The mayor of Lawrence, Massachusetts, was arrested in a striking federal case alleging he diverted pandemic relief funds meant for his tire business into political and personal financial uses.
Brian Depena, who leads the city of Lawrence, was taken into custody Friday and charged in connection with an alleged Covid relief fraud scheme that prosecutors say involved more than $1.5 million.
Federal authorities said the 61-year-old mayor is charged with one count of wire fraud and one count of money laundering.
Depena first won the mayor’s office in November 2021 and secured reelection last November. Before becoming mayor, he served on the Lawrence City Council from 2016 through 2021.
According to investigators, Depena obtained a $1.5 million Covid-19 small business loan for his tire sales company.
Prosecutors allege the money was not used as intended. Instead, they say Depena put more than $880,000 toward paying off high-interest mortgages tied to multiple businesses and directed $90,000 into his mayoral campaign account ahead of the 2021 election.
Residents near Depena’s home told WCVB they were jolted awake Friday morning by FBI agents using a bullhorn outside the property. Agents later forced their way inside with a battering ram, the station reported.
Depena appeared in federal court in Boston later Friday for his initial hearing. He was released under several court-imposed conditions, including surrendering his passport and agreeing not to apply for any loans without prior court approval.
After leaving court, Depena’s lawyer Carlos Apostle repeatedly responded with ‘no comment’ to questions while his client beamed a large smile for the awaiting news teams.
Depena, the Mayor of Lawrence, was arrested and charged on Friday in connection with the alleged fraud, that authorities said amounted to over $1.5 million
He is accused of obtaining a COVID-19 small-business loan worth $1.5 million for his tire sales business, seen here
Depena, who is a citizen of the United States and Dominican Republic, responded with ‘God bless’ when asked if he would resign. He made no other comments.
In 2020 and 2021, Depena obtained a government disaster loan for Tenares Tire Services Inc., a tire sales and automotive services business in Lawrence.
During the pandemic, the Small Business Administration offered loans to qualified businesses that were suffering financial losses.
He used a loan of $150,000 for the business. A year later, prosecutors say, Depena’s mayoral campaign was running short of cash, he owed back taxes and was under pressure to pay back high-interest loans on several of his properties in Lawrence.
He then requested several increases to the government loan and allegedly used $1.5 million to cover those expenses unrelated to his tire business.
If convicted on the wire fraud charge, Depena faces up to 20 years in prison, three years of supervised release and a fine of up to $250,000.
He faces a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 if convicted on the money laundering charge.
Depena was elected mayor in November in 2021 and reelected last November, having previously served on the Lawrence City Council from 2016 until 2021
Depena is accused of obtaining a COVID-19 small-business loan worth $1.5 million for his tire sales business
Ted Docks, the special agent in charge of the FBI’s Boston Division, accused Depena of ‘cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic.’
A statement said: ‘When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents – and breaking the law.
‘Together, with our partners, the FBI will continue to doggedly pursue anyone who defrauds the federal government.
‘You’ll be prosecuted to the fullest extent of the law, and that `easy money´ won´t seem so easy after all.’
United States Attorney Leah B Foley added: ‘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.
‘Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable.’
