Massachusetts lawmaker arrested for $700K pandemic fraud and money laundering
State Rep. Francisco Paulino, 46, was arrested in Lawrence on charges of COVID benefit fraud and money laundering totalling over $700,000.
Massachusetts state representative faces federal charges over pandemic relief scheme
Google News MT — Crime (en) reports that Massachusetts State Representative Francisco Paulino was arrested in Lawrence on Wednesday and charged with pandemic benefit fraud and money laundering.
Federal prosecutors allege that Paulino, 46, fraudulently obtained more than $700,000 in COVID-19 unemployment insurance benefits and small-business loans. He then allegedly used those funds to purchase property and extend loans to clients of his tax preparation and mortgage businesses — conduct that prosecutors say predates his election to the State House in 2023.
Paulino, a Democrat representing the 16th Essex District — which covers Lawrence and Methuen — was indicted on eight counts of wire fraud and three counts of unlawful monetary transactions. Prosecutors say he used intermediaries and other people's identities "to funnel pandemic-related relief funds to his own personal and business bank accounts" between April 2020 and December 2021.
He was arraigned in federal court in Boston on Wednesday afternoon and released on conditions that include suspending operations of his business, Madison Tax LLC, at least until his next court appearance, scheduled for 7 October. Paulino did not answer questions from reporters as he left court and did not respond when asked whether he intended to resign. His office had not replied to a request for comment at the time of reporting.
Paulino is the second prominent elected official from the Lawrence area to face fraud and money laundering charges this month. Lawrence Mayor Brian DePena was arrested on Friday, 14 August, and was also indicted on Wednesday. Prosecutors allege DePena illegally obtained more than $1.5 million in COVID relief funds in a separate scheme, using the money to "fund his campaign account, pay personal taxes and pay more than $880,000 in high-interest, hard-money mortgages on properties he owned in Lawrence."
U.S. Attorney for Massachusetts Leah Foley addressed both cases at a news conference. "They have stolen from all of us, and then they ran for elected office, asking people to put their faith in them. That, to me, is appalling," Foley said. "It is never a proud moment when we arrest a public official, but we will continue to do it until the message is received."
Ted Docks, special agent in charge for FBI Boston, added that both men are "accused of treating the COVID-19 pandemic as their own personal cash cows at a time when job losses were fast and furious and so many people needed help quickly."
Source: Google News MT — Crime (en)