Former IRS employee reportedly conducted fraudulent scheme
Kayleigh McEnany highlighted the case of Alios Williams, a former federal worker accused of stealing more than $3.5 million from COVID-era relief programs. According to the account, Williams used his position as an SBA loan officer to contact people directly through Instagram, offering to push through bogus grant applications in return for payment.
The mayor of a Boston-area city is now facing federal wire fraud and money laundering charges after prosecutors said he diverted more than $1.5 million in pandemic small business relief funds to support his political campaign, cover personal tax obligations and pay down costly real estate debts.
Lawrence Mayor Brian DePena, 61, was taken into custody Friday morning as part of a federal investigation into the alleged misuse of Economic Injury Disaster Loans, known as EIDL funds. The loan program, overseen by the U.S. Small Business Administration under the CARES Act, was created to help businesses survive the economic fallout of the COVID-19 pandemic.
DePena first won the mayor’s office in Lawrence in November 2021 and secured another term in November 2025. Before becoming mayor, he served on the Lawrence City Council from 2016 through 2021.
“Mayor DePena was elected to be a leader for the City of Lawrence,” U.S. Attorney Leah B. Foley said. “He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies. Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials, and hold elected officials accountable.”
Lawrence Mayor Brian DePena has been charged in federal court over allegations that he used pandemic relief money intended for struggling businesses to finance his mayoral campaign and reduce personal debt. Prosecutors said DePena sought the funds on behalf of Tenares Tire Services Inc., his Lawrence-based tire shop. (City of Lawrence)
Federal prosecutors said DePena submitted an EIDL application in May 2020 for Tenares Tire Service Inc., an auto repair and tire business in Lawrence. The pandemic relief loans carried a 3.75% interest rate and were supposed to be used strictly to address business losses and financial hardship tied to COVID-19.
The SBA approved an initial $150,000 loan for Tenares Tire in June 2020. Prosecutors said DePena later requested more money as he reported cash flow problems. In April 2021, he received approval for a $350,000 increase, followed by another loan modification in October 2021 that raised the total amount to $1.1 million.
Upon the second loan modification, DePena was unable to access the funds for a month, resulting in panic, officials said.
“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 allegedly wrote in a translated Spanish text message to a financial advisor assisting with the loan application.
“I know I’m bothering you a lot, but I have no other option,” he added. “Only you can give me what I need.”
Upon receiving the funds, prosecutors claim DePena began diverting them. Between August and October 2021, he allegedly transferred nearly $90,000 from his business accounts to personal accounts, subsequently writing checks totaling over $42,000 directly to “The Committee to Elect Brian DePena”.
In addition, officials said he used the taxpayer funds to pay off personal debts, including $85,000 paid to the Internal Revenue Service (IRS) to settle personal back taxes and another $883,293 to pay off high-interest mortgages on personal properties he owned in Lawrence.
“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, special agent in charge of the IRS Criminal Investigation Boston Field Office. “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.”
As of Aug. 5, DePena had made only 16 payments toward the Tenares Tire EIDL, totaling $130,160. Since the payments went toward the accrued interest, the outstanding loan balance remains at approximately $1.65 million, the complaint states.
DePena is scheduled to make his initial appearance in Boston federal court on Friday afternoon. He faces up to 30 years in prison.
The mayor’s office did not immediately respond to News Outlet’s request for comment.
