Massachusetts Mayor Indicted Over $1.5 Million Pandemic Loan Fraud and Money Laundering
U.S. prosecutors have indicted Lawrence, Massachusetts Mayor Brian A. DePena, 61, on four counts of wire fraud and seven counts of money laundering over an alleged scheme involving more than US$1.5 million in Economic Injury Disaster Loan funds.
The U.S. Attorney’s Office for the District of Massachusetts said the 11-count indictment was unsealed on August 26, 2026. DePena had previously been charged by criminal complaint and arrested on August 14. He is due to be arraigned in federal court at a later date. The charges remain allegations, and he is presumed innocent unless proven guilty.
Loan proceeds allegedly moved into personal and campaign accounts
According to the charging documents, DePena’s company, Tenares Tire Services Inc., initially received a US$150,000 EIDL in June 2020. Prosecutors allege that in 2021 he sought additional EIDL funding while facing personal tax debts, campaign expenses and almost US$900,000 owed to two high-interest private mortgage lenders.
On August 16, 2021, an additional US$350,000 in EIDL funds was deposited into the Tenares Tire account, which had a pre-deposit balance of US$20.23. Prosecutors allege that DePena then used US$85,000 to pay personal IRS tax debts and transferred US$120,000 to a personal account. From there, he allegedly wrote checks totaling US$90,000 to his mayoral campaign committee, where they were characterised as campaign loans.
A second EIDL modification increased the Tenares Tire loan by a further US$1,154,400. On November 30, 2021, US$1,154,188 was deposited into the business account and allegedly transferred the same day to one of DePena’s personal accounts, which had held only US$1,401 before the transfer.
Prosecutors allege that DePena used US$42,112.96 of those funds for his mayoral campaign and US$883,293 to pay off hard-money mortgages on properties he owned in Lawrence. The mortgage payments included treasurer’s checks for US$538,109.03 and US$345,184.13.
As of August 5, 2026, the government said DePena had made only 16 payments on the Tenares Tire EIDL, leaving an outstanding principal balance of approximately US$1.654 million.
Seven money laundering counts
Each money laundering charge carries a statutory maximum of 10 years in prison, while each wire fraud count carries a maximum of 20 years. The investigation involves IRS Criminal Investigation, the FBI, the U.S. Department of Labor Office of Inspector General and the Massachusetts Office of the Inspector General.
The case provides a detailed example of how fraud proceeds can move from a business account into personal accounts, campaign accounts and real-estate debt payments. Those allegations have not yet been proven in court.
