Brian DePeña faces wire fraud and money laundering charges over the alleged misuse of more than $1.5 million in federal pandemic-relief funds; prosecutors say money was diverted to campaign expenses, personal taxes and private mortgages
By Marcos A. Tejeda
Publisher & Editor-in-Chief
The Sun Post News
BOSTON, Massachusetts — August 14, 2026. Lawrence Mayor Brian A. DePeña was released from federal court Friday following his initial appearance on serious charges of wire fraud and money laundering, hours after federal agents arrested him in connection with the alleged misuse of more than $1.5 million in pandemic-era business relief funds.
DePeña, 61, was arrested early Friday morning and later appeared before a federal magistrate judge in Boston. He was released without having to post bail, but the court imposed several conditions, including surrendering his passport, remaining in Massachusetts, reporting to pretrial services, avoiding contact with witnesses and refraining from obtaining new loans without court authorization.
The mayor did not enter a plea during Friday’s proceeding. According to reports from the courthouse, he waived a probable-cause hearing as the federal case moves forward.
Outside the courthouse, reporters repeatedly attempted to question DePeña about the allegations and his political future.
Asked whether he intended to resign as mayor, DePeña did not provide a direct answer.
His response was simply:
“God bless.”
As of Friday evening, there had been no public announcement that DePeña was resigning, and he remained Lawrence’s mayor.
What federal prosecutors allege
At the center of the investigation is Tenares Tire Services Inc., DePeña’s Lawrence tire and automotive-services business.
According to the U.S. Attorney’s Office for the District of Massachusetts, DePeña obtained more than $1.5 million through the Economic Injury Disaster Loan program, commonly known as EIDL.
The federal program, administered by the U.S. Small Business Administration, provided emergency financing to businesses suffering economic losses during the COVID-19 pandemic.
Receiving an EIDL loan was entirely legal.
The federal case instead focuses on what prosecutors allege DePeña did with portions of the money after receiving it.
Federal authorities contend that funds intended to support his business were instead diverted toward personal tax obligations, campaign financing and private real-estate debt.
U.S. Attorney’s Office — District of Massachusetts
The first $150,000
According to federal prosecutors, Tenares Tire initially received approximately $150,000 in EIDL financing in June 2020.
Importantly, prosecutors acknowledge that most of that initial money appears to have been spent on legitimate business expenses.
The government’s allegations focus primarily on what happened later, after DePeña sought substantial increases in the federal loan.
By early 2021, according to the criminal complaint, DePeña was facing several financial obligations, including personal tax liabilities, campaign expenses and approximately $900,000 owed to private lenders on Lawrence properties.
Another $350,000 arrives
In April 2021, DePeña requested an increase in his company’s EIDL financing.
The SBA ultimately approved an additional $350,000, which was deposited into Tenares Tire’s account on Aug. 16, 2021.
The federal complaint contains an especially notable financial detail.
Immediately before that deposit, prosecutors say, the business account contained only $20.23.
Investigators allege that money from the new federal deposit subsequently began moving toward expenses unrelated to the intended business purpose of the EIDL program.
Prosecutors allege $85,000 went toward personal taxes
According to the U.S. Attorney’s Office, DePeña allegedly used approximately $85,000 of the federal loan proceeds to pay personal tax liabilities to the Internal Revenue Service.
Federal prosecutors contend that personal tax payments were not an authorized use of the business relief funds.
The transaction forms one part of the government’s wire-fraud theory.
But another series of transactions carries potentially greater political consequences.
Federal money allegedly reached his mayoral campaign
The criminal complaint alleges that DePeña transferred approximately $120,000 from the Tenares Tire account into a personal account.
Prosecutors say he subsequently wrote checks totaling approximately $90,000 to “The Committee to Elect Brian DePena,” his mayoral campaign committee.
Those transactions occurred while DePeña was running for mayor of Lawrence in 2021.
The campaign reportedly recorded the money as candidate loans.
DePeña won the election that November.
If proven, the allegation would mean that money originating from a federal program created to help a small business survive the economic effects of COVID-19 ultimately helped finance the business owner’s political campaign.
That is one of the most politically consequential allegations in the case.
The federal loan eventually reached approximately $1.65 million
The government’s complaint describes another major increase in financing.
On Oct. 27, 2021, the SBA approved approximately $1.154 million in additional financing, bringing Tenares Tire’s total authorized EIDL loan to roughly $1.65 million.
Approximately $1.154 million was deposited into the company’s account on Nov. 30, according to prosecutors.
Federal investigators allege that DePeña transferred nearly the entire amount into a personal account that same day.
From there, prosecutors say, hundreds of thousands of dollars were directed toward private financial obligations.
Another $42,112 allegedly went to the campaign
The federal complaint provides additional details beyond the $90,000 in campaign-related transactions.
Prosecutors allege that DePeña subsequently wrote two additional checks to his political committee — one for $10,000 and another for $32,112.96.
That brings the campaign-related transactions alleged by federal authorities to more than the $90,000 highlighted in some of the earliest reports about Friday’s arrest.
The government will ultimately have to establish the source, purpose and legality of those transactions in court.
Nearly $883,300 allegedly paid private mortgages
The largest portion of the alleged diversion involved DePeña’s real-estate obligations.
Federal prosecutors contend that approximately $883,293 in EIDL proceeds were used to pay off two private loans secured by Lawrence properties owned by DePeña.
One cashier’s check allegedly totaled $538,109.03.
Another totaled $345,184.13.
The private loans reportedly carried interest rates of approximately 12% and 8%, respectively.
By comparison, the federal EIDL financing carried an interest rate of approximately 3.75%.
The government therefore alleges that DePeña effectively used lower-cost federal business-relief money to eliminate substantially more expensive private debt.
Whether those transactions constituted crimes will have to be established through the federal judicial process.
The principal allegedly remains unpaid
Another striking allegation concerns the current status of the federal loan.
According to prosecutors, as of Aug. 5, 2026, DePeña had made 16 payments totaling approximately $130,160.
Those payments, however, had reportedly been applied entirely toward interest.
Federal authorities say the outstanding principal remained approximately:
$1,654,420.
That means nearly all of the original principal allegedly remained outstanding shortly before DePeña’s arrest.
Wire fraud and money laundering
DePeña currently faces charges of wire fraud and money laundering.
Wire fraud generally involves the alleged use of interstate electronic communications or financial systems to carry out a fraudulent scheme.
A conviction on the wire-fraud charge can carry a statutory maximum sentence of 20 years in federal prison.
The money-laundering charge can carry a maximum of 10 years, according to federal prosecutors.
Those are statutory maximums, not predictions of what DePeña would receive if eventually convicted. Any sentence would depend on the facts established in court, federal sentencing guidelines and the judge.
FBI and IRS investigators followed the money
The case is based heavily on financial records.
According to federal authorities, investigators examined bank transactions, SBA documentation, campaign-finance records, emails, text messages and other financial information.
The investigation involved the FBI and IRS Criminal Investigation, among other agencies.
That paper trail could become central to the prosecution.
Unlike a case based primarily on competing witness accounts, much of this investigation appears designed to reconstruct where the federal money originated, where it moved and how it was ultimately spent.
Mayor’s attorney reveals cancer treatment
Friday’s court appearance also produced a previously undisclosed personal detail.
DePeña’s attorney, Carlos Apostle, told the court that the mayor is undergoing treatment for prostate cancer, according to courthouse reports. The defense raised DePeña’s medical circumstances and family ties while addressing the conditions governing his release.
The judge ultimately allowed him to leave without posting bail.
His medical condition has no bearing on whether the allegations against him are true or false, but it could become relevant to certain logistical aspects of the proceedings.
No resignation — at least for now
Perhaps the most immediate question for Lawrence residents is not criminal but governmental:
Who is running City Hall?
As of Friday evening, DePeña had not publicly announced his resignation.
The City of Lawrence continued to identify him as mayor on its official website.
City of Lawrence — Office of the Mayor
That creates an extraordinary political situation for the city.
DePeña remains an elected mayor while simultaneously facing a federal criminal prosecution alleging that pandemic-relief money was diverted in part toward the political campaign that helped elect him.
Legally, an arrest and criminal complaint are not a conviction.
Politically, however, the allegations immediately raise questions about public confidence and the mayor’s ability to govern while defending himself in federal court.
A major story for Massachusetts’ Latino community
The case also carries particular significance because of Lawrence’s demographic and cultural importance.
Lawrence is one of Massachusetts’ most heavily Latino cities and has an especially prominent Dominican-American community.
DePeña, who holds U.S. and Dominican citizenship, has been a visible figure within that community.
He served on the Lawrence City Council before winning the mayor’s office in 2021 and was reelected in 2025.
The federal prosecution therefore reaches beyond one elected official. It will be closely watched throughout Massachusetts and among Dominican communities across the United States.
What happens next
Friday’s appearance was only the beginning of the federal process.
DePeña has not been convicted, and the criminal complaint does not establish guilt.
Prosecutors must prove their allegations in court.
The case could next involve grand-jury proceedings, additional filings and eventual arraignment if a federal indictment is returned.
There are also unanswered political questions.
Will DePeña continue performing his duties as mayor?
Will he temporarily step aside?
Could the Lawrence City Council take action?
Could the investigation expand?
And will additional financial transactions or individuals emerge as prosecutors continue presenting their case?
Those questions remained unanswered Friday evening.
From City Hall to federal court
For Lawrence, the contrast is difficult to ignore.
Brian DePeña began Friday as the city’s sitting mayor.
Before sunrise, federal agents had arrested him.
Hours later, he stood before a federal magistrate facing allegations that money created to rescue a small business during one of America’s worst economic emergencies had instead been diverted toward personal debts and political ambitions.
By Friday afternoon, he was back outside the courthouse.
Free pending further proceedings.
Still mayor.
And facing reporters asking whether he would resign.
His only answer was:
“God bless.”
The criminal justice system will determine whether Brian DePeña committed the crimes alleged by federal prosecutors.
Lawrence, meanwhile, faces a different and much more immediate question:
Can its mayor continue governing effectively while fighting a federal wire-fraud and money-laundering case?
For now, Brian DePeña remains mayor.
And the federal case against him is just beginning.
Editor’s Note: Brian DePeña has been charged but has not been convicted of any crime. The allegations described in this report are based on a federal criminal complaint and statements from prosecutors and investigators. He is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
