Massachusetts Democratic Mayor Arrested for Allegedly Obtaining Over $1.5M in COVID Funds
The mayor of Lawrence, Massachusetts Brian Depena (D) who is from Dominican Republic and can barely speak English, Arrested for allegedly fraudulently obtaining and using over $1.5 million in COVID relief money.
Lawrence Mayor Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering in connection with funds obtained through a federal disaster loan program, according to authorities.
Federal prosecutors allege DePeña obtained the money for Tenares Tire Services Inc., his tire sales and automotive services business in Lawrence, but later used substantial portions for purposes unrelated to the company.
The allegations include more than $880,000 allegedly used to pay off high-interest mortgages connected to various businesses and $90,000 allegedly transferred to DePeña’s mayoral campaign ahead of the 2021 election.
His arrest unfolded Friday morning at his home, where neighbors told WCVB they awoke to FBI agents using a bullhorn outside the property.
Agents subsequently used a battering ram to enter the home, according to the outlet.
DePeña appeared in federal court in Boston later Friday and was released subject to several conditions, including surrendering his passport and agreeing not to seek loans without court approval.
The case centers on government assistance DePeña received for his business during the COVID-19 pandemic.
The Small Business Administration offered disaster loans to qualifying businesses suffering financial losses during the pandemic.
DePeña initially obtained a $150,000 loan for Tenares Tire Services in 2020, according to prosecutors.
Authorities allege his financial situation changed by the following year as he pursued the Lawrence mayor’s office.
Prosecutors said DePeña’s campaign was running low on money while he also owed back taxes and faced pressure from high-interest loans associated with several Lawrence properties.
He subsequently requested multiple increases to the government loan.
Federal authorities allege approximately $1.5 million from those increases was ultimately directed toward expenses unrelated to the tire business.
Among the most politically significant allegations is prosecutors’ claim that DePeña transferred $90,000 of the funds into his mayoral campaign.
DePeña went on to win the November 2021 election.
The wire fraud count carries a maximum sentence of 20 years in prison, up to three years of supervised release and a fine of as much as $250,000.
The money laundering count carries a maximum of 10 years behind bars, up to three years of supervised release and a potential $250,000 fine.
Lawrence Mayor Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering in connection with funds obtained through a federal disaster loan program, according to authorities.
Federal prosecutors allege DePeña obtained the money for Tenares Tire Services Inc., his tire sales and automotive services business in Lawrence, but later used substantial portions for purposes unrelated to the company.
The allegations include more than $880,000 allegedly used to pay off high-interest mortgages connected to various businesses and $90,000 allegedly transferred to DePeña’s mayoral campaign ahead of the 2021 election.
His arrest unfolded Friday morning at his home, where neighbors told WCVB they awoke to FBI agents using a bullhorn outside the property.
Agents subsequently used a battering ram to enter the home, according to the outlet.
DePeña appeared in federal court in Boston later Friday and was released subject to several conditions, including surrendering his passport and agreeing not to seek loans without court approval.
The case centers on government assistance DePeña received for his business during the COVID-19 pandemic.
The Small Business Administration offered disaster loans to qualifying businesses suffering financial losses during the pandemic.
DePeña initially obtained a $150,000 loan for Tenares Tire Services in 2020, according to prosecutors.
Authorities allege his financial situation changed by the following year as he pursued the Lawrence mayor’s office.
Prosecutors said DePeña’s campaign was running low on money while he also owed back taxes and faced pressure from high-interest loans associated with several Lawrence properties.
He subsequently requested multiple increases to the government loan.
Federal authorities allege approximately $1.5 million from those increases was ultimately directed toward expenses unrelated to the tire business.
Among the most politically significant allegations is prosecutors’ claim that DePeña transferred $90,000 of the funds into his mayoral campaign.
DePeña went on to win the November 2021 election.
The wire fraud count carries a maximum sentence of 20 years in prison, up to three years of supervised release and a fine of as much as $250,000.
The money laundering count carries a maximum of 10 years behind bars, up to three years of supervised release and a potential $250,000 fine.
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