Overview
- Federal agents arrested Mayor Brian DePeña on charges tied to Economic Injury Disaster Loans and prosecutors have opened an active criminal case against him.
- The U.S. Attorney's Office says the alleged scheme involves more than $1.5 million in low‑interest pandemic loans that were meant for a small business.
- An IRS Criminal Investigation affidavit alleges DePeña routed loans taken out through his Lawrence tire business to pay personal tax bills, service real‑estate debt, and fund his mayoral campaign.
- DePeña has been released from custody under court conditions and his lawyer has said he does not plan to resign from office.
- The Lawrence City Council convened for the first meeting since the arrest and the case adds to wider federal scrutiny of improper use of COVID relief funds, with potential consequences for municipal operations and public trust.