Massachusetts mayor arrested for $1.5 MILLION COVID-19 relief fraud scheme that funded campaign, personal spending

Lawrence Mayor Brian DePena was arrested on Friday and charged with federal wire fraud and money laundering as part of an investigation by the FBI. According to the US Attorney’s Office for the District of Massachusetts, DePena allegedly obtained more than $1.5 million through the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program and used portions of the funds to support his mayoral campaign, pay personal taxes, and repay debts to private lenders.

The SBA’s EIDL program provided taxpayer-funded loans to eligible small businesses experiencing financial difficulties due to the government’s response to the COVID-19 pandemic.

Charging documents detail that in 2020 and 2021, DePena allegedly submitted EIDL applications for his tire company, Tenares Tire, receiving $150,000 in June of 2020. The money was mostly used as working capital for the businesses. But by 2021, DePena was facing financial difficulties, including campaign expenses, personal tax liabilities, and nearly $900,000 in debts.

He subsequently sought an increase in the EIDL, with the SBA approving a $350,000 increase in July of 2021. While waiting for additional funds, DePena texted his accountant and financial advisor in Spanish, saying he was “in trouble” and needed “help with this loan."

In October 2021, DePena sought another increase. The SBA approved an additional increase, bringing the total EIDL to $1,654,000. When the added amount was deposited to his Tenares Tire account, DePena allegedly transferred all of it to his personal accounts on the same day.

“It is alleged that Depena allegedly used $42,112.96 of the EIDL funds for his mayoral campaign, writing checks to the campaign for $10,000 and $32,112.96,” the press release detailed. “The first check was deposited in the campaign account on Dec. 2, 2021, when the account allegedly had been overdrawn for approximately 20 days. Finally, it is alleged that Depena used $883,293 of the EIDL funds to pay off his debts to the hard money lenders.”

In December of 2021, DePena allegedly purchased a $538,109.03 treasurer’s check to pay off one of the loans. He then bought another $345,184.13 treasurer’s check to pay off another loan. According to the charging documents, Depena only made 16 payments on the Tenares Tire EIDL. As of August 5, 2026, the outstanding principal balance was approximately $1,654,420.

Dependa was elected mayor in November of 2021 and was reelected in November 2025. He has previously faced backlash for his difficulty speaking English despite being mayor of an American city.

“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.”