Massachusetts Mayor Arrested for Alleged COVID Loan Fraud

5 million in COVID small-business loans. The funds were allegedly used to finance his campaign account, pay personal taxes, and settle over $880,000 in high-interest mortgages on properties he owned.

DePena, 61, faces charges of wire fraud and money laundering. United States Attorney Leah B. Foley stated that DePena betrayed the trust of his constituents. The loans were Economic Injury Disaster Loans offered by the U.S. Small Business Administration to businesses experiencing financial disruptions due to the pandemic. Court documents indicate that from one round of loans totaling $350,000, DePena used $85,000 for personal taxes and moved $120,000 into a personal account, from which he wrote $90,000 in checks to his mayoral campaign.

A subsequent round of loans totaling $1,154,188 was also transferred to his personal account, with $42,000 going to his campaign and $883,293 used to pay property debts. DePena was released after agreeing to surrender his passport and refrain from seeking loans without court approval. He previously served on the Lawrence City Council from 2016 to 2021 and was elected mayor in November 2021, subsequently reelected in November 2025.