COVID Fund Scandal
Lawrence Mayor Brian DePeña Arrested on Federal Charges for Allegedly Misusing COVID-19 Relief Funds
Key Points
EIDL funding for Tenares Tire Services evolved through multiple amendments: initial $150,000 loan in May 2020, then Aug. 12, 2021 amendment to $500,000, and an Oct. 2021 amendment increasing the loan to $1,154,188, with prosecutors contending the total ultimately exceeded $1.5 million and was not used solely for working capital.
Text messages cited in the criminal filings show DePeña pressing for larger loans with phrases like, '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.' Prosecutors also allege at least $85,000 of EIDL funds were used for personal taxes and $90,000 for the mayoral campaign, with deposits tied to his campaign.
Prosecutors say EIDL funds were used to further real estate interests, including purchasing a $700,000 commercial property at 342 Broadway in Lawrence, and to cover more than $880,000 in high‑interest mortgages on Lawrence properties, rather than solely for working capital.
Lawrence Mayor Brian DePeña was arrested at his home by FBI agents and faces federal charges including wire fraud and money laundering, with aiding and abetting and unlawful monetary transactions cited in the complaint; the case is ongoing.
FBI agents arrested Lawrence, Massachusetts Mayor Brian DePeña at his home on federal charges of wire fraud and money laundering, according to NBC Boston. Prosecutors allege he diverted more than $1.5 million in COVID-19 small-business loans meant to keep his tire shop afloat — using the money instead to fund his mayoral campaign, pay personal taxes, and cover mortgage debts.
DePeña, who was first elected mayor in 2021 and reelected in 2025, ran Tenares Tire Services, which received the federal loans. Boston Herald reported that prosecutors say the stolen funds went directly toward his political rise and personal finances — not pandemic relief as required by law.
How a Tire Shop Loan Became a $1.5 Million Scheme
The scheme started small. In May 2020, DePeña's tire business got a $150,000 Economic Injury Disaster Loan — or EIDL — from the Small Business Administration. These loans were created under the CARES Act to help small businesses survive the pandemic. The first $150,000 was disbursed on June 18, 2020, according to New Bedford Guide.
Then the loan grew — fast. DePeña pushed for more money through two amendments. By August 2021, the loan jumped to $500,000. By October 2021, it climbed to roughly $1.15 million. Prosecutors say the total ultimately exceeded $1.5 million. Court documents show DePeña sent urgent texts to loan contacts, writing: '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.'
Campaign Cash, Tax Bills, and Mortgage Payments Paid With Relief Funds
Prosecutors say the money did not go to working capital for the tire business. Instead, at least $85,000 went to pay DePeña's personal taxes and $90,000 flowed directly into his mayoral campaign account. Rolling Out reported that deposits tied to the campaign can be traced back to the EIDL funds.
The spending didn't stop there. According to Head Topics, DePeña also used the loan money to cover more than $880,000 in high-interest mortgage payments on Lawrence properties. Federal rules require EIDL funds to be used only for business working capital — not personal debts or political spending.
A $700,000 Property Purchase Raises More Red Flags
Prosecutors also tied the loan money to a real estate deal. DePeña allegedly used EIDL funds to help buy a commercial property at 342 Broadway in Lawrence for $700,000, according to New Bedford Guide. Buying investment real estate is not an approved use of disaster relief loans meant for small business operations.
The property purchase, combined with the mortgage payments and campaign spending, paints a picture of a public official who prosecutors say treated federal relief money as a personal fund. The charges include wire fraud, money laundering, aiding and abetting, and unlawful monetary transactions, Boston Herald reported.
Arrest Puts Spotlight on COVID Relief Fraud Accountability
DePeña was taken into custody by FBI agents at his home. Authorities confirmed the case is ongoing. He had built his political career in Lawrence, a working-class city north of Boston, winning the mayor's office in 2021 and holding it through a 2025 reelection, according to NBC Boston.
The case is part of a broader federal push to hold public officials accountable for misusing pandemic-era relief programs. Billions of dollars in EIDL funds were distributed quickly during COVID-19, with limited oversight. Prosecutors say DePeña exploited that system — turning a lifeline for small businesses into a tool for personal and political gain.
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