Lawrence Mayor Brian DePena is facing federal charges after prosecutors accused him of using more than $1.5 million in pandemic-era business relief money for expenses that had little to do with keeping his company afloat.
Federal authorities arrested DePena, 61, on Friday morning as part of an investigation into his use of Economic Injury Disaster Loan funds. The EIDL program was administered by the U.S. Small Business Administration under the CARES Act and was intended to help businesses survive the financial damage caused by the COVID-19 pandemic.
DePena, who became mayor of Lawrence in November 2021 and was reelected in November 2025, previously served on the Lawrence City Council from 2016 through 2021. Prosecutors allege that while building his political career, he redirected federal relief money toward his campaign, personal tax obligations, and debts tied to real estate he owned.
The case centers on Tenares Tire Service Inc., DePena’s auto service and tire business in Lawrence. In May 2020, he applied for an EIDL on behalf of the company. The SBA approved an initial $150,000 loan the following month. The money carried a 3.75 percent interest rate and was supposed to be used to cover legitimate business expenses and financial losses connected to the pandemic.
DePena later requested substantially more money. In April 2021, the loan was increased to $350,000. Another modification in October 2021 brought the total amount approved to $1.1 million.
According to federal prosecutors, DePena became increasingly anxious when he was temporarily unable to access the additional money. In a Spanish-language text message that authorities say was sent to a financial adviser helping with the application, DePena reportedly said he was in trouble and could not afford to continue waiting for the loan.
Once the funds became available, prosecutors say some of the money quickly moved out of the business accounts. Between August and October 2021, DePena allegedly transferred nearly $90,000 into personal accounts. Authorities say more than $42,000 was then sent through checks to the Committee to Elect Brian DePena, his political campaign organization.
Investigators also accuse DePena of using the relief money to address personal financial obligations. According to the federal complaint, approximately $85,000 went toward personal back taxes owed to the Internal Revenue Service. Another $883,293 was allegedly used to pay off high-interest mortgages connected to properties DePena personally owned in Lawrence.
U.S. Attorney Leah B. Foley said the allegations were especially serious because DePena held a position of public trust. She said federal authorities intend to pursue fraud cases regardless of whether the person accused is a private citizen or an elected official.
Thomas Demeo, special agent in charge of the IRS Criminal Investigation Boston Field Office, also emphasized that CARES Act funding was created to keep struggling businesses operating during a national emergency, rather than to cover political expenses, real estate debts, or other personal costs.
The complaint further alleges that DePena has repaid only a fraction of the loan. As of August 5, he had made 16 payments totaling $130,160. Because those payments were applied to accumulated interest, prosecutors say the outstanding balance is still approximately $1.65 million.
DePena is charged with federal wire fraud and money laundering and was scheduled to make his initial appearance in federal court in Boston on Friday afternoon. If convicted, he could face a lengthy prison sentence, with the most serious charge carrying a potential maximum penalty of 30 years.
