Francisco Paulino arrested on federal pandemic fraud charges

Massachusetts State Representative Francisco Paulino has been arrested and charged with an 11-count federal indictment involving pandemic-related fraud and money laundering. Prosecutors allege that between April 2020 and December 2021, Paulino orchestrated a scheme to fraudulently obtain more than $700,000 in federal relief funds, including Pandemic Unemployment Assistance and Economic Injury Disaster Loans.

The indictment claims Paulino used the identity of an unwitting 77-year-old relative to file for unemployment benefits and utilized his tax preparation business, Madison Tax, LLC, to facilitate the fraud. The funds were allegedly used for personal expenses, such as real estate, loan payments, and transfers to his political campaign account. He is also accused of lending pandemic funds to others at high interest rates.

Paulino’s arrest follows the recent arrest of Lawrence Mayor Brian DePena, who faces similar charges for allegedly misappropriating over $1.5 million in pandemic relief funds. U.S. Attorney Leah Foley stated that the two cases are unrelated but noted the similarity in how the programs were abused. Paulino has pleaded not guilty to the charges.