Democrat Mayor Arrested On Wire Fraud And Money Laundering Charges

Brian DePeña, the Mayor of Lawrence, Massachusetts, was arrested on Friday and charged with “one count of wire fraud and one count of money laundering,” the Justice Department announced.

DePeña is accused of “fraudulently obtaining over $1.5 million in COVID small-business loans and using the proceeds to fund his campaign account, pay personal taxes, and pay off over $880,000 in high-interest, hard-money mortgages that encumbered various properties he owned in Lawrence,” a press release read.

Video footage showed De Peña being arrested at his home early Friday morning.

Watch below:

Video shows Lawrence mayor being arrested at his home early this morning to face federal charges https://t.co/mO5W5OXxwz pic.twitter.com/H1ITq6pVLi

— WCVB-TV Boston (@WCVB) August 14, 2026

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More from the Associated Press:

DePena made an initial appearance in federal court in Boston Friday afternoon. DePena was released after agreeing to several conditions, including turning over his passport and not seeking any loans without court approval.

After leaving court, DePena’s lawyer Carlos Apostle repeatedly responded with “no comment” to questions. DePena, who is a citizen of the United States and Dominican Republic, responded with “God bless” when asked if he would resign. He made no other comments.

In 2020 and 2021, DePena obtained a government disaster loan for Tenares Tire Services Inc., a tire sales and automotive services in Lawrence. During the pandemic, the Small Business Administration offered loans to qualified business that were suffering financial losses.

He used a loan of $150,000 for the business. A year later, prosecutors say, DePena’s mayoral campaign was running short of cash, he owed back taxes and was under pressure to pay back high-interest loans on several of his properties in Lawrence. He then requested several increases to the government loan and allegedly used $1.5 million to cover those expenses unrelated to his tire business.

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“Mayor DePena 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,” said United States Attorney Leah B. Foley.

“Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable,” Foley added.

“Today’s arrest highlights IRS CI’s continued commitment to safeguarding emergency relief programs and holding accountable those who abuse them,” said Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office.

“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. 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,” Demeo continued.

Feds charge Lawrence MA Mayor Brian DE PEÑA with wire fraud and money laundering for funding his campaign through dirty COVID money https://t.co/GTT9YS8aFE

— Eric Garland (@ericgarland) August 14, 2026

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CBS News shared further:

According to a criminal complaint, by early 2021, DePeña needed cash after purchasing a commercial property at 342 Broadway in Lawrence for $700,000. He also allegedly owed $900,000 to two private money lenders.

DePeña wrote his financial adviser, who was helping him with a loan modification request in order to increase the EIDL for the tire business. He was then granted another $350,000 from the EIDL for Tenares Tires, bringing the total to $500,000, but he was unable to access it for another month.

“Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands,” DePeña wrote in a text message, according to the complaint.

In another text, he said, “I know I’m bothering you a lot, but I have no other option. Only you can give me what I need.”

Prosecutors say that on Aug. 16, 2021, the EIDL money was deposited into the Tenares Tires bank account.

“In truth, DePeña did not intend to use the Tenares Tire EIDL funds solely as working capital to alleviate economic injury caused by the COVID-19 pandemic,” federal prosecutors allege.

The criminal complaint alleges that in August 2021, DePeña used $85,000 from EIDL funds for his personal tax liabilities. Then in September 2021, he allegedly used $90,000 for his mayoral campaign.

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