Video shows arrest of Lawrence mayor on federal charges for alleged misuse of COVID-19 business loans
Mayor Brian DePeña arrested Friday morning
LAWRENCE, Mass. —
Lawrence Mayor Brian DePeña faces federal charges for allegedly using COVID-19 relief money meant for his tire business to fund his political campaign and pay personal debts, according to court documents.
NewsCenter 5 obtained a copy of the case against DePeña, 61, from U.S. District Court. One of the documents indicates he faces two charges:
Wire fraud; aiding and abettingUnlawful monetary transactions; aiding and abetting
Records indicate that an arrest warrant was issued Thursday. City Council President Jeovanny Rodriguez confirmed DePeña was arrested Friday.
Neighbors described FBI agents shouting through a bullhorn outside the mayor’s home early in the morning and using a battering ram to force open his door. The description was consistent with damage we saw to the door.
According to the office of U.S. Attorney Leah Foley, the allegations against DePeña involve more than $1.5 million in COVID-19 small business loans.
“The FBI arrested Mayor Brian DePeña for allegedly cashing in on a public health crisis and blatantly defrauding a government program meant to keep businesses afloat during the pandemic,” Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division, said in a statement.
DePeña won his office in 2021 and was reelected in 2025. He was previously a member of the City Council.
Another document obtained by NewsCenter 5 included an affidavit prepared by a special agent of the Internal Revenue Service’s Criminal Investigation unit. It alleges that DePeña diverted COVID-19 business loans to fund his mayoral campaign, cover personal tax liabilities and pay off hundreds of thousands of dollars in real estate debt.
The affidavit notes that he also owns a tire sales and automotive business in Lawrence and that he used the business to apply for the Economic Injury Disaster Loans. The money from those low-interest-rate loans was supposed to be limited to use in keeping businesses afloat during the pandemic.
In federal court on Friday
DePeña arrived in a federal courtroom wearing handcuffs, a white button-down shirt and grey pants. Cameras are not permitted in federal court.
His attorney said DePeña suffers from prostate cancer and asked that a probable cause hearing also be held Friday, but the judge denied that request.
The court ordered that terms of his release would include requiring DePeña to report to probation, surrender his passport and not travel outside Massachusetts unless given prior approval. He also cannot apply for loans without court approval.
On the way out of court, DePeña and his attorney were asked if the mayor planned to resign.
“No, he’s done a great job in Lawrence,” the lawyer replied.
NewsCenter 5’s Peter Eliopoulos started to ask, “You’re accused of stealing money from the taxpayers…”
“No, he’s never done that,” the attorney said. No comment.”
“He never did that? Why? What makes you say that?” Eliopoulos continued.
“Well, you don’t think a mayor of the city of Lawrence has enemies?” the attorney said. “He’s done the greatest job any mayor has ever done for the City of Lawrence.”
They were also asked whether DePeña had planned to leave the country. The attorney said DePeña’s son would be married in the Dominican Republic but that his client was not attending. We heard in court that the mayor is a dual citizen but does not have a Dominican passport.
The mayor and his attorney got into a red Dodge Challenger which appeared to have a parking ticket pinned under one of the windshield wipers. While numerous cameras were rolling, the red Dodge hit the rear of a white Kia that was parked in the next space. The attorney got out and took a photo of the Kia’s license plate before driving away.
What we know about other recent investigations
DePeña’s office in City Hall was the subject of a search warrant in May. At the time, Attorney General Andrea Campbell’s office confirmed the search but did not provide additional information.
One month before the search, state police troopers assigned to the attorney general’s office seized recording equipment connected to cameras outside of the mayor’s office.
The cameras were sending secret recordings to a receiver in the office of DePeña’s former chief of staff, William Castro, according to 5 Investigates sources.
Castro was dismissed from his position shortly thereafter. He was replaced by Johanny Guillermo.
One of the cameras recorded both the video and audio of a conversation between the Lawrence mayor’s chief of staff and a city employee, which was leaked, triggering an investigation by the Massachusetts Attorney General’s Office.
It’s a felony in Massachusetts to make an audio recording of someone without consent, and it’s unclear if the latest search warrant is connected to this investigation.
Castro was once the city’s acting police chief, but was stripped of his law enforcement credentials following an investigation into a high-speed chase.