Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments

Authored by Aldgra Fredly via The Epoch Times,

A Massachusetts mayor was arrested on Aug. 14 on allegations that he fraudulently secured more than $1.5 million in COVID-19 small-business loans to fund his election campaign and pay personal taxes and mortgages.

Lawrence Mayor Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering, according to a statement by the U.S. Attorney’s Office for the District of Massachusetts.

DePeña has been released from custody following his initial appearance in federal court in Boston on Aug. 14, subject to several conditions, including turning over his passport.

According to his indictment, he allegedly applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence, between 2020 and 2021.

The Small Business Administration (SBA) offered those loans to eligible small businesses that were facing financial difficulties during the COVID-19 pandemic.

Prosecutors alleged that DePeña obtained $150,000 in EIDL loans for Tenares Tire in June 2020, using most of the funds as working capital for his business. In early 2021, his mayoral campaign was struggling to pay bills, and he owed back taxes to the IRS and $900,000 to two private lenders.

DePeña allegedly applied in April 2021 for an increase in his business’s EIDL loan, which the SBA later approved for an additional $350,000, according to the statement.

Prosecutors said DePeña allegedly used $85,000 of the funds to pay off personal tax debts and transferred $120,000 to his personal account, of which $90,000 was later deposited into his mayoral campaign account.

In October 2021, DePeña allegedly requested another EIDL loan increase, which the SBA approved for more than $1.15 million. He then transferred the entire amount to a personal account and used $42,112.96 of that fund for his mayoral campaign, prosecutors alleged. He also allegedly used more than $883,000 to pay off his debts.

The mayor had made 16 payments on the Tenares Tire EIDL as of Aug. 5, 2026, leaving an outstanding principal balance of about $1.6 million, according to prosecutors.

“This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePena’s own personal ATM,” Ted E. Docks, special agent in charge of the FBI’s Boston Field Office, said in the statement.

“When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents—and breaking the law.”

DePeña has served as mayor since 2021. He was reelected in November 2025 and previously served on the Lawrence City Council.

He faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 if convicted of wire fraud. For money laundering, DePeña could face up to 10 years in prison, three years of supervised release, and a $250,000 fine if found guilty.

DePeña’s office did not respond to a request for comment.