Lawrence Mayor Brian DePena was arrested Friday on federal charges accusing him of defrauding a government program by misusing more than $1.5 million in COVID-19 relief funds. Authorities allege DePena obtained the loan for his tire sales business, Tenares Tire Services Inc., and then diverted the money for personal and political purposes.
DePena, 61, faces one count of wire fraud and one count of money laundering. Federal officials announced the charges on Friday, detailing an alleged scheme where DePena sought and obtained a government disaster loan during the pandemic. The Small Business Administration offered such loans to businesses experiencing financial losses.
Prosecutors claim that after receiving an initial loan of $150,000, DePena requested increases, ultimately securing $1.5 million. Instead of using the funds for his tire business, it is alleged that he spent over $880,000 to pay off high-interest mortgages on various properties and contributed $90,000 to his mayoral campaign fund in the lead-up to the 2021 election.
Neighbors reported witnessing FBI agents at DePena's home on Friday morning, who reportedly used a battering ram to gain entry. DePena, who is a dual citizen of the United States and the Dominican Republic, appeared in federal court in Boston later that day.
He was released on the condition that he surrender his passport and refrain from seeking any new loans without court approval. When asked by reporters if he intended to resign, DePena responded, "God bless," but offered no further comment. His lawyer also declined to comment.
Ted Docks, special agent in charge of the FBI's Boston Division, stated that DePena allegedly "cashed in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic." U.S. Attorney Leah B. Foley added that DePena "betrayed that trust through his alleged corruption and lies" and that officials are determined to "root out fraud by anyone, even public officials."
If convicted of wire fraud, DePena faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. A conviction on the money laundering charge could result in a sentence of up to 10 years in prison, three years of supervised release, and a $250,000 fine.
DePena was first elected mayor of Lawrence in November 2021 and was reelected the following November. He previously served on the Lawrence City Council from 2016 to 2021.
