Former IRS employee reportedly conducted fraudulent scheme
Kayleigh McEnany delves into the case of Alios Williams, a former federal worker who siphoned over $3.5 million from government relief programs designed to support businesses during the COVID-19 crisis. Operating as an SBA loan officer, Williams directly reached out to individuals via Instagram, offering to manipulate grant applications fraudulently in return for a monetary kickback.
In a shocking turn of events, the mayor of a suburb near Boston is facing accusations of federal wire fraud and money laundering. Allegedly, he misappropriated over $1.5 million from COVID-era small business loans, funneling these funds into his campaign, covering personal tax obligations, and paying off steep real estate loans.
Brian DePena, the 61-year-old Mayor of Lawrence, was apprehended on Friday morning after an in-depth investigation into claims of misusing Economic Injury Disaster Loans (EIDL). These loans, part of a COVID relief initiative spearheaded by the U.S. Small Business Administration through the CARES Act, were intended to aid struggling businesses to stay afloat during the pandemic.
DePena ascended to the role of Lawrence’s mayor in November 2021, subsequently securing reelection in November 2025. His political career also includes a tenure on the Lawrence City Council, where he served from 2016 to 2021.
“Mayor DePena was chosen to be a guiding force for Lawrence,” remarked U.S. Attorney Leah B. Foley. “He was admired and trusted by his community, only to betray that trust through alleged corrupt activities and deceit. Today’s arrest exemplifies our relentless pursuit to expose and eradicate fraud, regardless of the perpetrator’s status, and underscores our commitment to holding public officials to account.”
Lawrence Mayor Brian DePena faces federal charges for allegedly using pandemic-relief funds meant to assist struggling business for his mayoral campaign and to pay off his personal debts. DePena applied for the funds to help Tenares Tire Services Inc., his tire shop in Lawrence, federal prosecutors said. (City of Lawrence)
In May 2020, DePena applied for an EIDL on behalf of his business, Tenares Tire Service Inc., an auto service and tire shop in Lawrence. The EIDL funds, which carried a 3.75% interest rate, were only to be used to alleviate pandemic-related financial struggles for businesses.
The SBA initially approved a $150,000 loan for Tenares Tire in June 2020. However, DePena sought additional funding months later upon facing cash flow issues. In April 2021, he applied for an increase and was approved for a $350,000 modification. A second loan modification followed in October 2021 that brought the total to $1.1 million.
Upon the second loan modification, DePena was unable to access the funds for a month, resulting in panic, officials said.
“Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands,” DePena allegedly wrote in a translated Spanish text message to a financial advisor assisting with the loan application.
“I know I’m bothering you a lot, but I have no other option,” he added. “Only you can give me what I need.”
Upon receiving the funds, prosecutors claim DePena began diverting them. Between August and October 2021, he allegedly transferred nearly $90,000 from his business accounts to personal accounts, subsequently writing checks totaling over $42,000 directly to “The Committee to Elect Brian DePena”.
In addition, officials said he used the taxpayer funds to pay off personal debts, including $85,000 paid to the Internal Revenue Service (IRS) to settle personal back taxes and another $883,293 to pay off high-interest mortgages on personal properties he owned in Lawrence.
“CARES Act funds were created to help small businesses survive an unprecedented national crisis — not to bankroll personal debts, political ambitions, or real estate ventures,” said Thomas Demeo, special agent in charge of the IRS Criminal Investigation Boston Field Office. “IRS Criminal Investigation remains committed to protecting taxpayer dollars, pursuing those who exploit federal relief funds, and ensuring that financial integrity is upheld at every step.”
As of Aug. 5, DePena had made only 16 payments toward the Tenares Tire EIDL, totaling $130,160. Since the payments went toward the accrued interest, the outstanding loan balance remains at approximately $1.65 million, the complaint states.
DePena is scheduled to make his initial appearance in Boston federal court on Friday afternoon. He faces up to 30 years in prison.
The mayor’s office did not immediately respond to News Media’s request for comment.