Francisco Paulino charged with COVID-19 relief fraud

Massachusetts State Representative Francisco Paulino has been charged by the FBI with wire fraud and money laundering. The 46-year-old Democrat, who represents the 16th Essex district including Lawrence and Methuen, is accused of fraudulently obtaining more than $700,000 in unemployment benefits and small business loans during the COVID-19 pandemic.

Federal prosecutors allege that Paulino used a portion of these funds to finance real estate operations and provide loans to clients of his mortgage business prior to his election to public office. He faces eight counts of wire fraud, which carry a maximum penalty of 20 years in prison per count, and three counts of money laundering, which carry up to 10 years per count.

Paulino pleaded not guilty to the 11 charges during his court appearance on August 26. He was released on bond with travel restrictions limiting him to Massachusetts and New Hampshire, with permission to travel to Washington, D.C., for legal counsel. A judge also ordered the temporary suspension of his businesses, Madison Mortgage and Madison Tax, which are central to the federal investigation.