DePena allegedly put $90,000 of loan money into 2021 campaign
Lawrence Mayor Brian DePena was arrested Friday and charged with fraudulently obtaining a $1.5 million COVID-19 small-business loan for his tire sales business. He faces one count of wire fraud and one count of money laundering, and his arraignment was scheduled for Friday afternoon.
DePena, 61, is accused of obtaining the pandemic assistance loan and then diverting the money away from the business, according to the charging documents. He allegedly spent more than $880,000 to pay off high-interest mortgages on various businesses and put $90,000 into his mayoral campaign fund ahead of the 2021 election, in which he was elected mayor.
Federal investigators described the loan as part of a government program meant to keep businesses afloat during the public health crisis. Ted Docks, the special agent in charge of the FBI’s Boston Division, alleged DePena fraudulently obtained the loan.
DePena has served as mayor since 2021 and previously served on the city’s City Council. His arraignment was scheduled for Friday afternoon.