Lawrence Mayor Charged with Wire Fraud and Money Laundering
Mayor Brian Depena of Lawrence, Massachusetts, was arrested on August 14, 2026, and charged with federal pandemic loan fraud.
3 reports on this incident · first at Aug 15, 2026, 12:19 p.m. ET
Earlier reports
Aug 17, 2026, 12:35 p.m. ET
Lawrence Mayor Brian Depena Charged with Pandemic Loan Fraud and Money Laundering
Brian Depena, 61, the Mayor of Lawrence, Massachusetts, was arrested and charged on Aug. 14, 2026 with one count of wire fraud and one count of money laundering, the U.S. Attorney's Office for the District of Massachusetts announced. Prosecutors said Depena would make an initial appearance in federal court in Boston later that day.
The case is at the charging stage. According to the Justice Department announcement, "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."
According to the charging documents described in the announcement, Depena fraudulently obtained over $1.5 million in COVID-19 Economic Injury Disaster Loans ("EIDL") for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence, and used the proceeds to fund his mayoral campaign account, pay off personal tax debts to the IRS, and pay off approximately $883,293 in high-interest, hard-money mortgages encumbering properties he owned in Lawrence.
Depena was elected Mayor of Lawrence in November 2021 and was reelected in November 2025, according to the announcement. He previously served on the Lawrence City Council from 2016 until 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," 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."
The alleged sequence
During the pandemic, the U.S. Small Business Administration offered taxpayer-funded EIDLs to eligible small businesses experiencing substantial financial disruptions, the announcement states. The interest rate on EIDLs was 3.75%, and proceeds could be used only as working capital to alleviate economic injury caused by the COVID-19 pandemic. Working capital did not include funding a political campaign, paying personal taxes, or paying off mortgages.
Depena allegedly caused Tenares Tire to apply for and obtain a $150,000 EIDL in June 2020 and then used the majority of those funds as working capital for the business. But according to the charging documents, Depena needed cash by early 2021: his mayoral campaign was allegedly 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 him 12% and 8% interest — significantly more than the EIDL rate of 3.75% — on loans that encumbered various properties he owned in Lawrence.
In April 2021, Depena allegedly caused a request for an increase of the Tenares Tire EIDL. On July 14, 2021, the SBA approved an increase of $350,000, bringing the total to $500,000, though the SBA did not release the funds for another month. While waiting, Depena allegedly sent texts — originally in Spanish — to his accountant and financial advisor, who had been assisting him with the EIDL application and modification.
The $350,000 was electronically deposited into the Tenares Tire bank account on Aug. 16, 2021, when the pre-deposit balance in the account was only $20.23, according to the charging documents. Shortly thereafter, Depena allegedly paid $85,000 of the EIDL funds to the IRS to pay off personal tax debts, and transferred $120,000 to a personal account, from which he allegedly wrote checks totaling $90,000 to "The Committee to Elect Brian Depena." Those checks were allegedly deposited in his mayoral campaign account, and characterized as loans to the campaign, in September and October 2021.
With the hard money loans still outstanding and the campaign still struggling financially, Depena allegedly caused a request for a second EIDL modification in October 2021. On Oct. 27, 2021, the SBA approved an increase of $1,154,400, bringing the total Tenares Tire EIDL to $1,654,400. On Nov. 30, 2021, $1,154,188 in EIDL funds were deposited in the Tenares Tire account, and Depena allegedly transferred the entire amount the same day to one of his personal accounts, which had a balance of only $1,401.
Depena allegedly used $42,112.96 of the EIDL funds for his mayoral campaign, writing checks of $10,000 and $32,112.96. The first was deposited in the campaign account on Dec. 2, 2021, when the account had allegedly been overdrawn for approximately 20 days. He allegedly used $883,293 of the EIDL funds to pay off the hard money lenders: a $538,109.03 treasurer's check on Dec. 9, 2021 to pay off one loan, and a $345,184.13 treasurer's check on Dec. 18, 2021 to pay off the other.
As of Aug. 5, 2026, Depena had made only 16 payments on the Tenares Tire EIDL, according to the charging documents, and the outstanding principal balance was approximately $1,654,420.
Agencies and prosecutors
"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."
Ted E. Docks, Special Agent in Charge of the FBI's Boston Division, said the FBI arrested Depena "for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic," adding: "This was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. Depena's own personal ATM."
The investigating agencies are the Federal Bureau of Investigation, Boston Division; Internal Revenue Service Criminal Investigation, Boston; and the Office of the Inspector General, Commonwealth of Massachusetts. Foley, Docks, Demeo and Jeffrey S. Shapiro, Inspector General of the Office of the Inspector General, Commonwealth of Massachusetts, made the announcement. The U.S. Department of Labor, Office of Inspector General provided assistance. Assistant U.S. Attorneys Kristina E. Barclay and Christine Wichers of the Public Corruption Unit are prosecuting the case.
Possible penalties
The Justice Department announcement states the potential penalties as follows: "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.
Context from the announcement
On March 26, 2026, Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative the office describes as a response to "the rampant fraud being uncovered across Massachusetts," led by two senior federal prosecutors serving as Fraud Coordinators. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division, which the department says is investigating and prosecuting those who commit fraud against the American people. According to the announcement, the department's anti-fraud work supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.
No trial date or plea has been reported in the announcement, and the allegations remain untested in court. Depena is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Aug 15, 2026, 12:19 p.m. ETFirst report
Lawrence Mayor Brian Depena Charged with Pandemic Loan Fraud and Money Laundering
In a developing case, Lawrence, Massachusetts Mayor Brian Depena was arrested and charged on August 14, 2026, with one count of wire fraud and one count of money laundering, according to charging documents filed in federal court by the U.S. Attorney's Office for the District of Massachusetts. The details contained in the court filings are allegations, and Depena, 61, is presumed innocent unless and until proven guilty in a court of law.
According to federal charging documents, Depena allegedly applied for and received increased Economic Injury Disaster Loans (EIDL) for his company, Tenares Tire Services Inc., totaling more than $1.5 million. Prosecutors allege that instead of using the emergency taxpayer-funded loans for working capital, Depena used $883,293 to pay off high-interest mortgages on personal real estate, paid $85,000 to the IRS for personal back taxes, and transferred tens of thousands of dollars into his mayoral campaign account.
United States Attorney Leah B. Foley said, "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." FBI Special Agent in Charge Ted E. Docks said, "It’s alleged the Mayor fraudulently obtained over $1.5 million in small business loans which he then used as his own slush fund to pay his personal taxes, fund his mayoral campaign, and pay off $883,000 in high-interest mortgages on several properties he owned." Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Boston Field Office, added that relief funds were intended to help small businesses survive, "not to bankroll personal debts, political ambitions, or real estate ventures."
The case remains pending. Each count of wire fraud carries a statutory maximum penalty of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Each money laundering charge carries a maximum statutory sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. Final sentences, if convicted, are determined by a federal district court judge based on federal guidelines and statutes.
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Revision history
- Version 217 Aug 2026, 16:55current
Updated story to explicitly clarify that charges are allegations, the case is undecided, and the accused is presumed innocent.
- Version 115 Aug 2026, 16:28
First published.
- Version 115 Aug 2026, 16:19current
First published.
- Version 117 Aug 2026, 16:35current
First published.
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