Authored by Aldgra Fredly via The Epoch Times,
A Massachusetts mayor was arrested on Aug. 14 on allegations that he fraudulently secured more than $1.5 million in COVID-19 small-business loans to fund his election campaign and pay personal taxes and mortgages.
Lawrence Mayor Brian DePeña, 61, was charged with one count of wire fraud and one count of money laundering, according to a statement by the U.S. Attorney’s Office for the District of Massachusetts.
DePeña has been released from custody following his initial appearance in federal court in Boston on Aug. 14, subject to several conditions, including turning over his passport.
According to his indictment, he allegedly applied for Economic Injury Disaster Loans (EIDL) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence, between 2020 and 2021.
The Small Business Administration (SBA) offered those loans to eligible small businesses that were facing financial difficulties during the COVID-19 pandemic.
Prosecutors alleged that DePeña obtained $150,000 in EIDL loans for Tenares Tire in June 2020, using most of the funds as working capital for his business. In early 2021, his mayoral campaign was struggling to pay bills, and he owed back taxes to t
