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Massachusetts mayor arrested for fraudulently obtaining pandemic loan
AP News • • nation
Key Points:
- Lawrence Mayor Brian DePena was arrested and charged with wire fraud and money laundering for fraudulently obtaining a $1.5 million COVID-19 small-business loan intended for his tire business.
- Instead of using the loan for business purposes, DePena allegedly spent over $880,000 to pay off high-interest mortgages on multiple properties and funneled $90,000 into his 2021 mayoral campaign.
- The FBI criticized DePena for exploiting a public health crisis and misusing federal funds, emphasizing that officials who commit such fraud will face full prosecution.
- DePena appeared in federal court, was released under conditions including surrendering his passport, and declined to comment on whether he would resign.
- If convicted, DePena faces up to 20 years in prison and fines for wire fraud, and up to 10 years and fines for money laundering.
