Tom Duggan
The federal criminal complaint and supporting IRS-CI affidavit detailing the allegations against DePeña can be read in full here:
AFFIDIVIT TO SECURE CRIMINAL COMPLAINT!
In the wake of Lawrence Mayor Brian DePena’s arrest by the feds this morning, the Valley Patriot has obtained information that DePena has also been charged with money laundering. The money-laundering count reportedly carries a maximum possible sentence of 10 years, while wire fraud carries up to 20 years. Those are statutory maximums, not predictions of an actual sentence.
With all the rumors and innuendo, propaganda and political deceptions swirling on social media about the mayor supposedly using CITY money to fund his campaign or land deals, The Valley Patriot has outlined exactly what DePena is being charged with, to correct the record and summarize what the federal government is actually alleging.
DePena is expected to be arraigned this afternoon at the Moakley Courthouse in Boston.
As a side note, DePeña remains mayor unless he resigns, is recalled, or otherwise vacates the office. An arrest or criminal charge does not automatically remove him. Under the Lawrence city charter, however, an elected official convicted of a state or federal felony while holding office is deemed to have vacated that office.
WHAT THE CHARGING DOCUMENTS SAY!
FIRST: WHAT THE DOCUMENTS DO NOT ALLEGE
The affidavit states that DePeña appears to have used the majority of the original $149,900 EIDL distribution as working capital for Tenares Tire as required by law. The allegations of misuse focus principally on money received through the two subsequent loan increases. Nowhere in the documents does federal law enforcement allege misuse of city funds, LRA properties, or city property or services.
The biggest allegation
Federal investigators allege that DePeña obtained approximately $1.654 million in EIDL funds for Tenares Tire and then used large portions for purposes prohibited by the loan terms:
- Approximately $132,113 for his mayoral campaign.
- $85,000 toward his personal federal tax liabilities.
- $883,293 to pay off two high-interest loans secured by real estate he owned.
That is approximately $1.1 million traced to those three categories alone.
These are allegations in an IRS Criminal Investigation agent’s probable-cause affidavit, not yet proven facts.
The most explosive sequence
The first major EIDL increase was approved in July 2021, during DePeña’s first campaign for mayor.
Before the additional money arrived, investigators say he texted his accountant and financial adviser:
“Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands.”
Three days later:
“Brother, I need your help with this loan. I’ve been trying to reach you all week and haven’t been able to get it resolved. I know I’m bothering you a lot, but I have no other option. Only you can give me what I need.”
The affidavit says those texts were originally written in Spanish and translated into English.
Then:
- On August 16, 2021, approximately $350,000 arrived in the Tenares Tire account.
- Before that deposit, the account allegedly contained just $20.23.
- Ten days later, DePeña allegedly used $85,000 from that account to pay personal federal tax liabilities.
- Investigators say approximately $90,000 traceable to those EIDL funds subsequently went into his mayoral campaign.
That $20.23 balance is an extraordinarily strong detail.
The campaign-money trail
The affidavit does not merely say campaign money “may have come from” the federal loan. It gives dates, transfers, checks and account movements.
Investigators allege that DePeña moved EIDL money:
- From the Tenares Tire business account.
- Into one or more personal accounts.
- From those accounts into the Committee to Elect Brian DePeña account.
The alleged pre-election campaign transfers included:
- $20,000 deposited through two $10,000 checks.
- $25,000 through a treasurer’s check.
- $10,000 through another treasurer’s check.
- $25,000 through another check.
- $10,000 from a later $22,000 personal-account transfer.
Several of the checks reportedly carried the notation “Loan.”
When OCPF asked for the source, DePeña reportedly characterized them as:
“Candidate Loans”
and:
“Funds Need It [sic] For The CTE Brian De Pena.”
That language is directly quoted in the federal affidavit from what it identifies as public records.
A second massive loan increase
The affidavit says that on October 20, 2021—while the election was underway—DePeña requested another EIDL modification.
On October 27:
- The SBA approved an additional $1,154,400.
- That raised the total Tenares Tire loan to $1,654,400.
- DePeña allegedly certified again that the money would be used solely as working capital to address COVID-related economic injury.
The additional $1,154,188 was deposited on November 30, 2021. Before it arrived, the business account reportedly contained only $2,128.
Investigators say DePeña transferred approximately $1,156,316—including all the newly deposited EIDL money—into his personal account that same day.
The personal account allegedly contained approximately $1,401.56 before that transfer.
That same-day transfer of essentially the entire second distribution is probably one of the affidavit’s most consequential allegations.
More campaign payments after the election
Investigators allege that another $42,112.96 traceable to the EIDL funds went to DePeña’s campaign:
- $10,000 by a check dated November 30 and deposited December 2.
- $32,112.96 by a check deposited January 11, 2022.
The affidavit adds that the campaign account had been overdrawn for approximately 20 days before the December 2 deposit.
The real-estate debt
Federal investigators allege that DePeña used $883,293 traceable to EIDL funds to eliminate two high-interest loans secured by properties he owned:
- $538,109.03 to pay off a balloon note.
- $345,184.13 to pay off another promissory note.
The first loan originated in connection with DePeña’s approximately $700,000 purchase of 342 Broadway. Investigators say he had borrowed $525,000 at 12% interest, with the debt originally due in January 2021.
The second debt was reportedly carrying 8% interest.
According to the affidavit, DePeña had tried unsuccessfully to obtain conventional refinancing. His personal federal tax debt was allegedly one impediment.
The SBA told investigators it would not have approved the EIDL had it known DePeña intended to use it to refinance existing loans.
What he has allegedly repaid
As of August 5, 2026, the affidavit says:
- DePeña had made only 16 payments.
- Those payments totaled approximately $130,160.
- Every dollar was applied to accrued interest.
- The outstanding principal remained approximately $1,654,420.
So despite paying about $130,000, the affidavit alleges that the entire principal remained outstanding—and was approximately $20 greater than the original authorized loan amount.