Massachusetts mayor indicted for alleged pandemic loan fraud, money laundering

The Justice Department announced Wednesday that the 61-year-old mayor of Lawrence, Massachusetts, has been indicted by a federal grand jury on an 11-count indictment related to alleged pandemic loan fraud and money laundering.

Brian DePena was indicted on four counts of wire fraud and seven counts of money laundering and has been accused of obtaining over $1.5 million in COVID small-business loans that were then used to fund his campaign, pay personal taxes and pay more than $880,000 in high-interest, hard-money mortgages on some of his own properties in the city.

The charging documents allege that DePena applied for Economic Injury Disaster Loans for his tire sales and automotive services business in 2020 and 2021. The first loan amounted to $150,000 in June 2020 and had a specific purpose.

DePena then allegedly increased the loans by $350,000 in April 2021, which meant he now owed $500,000. The number was increased a third time in November 2021 to a total of $1,654,400.  

The mayor then allegedly used some of the finances to pay off money he owed to hard moneylenders in 2021 and as of Aug. 5, 2026, he still owes approximately $1,654,420 on his EIDL because of the interest rate on the loans.

DePena, who was arrested earlier this month, has not entered a plea yet in the case but will face up to 20 years in prison and three years of supervised release for each wire fraud charge and up to 10 years in prison, three years of supervised release and a fine of $250,000 for money laundering. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.