Massachusetts mayor charged with wire fraud in $1.5M COVID relief scheme

The politician of a Boston suburb is facing national ligament fraud and wealth laundering charges for allegedly utilizing much than $1.5 cardinal successful pandemic-era tiny concern loans to pad his run account, wage idiosyncratic taxes, and settee high-interest existent property debts.

Lawrence Mayor Brian DePena, 61, was arrested Friday greeting pursuing an probe into his alleged misuse of Economic Injury Disaster Loans (EIDL) — a programme administered by the U.S. Small Business Administration (SBA) nether the CARES Act to assistance struggling businesses during the COVID-19 pandemic.

DePena was elected politician of Lawrence successful November 2021 and won reelection successful November 2025. He antecedently served connected the Lawrence City Council from 2016 to 2021.

"Mayor DePena was elected to beryllium a person for the City of Lawrence," said U.S. Attorney Leah B. Foley. "He was looked up to and trusted by his constituents, but helium betrayed that spot done his alleged corruption and lies. Today’s apprehension is conscionable different illustration of our determination to basal retired fraud by anyone, adjacent nationalist officials, and clasp elected officials accountable."

DISGRACED DEM CUT OFF FROM DOING BUSINESS WITH GOVERNMENT AFTER ALLEGED ‘OUTRIGHT FRAUD’ UNCOVERED

Lawrence Mayor Brian DePena faces national charges for allegedly utilizing pandemic-relief funds meant to assistance struggling concern for his mayoral run and to wage disconnected his idiosyncratic debts. DePena applied for the funds to assistance Tenares Tire Services Inc., his tyre store successful Lawrence, national prosecutors said. (City of Lawrence)

In May 2020, DePena applied for an EIDL connected behalf of his business, Tenares Tire Service Inc., an car work and tyre store successful Lawrence. The EIDL funds, which carried a 3.75% involvement rate, were lone to beryllium utilized to alleviate pandemic-related fiscal struggles for businesses.

The SBA initially approved a $150,000 indebtedness for Tenares Tire successful June 2020. However, DePena sought further backing months aboriginal upon facing currency travel issues. In April 2021, helium applied for an summation and was approved for a $350,000 modification. A 2nd indebtedness modification followed successful October 2021 that brought the full to $1.1 million.

Upon the 2nd indebtedness modification, DePena was incapable to entree the funds for a month, resulting successful panic, officials said.

"Brother, telephone me, I’m successful trouble. I don’t privation to unit you, but I don’t person clip to hold for this loan. I’m successful your hands," DePena allegedly wrote successful a translated Spanish substance connection to a fiscal advisor assisting with the indebtedness application.

"I cognize I’m bothering you a lot, but I person nary different option," helium added. "Only you tin springiness maine what I need."

ALLEGED FEEDING OUR FUTURE FRAUD RINGLEADER TRANSFERRED FROM SOMALIA TO FACE US CHARGES

Upon receiving the funds, prosecutors assertion DePena began diverting them. Between August and October 2021, helium allegedly transferred astir $90,000 from his concern accounts to idiosyncratic accounts, subsequently penning checks totaling implicit $42,000 straight to "The Committee to Elect Brian DePena".

In addition, officials said helium utilized the payer funds to wage disconnected idiosyncratic debts, including $85,000 paid to the Internal Revenue Service (IRS) to settee idiosyncratic backmost taxes and different $883,293 to wage disconnected high-interest mortgages connected idiosyncratic properties helium owned successful Lawrence.

"CARES Act funds were created to assistance tiny businesses past an unprecedented nationalist situation — not to bankroll idiosyncratic debts, governmental ambitions, oregon existent property ventures," said Thomas Demeo, peculiar cause successful complaint of the IRS Criminal Investigation Boston Field Office. "IRS Criminal Investigation remains committed to protecting payer dollars, pursuing those who exploit national alleviation funds, and ensuring that fiscal integrity is upheld astatine each step."

As of Aug. 5, DePena had made lone 16 payments toward the Tenares Tire EIDL, totaling $130,160. Since the payments went toward the accrued interest, the outstanding indebtedness equilibrium remains astatine astir $1.65 million, the ailment states.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

DePena is scheduled to marque his archetypal quality successful Boston national tribunal connected Friday afternoon. He faces up to 30 years successful prison.

The mayor's bureau did not instantly respond to Fox News Digital's petition for comment.