Lawrence mayor arrested for allegedly looting $1.5 million in pandemic relief funds

Federal agents arrested the Democratic mayor of Lawrence, Massachusetts, on wire fraud and money laundering charges for allegedly diverting more than $1.5 million in COVID-era small-business loans to bankroll his political campaign, pay off personal debts, and settle back taxes.

FBI agents and IRS Criminal Investigation special agents took Brian DePeña, 61, into custody on Friday after a federal grand jury charged him with one count of wire fraud and one count of money laundering. The New York Post reported the arrest at DePeña's home involved FBI agents with a bullhorn and a battering ram. He was scheduled to make his initial appearance in Boston federal court the same day.

The charges center on Economic Injury Disaster Loans, a Small Business Administration program created under the CARES Act to help small businesses survive the pandemic. DePeña allegedly applied for EIDL loans in 2020 and 2021 through Tenares Tire Services Inc., a Lawrence-based tire sales and automotive services company he owned. Federal prosecutors say the money never went toward keeping that business afloat. Instead, they allege, DePeña treated the program like a personal slush fund.

$883,000 in mortgages, $90,000 to his campaign, $85,000 to the IRS

The Department of Justice laid out a detailed trail of alleged misuse. Fox News reported that DePeña allegedly used $883,293 of the loan proceeds to pay off high-interest mortgages on various properties. He also allegedly transferred nearly $90,000 to personal accounts and wrote checks totaling more than $42,000 directly to his own campaign committee. An additional $85,000 allegedly went to cover personal back taxes owed to the IRS.

EIDL loans were restricted to working capital, the day-to-day costs of running a business through a crisis. Mortgage payoffs, campaign contributions, and personal tax debts do not qualify. The gap between the program's stated purpose and DePeña's alleged spending is the core of the government's case.

U.S. Attorney Leah Foley did not hold back. In a statement released with the charges, she said:

"Mayor [DePeña] was elected to be a leader for the City of Lawrence. He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies."

Foley added that the arrest was "just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable." The case is not an isolated effort. Federal investigators have pursued pandemic fraud cases aggressively across the country, from small-time scammers to elected officials.

FBI calls it 'cashing in on a public health crisis'

FBI Boston Special Agent in Charge Ted Docks framed the case in blunt terms. AP News reported Docks described DePeña's alleged conduct as "cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic."

Docks went further in a statement carried by the Washington Examiner:

"This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePena's own personal ATM. When elected officials misuse federal funds for personal gain, they're breaking the trust of their constituents, and breaking the law."

IRS Criminal Investigation Special Agent in Charge Thomas Demeo struck a similar note, pointing directly at the political dimension of the alleged scheme:

"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."

Demeo said 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."

DePeña won his 2021 race with alleged fraud money, and won again in 2025

The timeline makes the political angle hard to ignore. DePeña allegedly applied for the EIDL loans in 2020 and 2021. He won his first mayoral race in November 2021, the same period in which, prosecutors allege, he was funneling $90,000 in pandemic relief funds into his campaign. He won reelection in 2025. If the charges hold, Lawrence voters chose a mayor whose campaign was partly financed by money stolen from a federal program designed to save small businesses during a national emergency.

Before becoming mayor, DePeña served on the Lawrence City Council from 2016 to 2021. He is a sitting mayor. His attorney, who was not identified by name, told reporters outside the courthouse Friday that DePeña does not intend to resign.

"No, he's done a great job in Lawrence," the attorney said, the Daily Caller reported, citing local outlet WCVB.

That confidence may be tested. DePeña faces up to 20 years in federal prison on the wire fraud count and up to 10 years on the money laundering count, a combined maximum of 30 years. The charges are allegations, and DePeña has not entered a plea. But the federal government does not typically bring a bullhorn and a battering ram to a case it considers weak.

Pandemic fraud cases keep piling up, and Democrats keep appearing in them

DePeña's arrest fits a pattern that federal law enforcement has been chasing for years. The EIDL program and other CARES Act relief efforts distributed hundreds of billions of dollars under emergency conditions, with minimal upfront verification. Fraudsters exploited the speed and scale of the programs. The DOJ has been clawing back money and filing charges ever since.

What sets this case apart is the defendant's position. DePeña was not a faceless scammer filing fake applications from a laptop. He was a city councilman who allegedly used stolen federal funds to win an election, then governed the city whose residents he defrauded. The alleged scheme did not just cheat taxpayers, it corrupted the democratic process in Lawrence.

The case also adds to a growing list of Democratic officials facing serious legal trouble. The DOJ has pursued criminal investigations against prominent political figures on the left with increasing frequency, and the results have not been flattering for a party that claims to champion good governance and institutional trust.

DePeña's office did not immediately respond to a request for comment.

Several open questions remain. Prosecutors have not disclosed how many individual EIDL loans DePeña allegedly obtained or the specific amounts of each. The original loan application was reportedly for $150,000, but the total alleged fraud exceeds $1.5 million, suggesting multiple applications or inflated amounts. The breakdown of how much went to the campaign versus personal expenses versus mortgages accounts for roughly $1.1 million of the $1.5 million total, leaving the disposition of the remainder unclear from public filings so far.

Whether DePeña can continue to govern Lawrence while facing federal charges that carry decades of prison time is a question his constituents will have to answer. His attorney says he has "done a great job." Federal prosecutors say he betrayed the trust of the people who elected him.

When a mayor allegedly steals disaster relief to fund his own election, the disaster he inflicts on public trust is the one that lasts longest.