Massachusetts State Rep. Francisco Paulino charged with pandemic benefit fraud, money laundering
Massachusetts State Rep. Francisco Paulino was arrested in Lawrence Wednesday and charged with pandemic benefit fraud and money laundering.
Federal prosecutors said Paulino, 46, fraudulently obtained more than $700,000 in COVID unemployment insurance benefits and small-business loans. He allegedly then used those funds to buy property and loan money to clients of his tax preparation and mortgage businesses before he was elected to the State House in 2023.
Paulino, a Democrat, represents the 16th Essex District which includes Lawrence and Methuen. He lives in Methuen.
He was indicted on eight counts of wire fraud and three counts of unlawful monetary transactions. Federal prosecutors said Paulino used intermediaries and the identities of other people, "to funnel pandemic-related relief funds to his own personal and business bank accounts," from April 2020 to December 2021.
He was arraigned in federal court in Boston Wednesday afternoon. Paulino was released on conditions that include he suspend operations of his business, Madison Tax LLC, at least until his next court appearance that is scheduled for Oct. 7.
Paulino did not answer questions from reporters while leaving court. He did not respond when asked if he planned on resigning.
WBZ-TV has reached out to Paulino's office for comment on the charges but has not heard back.
Paulino is the second high-ranking elected official from the area to be charged with fraud and money laundering this month.
Lawrence Mayor Brian DePena was arrested Friday, August 14. He was also indicted Wednesday, accused of illegally obtaining more than $1.5 million in COVID relief money in a separate alleged scheme. Federal prosecutors said DePena used the money to "fund his campaign account, pay personal taxes and pay more than $880,000 in high-interest, hard-money mortgages on properties he owned in Lawrence."
"They have stolen from all of us, and then they ran for elected office, asking people to put their faith in them. That, to me, is appalling," U.S. Attorney for Massachusetts Leah Foley said at a news conference. "It is never a proud moment when we arrest a public official, but we will continue to do it until the message is received."
"Both men are accused of treating the COVID-19 pandemic as their own personal cash cows at a time when job losses were fast and furious and so many people needed help quickly," added Ted Docks, special agent in charge for FBI Boston.
