BOSTON, Aug. 15 (Nationwide Times) — Lawrence Mayor Brian DePena, 61, was arrested by the FBI on Aug. 14 and charged in federal court in Boston with one count of wire fraud and one count of money laundering, according to federal prosecutors, the FBI and charging documents.
Prosecutors allege that DePena obtained more than $1.5 million in COVID-19 relief loans intended for his Lawrence business, Tenares Tire Services Inc., and used some of the money for personal taxes, real estate debts and campaign-related payments.
The charges are accusations, not findings of guilt. DePena is presumed innocent unless prosecutors prove the case beyond a reasonable doubt.
What are EIDL loans?
The Economic Injury Disaster Loan program was administered by the U.S. Small Business Administration under the federal CARES Act. The program provided loans to businesses that suffered economic harm during the COVID-19 pandemic.
Unlike a grant, an EIDL loan generally must be repaid. Prosecutors allege that DePena claimed the money would be used as working capital for Tenares Tire Services, a tire and automotive-services business he owned.
According to the charging allegations, Tenares Tire received an initial loan of about $150,000 in 2020. DePena later sought an increase. The complaint described additional loan proceeds deposited into the company’s account in 2021.
The total amount described in reports based on the charging documents varies. Prosecutors have alleged that DePena obtained more than $1.5 million, while other descriptions put the amount above $1.6 million. A separate figure of about $1.65 million refers to the alleged outstanding principal as of Aug. 5, 2026, not necessarily the total amount originally received.
What do prosecutors allege he did with the money?
The charging documents, as described by prosecutors and federal officials, allege that EIDL funds were moved from the business account to personal accounts and then used for several purposes:
- About $85,000 was allegedly used to pay DePena’s personal federal tax liabilities.
- Prosecutors allege that money was sent to “The Committee to Elect Brian DePena.” Reports based on the charging documents cite $90,000 in checks and an additional $42,112.96 in campaign-related spending or payments. The available descriptions do not provide a complete ledger that reconciles those figures.
- About $883,293 was allegedly used in December 2021 to pay two high-interest private loans or mortgages tied to properties DePena owned in Lawrence.
The allegations concern the use of the loan proceeds, as well as the way prosecutors say the loans were obtained and the money moved. The case does not establish that the alleged transactions occurred unlawfully; that would be decided through the federal court process.
What do the charges mean?
Wire fraud generally involves an alleged scheme to obtain money through false or fraudulent representations using interstate electronic communications. Money laundering generally involves alleged financial transactions designed to conceal or disguise the source, ownership or control of criminal proceeds.
The government must prove each required element of the charges. The maximum statutory penalty reported for wire fraud is 20 years in prison, while money laundering carries a maximum of 10 years. Those are possible penalties if a defendant is convicted, not a sentence imposed on DePena.
What has happened in court?
DePena appeared in federal court in Boston on Aug. 14. He waived a probable-cause hearing and did not enter a plea at that initial proceeding, according to accounts of the hearing.
He was released without bond under conditions that included surrendering his passport, remaining in Massachusetts, avoiding contact with potential witnesses, reporting to probation and obtaining court approval before applying for new loans.
The supplied case information does not identify the case number, assigned judge, next hearing date or whether an indictment has been returned. It also does not include a statement from DePena or his lawyer.
How did the case develop?
Federal officials allege that DePena applied for and received the initial EIDL in 2020. In April 2021, he allegedly requested an increase. Further proceeds were deposited in 2021, followed by the transfers and payments described in the complaint.
The complaint also stated that only 16 payments totaling $130,160 had been made toward the EIDL by Aug. 5, 2026, leaving an outstanding principal of about $1.65 million, according to descriptions of the document.
The investigation has been attributed to the FBI, IRS Criminal Investigation, the U.S. Attorney’s Office for Massachusetts and the Massachusetts Office of the Inspector General. The alleged transactions, business activity, properties and campaign payments are connected to Lawrence, while the federal case began with the arrest and initial court appearance in Boston.
