Massachusetts mayor arrested for allegedly ripping off $1.5M in COVID funds

FBI agents armed with a bullhorn and battering ram descended on the home of a Massachusetts mayor accused of turning $1.5 million in COVID relief money into a personal piggy bank, according to authorities and reports.Lawrence Mayor Brian DePeña, 61, was busted on Aug.14 on federal wire fraud and money laundering charges in the dramatic FBI operation, according to WCVB5 in Boston.“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.Prosecutors say the alleged scheme began innocently enough.In 2020, DePeña obtained a $150,000 federal disaster loan for Tenares Tire Services, Inc., his Lawrence tire and auto service business, through a Small Business Administration program designed to help companies battered by the pandemic, according to an affidavit.But the following year, prosecutors allege, DePeña’s finances were squeezed.His mayoral campaign needed cash, he owned back taxes and he was facing high-interest loans tied to several Lawrence properties, authorities said in the affidavit.DePeña allegedly sought repeated increases to the government loan until it ballooned to roughly $1.5 million — then diverted the cash away from the tire business.Federal prosecutors allege more than $880,000 went toward paying off high-interest mortgages on other properties and businesses, while another $90,000 was funneled into his mayoral campaign ahead of the 2021 election, according to a the press release.DePeña won that race and was re-elected in November 2025.The mayor, a dual citizen of the US and Dominican Republic, appeared in Boston federal court on Aug.

14 and was released under conditions that including surrendering his passport, reporting to probation and remaining in Massachusetts.He also cannot apply for loans without court approval.Outside court, his attor...