Massachusetts State Rep. Francisco Paulino and Lawrence Mayor Brian DePeña have been federally indicted on charges of COVID relief fraud, pandemic loan fraud, and money laundering, authorities announced Wednesday.
U.S. Attorney Leah Foley stated that Paulino was arrested early Wednesday morning and faces 11 counts related to allegedly stealing over $700,000 in federal pandemic relief funds. According to the indictment, Paulino is accused of using some of these funds for personal expenses, including real estate and loan payments, as well as transferring money to his campaign account. He also allegedly lent money to others at higher interest rates than those offered by pandemic loans.
The alleged fraud began in 2020 when Paulino reportedly signed up for COVID relief funding on behalf of a 77-year-old relative who was unaware of the scheme. Paulino, a Democrat representing the 16th Essex district, was photographed signing health care legislation in January 2026.
Paulino's arrest follows that of Lawrence Mayor Brian DePeña, who was indicted on similar charges by a federal grand jury the previous week. The FBI arrested DePeña earlier this month, charging him with 11 counts related to pandemic loan fraud and money laundering. Prosecutors allege DePeña diverted public funds beginning in 2020 while serving on the Lawrence city council. He reportedly applied for funds for his tire shop, Tenares Tire Services Inc., using the money for his mayoral campaign and to pay off personal debts.
Foley emphasized that the funds in question were intended for struggling Americans and businesses during the pandemic, not for personal enrichment. She added that while arresting public officials is never a positive development, the Justice Department will continue to prosecute such cases, stating, "No one is above the law, and no one gets a pass."