Massachusetts Mayor Arrested Over Loan Fraud and Money Laundering

Massachusetts' Democratic mayor now faces serious legal trouble after being charged with fraud and money laundering. In June 2020, he pushed Tenares Tire to secure a $150,000 emergency loan during a tough election season. The deal came through the SBA's Emergency Infrastructure Loan program. But things took a dark turn later.

By early 2021, the mayor found himself needing cash fast. His campaign was barely covering basic expenses, and he owed thousands in back taxes plus nearly $900,000 to private lenders charging steep rates. Those lenders demanded 12% and 8% interest—way higher than the 3.75% offered by the government loan. Meanwhile, the EIDL funds sat idle for months before finally arriving in August 2021.

The situation escalated when the mayor diverted most of the loan money to personal use. He sent texts to his accountant explaining how he moved $85,000 to clear tax debt and $120,000 into a personal account. That money was then handed over as "loans" to his mayoral campaign in late 2021. He even wrote checks totaling $90,000 to a group called "The Committee to Elect Brian Depena."

More alarming actions followed. In October 2021, he requested another EIDL increase and got a massive boost of $1,154,400 added to the original loan. By November, he cashed out nearly all the EIDL funds into his personal account—a tiny $1,401 balance disappeared. Then he poured millions into paying off his private lender debts, buying treasurer's checks worth hundreds of thousands. As of mid-2026, he'd only made 16 payments on the loan, leaving a huge balance still unpaid.