Overview
- Federal agents arrested Lawrence Mayor Brian DePeña and charged him in a criminal case accusing him of diverting more than $1.5 million in COVID‑era Economic Injury Disaster Loan funds from his tire business for unauthorized uses.
- Charging papers filed in U.S. District Court in Boston allege wire fraud and money‑laundering and rest on financial records that prosecutors say show the flow of loan proceeds.
- An affidavit from an IRS Criminal Investigation special agent and related bank records reportedly link the loan money to payments for personal tax liabilities, hard‑money real‑estate mortgages and contributions or spending tied to DePeña’s mayoral campaign.
- DePeña was released from custody under court conditions and his lawyer says he does not plan to resign, while the Lawrence City Council convened for the first meeting since the arrest to address leadership questions.
- The loans at issue were low‑interest federal aid intended to keep small businesses afloat during the pandemic, and the ongoing federal prosecution could produce legal penalties and further local political and financial scrutiny.