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Massachusetts Mayor Arrested for Alleged Fraudulent Use of Pandemic Relief Funds

Massachusetts Mayor Arrested for Alleged Fraudulent Use of Pandemic Relief Funds
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The mayor of Lawrence, Massachusetts, Brian DePeña, was arrested Friday morning on allegations of illegally using federal pandemic relief funds for personal and political expenses. Prosecutors claim DePeña, a 61-year-old Democrat, obtained more than $1 million in emergency financial aid intended to support his small business but instead funneled the money toward paying off his IRS tax debt and campaign obligations.

Alleged Misuse of Pandemic Relief Funds

According to a statement from the U.S. Attorney’s Office in Massachusetts, DePeña applied for low-interest loans under the guise of supporting his car and tire business, Tenares Tire Services Inc. He reportedly received over $1.5 million in federal aid but diverted approximately $883,000 of those funds to settle high-interest loans on properties unrelated to his business.

FBI Special Agent Ted Docks emphasized the gravity of the alleged actions, stating, “This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. Depena’s own personal ATM.” The funds, designed to help small businesses survive the economic impact of the pandemic, were allegedly redirected away from their intended purpose.

Text Messages Reveal Desperation

The U.S. Attorney’s Office released several text messages purportedly sent by DePeña to his accountant and financial adviser, illustrating his efforts to secure the loans. In one message, translated from Spanish, the mayor wrote, “Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands.” Another message read, “I know I’m bothering you a lot, but I have no other option. Only you can give me what I need.” These communications suggest an urgent attempt to access funds without delay.

Charges and Official Response

DePeña was formally charged with wire fraud and money laundering. United States Attorney Leah Foley condemned the alleged conduct, stating, “Mayor DePeña was elected to be a leader for the City of Lawrence. He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies.” Foley added that the arrest underscores the commitment to rooting out fraud, including by public officials, and holding them accountable.

DePeña has not responded to requests for comment regarding the allegations.

Political Career and Background

Brian DePeña was first elected mayor of Lawrence in 2021 and secured a second term in 2025. Before serving as mayor, he was a member of the Lawrence City Council from 2016 to 2021. His tenure as mayor has now been overshadowed by these serious legal accusations.

Broader Anti-Fraud Efforts in Massachusetts

The investigation into DePeña aligns with Massachusetts’ broader efforts to combat fraud related to pandemic relief programs. The state’s Benefit and Voter Fraud Team was established to support the administration’s focus on fraud prevention, working alongside the Vice President’s Anti-Fraud Task Force and the Department of Justice’s National Fraud Enforcement Division.

Conclusion

The arrest of Mayor Brian DePeña highlights ongoing challenges in ensuring that federal pandemic relief funds reach their intended recipients. Allegations that a public official diverted millions meant for small businesses to personal and political debts raise serious concerns about oversight and accountability. As legal proceedings move forward, the case serves as a reminder of the importance of integrity in public service and the vigilance required to protect public resources.


Source: Read the original reporting.

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