Federal authorities arrested Lawrence Mayor Brian DePena, 61, on Friday, accusing him of using more than $1.5 million in COVID-era small-business loans for personal and political purposes rather than for pandemic-related business relief.
Allegations and charges
According to prosecutors, DePena applied in May 2020 for an Economic Injury Disaster Loan (EIDL) on behalf of his auto-repair business, Tenares Tire Service Inc. The Justice Department alleges he diverted funds that were meant to help struggling businesses during the pandemic to pad a mayoral campaign account, pay personal tax obligations and settle high-interest real-estate debts.
DePena faces federal charges of wire fraud and money laundering. He was elected mayor of Lawrence in November 2021 and won reelection in November 2025. He previously served on the Lawrence City Council from 2016 to 2021.
"Mayor DePena was elected to be a leader for the City of Lawrence," U.S. Attorney Leah B. Foley said. "He was looked up to and trusted by his constituents, but he betrayed that trust through his alleged corruption and lies. Today’s arrest is just another example of our determination to root out fraud by anyone, even public officials, and hold elected officials accountable."
Federal program at center of the probe
The EIDL program, administered by the U.S. Small Business Administration under the CARES Act, provided low-interest loans to businesses that experienced economic hardship because of the COVID-19 pandemic. EIDL loans carried, in many cases, relatively low interest rates to help struggling enterprises remain solvent during the crisis; the loan DePena applied for reportedly carried a 3.75% interest rate.
Prosecutors say those loans were intended to offset pandemic-related losses. The charges against DePena allege he instead used the funds for unrelated personal and political expenses.
Local and legal implications
The arrest raises immediate questions about governance in Lawrence, a city that entrusted DePena with municipal leadership after his 2021 election and again in 2025. Federal criminal charges against an incumbent mayor can affect municipal operations, public confidence and campaign-finance scrutiny.
Criminal wire fraud and money laundering charges typically carry serious penalties if convictions follow, and may trigger administrative consequences — including restrictions on contracting with government entities — though the exact collateral consequences would depend on subsequent legal findings and sentencing.
What prosecutors allege he used the funds for
- To pad a mayoral campaign account
- To pay personal taxes
- To settle high-interest real estate debts
The complaint links the funds to those specific uses; prosecutors say the loans were applied for on behalf of Tenares Tire Service Inc., the Lawrence tire and auto shop associated with DePena.
Case status and next steps
DePena was arrested following the federal investigation. As of the arrest report, formal charging documents and the next scheduled court appearances were not detailed beyond the allegations of wire fraud and money laundering. The U.S. Attorney’s statement emphasized a broader effort to pursue fraud and corruption, including by public officials.
| Item | Detail |
|---|---|
| Subject | Brian DePena, Mayor of Lawrence |
| Charges | Federal wire fraud, money laundering |
| Alleged misuse | More than $1.5 million in EIDL pandemic relief funds |
| Alleged purposes of diverted funds | Campaign account, personal taxes, real-estate debts |
Local residents and officials may seek updates from the U.S. Attorney’s Office or the SBA as the case proceeds. City Hall has faced heightened scrutiny in past investigations; this development adds a federal criminal dimension that could influence municipal operations depending on legal outcomes.
Community impact
Lawrence residents reacted with concern over the charges, which allege betrayal of public trust by an elected official. The long-term impact on voter confidence and upcoming local policy priorities will depend on how quickly the legal process moves and whether the allegations are substantiated in court.
This case is part of a larger post-pandemic sweep by federal investigators examining alleged fraud in relief programs designed to stabilize businesses and communities during the COVID-19 emergency.
Further details, including any indictment language, court filings and statements from DePena or his legal representatives, were not released with the initial arrest notice. WE NEWS will continue to follow the case and report updates as they become available.
