Massachusetts State Rep. Francisco Paulino charged with pandemic benefit fraud, money laundering
Massachusetts State Rep. Francisco Paulino was arrested in Lawrence Wednesday and charged with pandemic benefit fraud and money laundering.
Federal prosecutors said Paulino, 46, fraudulently obtained more than $700,000 in COVID unemployment benefits and small-business loans, then used the funds to buy property and loan money to clients of his tax preparation and mortgage businesses before he was elected to the State House in 2023.
Paulino, a Democrat who represents the 16th Essex District, including Lawrence and Methuen, lives in Methuen.
He was indicted on eight counts of wire fraud and three counts of unlawful monetary transactions. Prosecutors said that from April 2020 to December 2021, Paulino used intermediaries and other people’s identities to funnel pandemic relief funds into his personal and business bank accounts. He will be arraigned in federal court in Boston Wednesday afternoon.
Paulino is the second high-ranking elected official from the area charged with fraud and money laundering this month.
Lawrence Mayor Brian DePena was arrested Aug. 14 and indicted Wednesday in a separate case, accused of illegally obtaining more than $1.5 million in COVID relief funds. Prosecutors said DePena used the money to fund his campaign account, pay personal taxes and make more than $880,000 in high-interest, hard-money mortgage payments on properties he owned in Lawrence.
