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Lawrence Mayor Brian DePeña was arrested by the FBI on August 14, 2026, facing federal charges of wire fraud and money laundering connected to pandemic relief funds. According to the U.S. Attorney’s Office for Massachusetts, DePeña allegedly secured more than $1.5 million in COVID-19 small business loans and diverted portions of the money to finance his mayoral campaign, pay personal taxes, and settle private mortgages.

Federal Allegations Involve Pandemic Relief Funds and Campaign Financing

According to court documents outlined by federal prosecutors, the case centers around Economic Injury Disaster Loans (EIDL) administered by the U.S. Small Business Administration (SBA). In 2020 and 2021, DePeña applied for these emergency funds on behalf of Tenares Tire Services Inc., an automotive tire business he owned in Lawrence. Federal investigators state that the company initially secured a $150,000 EIDL loan in June 2020, which was later expanded through subsequent modifications to total over $1.5 million.

Prosecutors assert that instead of utilizing the capital exclusively for business survival and operational recovery during the pandemic, DePeña systematically redirected funds for personal and political gain. The indictment alleges that he used $85,000 to cover personal back-taxes owed to the Internal Revenue Service and transferred $120,000 into a personal account. From that account, investigators claim he issued $90,000 in checks to “The Committee to Elect Brian DePena,” directly injecting federal disaster relief into his mayoral campaign.

“The mayor was elected to be a leader of the city of Lawrence. His constituents looked up to him and trusted him, but he betrayed that trust through alleged corruption and lies,” said U.S. Attorney Leah B. Foley in a public statement. Foley emphasized that the federal arrest demonstrates a zero-tolerance approach to public corruption, regardless of the perpetrator’s elected status.

Court Proceedings and Conditions of Release

During his initial court appearance on Friday afternoon, August 14, 2026, DePeña appeared in handcuffs wearing a white button-down shirt. Represented by attorney Carlos Apostle, the mayor formally waived his right to a probable cause hearing. He did not enter a plea of guilty or not guilty during the proceeding.

The judge ordered DePeña released without having to post bail, though strict travel restrictions were imposed requiring him to remain within Massachusetts while court proceedings advance. If convicted on all counts, DePeña faces a maximum statutory sentence of 20 years in federal prison for wire fraud and 10 years for money laundering, alongside potential periods of supervised release and significant financial penalties.

Outside the courtroom, defense counsel Carlos Apostle declined to answer media questions regarding the core allegations. However, Apostle informed the presiding judge that his client is currently undergoing medical treatment for prostate cancer and is the father of seven children.

Political Background and Local Community Repercussions

Brian DePeña has been a prominent figure in the civic life of Lawrence. He first won election as mayor in November 2021, taking office after serving as a member of the Lawrence City Council from 2016 through 2021. Following his first term, voters returned him to office in the November 2025 mayoral election.