MORE THAN $1.5 MILLION IN FEDERAL LOANS
According to the U.S. Department of Justice, the investigation centers on Tenares Tire Services Inc., a business owned by DePeña.
Prosecutors allege that DePeña applied for funding in 2020 and 2021 through the Economic Injury Disaster Loan, or EIDL, program administered by the U.S. Small Business Administration.
The program was designed to provide financial assistance to small businesses suffering economic hardship during the COVID-19 pandemic.
Federal authorities said the amount ultimately provided to DePeña’s company increased to approximately $1.65 million.
PROSECUTORS ALLEGE FUNDS WERE USED FOR HIS POLITICAL CAMPAIGN
One of the most significant allegations involves the use of federal relief money to finance DePeña’s political campaign.
According to prosecutors, a $350,000 EIDL payment was deposited into the company’s account in August 2021.
Authorities allege that DePeña subsequently transferred $120,000 of those funds into his personal bank account.
Prosecutors say he then wrote checks totaling $90,000 from that account to “The Committee to Elect Brian Depena,” his political campaign committee.
Federal court documents also allege that additional funds from later loan proceeds were directed toward his campaign.
Authorities say those additional campaign-related transactions totaled more than $42,000.
PERSONAL TAX LIABILITIES ALSO ALLEGEDLY PAID WITH RELIEF FUNDS
The allegations against DePeña extend beyond campaign spending.
Federal prosecutors accuse him of using approximately $85,000 in EIDL funds to pay personal tax liabilities owed to the Internal Revenue Service.
The pandemic relief loans were intended to cover eligible business expenses and economic losses associated with the COVID-19 crisis.
Prosecutors allege the funds were instead diverted to expenses that were not permitted under the federal program.
ABOUT $883,000 ALLEGEDLY USED FOR PROPERTY MORTGAGES
Another major element of the federal case involves properties owned by DePeña.
Authorities allege that approximately $883,000 in federal relief funds was used to pay off high-interest mortgage debt associated with several properties DePeña owned in Lawrence.
According to prosecutors, the transactions involved multiple pieces of real estate.
The government alleges that money intended to support a business during the pandemic was instead used to reduce DePeña’s personal financial obligations.
FBI INVESTIGATED THE CASE
The investigation was conducted by the FBI’s Boston Division and other federal authorities.
FBI officials emphasized that pandemic relief programs were created to help businesses struggling to survive the economic effects of the public health crisis.
Federal investigators allege that DePeña instead diverted money from the program for personal financial obligations and political purposes.
U.S. Attorney Leah B. Foley also stressed that elected officials are subject to the same federal laws as other citizens.
DEPEÑA HAS SERVED AS LAWRENCE MAYOR SINCE 2021
Brian DePeña, 61, is the sitting mayor of Lawrence, a city north of Boston in Massachusetts.
Before becoming mayor, DePeña served on the Lawrence City Council.
He was elected mayor in 2021 and has remained a prominent figure in local politics.
The arrest of a sitting mayor on federal fraud charges has drawn significant attention in Massachusetts and beyond.
CHARGES COULD CARRY LENGTHY PRISON SENTENCES
The federal charges against DePeña carry potentially significant penalties if he is convicted.
Wire fraud can carry a sentence of up to 20 years in federal prison, while an unlawful monetary transaction charge can carry a sentence of up to 10 years.
Additional penalties may include fines and supervised release.
Any sentence, however, would ultimately be determined by a federal judge based on U.S. sentencing guidelines and other statutory factors if DePeña is convicted.
CHARGES REMAIN ALLEGATIONS
It is important to note that the allegations against DePeña have not been proven in court.
The U.S. Department of Justice emphasized that the criminal complaint contains allegations and that DePeña is presumed innocent unless and until proven guilty beyond a reasonable doubt.
For that reason, claims circulating on social media stating as fact that DePeña “stole” $1.5 million go beyond what has currently been established in court.
Federal prosecutors accuse him of fraudulently obtaining and misusing pandemic relief funds, but the case must now proceed through the federal judicial system.
The investigation represents another high-profile case stemming from federal efforts to identify alleged fraud involving billions of dollars distributed through pandemic-era economic relief programs.
