Lawrence Mayor Brian DePeña Arrested for Alleged Misuse of Pandemic Relief Funds Lawrence Mayor Brian DePeña was arrested on Friday for allegedly misusing approximately $1.5 million in pandemic relief funds intended for small businesses, according to federal authorities. The FBI charged DePeña, 61, with wire fraud and money laundering, as his office confirmed the arrest. The allegations center on his use of Economic Injury Disaster Loans for his business, Tenares Tire Services Inc., to fund personal expenses and his mayoral campaign. DePeña, a Democrat, was first elected mayor in November 2021 and reelected in November 2022. Prosecutors stated that in 2020 and 2021, he applied for Economic Injury Disaster Loans to support his business, which was permitted to use the funds as “working capital” to address pandemic-related hardships. However, the charges allege that DePeña diverted these funds for personal and campaign-related purposes. According to court records, $350,000 in relief funds were electronically deposited into the Tenares Tire bank account on August 16, 2021, after the account had been depleted to just $20.23. Soon after, DePeña allegedly used $85,000 of the funds to pay personal tax debts to the IRS. He also transferred $120,000 to a personal account, from which he wrote $90,000 in checks to “The Committee to Elect Brian DePena,” his campaign fund. In late 2021, the federal government approved a loan modification that increased the total amount of the loan by over $1.5 million, bringing the total to $1.65 million. Prosecutors allege that DePeña used more than $42,000 of these funds for his mayoral campaign and $883,293 for mortgages on properties he owned in Lawrence. US Attorney Leah B.#fbi #lawrence_mayor #brian_depea #tenares_tire_services_inc #us_attorney_leah_b_foley
