Lawrence Mayor Arrested for Allegedly Misusing Pandemic Loan

Lawrence Mayor Brian DePena was arrested on Friday and charged with fraudulently obtaining a pandemic relief loan and diverting the funds for personal and political use.

The 61-year-old mayor faces one count of wire fraud and one count of money laundering, according to federal prosecutors. He is scheduled to be arraigned on Friday afternoon.

Prosecutors allege that DePena secured a $1.5 million COVID-19 small-business loan for Tenares Tire Services Inc., a tire sales and automotive business he owns in Lawrence. The loan was intended to help the business weather financial losses during the pandemic.

Instead of using the money for the business, DePena allegedly spent more than $880,000 to pay off high-interest mortgages on several properties and deposited $90,000 into his mayoral campaign fund ahead of the 2021 election. He also reportedly used funds to cover personal back taxes.

Federal investigators say DePena initially received a $150,000 loan for the business. A year later, with his campaign short on cash, owing taxes, and facing pressure on high-interest loans, he allegedly requested multiple increases to the loan amount, ultimately obtaining $1.5 million.

Ted Docks, special agent in charge of the FBI's Boston Division, said DePena was "cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic."

"When elected officials misuse federal funds for personal gain, they're breaking the trust of their constituents — and breaking the law," Docks said in a statement.

DePena, who has served as mayor since 2021 and previously sat on the Lawrence City Council, did not respond to requests for comment. His spokesperson and chief of staff also did not respond.

If convicted on the wire fraud charge, DePena faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The money laundering charge carries a maximum sentence of 10 years in prison, three years of supervised release, and a fine of up to $250,000.