Brian DePena, the Democrat mayor of Lawrence, Massachusetts, was arrested on August 14, 2026, after being charged with wire fraud and money laundering. Prosecutors allege he misused over $1.5 million from COVID relief funds intended for small businesses.
Allegations Against DePena: He is accused of diverting money from the Economic Injury Disaster Loan (EIDL) program under the CARES Act for personal use, including funding his political campaign, paying tax debts, and covering real estate expenses.
Loan Details: DePena initially applied for a $150,000 loan in May 2020 for his auto business, Tenares Tire Service Inc. He later increased this loan amount to $1.1 million.
Communication Evidence: Prosecutors presented text messages where DePena expressed urgency and desperation regarding the loan funds, indicating financial pressure.
Misallocation of Funds: After receiving the funds, he allegedly transferred nearly $90,000 to personal accounts and channeled over $42,000 directly to his campaign committee. Additionally, he reportedly paid roughly $85,000 in back taxes and used significant amounts for mortgage payments on his properties.
Legal Consequences: If convicted of the fraud charges, DePena could face up to 30 years in prison. He had only made a few payments on the EIDL loan, with an outstanding balance still around $1.65 million by August 2023.
The arrest of Mayor Brian DePena highlights serious issues of alleged corruption involving public officials. The case aims to reinforce accountability for the misuse of COVID relief funds meant to support struggling businesses during a national crisis. DePena is set to appear in federal court to address these charges.
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