DePena allegedly wrote checks totaling $90,000 to "The Committee to Elect Brian Depena." Those checks were allegedly deposited into his mayoral campaign account in September and October 2021, characterized as loans to the campaign.
With his hard-money mortgage debts still outstanding and his campaign still financially strained, DePena allegedly sought a second loan modification in October 2021. The SBA approved an increase of $1,154,400 on October 27, 2021, bringing the total Tenares Tire EIDL to $1,654,400. On November 30, 2021, more than $1.15 million in loan funds were deposited into the Tenares Tire account — which held a balance of only $1,401 — and DePena allegedly transferred the entire amount to one of his personal accounts the same day.
From those funds, prosecutors allege DePena directed an additional $42,112.96 to his mayoral campaign, including a $10,000 check deposited on December 2, 2021, when the campaign account had reportedly been overdrawn for approximately 20 days. He then allegedly used $883,293 of the EIDL proceeds to pay off his two private lenders: a treasurer's check for $538,109.03 on December 9, 2021, and another for $345,184.13 on December 18, 2021.
As of August 5, 2026, DePena had made only 16 payments on the Tenares Tire loan, leaving an outstanding principal balance of approximately $1,654,420, according to the charging documents.
"Mayor DePena was elected to be a leader for the City of Lawrence. He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies," said United States Attorney Leah B. Foley. "Today's arrest is just another example of our determination to root out fraud by anyone, even public officials, and holding elected officials accountable."