Mayor Taken into Custody Amid Wire Fraud and Money Laundering Allegati

The mayor of Lawrence, Massachusetts, Brian DePeña, was taken into custody on August 14, 2026, over charges of wire fraud and money laundering. The 61-year-old politician allegedly used over $1.5 million in federal COVID-19 pandemic relief loans for personal and political purposes.

Fraudulent Pandemic Relief Loans

Prosecutors claim DePena fraudulently obtained the funds by applying for Economic Injury Disaster Loans through the US Small Business Administration on behalf of his tyre and automotive business, Tenares Tire Services Inc., in Lawrence. He secured an initial loan of $150,000 in June 2020, followed by two loan modifications that brought the total to $1,654,400.

DePena allegedly transferred large portions of the funds out of the business account and into his personal accounts on the same day, using the money to pay personal back taxes, his mayoral campaign committee, and two private lenders who had been charging him interest rates of 8% and 12%.

Government Response

The arrest demonstrates the government's commitment to holding elected officials accountable, according to United States Attorney Leah B. Foley. "He betrayed that trust through his alleged corruption and lies," she added.

Ted E. Docks, Special Agent in Charge of the FBI's Boston Division, described the alleged conduct as treating emergency pandemic assistance as "his own personal ATM." He warned that anyone who defrauds the federal government faces prosecution to the fullest extent of the law.

Investigation and Charges

DePena is charged with one count of wire fraud and one count of money laundering. A conviction on wire fraud carries a maximum sentence of 20 years in prison, while the money laundering charge carries up to 10 years.

Prosecutors note that as of August 5, 2026, DePena had made only 16 repayments on the loan, leaving an outstanding principal balance of approximately $1,654,420.

Background and Impact

DePena was first elected Mayor of Lawrence in November 2021 and re-elected in November 2025. He previously served on the Lawrence City Council from 2016 to 2021. The case highlights the risks of corruption in public office and the consequences of betraying public trust.

As the investigation unfolds, it remains to be seen what further actions the government will take against DePena. The case also raises questions about the effectiveness of pandemic relief programs and the need for stricter oversight to prevent similar abuses in the future.

The arrest of Mayor DePena marks a significant development in the government's efforts to hold elected officials accountable for their actions.

Source: Yen ALL