Lawrence Mayor Brian DePena was arrested Friday and charged with wire fraud and money laundering for allegedly misusing a $1.5 million pandemic relief loan. Prosecutors allege DePena used funds intended for his tire sales business, Tenares Tire Services Inc., to finance his mayoral campaign and pay personal taxes.
DePena, 61, is accused of obtaining the COVID-19 small-business loan through the Small Business Administration, which offered aid to businesses facing financial losses during the pandemic. While initially receiving $150,000 for his business, DePena later sought increases to the loan. Prosecutors claim he then diverted more than $880,000 of the $1.5 million total to pay off high-interest mortgages on various properties and personal taxes. Additionally, approximately $90,000 was allegedly funneled into his mayoral campaign fund in the lead-up to the 2021 election, in which DePena was elected mayor. He has served as mayor since 2021 and previously sat on the Lawrence City Council.
Special Agent in Charge Ted Docks of the FBI's Boston Division stated that DePena was "cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic." Docks emphasized that misuse of federal funds by elected officials constitutes a breach of public trust and is against the law. The FBI intends to prosecute such cases to the fullest extent.
If convicted of wire fraud, DePena faces a maximum sentence of 20 years in prison, three years of supervised release, and a fine of up to $250,000. A conviction for money laundering could result in up to 10 years in prison, three years of supervised release, and a $250,000 fine.
DePena, his spokesperson, and his chief of staff did not immediately respond to requests for comment.