BOSTON — On Friday, Aug. 14, 2026, the Mayor of Lawrence was arrested and charged with fraudulently obtaining more than $1.5 million in COVID-19 small-business loans and used the proceeds to fund his campaign account, pay personal taxes and satisfy more than $880,000 in high-interest mortgages on properties he owned in the city, the U.S. Attorney’s Office for the District of Massachusetts announced.
Brian DePeña, 61, is charged with one count of wire fraud and one count of money laundering. He was scheduled to make an initial appearance in federal court in Boston later Friday.
DePeña was elected Mayor of Lawrence in November 2021 and reelected in November 2025. He previously served on the Lawrence City Council from 2016 until 2021.
“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,” United States Attorney Leah B. Foley said. “Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable.”
According to a federal criminal complaint filed Thursday, DePeña owns and operates Tenares Tire Service Inc., a tire sales and automobile service business in Lawrence.
In May 2020, DePeña applied for an Economic Injury Disaster Loan (EIDL) for Tenares Tire Services Inc., through the U.S. Small Business Administration. The program offered businesses loans at a 3.75% interest rate to cover working capital and expenses associated with economic harmship caused by the COVID-19 pandemic.
According to the complaint, bank records indicate that DePeña used most of the original $150,000 EIDL distribution as working capital for Tenares Tire. The alleged improper uses involved funds received through two subsequent loan modifications.
The complaint also alleges that in early 2021, DePeña’s mayoral campaign was struggling to pay its bills, while he owed back taxes to the IRS and nearly $900,000 to two private hard-money lenders charging interest rates of 12% and 8% on loans secured by properties he owned in Lawrence.
In January 2020, DePeña had purchased a commercial property at 342 Broadway for $700,000, financing $525,000 through a hard-money lender charging 12% interest. The balloon loan was initially due in January 2021.
DePeña also allegedly owed $375,000 under another loan carrying an 8% interest rate and requiring monthly, interest-only payments of approximately $2,150. That loan was secured by properties at 272 Broadway, 73 Tremont Street, and 95-97 Tremont Street.
The complaint states that DePeña sought financing from several conventional lenders during 2020 and 2021 but was unsuccessful. His outstanding personal federal income-tax liability was allegedly another impediment to obtaining financing.
In April 2021, DePeña requested an increase in the Tenares Tire EIDL loan. The SBA approved an additional $350,000 in July, increasing the loan to $500,000, but the money was not released for another month.
While waiting for the disbursement, DePeña allegedly sent urgent messages, originally written in Spanish, to his accountant and financial adviser assisting him with the loan.
“Brother, call me, I’m in trouble,” one message stated. “I don’t want to pressure you, but I don’t have time to wait for this loan.”
On Aug. 16, 2021, the $350,000 was deposited into the Tenares Tire account, which had contained only $20.23 before the deposit, according to the U.S. Attorney’s Office for the District of Massachusetts.
Ten days later, DePeña allegedly used $85,000 from the account to pay his personal tax liabilities.
According to the U.S. Attorney’s Office for the District of Massachusetts, DePeña transferred $120,000 of the EIDL funds to a personal account and used that money to write checks totaling $90,000 to “The Committee to Elect Brian Depena.” The checks were allegedly deposited into DePeña’s mayoral campaign account in September and October 2021 and characterized as loans to the campaign.
On Oct. 20, 2021, DePeña allegedly requested a second increase in the disaster loan—the same day the complaint says he routed another $25,000 traceable to relief funds into his campaign.
The SBA approved the request seven days later, increasing the total loan to $1,654,400. DePeña allegedly certified that the proceeds would be used solely as working capital to address pandemic-related economic injury and would not primarily be used for personal, family or household purposes.
On Nov. 30, 2021, approximately $1,154,188 of the EIDL funds were deposited into the Tenares Tire account and DePeña then transferred the entire amount to one of his personal accounts, which had a balance of $1,401, the same day.
DePeña allegedly used another $42,112.96 of EIDL funds his mayoral campaign, including a $10,000 check deposited after the campaign account had been overdrawn for approximately 20 days, and a $32,112.96 check.
Investigators further allege that DePeña used $883,293 of the EIDL funds to pay off the high-interest loans for his properties in Lawrence. He allegedly purchased a $538,109.03 treasurer’s check and used it to pay off the 12% balloon loan and a second check for $345,184.13 to pay off the other property loan.
As of Aug. 5, 2026, DePeña had reportedly made 16 payments totaling approximately $130,160. All the payments were applied to accrued interest, leaving an outstanding principal balance of approximately $1,654,420.
“This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePeña’s own personal ATM,” FBI Boston Special Agent in Charge Ted E. Docks said.
