Massachusetts Mayor Arrested in $1.5M Covid Relief Loan Fraud Case

POLICY WIRE — Lawrence, Massachusetts — Lawrence Mayor Brian DePena was arrested on charges of allegedly misusing a $1.5 million Covid relief loan. Authorities accuse DePena of diverting the funds to support his political campaign and pay personal taxes.

The arrest follows a federal investigation into the origins and use of the relief funds. According to court documents, DePena is alleged to have submitted false documentation to secure the loan, which was intended for businesses affected by the Covid-19 pandemic.

“The mayor is accused of exploiting a program designed to help struggling businesses during a national crisis for his own gain,” stated a federal prosecutor during the press conference announcing the charges.

DePena has been charged with fraud, money laundering, and filing false documents. If convicted, he faces up to 20 years in prison for each count.

The mayor has been suspended from his duties pending the outcome of the trial. City officials have appointed an interim mayor to manage municipal operations during this period.

This case adds to a series of high-profile corruption allegations involving public officials misusing pandemic relief funds. Recent incidents include the arrest of a former Cambridge professor over plagiarism allegations here and the controversy surrounding the US Mint’s announcement of a Trump commemorative coin here.

Reporting by Policy-Wire (PW)