Massachusetts State Rep. Francisco Paulino Charged with COVID Relief Fraud

<p>Authorities arrested Massachusetts State Representative Francisco Paulino on August 26, 2026, charging him with 11 counts related to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering. U.S. Attorney Leah Foley stated that Paulino allegedly devised a scheme to obtain over $700,000 in federal pandemic relief funds.</p><p>According to the indictment, Paulino is accused of using some of the funds for personal expenses, including real estate costs, loan payments, and transfers to his campaign account. Additionally, he allegedly lent some of the money to others at higher interest rates than the pandemic loan rate.</p><p>The indictment indicates that Paulino's alleged fraudulent activities began in 2020 when he applied for COVID relief funding on behalf of a 77-year-old relative without their knowledge. His arrest follows the recent arrest of Lawrence Mayor Brian DePeña, who faces similar charges, including an 11-count indictment related to pandemic loan fraud and money laundering.</p><p>The FBI reported that DePeña began diverting public funds in 2020 while serving on the Lawrence city council. U.S. Attorney Foley emphasized the seriousness of the allegations, stating that the funds were intended for hardworking Americans and struggling business owners.</p><p>Foley remarked, "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."</p>