What federal investigators found in bank records of Lawrence Mayor Brian DePena after $1.5M fraud arrest

“I AM IN TROUBLE AND I HAVE NO OTHER OPTION”!!! BELIEVE IT OR NOT, PROSECUTORS SAY LAWRENCE MAYOR BRIAN A. DEPENA FUNNELED OVER $1.5 MILLION IN FEDERAL COVID BUSINESS LOANS INTO HIS CAMPAIGN, TAXES AND PRIVATE MORTGAGES… AND HE IS NOW FACING AN 11-COUNT FEDERAL INDICTMENT.

In June 2020, 61-year-old Brian A. DePena obtained a $150,000 Economic Injury Disaster Loan for a business he owned in Lawrence, Massachusetts.

That business was Tenares Tire Services, a tire sales and automotive shop in the city.

The initial loan was secured before DePena became the mayor of Lawrence.

Prosecutors said most of that original loan amount was used as permitted for legitimate business expenses.

By early 2021, prosecutors said DePena needed additional money.

His mayoral campaign was allegedly struggling to pay its bills.

DePena also owed back taxes to the Internal Revenue Service.

In addition, he owed nearly $900,000 to two private lenders.

Those private lenders were charging interest rates of 12 percent and 8 percent on the debts.

Both of those private loans were secured by properties DePena owned.

In April 2021, DePena allegedly requested an increase to the federal business loan.

On July 14, 2021, the loan was increased by $350,000.

That adjustment brought the total loan amount to $500,000.

While waiting for the money, DePena allegedly sent several messages to his accountant and financial adviser.

In those messages, he allegedly stated that he was in trouble.

He allegedly told them he needed the loan and had no other option.

On August 16, 2021, the $350,000 was deposited into the tire company’s bank account.

Before the deposit arrived, the business account allegedly contained just $20.23.

But prosecutors said DePena quickly diverted the funds to personal obligations.

Prosecutors said he used $85,000 of the loan money to pay his personal federal tax debt.

He then transferred $120,000 into a personal bank account.

DePena allegedly used $90,000 of that money to write checks to his mayoral campaign.

Those payments were characterized as loans to the campaign.

In October 2021, DePena allegedly requested another increase to the federal disaster loan.

On October 27, 2021, the loan was increased by another $1,154,400.

That second increase brought the total loan amount to approximately $1.65 million.

DePena was elected mayor of Lawrence in November 2021.

On November 30, 2021, more than $1.15 million in additional loan proceeds was deposited into the tire company’s bank account.

Prosecutors said DePena transferred the entire $1.15 million sum into one of his personal accounts that same day.

That personal account allegedly contained only $1,401 before the transfer took place.

DePena allegedly used another $42,112.96 of the loan money for his mayoral campaign.

And prosecutors said he used approximately $883,293 of the federal loan proceeds to pay off the two high-interest property loans.

One payoff payment totaled more than $538,000.

The other payoff payment exceeded $345,000.

DePena was reelected mayor of Lawrence in November 2025.

Yet as of August 5, 2026, prosecutors said DePena had made only 16 payments toward the tire company’s federal loan.

Prosecutors said he still owed approximately $1.65 million in principal on the debt.

On August 14, 2026, DePena was arrested on federal fraud and money laundering charges.

On August 26, 2026, a federal grand jury returned an 11-count indictment charging him.

The indictment charges DePena with four counts of wire fraud.

The indictment also charges him with seven counts of money laundering.

Each wire fraud charge carries a maximum statutory sentence of 20 years in federal prison.

Each money laundering charge carries a maximum statutory sentence of 10 years in federal prison.

DePena is awaiting arraignment on the indictment.

The charges are allegations and have not been proven in court.