Lawrence Mayor Arrested on Federal Fraud, Money Laundering Charges

Lawrence, Massachusetts Mayor Brian DePena was arrested Friday on federal wire fraud and money laundering charges, accused of misusing over $1.5 million in pandemic-era small business loans to fund his political campaign, pay personal taxes, and settle high-interest real estate debts. The 61-year-old Democrat, who was first elected in 2021 and won reelection in 2025, was taken into custody following an investigation into his alleged misuse of Economic Injury Disaster Loans (EIDL) administered by the U.S. Small Business Administration under the CARES Act.

According to federal prosecutors, DePena applied for an EIDL in May 2020 on behalf of his business, Tenares Tire Service Inc., an auto service and tire shop in Lawrence. The loan was intended to provide working capital to alleviate economic injury caused by the COVID-19 pandemic. The SBA initially approved a $150,000 loan in June 2020. DePena later sought additional funding, receiving a modification in April 2021 that increased the loan to $350,000, followed by a second modification in October 2021 that brought the total to $1.1 million.

Prosecutors allege that once the funds were disbursed, DePena began diverting them for...