FBI Arrests Non-English-Speaking Mass. Mayor On Wire Fraud Charges

Lawrence, Massachusetts, Mayor Brian DePeña was arrested by the FBI Friday morning and accused of diverting more than $1.5 million in federal pandemic-relief loans toward personal debts and political expenses.

Federal prosecutors charged DePeña with wire fraud and money laundering in a criminal complaint filed in U.S. District Court in Boston.

The funds were reportedly obtained for DePeña’s tire business through Small Business Administration programs created to help companies suffering economic losses during the COVID-19 pandemic.

Prosecutors allege that instead of using the money for its authorized business purposes, DePeña redirected it toward his mayoral campaign, personal tax obligations and mortgages connected to properties he owned.

Prosecutors Allege Betrayal of Public Trust

“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, according to NBC10 Boston.

The complaint alleges that DePeña used some of the pandemic funds to pay down more than $880,000 in high-interest mortgages tied to Lawrence properties.

Authorities also accuse him of applying portions of the money toward personal taxes and expenses associated with his campaign for public office.

If proven, the allegations would represent precisely the kind of abuse that plagued federal COVID-relief programs: enormous sums of taxpayer money distributed rapidly with inadequate safeguards and later redirected toward purposes that had nothing to do with preserving jobs or struggling businesses.

Mayor Faces Up to 30 Years

DePeña, 61, was elected mayor in 2021 and secured reelection in 2025. Before entering the mayor’s office, he served on the Lawrence City Council from 2016 through 2021.

He appeared in federal court Friday and was released under several conditions.

The mayor was ordered to surrender his passport and must comply with restrictions preventing him from seeking new loans without court approval.

He has not entered a plea. If convicted, he could face up to 30 years in federal prison.

DePeña denies wrongdoing and says he has no intention of resigning while the case proceeds.

“Of course. Anyone can be accused. People get accused of anything,” DePeña told Telemundo Nueva Inglaterra.

“My enemies have accused me. What haven’t they made up about me?”

Asked what message he had for Lawrence residents, the mayor responded in Spanish.

“I love them, and they know I am an honest and decent man,” DePeña said.

Some reports also claimed that DePeña does not speak English, adding another unusual element to a case already attracting widespread attention.

Chaotic Scene Outside Courthouse

The confusion continued after DePeña’s court appearance.

Video from outside the courthouse appeared to show a vehicle carrying the mayor striking the rear of another vehicle. The vehicle then backed up before eventually leaving the area.

The circumstances remained unclear, including who was driving, whether damage occurred and whether authorities were investigating the incident. The footage nevertheless raised additional questions amid an already chaotic day for the mayor.

No charges related to the apparent collision were reported.

Pandemic Fraud Investigations Continue

Federal authorities continue investigating widespread fraud tied to COVID-era relief programs, which distributed hundreds of billions of dollars across the country.

The speed and scale of those programs created opportunities for individuals, business owners and public officials to obtain taxpayer funds through allegedly false claims or use the money for unauthorized purposes.

Numerous prosecutions have followed, exposing how money intended to preserve jobs and help businesses survive government-imposed shutdowns was sometimes spent on personal property, luxury purchases and unrelated debts.

FBI Boston Special Agent in Charge Ted Docks said elected office does not protect anyone accused of abusing federal funds.

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

DePeña is entitled to the presumption of innocence, and prosecutors will be required to prove their allegations in court.

But the accusations raise serious questions about how a sitting mayor allegedly obtained more than $1.5 million from programs created for struggling businesses—and whether taxpayer money was instead used to finance his political ambitions and erase personal financial obligations.