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[CRIME] · United States · 33 sources

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Lawrence Mayor Brian DePeña arrested for alleged $1.5M pandemic loan fraud

Brian DePeña, the Democratic mayor of Lawrence, Massachusetts, has been arrested by the FBI on federal charges of wire fraud and money laundering. Prosecutors allege that DePeña fraudulently obtained more than $1.5 million in Economic Injury Disaster Loans (EIDL) through his business, Tenares Tire Services Inc., during the COVID-19 pandemic.

According to the Department of Justice, instead of using the funds for business operations, DePeña allegedly diverted the money to cover personal expenses. This includes paying off more than $880,000 in high-interest mortgages on various properties, settling personal tax debts with the IRS, and funding his 2021 mayoral election campaign.

DePeña made an initial appearance in a Boston federal court and was released without bond. His release is subject to several conditions, including surrendering his passport, remaining within the state of Massachusetts, and not seeking further loans without judicial authorization.

Entities

Brian DePena · Department of Justice · FBI · Internal Revenue Service · Lawrence · Small Business Administration · Tenares Tire Service Inc. · Tenares Tire Services Inc. · U.S. Department of Justice

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