Brian DePena, the mayor of Lawrence, Massachusetts, has been charged with federal wire fraud and money laundering for allegedly misusing over $1.5 million in Economic Injury Disaster Loans (EIDL) intended for pandemic relief. DePena, 61, was arrested on August 14, 2026, following an investigation into his use of the funds for personal expenses, including campaign contributions and settling debts.
DePena applied for the EIDL on behalf of his business, Tenares Tire Service Inc., in May 2020. The Small Business Administration initially approved a loan of $150,000, which was later increased to $1.1 million. Prosecutors allege that after receiving the funds, DePena transferred nearly $90,000 from his business accounts to personal accounts and wrote checks totaling over $42,000 to his campaign committee. He also used the funds to pay off personal debts, including $85,000 to the IRS and approximately $883,293 for mortgages on personal properties.
DePena is scheduled to appear in federal court in Boston, where he faces a potential sentence of up to 30 years in prison. The mayor's office has not yet commented on the charges.