Lawrence Mayor Brian DePena was arrested Friday on federal charges of wire fraud and money laundering related to the misuse of pandemic relief funds. According to prosecutors, DePena obtained a $1.5 million Coronavirus Aid, Relief, and Economic Security Act loan for his tire sales business, Tenares Tire Services Inc., but diverted the funds for personal use rather than business purposes.
Prosecutors allege that DePena used more than $880,000 from the loan to pay off high-interest mortgages on various properties and contributed approximately $90,000 to his mayoral campaign fund before the 2021 election. The mayor has held office since 2021 and previously served on the Lawrence City Council. According to the charges, DePena initially obtained a $150,000 disaster loan for his tire business in 2020 and 2021, but approximately one year later requested multiple increases to the loan amount, allegedly as his campaign faced cash shortages and he owed back taxes.
Ted Docks, special agent in charge of the FBI’s Boston Division, characterized the allegations as a betrayal of the loan program’s intent. The FBI official stated that DePena misused federal funds meant to support businesses struggling during the pandemic and noted that officials who misappropriate such funds break the trust of constituents and face prosecution.
DePena appeared in federal court Friday afternoon and was released on the condition that he surrender his passport and refrain from obtaining loans without court approval. His attorney declined to comment following the hearing. When asked whether he would resign, DePena responded with “God bless” but made no other statements. DePena holds citizenship in both the United States and Dominican Republic.
If convicted on the wire fraud charge, DePena faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000. The money laundering charge carries a potential sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000.
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