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Lawrence mayor indicted on federal pandemic loan fraud and money laundering charges

An 11-count indictment unsealed in Boston accuses Mayor Brian A. DePena of taking more than $1.5 million in COVID-19 disaster loans and spending much of it on his campaign, personal taxes and private mortgages, prosecutors said.

A federal grand jury in Boston has indicted the mayor of Lawrence, Mass., on charges that he obtained more than $1.5 million in COVID-19 small-business loans and spent much of the money on his political campaign, his personal tax debts and private mortgages, according to the U.S. attorney's office.

The 11-count indictment against Brian A. DePena, 61, was unsealed Wednesday and charges him with four counts of wire fraud and seven counts of money laundering, prosecutors said. DePena was charged earlier by criminal complaint and arrested Aug. 14. He is scheduled to be arraigned at a later date.

DePena was elected mayor in November 2021 and reelected in November 2025, and served on the Lawrence City Council from 2016 to 2021.

Prosecutors said DePena applied in 2020 and 2021 for Economic Injury Disaster Loans for Tenares Tire Services Inc., a tire and auto repair business he owned in Lawrence. The loans carried a 3.75% interest rate and could be used only as working capital to offset pandemic losses, the office said.

The business received $150,000 in June 2020 and later two increases that brought the loan to more than $1.65 million, according to the charging documents. Prosecutors allege DePena used $85,000 to pay off personal tax debts to the IRS, more than $130,000 for his mayoral campaign and $883,293 to pay off loans from two private lenders charging 12% and 8% interest on properties he owned in Lawrence.

The charges are allegations, and DePena is presumed innocent unless proven guilty.

This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.

Massachusetts