Lawrence Mayor Charged

The Mayor of Lawrence, Mass. was arrested and charged today with fraudulently obtaining over $1.5 million in COVID small-business loans and using the proceeds to fund his campaign account, pay personal taxes, and pay off over $880,000 in high-interest, hard-money mortgages that encumbered various properties he owned in Lawrence. ¹

Brian Depena, 61, is charged with one count of wire fraud and one count of money laundering. Depena will make an initial appearance in federal court in Boston later today. Depena was elected as Mayor of Lawrence in November 2021 and was reelected in November 2025. He previously served on the Lawrence City Council from 2016 until 2021. ¹

"Mayor DePena 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," said United States Attorney Leah B. Foley. "Today's arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable." ¹

The Scheme

According to the charging documents, in 2020 and 2021, Depena applied for Economic Injury Disaster Loans ("EIDL") for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence. During the COVID-19 pandemic, the U.S. Small Business Administration offered taxpayer-funded EIDLs to eligible small businesses experiencing substantial financial disruptions. ^{2 3}

The interest rate on EIDLs was 3.75%, and the loan useas strictly limited. A business could only use EIDL proceeds as working capital to alleviate economic injury caused by the COVID-19 pandemic. ³

Depena allegedly caused Tenares Tire to apply for and obtain an initial EIDL of $150,000 in June 2020, using the majority of those funds as working capital for the business. However, by early 2021, Depena needed cash. His mayoral campaign was struggling to pay bills, he owed the IRS for back taxes, and he owed almost $900,000 to two private, hard money lenders who were charging Depena more than the EIDL rate of 3.75%—on loans that encumbered various properties he owned in Lawrence. ⁴

Loan Modifications and Desperation

In April 2021, Depena allegedly caused a request for an increase of the Tenares Tire EIDL. On or about July 14, 2021, the SBA approved an increase of the loan by $350,000, bringing the total Tenares Tire EIDL to $500,000. ⁴

While waiting, Depena allegedly sent desperate texts to his accountant and financial advisor, who had been assisting him with the EIDL application and modification. The texts, according to a footnote in the Complaint, where originally in Spanish and translated to English, reveal the urgency:

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.

Brother, I need your help with this loan. I've been trying to reach you all week and haven't been able to get it resolved. I know I'm bothering you a lot, but I have no other option. Only you can give me what I need.

The Charges

The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. ¹

As of Aug. 5, 2026, Depena had made only 16 payments on the Tenares Tire EIDL. The outstanding principal balance was approximately $1,654,420. ⁴

Federal Officials Respond

"Today's arrest highlights IRS CI's continued commitment to safeguarding emergency relief programs and holding accountable those who abuse them," said Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. "CARES Act funds were created to help small businesses survive an unprecedented national crisis—not to bankroll personal debts, political ambitions, or real estate ventures. IRS Criminal Investigation remains committed to protecting taxpayer dollars, pursuing those who exploit federal relief funds, and ensuring that financial integrity is upheld at every step." ¹

"Today, the FBI arrested Mayor Brian Depena for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic," said Ted E. Docks, Special Agent in Charge of the FBI's Boston Division. "This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. Depena's own personal ATM. When elected officials misuse federal funds for personal gain, they're breaking the trust of their constituents—and breaking the law." ¹

The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ¹

Methodology & About This Reporting

This article was reported and written relying on reference to primary source documents including:

• The criminal complaint filed in U.S. District Court, District of Massachusetts (Case No. 26-MJ-1383-DLC) • The affidavit of IRS-CI Special Agent Zachariah Marino • The official press release from the U.S. Attorney's Office, District of Massachusetts • Public records referred to from the Massachusetts Office of Campaign and Political Finance (OCPF) • Court records and financial institution records obtained by federal investigators

The article represents our understanding of the matter as of the date of publication and is not legal advice. Readers are encouraged to review the original source documents for full context and details. ⁶

AI-assisted research and drafting support was provided by DeepSeek (deepseek.com) under the supervision of The Civic Broadside's editorial team. The AI was used to organize source materials, identify key narrative threads, and assist with initial drafting, composition and layout using software written by Civicbroadside, with support and assistance from DeepSeek and Anthropic (claude.ai/). Content was reviewed, fact-checked, and edited by human journalists prior to publication. ⁶

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