Massachusetts Dem Mayor Busted in Alleged $1.5 Million COVID Relief Cash Grab Scandal [WATCH]

Federal agents armed with a bullhorn and battering ram descended on the home of Lawrence Mayor Brian DePeña as authorities accused him of treating pandemic relief funds like his own private bank account.

The Massachusetts Democrat allegedly diverted roughly $1.5 million from a federal program created to rescue struggling businesses.

DePeña, 61, was arrested Aug. 14 on federal wire fraud and money laundering charges following the dramatic FBI operation.

The case centers on money obtained through a Small Business Administration disaster loan program during the COVID pandemic.

Gold. Upgraded. Buy real gold from $1. Store it in America. Sell it with one click.

“The FBI arrested Mayor Brian DePeña for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic,” FBI Boston Special Agent in Charge Ted E. Docks said in a press release.

According to federal prosecutors, the matter began with what appeared to be a legitimate request for help. In 2020, DePeña obtained a $150,000 disaster loan for Tenares Tire Services, Inc., his tire and automobile service business in Lawrence.

The federal program was supposed to provide emergency assistance to companies battered by government restrictions and economic turmoil during the pandemic.

It was not designed to become a convenient pile of campaign cash or a rescue fund for unrelated real estate debts.

This Could Be the Most Important Video Gun Owners Watch All Year

Authorities allege DePeña faced mounting financial pressure the following year.

His mayoral campaign needed money, he owed back taxes, and several Lawrence properties were tied to expensive loans carrying high interest rates.

Rather than tightening the belt like ordinary Americans were forced to do, DePeña allegedly pursued repeated increases to the federal loan.

Prosecutors say the original $150,000 amount eventually swelled to approximately $1.5 million.

The government alleges that much of that money never served its intended purpose at the tire business.

Instead, more than $880,000 allegedly went toward paying mortgages with high interest rates on other properties and businesses connected to DePeña.

Another $90,000 was allegedly steered into DePeña’s mayoral campaign before the 2021 election, according to federal officials.

DePeña won that contest, giving voters little reason at the time to suspect their new mayor’s campaign may have benefited from pandemic relief money.

DePeña later secured another term in November 2025.

The allegations now raise obvious questions about whether federal funds intended for battered businesses helped fuel his political rise while taxpayers were left holding the bag.

The mayor, who holds citizenship in both the United States and Dominican Republic, appeared in Boston federal court on Aug. 14.

A judge released him under several conditions, including surrendering his passport, reporting to probation officials, and remaining in Massachusetts.

DePeña is also barred from applying for additional loans without approval from the court.

Considering the accusations surrounding his previous borrowing, federal supervision of any future loan applications appears to be more than a minor administrative detail.

WATCH:

Outside the courthouse, attorney Carlos Apostle rejected the idea that DePeña would step down as mayor.

“No, he’s done a great job in Lawrence,” the lawyer said, offering a defense that may not satisfy residents reading through the federal affidavit.

United States Attorney Leah B. Foley accused DePeña of betraying the trust placed in him by Lawrence residents.

She said the arrest demonstrated that federal prosecutors would pursue suspected fraud “even [by] public officials,” an important message in a state where political machines are hardly unfamiliar.

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

He also warned, “You’ll be prosecuted to the fullest extent of the law,” making clear that public office provides no shield from accountability.

If convicted, DePeña could face up to 20 years in prison for wire fraud and up to 10 years for money laundering.

The charges could also bring substantial fines and supervised release, while neither DePeña nor his attorney responded to requests for further comment.

Gold is the oldest answer. SoundMoney makes owning it as easy as the apps you already use.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of LifeZette. Contact us for guidelines on submitting your own commentary.