Key facts
- Lawrence Mayor Brian DePena was arrested Friday on charges of wire fraud and money laundering.
Lawrence Mayor Brian DePena was arrested and charged with wire fraud and money laundering for allegedly misusing a $1.5 million COVID-19 small-business loan. Prosecutors claim he used over $880,000 for personal taxes and high-interest mortgages, and $90,000 for his mayoral campaign.
The case highlights the potential for misuse of government relief funds and the consequences for public officials who engage in fraudulent activities, eroding public trust and facing severe legal penalties.
Lawrence Mayor Brian DePena was arrested Friday and charged with wire fraud and money laundering for allegedly misusing a $1.5 million COVID-19 small-business loan. DePena, 61, is accused of obtaining the loan for his tire sales business but instead using over $880,000 to pay off high-interest mortgages on various properties and personal taxes. Prosecutors also allege that $90,000 was put into his mayoral campaign fund ahead of the 2021 election.
FBI Special Agent in Charge Ted Docks stated that DePena was "cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic." He emphasized that the FBI would pursue officials who misuse federal funds for personal gain.
DePena, who has served as mayor since 2021, made an initial appearance in federal court in Boston. He was released after agreeing to conditions, including surrendering his passport and not seeking further loans without court approval. His lawyer declined to comment, and DePena himself responded with "God bless" when asked if he would resign.