Federal prosecutors announced that the mayor of Lawrence, Massachusetts, has been indicted on charges that he diverted more than $1.5 million in COVID-era small-business loans to his mayoral campaign, personal tax debt, and high-interest mortgages on properties he owned.

A federal grand jury in Boston returned the indictment, according to federal prosecutors. The charges detail the alleged misuse of federal pandemic relief funds intended for struggling small businesses during the COVID-19 crisis.

The indictment accuses the mayor of redirecting the loans away from their intended purpose and toward personal and political expenses. Prosecutors described the scheme as involving more than $1.5 million in total diverted funds.

This case highlights ongoing federal scrutiny of COVID-19 relief programs, which distributed trillions in taxpayer dollars with varying levels of oversight. Authorities have pursued numerous cases of alleged fraud involving those funds in recent years.

The mayor has not yet entered a plea. The U.S. Attorney's Office for the District of Massachusetts is handling the prosecution.