Massachusetts Mayor Charged in Alleged $1.5 Million Pandemic-Era Loan Fraud And Money Laundering Scheme– www.westernjournal.com

The Democratic mayor of Lawrence, Mass. has been arrested and faces charges for allegedly fraudulently obtaining more than $1.5 million in pandemic-era small-business loans and misusing the money, the Department of Justice said Friday.

Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering and is set to make an initial appearance in a Boston federal court on Friday, the DOJ said in a news release. DePeña used the funds from the pandemic relief loans to fund his campaign account, pay personal taxes, and pay off more than $880,000 in high-interest mortgages, the department alleges.

“Mayor [DePeña] was elected to be a leader for the City of Lawrence. He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies,” U.S. Attorney Leah Foley said in a statement. “Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable.”

In 2020 and 2021, DePeña applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a Lawrence-based tire sales and automotive services business that he owned, the DOJ alleged, citing charging documents. The EIDL program provided loans and advances aiming to “help businesses recover from the economic impacts of the pandemic,” according to the U.S. Small Business Administration.

Working capital did not include financing a political campaign, paying personal taxes, or paying off mortgages, according to the DOJ.

DePeña’s office did not immediately respond to the Daily Caller News Foundation’s request for comment.