Staff Reports
The federal government has arrested and charged Lawrence Mayor Brian DePeña in what prosecutors call a pandemic-era loan fraud and money laundering scheme. The Department of Justice says the mayor illegally obtained roughly $1.5 million in EIDL pandemic relief for his business and then steered that cash into personal uses. This is not small-time bookkeeping—these are federal wire fraud and money-laundering charges brought by U.S. Attorney Leah B. Foley’s office.
DOJ charges: Lawrence mayor arrested in pandemic loan fraud
The United States Attorney’s Office in Boston announced criminal charges against Mayor Brian DePeña this week. The complaint alleges one count of wire fraud and one count of money laundering tied to Economic Injury Disaster Loans (EIDL) meant to help small businesses survive the pandemic. If convicted, wire fraud can carry up to 20 years in prison and money laundering up to 10 years, plus fines. Assistant U.S. Attorneys Kristina E. Barclay and Christine Wichers are handling the prosecution, with the FBI and IRS Criminal Investigation leading the probe.
How prosecutors say the money was used
According to the charging documents, DePeña’s business, Tenares Tire Services Inc., received increased EIDL proceeds totaling about $1.5 million. Prosecutors allege large sums were diverted the same day they were received into personal accounts or written out as checks. The alleged uses are eyebrow-raising: campaign payments, a roughly $85,000 payment to the IRS, and nearly $883,000 used to retire high-interest “hard-money” mortgages on properties he owned. In short, what was supposed to be emergency small-business relief is accused of being treated like a personal ATM and a campaign war chest.
Why this matters — trust, taxpayers, and accountability
This case matters because it touches a raw nerve: public trust. Pandemic relief programs were paid for by taxpayers and meant to keep jobs and small businesses afloat during a crisis. United States Attorney Leah B. Foley said the mayor betrayed his constituents, and both the IRS CI and FBI called out the exploitation of CARES-era funds. Whether you care about small-government principles or simply common decency, public officials who allegedly tap emergency aid for private gain must face full accountability.
Local context and what to watch next
The federal charges come after earlier local probes and controversies in Lawrence that had already put the mayor under scrutiny. Now the story moves to federal court: initial appearance, arraignment, and possible indictment will fill in the details. Voters and city leaders should watch for whether DePeña will step down or be suspended while the case proceeds. Prosecutors say they will follow the money; citizens should demand the same. If the allegations are true, recovering funds and imposing penalties would be the minimum — and the wider lesson should be stronger safeguards so pandemic loans stop becoming private lifelines for public officials.
