Democrat Mayor Brian DePeña of Lawrence, Massachusetts got slapped with federal charges on Friday.
The 61-year-old politician was hit with one count of wire fraud and one count of money laundering after prosecutors say he swiped over $1.5 million in pandemic relief loans and funneled the cash into his political campaign, personal tax bills, and private debt payments, according to reports. This guy was supposed to be leading the city, not raiding the federal cookie jar.
Here is how it all went down. DePeña owns a tire and auto shop called Tenares Tire Services Inc. in Lawrence. During the pandemic, he applied for Economic Injury Disaster Loans through the Small Business Administration on behalf of that company. These loans carried a 3.75 percent interest rate and were strictly limited to covering business operating costs tied to COVID disruptions. Not campaigns. Not mortgages. Not back taxes.
In June 2020, his business received an initial $150,000 loan, and prosecutors say most of that actually went toward legitimate business expenses. But by early 2021, things got spicy. His mayoral campaign was drowning in unpaid bills, he owed the IRS, and he was on the hook for nearly $900,000 to two private lenders charging interest rates of 8 and 12 percent.
So what did he allegedly do? He requested a loan increase. The SBA bumped the total to $500,000 in July 2021. Before that money landed, his business account held a whopping $20.23. Once the funds arrived, prosecutors say he shipped $85,000 straight to the IRS for personal tax obligations and moved $120,000 into a personal account. From there, he allegedly wrote $90,000 in checks to his own campaign committee, disguising them as personal loans to the campaign.
But wait, it gets wilder. In October 2021, he requested yet another increase. The SBA approved an additional $1,154,400, pushing the total loan to $1,654,400. When that money hit the business account on November 30, 2021, prosecutors say he transferred the entire amount that same day into a personal account that previously held just $1,401. From those funds, he allegedly spent over $42,000 on his campaign and used $883,293 to eliminate those high-interest private loans through two treasurer's checks.
As of August 5, 2026, DePeña had made only 16 payments on the loan, totaling roughly $130,160, all of which covered accrued interest. The full principal of approximately $1,654,420 remained completely unpaid.
U.S. Attorney Leah Foley did not mince words, saying DePeña betrayed the trust of his constituents through alleged corruption and lies, calling the arrest another example of holding elected officials accountable.
DePeña appeared in federal court in Boston on Friday and was released with conditions including surrendering his passport, staying within Massachusetts, and getting court approval before taking out any new loans. The wire fraud charge alone could land him behind bars for up to 20 years, while the money laundering count carries a maximum of 10 years.
Perhaps the most jaw-dropping detail? His attorney says DePeña has zero plans to step down while this case proceeds. The man allegedly stole over a million dollars in relief funds and still wants to keep running the city. You truly cannot make this stuff up.
Read more breaking news stories at: Trending Politics News
Last edited by a moderator:
