A bizarre story out of Massachusetts dominated the newswires overnight for its various twists, turns, and details that would defy even the most creative fiction author.
Lawrence, Mass., Mayor Brian DePeña was arrested by the FBI Friday morning at his home and charged with allegedly misusing more than $1.5 million in COVID-era small-business loans, according to federal prosecutors.
A criminal complaint filed in U.S. District Court in Boston accuses DePeña of wire fraud and money laundering. Prosecutors allege he obtained federal pandemic relief funds intended for his tire business but diverted the money for personal and political expenses.
“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.
“Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials and holding elected officials accountable,” she added, per NBCBoston.
According to the complaint, DePeña allegedly used portions of the funds to support his mayoral campaign, pay personal tax obligations, and pay down more than $880,000 in high-interest mortgages tied to properties he owned in Lawrence.
Federal prosecutors said the loans were obtained through the Small Business Administration’s pandemic relief programs, which were designed to help businesses affected by COVID-19-related economic losses. Authorities allege the funds were instead used for expenses unrelated to the stated purpose of the loans.
DePeña, 61, was elected mayor of Lawrence in 2021 and won reelection in 2025. Before becoming mayor, he served on the Lawrence City Council from 2016 to 2021.
Foley accused DePeña of betraying the trust of Lawrence residents while emphasizing that federal authorities would continue pursuing allegations of fraud involving public funds, regardless of the defendant’s position.
DePeña appeared in federal court Friday and was released under conditions, including surrendering his passport and restrictions on seeking new loans without court approval. He has not entered a plea.
If convicted, he faces up to 30 years in prison.
Video of his appearance has left more questions than answers, as a chaotic scene appeared to unfold outside the courtroom.
According to eyewitnesses and video, a vehicle carrying DePena appeared to run into the rear of another vehicle, before backing up and then eventually leaving the scene – which is a crime in most jurisdictions.
Asked by Telemundo Nueva Inglaterra what message he had for the people of Lawrence, DePeña said in Spanish, “I love them, and they know I am an honest and decent man.”
Also, other reports claimed that the mayor, bizarrely, cannot speak any English.
The mayor has denied wrongdoing and indicated he does not intend to step down while the case proceeds.
“Of course. Anyone can be accused. People get accused of anything,” DePena told Telemundo.
“My enemies have accused me. What haven’t they made up about me?”
The charges come as federal investigators continue to pursue alleged misuse of pandemic relief programs, which distributed hundreds of billions of dollars nationwide and have resulted in numerous fraud prosecutions involving individuals, businesses, and public officials.
