Brian DePeña, the Mayor of Lawrence, Massachusetts, was arrested Friday on federal charges of wire fraud and money laundering. The Justice Department announced he is accused of fraudulently obtaining over $1.5 million in COVID-19 small business loans and using the proceeds to fund his campaign account, pay personal taxes, and settle approximately $880,000 in high-interest mortgages on properties he owned.

Video footage showed DePeña being arrested at his home early Friday morning. He appeared in federal court in Boston later that day and was released after agreeing to conditions including surrendering his passport and not seeking loans without court approval.

DePeña’s lawyer, Carlos Apostle, repeatedly declined to comment when questioned about the case. When asked if he would resign, DePeña—a dual citizen of the United States and Dominican Republic—responded with “God bless.”

Prosecutors allege that in 2020 and 2021, DePeña used a government disaster loan for Tenares Tire Services Inc., his tire business in Lawrence. He initially received $150,000 from the Small Business Administration’s pandemic relief programs but later requested additional funds after accumulating debts following the purchase of a commercial property at 342 Broadway for $700,000 and owing approximately $900,000 to private lenders.

According to a criminal complaint, DePeña wrote his financial adviser requesting emergency funds and was granted an additional $350,000 from the Emergency Individual Disaster Loan program. He allegedly texted his adviser: “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.” The complaint states that DePeña deposited EIDL funds into his business account on August 16, 2021.

Federal prosecutors allege he used $85,000 from the program for personal tax liabilities and an additional $90,000 for his mayoral campaign in September 2021. United States Attorney Leah B. Foley stated: “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.”

“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.
Thomas Demeo, Special Agent in Charge of the IRS Criminal Investigation, Boston Field Office, said: “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 and ensuring financial integrity.”