LAWRENCE, Mass.- Lawrence Mayor Brian DePena was arrested Friday and charged with allegedly obtaining more than $1.5 million in federal COVID-19 small-business loans and using the money for personal expenses, his mayoral campaign and private debts.
DePena, 61, faces federal charges of wire fraud and money laundering. He is scheduled to appear in federal court in Boston Friday.
According to federal prosecutors, DePena obtained Economic Injury Disaster Loans through Tenares Tire Services Inc., a Lawrence tire and automotive business he owned. The loans were intended to help businesses affected by the COVID-19 pandemic and could only be used for business-related expenses.
Prosecutors allege DePena first obtained a $150,000 loan in June 2020. He later secured additional funds, bringing the total loan to more than $1.65 million.
After $350,000 was deposited into the company’s account in August 2021, prosecutors allege DePena used $85,000 to pay his personal tax debt to the IRS. He also allegedly transferred $120,000 to a personal account and used $90,000 to make payments to his mayoral campaign.
In November 2021, another $1.15 million in loan funds was deposited into the business account. Prosecutors allege DePena transferred the entire amount to a personal account the same day.
He allegedly used another $42,112.96 for his mayoral campaign and $883,293 to pay off two high-interest private loans tied to properties he owned in Lawrence.
The private loans carried interest rates of 12% and 8%, compared with the 3.75% interest rate on the federal COVID loans.
According to prosecutors, DePena had made only 16 payments on the business loan as of Aug. 5, 2026. The outstanding principal was approximately $1.65 million.
DePena was elected Lawrence mayor in November 2021 and reelected in November 2025. He previously served on the Lawrence City Council from 2016 to 2021.
The investigation involves the FBI, IRS Criminal Investigation and the Massachusetts Office of the Inspector General.
Wire fraud carries a potential sentence of up to 20 years in prison, while money laundering carries a potential sentence of up to 10 years. Any sentence would be determined by a federal judge under federal sentencing laws and guidelines.
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