US: FBI Announces Arrest of Mayor Charged With Wire Fraud and Money Laundering
- FBI Boston and IRS agents arrested Mayor Brian DePena of Lawrence, Massachusetts, on August 14, 2026, over allegations of fraudulently obtaining federal COVID-19 relief loans
- DePena, 61, faces one count of wire fraud and one count of money laundering, each carrying potential prison sentences
- Investigators allege DePena used over $1.5 million in small business pandemic loans for his personal taxes, campaign account, and private mortgage debts
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The Federal Bureau of Investigation has announced that Brian DePeña, the sitting mayor of Lawrence, Massachusetts, has been arrested.
The arrest came on August 14, 2026, over charges that he fraudulently obtained more than $1.5 million in federal COVID-19 pandemic relief loans and allegedly redirected the money for personal and political use.
Source: Getty Images
DePena, 61, faces one count of wire fraud and one count of money laundering. He made his initial appearance in federal court in Boston later that day.
Prosecutors allege he used funds meant to support struggling small businesses during the pandemic to settle personal tax debts, bankroll his mayoral campaign, and eliminate nearly $900,000 in high-interest private mortgage obligations.
How the alleged fraud unfolded
According to charging documents, DePena applied for Economic Injury Disaster Loans through the US Small Business Administration on behalf of Tenares Tire Services Inc., a tyre and automotive business he owned in Lawrence.
He secured an initial loan of $150,000 in June 2020, followed by two loan modifications that eventually brought the total to $1,654,400.
Investigators allege that once the funds arrived, DePena transferred large portions out of the business account, which held as little as $20.23 before one deposit, into personal accounts the same day.
From there, he allegedly paid $85,000 to the IRS for personal back taxes, wrote cheques totalling approximately $132,000 to his mayoral campaign committee, and used $883,293 to pay off two private lenders who had been charging him interest rates of 8% and 12% far above the EIDL rate of 3.75%.
Prosecutors note that as of 5 August 2026, DePena had made only 16 repayments on the loan, leaving an outstanding principal balance of approximately $1,654,420.
Officials warn of consequences for public corruption
Ted E. Docks, Special Agent in Charge of the FBI's Boston Division, described the alleged conduct as treating emergency pandemic assistance as "his own personal ATM" and warned that anyone who defrauds the federal government faces prosecution to the fullest extent of the law.
United States Attorney Leah B. Foley said the arrest demonstrated the government's commitment to holding elected officials accountable, adding that DePena "betrayed that trust through his alleged corruption and lies."
IRS Criminal Investigation Special Agent in Charge Thomas Demeo emphasised that CARES Act funds were created to protect small businesses during an unprecedented national crisis, not to service private debts or fund political campaigns.
DePena was first elected Mayor of Lawrence in November 2021 and was re-elected in November 2025.
He previously served on the Lawrence City Council from 2016 to 2021. A conviction on wire fraud carries a maximum sentence of 20 years in prison, while the money laundering charge carries up to 10 years. He is presumed innocent unless proven guilty beyond a reasonable doubt.
FBI sets up office in Accra
In a related development, YEN.com.gh reported that the United States government has opened an FBI Legal Attaché Office in Accra.
The move forms part of a coordinated effort to dismantle international fraud syndicates and romance scam networks that have cost American citizens millions of dollars.
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Source: YEN.com.gh
