The Democratic mayor of Lawrence, Mass. has been arrested and faces charges for allegedly fraudulently obtaining more than $1.5 million in pandemic-era small-business loans and misusing the money, the Department of Justice said Friday.
Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering and is set to make an initial appearance in a Boston federal court on Friday, the DOJ said in a news release. DePeña used the funds from the pandemic relief loans to fund his campaign account, pay personal taxes, and pay off more than $880,000 in high-interest mortgages, the department alleges.
“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,” U.S. Attorney Leah Foley said in a statement. “Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable.”
In 2020 and 2021, DePeña applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a Lawrence-based tire sales and automotive services business that he owned, the DOJ alleged, citing charging documents. The EIDL program provided loans and advances aiming to “help businesses recover from the economic impacts of the pandemic,” according to the U.S. Small Business Administration.
Working capital did not include financing a political campaign, paying personal taxes, or paying off mortgages, according to the DOJ.
DePeña’s office did not immediately respond to the Daily Caller News Foundation’s request for comment.
“Today’s arrest highlights [IRS Criminal Investigation’s (CI)] continued commitment to safeguarding emergency relief programs and holding accountable those who abuse them,” Special Agent in Charge of the IRS CI’s Boston Field Office Thomas Demeo said in a statement. “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 added.
When asked whether DePeña intends to step down from his role while leaving the court on Friday, DePeña’s attorney replied: “No, he’s done a great job in Lawrence,” WCVB reported.
Friday’s announcement comes after a slate of pandemic-era relief programs have commonly been targeted by fraudsters, some experts previously told the Daily Caller.
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