Lawrence, Mass. Mayor Brian Depena has been arrested by federal agents on charges of $1.5 million of pandemic loan fraud and money laundering.
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Federal prosecutors allege he used the stolen funds to pad his campaign account while also paying off nearly $900,000 worth of personal taxes, mortgages on various properties, and high-interest debt.
U.S. Attorney Leah Foley’s office announced the Friday morning arrest of Depena, 61, who was first elected to the corner office in Lawrence in 2021 and re-elected in 2025. He had previously served as a Lawrence City Councilor from 2016 to 2021.
“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,” Foley said in a press release announcing the arrest. “Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable.”
Charging documents state that Depena applied for Economic Injury Disaster Loans (EIDLs) in 2020 and 2021 for Tenares Tire Services Inc., the tire sales and auto repair business he owned in Lawrence. EIDLs were 3.75% loans that the U.S. Small Business Administration offered to eligible small businesses that experienced substantial financial disruptions during the COVID pandemic. The loans were strictly to be used as working capital for businesses to alleviate economic harm caused by losses accrued during the pandemic shutdowns.
Depena violated these restrictions by allegedly using $883,000 of the funds he received for his political campaign, taxes, and paying off mortgages, rather than using it for his business.
“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,” said Thomas Demeo, the special agent in charge of IRS criminal investigations in Boston. “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.”
Ted Docks, the SAC of the Boston FBI, said that arrests like this show “that ‘easy money’ won’t seem so easy after all.”
“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,” he added.
Court documents say Depena applied for and obtained $150,000 in EIDLs for Teneres Tire in June 2020, the majority of which he legally utilized as working capital for the business. But by early 2021, the Feds say Depena needed cash to fund his financially strapped mayoral campaign while also owing back taxes to the IRS and nearly $900,000 to two private, hard money lenders charging him 12% and 8% interest on loans for several properties he owned in Lawrence.
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Then, in April 2021, Depena allegedly applied for an increase in EIDL funds for Teneres Tire, with the SBA approving another $350,000 loan in July 2021, bringing his total collection of EIDLs to $500,000. However, court documents state that because of a delay in releasing the funds by the SBA, Depena panicked in frantic text messages to his financial advisor. The text messages were originally in Spanish and have been translated to English.
“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,” Depena texted his financial advisor on July 22, 2021.
“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,” he said in another text on July 28, 2021, before sending another text requesting the advisor to call him later in the day.
Depena, who is a Dominican national with limited English language skills, made national headlines late last year when he required a Spanish translator to assist him as he attended a state hearing.
Depena deposited the $350,000 EIDL into the Teneres Tire bank account in August 2021, which had a pre-deposit balance of just $20.23. Shortly thereafter, he allegedly paid $85,000 of the EIDL funds to cover personal tax debts owed to the IRS and then allegedly transferred $120,000 to a personal account to write checks totaling $90,000 to “The Committee to Elect Brian Depena,” all of which were characterized as loans to the campaign, in September and October of that year.
Finally, in October 2021, Depena allegedly requested an EIDL modification to increase his loan to $1,154,400, bringing the total amount to $1,654,400. The SBA approved the increase on October 27. After depositing the $1.1 million increase into the Teneres Tire bank account on Nov. 30, Depena then allegedly transferred the funds to one of his personal accounts, which had a pre-deposit balance of just $1,401.
Depena allegedly used $42,112.96 for his mayor campaign and $883,293 to pay off the high-interest debt he owed to the hard money lenders, while only making 16 total payments on the $1.6 million EIDL loan.
Depena will be arraigned Friday in Boston Federal Court. He faces up to 30 years in prison and $500,000 in fines.
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