FBI agents arrested Lawrence Mayor Brian DePeña on August 14, 2026, on federal wire fraud and money laundering charges for allegedly misusing approximately $1.5 million in COVID-19 relief funds. According to the FBI, the money was intended to support businesses impacted by the pandemic but was instead diverted for personal gain, including campaign expenses and property mortgages.
DePeña, 61, a dual citizen of the U.S. and the Dominican Republic, was taken into custody at his home by agents who used a bullhorn and battering ram. Prosecutors stated that the alleged scheme began in 2020 when DePeña initially secured a $150,000 disaster loan for his tire and auto service business, Tenares Tire Services, Inc., through a Small Business Administration program.
However, by the following year, authorities allege, DePeña's financial situation became strained due to back taxes, campaign funding needs, and high-interest loans on several properties. Prosecutors claim he repeatedly sought increases to the federal loan, escalating it to about $1.5 million. The funds were then allegedly moved away from the tire business.
Federal prosecutors detailed that over $880,000 of the diverted funds were used to pay off mortgages on other properties and businesses, while approximately $90,000 was reportedly funneled into his mayoral campaign leading up to the 2021 election. DePeña won that election and was re-elected in November 2025.
Following his appearance in Boston federal court on August 14, DePeña was released under several conditions, including surrendering his passport, reporting to probation, and remaining within Massachusetts. He is also prohibited from applying for new loans without court authorization.
DePeña's attorney, Carlos Apostle, indicated that the mayor has no intention of resigning, telling reporters that DePeña has "done a great job in Lawrence." U.S. Attorney Leah B. Foley stated that the arrest demonstrates a commitment to prosecuting fraud, even when committed by public officials, and Special Agent in Charge Ted E. Docks emphasized that misuse of federal funds is a breach of public trust and the law.
If convicted, DePeña could face up to 20 years in prison for the wire fraud charge and up to 10 years for money laundering, in addition to potential fines and supervised release. Neither DePeña nor his attorney have returned requests for further comment.