Lawrence Mayor Brian DePena arrested on fraud and money laundering charges
The political landscape in Lawrence, Massachusetts, has been shaken this Friday following the confirmed arrest of Mayor Brian DePena at his residence. The arrest is in response to a criminal complaint filed in the United States District Court in Boston, where he faces serious charges of wire fraud and money laundering operations.
DePena, who in addition to his work as a public official is listed as the owner of the company Tenares Tire Service Inc., is accused of having diverted federal funds obtained through loans intended for economic recovery following the COVID-19 pandemic.
Details of the federal indictment
According to the prosecution, in May 2020, the mayor requested an Economic Injury Disaster Loan (EIDL) from the Small Business Administration (SBA). Initially, he was granted 150,000 dollars, a figure that rose to 500,000 dollars in 2021 following a modification. Finally, the total amount of financing reached 1.65 million dollars.
The complaint maintains that DePena allegedly deceived federal authorities regarding the actual use of the capital. Among the findings presented by the investigators are the following:
- Payment of $85,000 in outstanding tax debts to the IRS.
- Allocation of $132,000 to fund his/her 2021 political campaign activities.
- Use of approximately $883,000 to settle personal loans linked to his/her real estate properties.
The prosecution argues that the SBA would not have approved the loans if it had known that the money would be used to finance a political campaign, pay personal tax obligations, or settle loans linked to the mayor’s properties.
Irregularities in campaign funds
The case also puts the financial transparency of his management under the microscope. According to authorities, when the Massachusetts Office of Campaign and Political Finance requested details regarding the origin of the deposits in his campaign accounts, DePena deceptively labeled the funds as personal candidate loans.
It is important to highlight that these accusations are part of an ongoing judicial process. The filing of criminal charges does not constitute a guilty verdict, and the mayor will have the opportunity to defend himself in court during the upcoming stages of the legal process.
