Massachusetts Lawmaker Arrested for Alleged Pandemic Fraud

A Democrat from Massachusetts has been arrested in connection with alleged fraud involving pandemic relief funds, following the arrest of the city’s mayor earlier this month.

State Representative Francisco Paulino, age 46, is reported to have misused information from his tax preparation business in Lawrence to apply for pandemic funds deceitfully.

According to the authorities, Paulino faces multiple charges, including eight counts of wire fraud and three counts of unlawful monetary transactions. It is claimed that he obtained over $700,000 in unemployment benefits and small-business loans linked to the pandemic and used these funds to purchase property and provide loans to his clients in the tax prep business before starting his duties in the state legislature in 2023.

Prosecutors indicate that, should he be found guilty, Paulino could face up to 20 years in prison for each count of wire fraud and 10 years for each money laundering count.

Paulino represents the 16th Essex District, which encompasses Lawrence, where Mayor Brian DePeña was also arrested. Federal prosecutors accused DePeña of stealing more than $1.5 million in pandemic funds, allegedly using the stolen money to pay personal taxes and to cover hefty mortgage payments on his properties.

U.S. Attorney Leah Foley criticized the actions of both the mayor and the state representative at a news briefing, saying, “The conduct alleged by the Lawrence mayor and the district state representative is appalling.” She emphasized the struggles of Americans and businesses during the pandemic, stating that the funds were meant to help those in need, not be exploited by individuals for personal gain.

Foley also clarified that the investigations into both cases are separate and noted that they began three years ago, which dates back to the period when President Biden was still in office.