Massachusetts State Rep. Francisco Paulino was arrested Wednesday on multiple charges related to alleged fraud involving federal pandemic relief funds, marking the second such arrest of a Democratic official in the state this month. Paulino faces 11 counts including pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.
According to US Attorney Leah Foley, Paulino is accused of orchestrating a scheme to obtain over $700,000 in federal pandemic aid. The indictment alleges that some of these funds were used for personal expenses such as real estate and loan payments, and transfers to his campaign account. It is also alleged that Paulino lent some of the funds to other individuals at interest rates exceeding those of the pandemic loans. The alleged fraud began in 2020 when Paulino reportedly applied for COVID relief funds on behalf of an unsuspecting relative.
This arrest follows the recent apprehension of Lawrence Mayor Brian DePeña, who was also charged with pandemic loan fraud and money laundering in an 11-count indictment. The FBI stated that DePeña began allegedly diverting public funds in 2020 while serving on the Lawrence city council.
Foley emphasized that the funds in question were intended for struggling Americans and businesses. "It is never a proud moment when we arrest a public official, but we will continue to do it until the message is received: No one is above the law, and no one gets a pass," she stated, underscoring the commitment to prosecute those who allegedly misused pandemic aid for personal gain.