Authorities took action against a Democratic Party official amid allegations of COVID fraud. This marks the second such arrest in the month. Massachusetts state Representative Francisco Paulino was arrested early Wednesday morning, facing 11 charges tied to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.
U.S. Attorney Leah Foley stated that Paulino is accused of creating a scheme to acquire over $700,000 in federal pandemic relief funds. Allegations indicate that he used these funds for personal expenses like real estate, loan repayments, and even transferred money to his campaign account. Foley added that Paulino also lent some of this money to others at interest rates higher than those for pandemic loans.
“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.
The indictment detailed that Paulino’s alleged fraudulent activity began in 2020, using the identity of an unsuspecting 77-year-old relative to secure COVID relief funding.
This arrest follows closely on the heels of a similar case involving Lawrence Mayor Brian DePeña. He was charged with the same counts related to pandemic loan fraud and money laundering. Authorities revealed that DePeña allegedly started diverting public funds in 2020 while serving the Lawrence city council. He faces accusations of misusing pandemic-relief funds for his mayoral campaign and personal debt payments.
Foley emphasized the impact of COVID relief funds: “Everyone listening today knows how difficult it was for Americans during the pandemic. The money these two individuals allegedly scammed was meant for hardworking Americans and struggling business owners.”
“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 further stated.
This incident highlights a critical stance by law enforcement to uphold justice regardless of an individual’s position. The focus remains on directing pandemic funds to their intended purpose of aiding Americans in need.