{"id":653408,"date":"2026-08-17T17:20:00","date_gmt":"2026-08-17T17:20:00","guid":{"rendered":"https:\/\/buglecall.org\/?p=653408"},"modified":"2026-08-17T17:20:00","modified_gmt":"2026-08-17T17:20:00","slug":"massachusetts-mayor-charged-with-using-covid-loan-for-election-campaign-debt-payments-3","status":"publish","type":"post","link":"https:\/\/buglecall.org\/?p=653408","title":{"rendered":"Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.theepochtimes.com\/us\/massachusetts-mayor-charged-with-using-covid-loan-for-election-campaign-debt-payments-6075521?utm_source=partner&amp;utm_campaign=ZeroHedge\"><em>Authored by Aldgra Fredly via The Epoch Times,<\/em><\/a><\/p>\n<p><em><strong>A Massachusetts mayor was arrested on Aug. 14 on allegations that he fraudulently secured more than $1.5 million in COVID-19 small-business loans to fund his election campaign and pay personal taxes and mortgages.<\/strong><\/em><\/p>\n<p><a data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/image%20%2850%29_12.jpg?itok=5its20ME\" data-link-option=\"0\" href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/image%20%2850%29_12.jpg?itok=5its20ME\"><img fetchpriority=\"high\" decoding=\"async\" data-entity-type=\"file\" data-entity-uuid=\"7ecf09f5-ccc8-465b-b4e2-7c8d6faddcef\" data-responsive-image-style=\"inline_images\" height=\"333\" width=\"500\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/image%20%2850%29_12.jpg?itok=5its20ME\" alt=\"\" \/><\/a><\/p>\n<p>Lawrence Mayor Brian DePe\u00f1a, 61, was<strong> charged with one count of wire fraud and one count of money laundering<\/strong>, according to a <a href=\"https:\/\/www.justice.gov\/usao-ma\/pr\/massachusetts-mayor-charged-pandemic-loan-fraud-and-money-laundering\">statement<\/a> by the U.S. Attorney\u2019s Office for the District of Massachusetts.<\/p>\n<p>DePe\u00f1a has been released from custody following his initial appearance in federal court in Boston on Aug. 14, subject to several conditions, including turning over his passport.<\/p>\n<p>According to his indictment, he allegedly applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence, between 2020 and 2021.<\/p>\n<p><strong>The Small Business Administration (SBA) offered those loans to eligible small businesses that were facing financial difficulties during the COVID-19 pandemic.<\/strong><\/p>\n<p>Prosecutors alleged that DePe\u00f1a obtained $150,000 in EIDL loans for Tenares Tire in June 2020, using most of the funds as working capital for his business. In early 2021, his mayoral campaign was struggling to pay bills, and he owed back taxes to the IRS and $900,000 to two private lenders.<\/p>\n<p>DePe\u00f1a allegedly applied in April 2021 for an increase in his business\u2019s EIDL loan, which the SBA later approved for an additional $350,000, according to the statement.<\/p>\n<p><strong>Prosecutors said DePe\u00f1a allegedly used $85,000 of the funds to pay off personal tax debts and transferred $120,000 to his personal account, of which $90,000 was later deposited into his mayoral campaign account.<\/strong><\/p>\n<p>In October 2021, DePe\u00f1a allegedly requested another EIDL loan increase, which the SBA approved for more than $1.15 million. He then transferred the entire amount to a personal account and used $42,112.96 of that fund for his mayoral campaign, prosecutors alleged. He also allegedly used more than $883,000 to pay off his debts.<\/p>\n<p>The mayor had made 16 payments on the Tenares Tire EIDL as of Aug. 5, 2026, leaving an outstanding principal balance of about $1.6 million, according to prosecutors.<\/p>\n<p><em><strong>\u201cThis was emergency financial assistance meant to be a safety net for struggling businesses, not Mr. DePena\u2019s own personal ATM,\u201d<\/strong> Ted E. Docks, special agent in charge of the FBI\u2019s Boston Field Office, said in the statement.<\/em><\/p>\n<p><em>\u201cWhen elected officials misuse federal funds for personal gain, they\u2019re breaking the trust of their constituents\u2014and breaking the law.\u201d<\/em><\/p>\n<p>DePe\u00f1a has served as mayor since 2021. He was reelected in November 2025 and previously served on the Lawrence City Council.<\/p>\n<p><strong>He faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 if convicted of wire fraud.<\/strong> For money laundering, DePe\u00f1a could face up to 10 years in prison, three years of supervised release, and a $250,000 fine if found guilty.<\/p>\n<p>DePe\u00f1a\u2019s office did not respond to a request for comment.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" lang=\"\" class=\"username\" xml:lang=\"\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Mon, 08\/17\/2026 &#8211; 13:20<\/span><img decoding=\"async\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/image%20%2850%29_12.jpg?itok=5its20ME\" title=\"Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments\" \/><\/p>","protected":false},"excerpt":{"rendered":"<p>Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments Authored by Aldgra Fredly via The Epoch Times, A Massachusetts mayor was arrested on Aug. 14 on allegations that he fraudulently secured more than $1.5 million in COVID-19 small-business loans to fund his election campaign and pay personal taxes and mortgages. Lawrence Mayor&hellip; <a class=\"more-link\" href=\"https:\/\/buglecall.org\/?p=653408\">Continue reading <span class=\"screen-reader-text\">Massachusetts Mayor Charged With Using COVID Loan For Election Campaign, Debt Payments<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":653393,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[20,23],"tags":[],"class_list":["post-653408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-empowerment","category-national-security","entry"],"_links":{"self":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/653408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=653408"}],"version-history":[{"count":0,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/posts\/653408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=\/wp\/v2\/media\/653393"}],"wp:attachment":[{"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=653408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=653408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buglecall.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=653408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}