Democrat Mayor Arrested Over Shocking Fraud Scam

A Massachusetts Democrat mayor was hauled into federal court Friday after an early-morning FBI raid, accused of turning more than $1.5 million in taxpayer-backed COVID relief money into a financial lifeline for his properties and political campaign.

Lawrence Mayor Brian DePeña, 61, was arrested on federal wire fraud and money laundering charges in a case prosecutors say involved money that was supposed to help keep his tire business afloat during the pandemic.

Instead, authorities allege DePeña diverted huge chunks of the government cash to pay off expensive mortgages, cover unrelated financial problems and pump tens of thousands of dollars into his successful run for mayor.

The dramatic arrest unfolded Friday morning at DePeña’s home, where neighbors told WCVB they were jolted awake by FBI agents shouting over a bullhorn.

Agents reportedly used a battering ram to force their way inside before taking the mayor into custody.

DePeña later appeared in federal court in Boston and was released under several conditions, including surrendering his passport and agreeing not to seek new loans without court approval.

Outside the courthouse, the mayor appeared unusually upbeat, flashing a broad smile as reporters peppered him with questions.

His attorney, Carlos Apostle, repeatedly responded, “No comment.”

When DePeña — who holds U.S. and Dominican citizenship — was asked whether he planned to resign, he offered just two words: “God bless.”

Federal prosecutors say the alleged scheme began with pandemic-era assistance for Tenares Tire Services Inc., DePeña’s tire and auto-service business in Lawrence.

During the COVID crisis, the Small Business Administration offered Economic Injury Disaster Loans to companies struggling because of pandemic-related losses.

DePeña initially obtained a $150,000 loan for the business, according to prosecutors.

But by 2021, authorities say his finances were under increasing strain.

His mayoral campaign was allegedly running short on cash, he owed back taxes and he faced pressure from high-interest loans tied to several Lawrence properties.

Prosecutors say DePeña then repeatedly requested increases to the federal loan, ultimately obtaining roughly $1.5 million.

Authorities allege the money quickly began flowing to expenses that had nothing to do with keeping his tire company alive.

More than $880,000 was allegedly used to pay off high-interest mortgages connected to various properties and businesses.

Another $90,000 allegedly found its way into DePeña’s mayoral campaign account ahead of the 2021 election.

DePeña won that race and took office as mayor after previously serving on the Lawrence City Council from 2016 to 2021. He was reelected in November 2025.

Federal investigators portrayed the case as a particularly serious breach of public trust because it involves both taxpayer-funded pandemic relief and an elected official.

Ted Docks, special agent in charge of the FBI’s Boston Division, accused DePeña of exploiting a program created during one of the country’s most difficult periods.

Docks said the mayor allegedly “cashed in on a public health crisis” by defrauding a program designed to keep struggling businesses alive.

“When elected officials misuse federal funds for personal gain, they’re breaking the trust of their constituents — and breaking the law,” the FBI said in announcing the case.

U.S. Attorney Leah B. Foley also blasted the mayor’s alleged conduct, saying Lawrence residents had trusted DePeña to lead their city.

“He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies,” Foley said.

The case is another reminder of the staggering amount of fraud investigators have spent years trying to unravel from the flood of federal money rushed out during the COVID pandemic.

If convicted of wire fraud, DePeña could face up to 20 years in federal prison, three years of supervised release and a fine of up to $250,000.

The money laundering charge carries a maximum sentence of 10 years behind bars, along with supervised release and a potential $250,000 fine.

For now, DePeña remains mayor while the federal case against him moves forward. The charges are allegations, and he is presumed innocent unless proven guilty in court.