The United States Federal Bureau of Investigation (FBI) has arrested the Mayor of Lawrence, Massachusetts, Brian DePeña, over allegations that he fraudulently secured more than $1.5 million in federal COVID-19 relief loans and diverted the money to personal and political expenses.
DePeña was arrested at his home by FBI agents from the Boston Division, working with investigators from the Internal Revenue Service Criminal Investigation unit, according to the agency.
The FBI announced the arrest in a statement published on its official X account on Friday.
Investigators allege that DePeña took advantage of pandemic support programmes established to help small businesses survive the financial impact of COVID-19.
The agency said the mayor allegedly channelled the funds into his mayoral campaign account, paid his personal tax obligations and settled about $883,000 in high-interest mortgages connected to properties he owned in Lawrence.
In a separate statement, the FBI accused DePeña of turning the government assistance into a personal source of funds rather than using it for legitimate business purposes.
The agency stressed that the COVID-19 loan programmes were designed to provide emergency support to businesses affected by the pandemic and were not intended for personal spending or political activities.
Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division, said elected officials who misuse public funds violate the trust placed in them by their constituents.
“When elected officials misuse federal funds for personal gain, they’re breaching the trust of their constituents—and breaking the law,” Docks said.
He added that the FBI and its law enforcement partners would continue investigating individuals suspected of defrauding the federal government.
Authorities said the investigation was jointly conducted by the FBI’s Boston Division and IRS Criminal Investigation.
DePeña is expected to appear in court, where details of the allegations and charges against him are expected to be presented. A trial date has not been announced.
His arrest is part of a broader series of federal investigations into alleged fraud involving COVID-19 relief programmes introduced by the US government to assist businesses and workers during the pandemic.
Federal authorities have continued to prosecute individuals accused of illegally obtaining or misusing funds provided under various emergency assistance schemes.
