Lawrence Mayor Brian DePena was indicted by a federal grand jury out of Boston on Wednesday on charges related to alleged fraud and money laundering involving $1.5 million in pandemic loans.
“A grand jury in Boston also returned an 11-count indictment charging the sitting Mayor of Lawrence, Brian DePena, with pandemic loan fraud and money laundering,” said U.S. Attorney Leah Foley. … “He is alleged to have stolen approximately $1.5 million in public taxpayer money — money he used to fund his mayoral campaign, pay his personal tax liabilities, and pay off personal loans.”
DePena, 61, was formally indicted on four counts of wire fraud and seven counts of money laundering in federal court related to the alleged scheme Wednesday, after being charged by criminal complaint on Aug. 14. He is scheduled to be arraigned in the Moakely Courthouse at a yet-to-be-specified later date.
The indictment restates charges in the complaint against DePena, alleging the public official fraudulently applied for and laundered pandemic-era Economic Injury Disaster Loans he applied for in the name of his business Tenares Tire Services Inc. in 2020 and 2021.
“According to the charging documents, DePena needed cash by early 2021,” the U.S. Attorney’s office stated. “His mayoral campaign was struggling to pay bills; he owed the IRS for back taxes; and he owed almost $900,000 to two private, hard money lenders who were charging DePena 12% and 8% interest – significantly more than the EIDL rate of 3.75% – on loans that encumbered various properties DePena owned in Lawrence.”
The defendant’s personal payments included over $42,000 of the funds for his mayoral campaign and $883,000 to pay off his debts, prosecutors alleged.
The DePena indictment was unsealed the same day as another federal indictment on pandemic fund fraud and money charges against State Rep. Francisco Paulino.
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Foley called the mayor and state representative’s conduct “appalling.”
“Everyone listening today knows how difficult it was for Americans during the pandemic and how challenging it was for businesses,” Foley said. “The money these two individuals allegedly scammed was meant for hardworking Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit.”
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