LAWRENCE, Mass. — The Mayor of Lawrence has been indicted by a federal grand jury for pandemic loan fraud and money laundering.
According to the 11-count indictment, Mayor Brian DePeña, 61, was charged with allegedly obtaining over $1.5 million in COVID small-business loans.
DePeña is accused of using the money to fund his campaign account, pay personal taxes, and pay more than $880,000 in high-interest hard-money mortgages on properties in Lawrence.
He was indicted on four counts of wire fraud and seven counts of money laundering.
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DePeña was previously charged with a criminal complaint and arrested on Aug. 14.
According to the charging documents, in 2020 and 2021, he applied for Economic Injury Disaster Loans (“EIDL”) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence.
Prosecutors said DePeña first obtained $150,000 EIDL for Tenares Tire in June 2020.
In 2021, prosecutors alleged DePeña asked for additional money as his mayoral campaign faced financial problems. Federal investigators claimed he owed back taxes to the IRS and owed nearly $900,000 to two private lenders.
In July 2021, DePeña allegedly sent several messages to his accountant and financial adviser asking for help.
“Brother, call me, I’m in trouble,” he wrote. “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, DePeña 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 alleged that when the additional $350,000 was deposited in Aug. 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.
In Oct. 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 it into a personal account with a balance of $1,401.
Prosecutors alleged that he then used $42,112.96 of the money for his mayoral campaign.
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 as Mayor of Lawrence in 2021 and reelected in 2025.
He is set to appear in federal court for an arraignment at a later date.
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