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Massachusetts officials arrested for pandemic fraud

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2026-08-27 19:03 UTC → 2026-09-08 17:49 UTC · added ~~removed~~

In August 2026, federal authorities arrested two Massachusetts officials in connection with pandemic-related fraud investigations. On August 19, Lawrence Mayor Brian DePeña was arrested on federal charges including wire fraud and unlawful monetary transactions. Court documents allege DePeña misappropriated more than $1.5 million in Covid-19 relief funds, intended for his tire business, to settle personal debts and finance his political campaign. Following this, on August 26, Massachusetts State Representative Francisco Paulino was arrested after a federal grand jury indictment. Paulino, ~~who represents Lawrence and Methuen,~~ a 46-year-old Democrat representing the 16th Essex district, is accused of orchestrating a scheme between April 2020 and December 2021 to divert taxpayer-backed COVID-19 funds into accounts under his control. The indictment includes eight counts of wire fraud and three counts of unlawful monetary transactions involving amounts of $100,000, $120,000, and $200,000. Prosecutors allege Paulino used his tax preparation business, Madison Tax, to fraudulently obtain more than $700,000 in federal 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 fraudulent unemployment claims and diverted funds to cover personal expenses such as real estate, loan payments, and campaign transfers. He is also accused of lending public funds to others at high interest rates. Paulino has pleaded not guilty. Following his court appearance, 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 investigation. U.S. Attorney Leah Foley described the conduct of these officials as “appalling.” ~~Paulino has pleaded not guilty to the charges. While the cases involve similar abuses of pandemic programs, U.S. Attorney Foley stated that the two cases are unrelated.~~

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