Massachusetts State Representative Francisco Paulino, a 46-year-old Democrat, has been arrested Wednesday on eight counts of wire fraud and three counts of unlawful monetary transactions for allegedly misusing pandemic relief funds. Prosecutors claim Paulino received over $700,000 in unemployment insurance benefits and small-business loans through his tax preparation business before being elected to the state legislature.
Paulino is accused of using those loans to purchase property and extend loans to clients at his business. If convicted, he faces up to 20 years in prison for each wire fraud charge and 10 years for each money laundering charge.
This marks the second Massachusetts Democrat arrested in Lawrence for alleged pandemic fraud this month. The city’s mayor, Brian DePeña, a 61-year-old Democrat, was arrested earlier this month after federal prosecutors accused him of stealing more than $1.5 million in pandemic funds. DePeña allegedly used the money to fund his campaign account, pay personal taxes, and finance over $880,000 in high-interest mortgages on properties he owned.
U.S. Attorney for Massachusetts Leah Foley condemned both cases at a news briefing, stating: “The conduct alleged by the Lawrence mayor and the district state representative is appalling. Everyone listening today knows how difficult it was for Americans during the pandemic and how challenging it was for businesses.” Foley also noted that the investigations began three years ago, when President Joe Biden was in office.
In her statement, Foley emphasized: “The money these two individuals allegedly scammed was meant for hard-working Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit.”
