Lawrence Mayor Brian DePena arrested for alleged fraud and money laundering
The mayor of the city of Lawrence, Massachusetts, Brian DePena, was arrested this Friday morning at his residence. This arrest comes just one day after a criminal complaint filed in the United States District Court in Boston was made public, in which he is charged with serious counts of wire fraud and money laundering operations.
DePena, who in addition to his political work serves as the owner and operator of the company Tenares Tire Service Inc., faces accusations regarding the irregular handling of federal funds intended for economic recovery during the COVID-19 health crisis.
Irregularities in the use of federal funds
The federal investigation details that the official requested an Economic Injury Disaster Loan (EIDL) from the Small Business Administration (SBA) in May 2020. Initially, the entity approved a disbursement of 150,000 dollars, a figure that rose to 500,000 dollars after a modification in 2021. Subsequently, the total financing amount reached 1.65 million dollars.
According to the prosecution, DePena obtained these funds under false pretenses, claiming they would be used exclusively for working capital for his business. However, authorities maintain that the money was diverted for personal and political purposes:
- Tax debts: $85,000 would have been used to settle outstanding commitments with the Internal Revenue Service (IRS).
- Political campaign: Nearly $132,000 was injected directly into his 2021 mayoral campaign.
- Personal obligations: Approximately $883,000 was used to pay off high-interest loans linked to real estate properties he owned.
The prosecution argues that the SBA would not have approved the disbursements if it had known that the funds would be used to finance a political campaign, pay personal taxes, or settle private real estate debts.
Investigation into the origin of funds
The complaint also sheds light on the actions taken before the Massachusetts Office of Campaign and Political Finance. According to court documents, when questioned about the origin of the deposits in his campaign account, DePena allegedly identified those transactions as personal loans and necessary funds for his campaign committee.
It is important to highlight that, under the U.S. judicial system, the filing of these charges constitutes a procedural stage and does not imply a declaration of guilt. The mayor will have to answer to the courts to clarify these accusations that have shocked the Lawrence community.
