Lawrence Mayor Brian DePeña is facing federal charges for allegedly misusing more than $1.5 million in COVID-19 relief loans intended for his tire and automotive business, according to court documents.
DePeña, 61, is charged with wire fraud and unlawful monetary transactions, both as an aider and abettor. An arrest warrant was issued Thursday, and City Council President Jeovanny Rodriguez confirmed DePeña was arrested Friday.
Neighbors said FBI agents surrounded DePeña’s home early Friday morning, shouting through a bullhorn before using a battering ram to force open the front door. Damage to the door was visible afterward.
According to the U.S. Attorney’s Office, the case centers on Economic Injury Disaster Loans that DePeña allegedly obtained for his tire sales and automotive business during the COVID-19 pandemic.
“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,” Ted E. Docks, special agent in charge of the FBI’s Boston Division, said in a statement.
An affidavit prepared by a special agent with the IRS Criminal Investigation unit alleges DePeña diverted COVID-19 business loans to help finance his mayoral campaign, pay personal tax liabilities and cover hundreds of thousands of dollars in real estate debt.
The loans were issued through a federal program designed to provide low-interest financing to businesses suffering financial losses during the pandemic. The funds were restricted to business-related expenses intended to help companies remain operational.
DePeña was first elected mayor in 2021 and won reelection in 2025. He previously served on the Lawrence City Council.
Previous Investigations Involving DePeña
The federal charges come amid other investigations involving the Lawrence mayor’s office.
In May, DePeña’s City Hall office was the subject of a search warrant. Massachusetts Attorney General Andrea Campbell’s office confirmed the search but did not provide details.
A month earlier, state police assigned to the attorney general’s office seized recording equipment connected to cameras outside the mayor’s office.
According to sources cited by 5 Investigates, the cameras secretly transmitted recordings to a receiver in the office of DePeña’s former chief of staff, William Castro.
Castro was dismissed shortly afterward and replaced by Johanny Guillermo.
One of the cameras captured both video and audio of a conversation involving the mayor’s chief of staff and a city employee. The recording was later leaked, prompting an investigation by the Massachusetts Attorney General’s Office.
