Lawrence Mayor Brian DePena faces federal wire fraud and money laundering charges for allegedly using more than $1.5 million in pandemic-era small business loans to fund his mayoral campaign, pay personal taxes, and settle high-interest real estate debts. DePena, 61, was arrested Friday morning following an investigation into his alleged misuse of Economic Injury Disaster Loans (EIDL), a program administered by the U.S. Small Business Administration (SBA) under the CARES Act.
DePena was elected mayor of Lawrence in November 2021 and won reelection in November 2025. He previously served on the Lawrence City Council from 2016 to 2021. U.S. Attorney Leah B. Foley stated that DePena "betrayed that trust through his alleged corruption and lies," and that his arrest exemplifies a commitment to rooting out fraud by public officials.
In May 2020, DePena applied for an EIDL for his business, Tenares Tire Service Inc., an auto service and tire shop in Lawrence. The SBA initially approved a $150,000 loan in June 2020. Following cash flow issues, DePena sought additional funding, leading to a $350,000 modification in April 2021 and a second modification in October 2021 that brought the total loan amount to $1.1 million.
Upon receiving the funds, prosecutors allege DePena began diverting them between August and October 2021. He allegedly transferred nearly $90,000 from his business accounts to personal accounts, then issued checks totaling over $42,000 directly to "The Committee to Elect Brian DePena." Additionally, officials claim he used taxpayer funds to pay off personal debts, including $85,000 to the Internal Revenue Service (IRS) for back taxes and $883,293 to pay off mortgages on personal properties.
"CARES Act funds were created to help small businesses survive an unprecedented national crisis — not to bankroll personal debts, political ambitions, or real estate ventures," said Thomas Demeo, special agent in charge of the IRS Criminal Investigation Boston Field Office. "IRS Criminal Investigation remains committed to protecting taxpayer dollars, pursuing those who exploit federal relief funds, and ensuring that financial integrity is upheld at every step."
As of August 5, DePena had made only 16 payments toward the Tenares Tire EIDL, totaling $130,160. These payments were applied toward accrued interest, leaving an outstanding loan balance of approximately $1.65 million. DePena faces up to 30 years in prison and was scheduled to make his initial appearance in Boston federal court.
An unrelated case mentioned in the notes details a former federal employee, Alios Williams, who allegedly defrauded the government of over $3.5 million from COVID-era relief by promising to approve fraudulent grant applications for a fee while acting as an SBA loan officer.