LAWRENCE, Mass. — Lawrence Mayor Brian DePeña has been arrested on wire fraud and money laundering charges.
According to the U.S. Attorney’s Office for Massachusetts, DePeña allegedly obtained more than $1.5 million in COVID small-business loans and used the money for personal and political expenses.
DePeña, 61, is charged with one count of wire fraud and one count of money laundering.
According to federal prosecutors, DePeña used the money to pay personal tax debts, fund his mayoral campaign and pay off more than $880,000 in high-interest mortgages on properties he owned in Lawrence.
The charges center on Economic Injury Disaster Loans, or EIDLs, that DePena allegedly obtained through Tenares Tire Services Inc., a Lawrence tire sales and automotive services business he owned.
According to prosecutors, DePeña first obtained a $150,000 EIDL for Tenares Tire in June 2020.
In 2021, prosecutors allege DePeña asked for additional money as his mayoral campaign faced financial problems. Federal investigators claim he owed back taxes to the IRS, and he owed nearly $900,000 to two private lenders.
In July 2021, while waiting for the SBA to approve an increase in the loan, DePeña allegedly sent several messages to his accountant and financial adviser asking for help.
“Brother, call me, I’m in trouble,” DePeña wrote in a July 22 message. “I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands.”
On July 25, he wrote: “Brother, I need your help with this loan. I’ve been trying to reach you all week and haven’t been able to get it resolved.”
The SBA approved a $350,000 increase in July, bringing the Tenares Tire EIDL to $500,000.
Prosecutors allege that when the additional $350,000 was deposited in August 2021, DePeña used $85,000 to pay personal tax debts to the IRS.
He also allegedly transferred $120,000 to a personal account and used $90,000 of that money to write checks to “The Committee to Elect Brian DePeña .” The checks were deposited into his mayoral campaign account and characterized as loans to the campaign, prosecutors said.
In October 2021, DePeña allegedly requested another increase to the EIDL.
The SBA approved a $1.154 million increase, bringing the total loan to $1.654 million.
On Nov. 30, 2021, more than $1.154 million was deposited into the Tenares Tire account, according to prosecutors. DePeña allegedly transferred the entire amount to a personal account that had a balance of just $1,401.
Prosecutors allege that he then used $42,112.96 of the money for his mayoral campaign.
According to the charging documents, DePeña used $883,293 in EIDL funds to pay off the two high-interest mortgages. He purchased one treasurer’s check for $538,109.03 and another for $345,184.13 to pay off the loans.
According to prosecutors, as of Aug. 5, 2026, DePeña had made only 16 payments on the Tenares Tire EIDL.
The outstanding balance is around $1.654 million.
DePeña was elected mayor of Lawrence in November 2021 and reelected in November 2025. He previously served on the Lawrence City Council from 2016 to 2021.
The wire fraud charge carries a potential sentence of up to 20 years in prison, while the money laundering charge carries a potential sentence of up to 10 years. Both charges also carry potential fines.
DePeña was first elected mayor of Lawrence in November 2021, and won reelection in 2025.
DePeña is expected to make an appearance in federal court in Boston later Friday.
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW