Brian De Peña was arrested at his home by federal authorities and accused of fraud and money laundering tied to more than 1.5 million dollars in COVID-19 small-business loans. The arrest came the same day he was scheduled to appear in federal court in Boston.
Boston arrest details
The Department of Justice of the United States said De Peña, 61 years old, was accused of one count of wire fraud and one count of money laundering. He was expected in Boston after being taken into custody at his home, turning a loan case into a federal criminal matter with immediate court consequences.
Ted E. Docks said the FBI arrested Brian DePena for allegedly profiting from a public health crisis and defrauding a government program. He said the mayor fraudulently obtained more than 1.5 million dollars in loans intended to keep small businesses afloat during COVID-19.
Thomas Demeo on relief funds
Thomas Demeo said the arrest highlighted the IRS Criminal Investigation Division's commitment to emergency relief programs and accountability for those who abuse them. He added that funds under the Ley CARES were created to help small businesses survive a national crisis, not to finance personal debts, political ambitions, or property projects.
That is the core contradiction in the case: money described as emergency help for struggling businesses was allegedly routed to De Peña's campaign account, personal taxes, and mortgage payments. Authorities said the payments included more than 880,000 dollars in high-interest mortgages on several Lawrence properties.
Lawrence and the loan trail
De Peña had already built a public record in Lawrence before the arrest. He served as a Lawrence city councilor from 2016 to 2021, was elected mayor in November 2021, and was reelected in November 2025.
The complaint now shifts attention to how federally backed relief money was handled after it was obtained. Prosecutors say the government program was used for personal, political, and property-related expenses instead, which is why the charges reach beyond a loan dispute and into alleged criminal misuse of emergency funds.
For De Peña, the immediate next step was a federal court appearance in Boston, where the case would move into the process that determines how the charges are answered and what evidence prosecutors will have to show.
