A Massachusetts Democratic official was arrested Wednesday on allegations of COVID-19 relief fraud, marking the second such arrest involving a party figure in the state this month.
U.S. Attorney Leah Foley said Massachusetts state Rep. Francisco Paulino was taken into custody early Wednesday and charged in an 11-count indictment tied to pandemic unemployment insurance fraud, pandemic loan fraud and money laundering.
“According to the Paulino indictment, Mr. Paulino devised a scheme to obtain more than $700,000 in federal pandemic relief funds. It is alleged that Paulino used some of the money for his own personal use, including real estate expenses, loan payments and transfers to his campaign account,” Foley said.
Foley added that prosecutors allege Paulino moved other funds through a separate arrangement, lending money to individuals at interest rates higher than those attached to the pandemic loans.
According to the indictment, the alleged scheme dates back to 2020, when Paulino applied for COVID relief funds using the name of what prosecutors described as “an unwitting 77-year-old relative.”
Paulino’s arrest follows the FBI’s arrest about a week earlier of Lawrence Mayor Brian DePeña, who is facing similar federal allegations.
A federal grand jury also returned an 11-count indictment against DePeña, with charges connected to pandemic loan fraud and money laundering.
Federal investigators say DePeña allegedly began “diverting public funds” in 2020, during his time as a member of the Lawrence City Council.
He was arrested earlier this month.
“Everyone listening today knows how difficult it was for Americans during the pandemic,” Foley said.
“The money these two individuals allegedly scammed was meant for hardworking Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit.”
“It is never a proud moment when we arrest a public official, but we will continue to do it until the message is received: No one is above the law, and no one gets a pass,” she added.
