Lawrence, Massachusetts Mayor Brian DePeña was arrested Friday morning by federal authorities on charges of wire fraud and money laundering tied to more than $1.5 million in COVID-19 economic injury disaster loans.

According to a criminal complaint unsealed Friday in U.S. District Court in Boston, DePeña obtained multiple loans through the Small Business Administration program intended for struggling businesses during the pandemic. Prosecutors allege he diverted the funds to pay personal taxes, fund his political campaigns, and pay off mortgages on properties he owned in the city.

DePeña, who owns Tenares Tire Services, first received a $150,000 loan in 2020. He later secured increases that brought the total to $1.65 million. Court documents state that portions of the money went toward IRS payments totaling $85,000 and campaign expenses exceeding $130,000, while more than $883,000 repaid existing real estate debts.

U.S. Attorney Leah B. Foley said the arrest demonstrates a commitment to holding public officials accountable. FBI Boston Special Agent in Charge Ted Docks described the loans as emergency assistance that DePeña allegedly treated as a personal resource rather than support for legitimate business needs.

DePeña was first elected mayor in 2021 and won reelection in 2025. He is scheduled to appear before a federal magistrate judge later Friday. As of early August, records show he had repaid only about $130,000 of the loans, all applied to interest.

The charges highlight ongoing federal efforts to prosecute misuse of pandemic-era relief programs funded by taxpayers.