Massachusetts State Representative Charged with COVID Relief Fraud

<p>Authorities arrested Massachusetts State Representative Francisco Paulino on Wednesday, marking the second arrest of a Democratic Party official this month for alleged COVID relief fraud.</p><p>U.S. Attorney Leah Foley announced that Paulino faces 11 counts related to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.</p><p>According to the indictment, Paulino is accused of devising a scheme to obtain over $700,000 in federal pandemic relief funds, some of which he allegedly used for personal expenses, including real estate costs, loan payments, and transfers to his campaign account. Foley stated, "Other money he flipped around and lent to other individuals 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.</p><p>Paulino's arrest follows the recent arrest of Lawrence Mayor Brian DePeña, who was charged with similar offenses. A federal grand jury has also indicted DePeña on 11 counts 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 and was arrested earlier this month.</p><p>Foley remarked, "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, not for two greedy individuals who lied and stole for their own personal benefit." She added, "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>