The pandemic loan was for a tire shop. Prosecutors say it helped elect a mayor

Lawrence Mayor Brian DePena has been arrested and charged with fraudulently obtaining a pandemic loan of $1.5 million for his tire sales business, Tenares Tire Services Inc. According to prosecutors, DePena allegedly spent the money to pay off high-interest mortgages on various businesses, contribute to his 2021 mayoral campaign, and settle personal taxes.

The Small Business Administration had provided small-business loans to those affected by the COVID-19 pandemic. DePena, who has been mayor since 2021, is accused of misusing the federal funds for personal gain, breaching the trust of his constituents, and breaking the law. If convicted, he faces up to 20 years in prison and a fine of $250,000 for wire fraud, and up to 10 years in prison and a fine of $250,000 for money laundering.