Massachusetts lawmaker arrested on 11 federal counts for alleged COVID relief fraud scheme
A sitting Massachusetts state representative faces federal charges for allegedly stealing more than $700,000 in pandemic relief money, the second Democratic official in the same region hit with similar charges this month.
Federal prosecutors arrested State Rep. Francisco Paulino early Wednesday morning on an 11-count indictment covering pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering. U.S. Attorney Leah Foley said Paulino devised a scheme beginning in 2020 to siphon federal COVID relief funds meant for struggling workers and small businesses, then spent the money on himself, including real estate expenses, loan payments, and direct transfers into his own campaign account, Fox News Digital reported.
Paulino's arrest landed roughly a week after the FBI picked up Lawrence, Massachusetts, Mayor Brian DePeña on a separate but strikingly similar 11-count indictment. Both men are Democrats. Both allegedly began looting pandemic programs in 2020. And both now face the same federal prosecutor.
Prosecutors say Paulino exploited a 77-year-old relative to launch the scheme
The indictment alleges Paulino kicked off the fraud by signing up an unwitting 77-year-old relative for COVID relief funding. That single fraudulent unemployment claim netted approximately $44,000 in benefits, the Washington Examiner reported. From there, prosecutors say, the scheme grew.
Paulino allegedly ran the broader operation through his tax-preparation firm, Madison Tax LLC, routing money through other people's identities and intermediaries, according to Newsmax. The indictment breaks down into eight counts of wire fraud and three counts of unlawful monetary transactions tied to more than $700,000 in fraudulently obtained relief money.
Some of the stolen funds allegedly went straight into Paulino's pockets, covering real estate costs, paying down loans, and padding his campaign war chest. Other money, Foley said, Paulino "flipped around and lent to other individuals at higher interest rates than the pandemic loan rate." In other words, prosecutors allege the lawmaker turned taxpayer-funded emergency aid into a personal lending operation.
Foley did not hold back at the announcement. She framed the case as a direct betrayal of Americans who suffered through the pandemic's economic fallout:
"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."
The pattern of Democratic officials facing criminal charges has become difficult to ignore. A Hawaii Democratic candidate was recently charged with felony threats after a beach altercation, and other prominent figures on the left have found themselves on the wrong side of the law in recent months.
Lawrence Mayor Brian DePeña allegedly used pandemic loans to fund his campaign
DePeña's case runs on a parallel track. A federal grand jury indicted the Lawrence mayor on 11 counts of pandemic loan fraud and money laundering. Prosecutors allege he began diverting public funds in 2020 while still serving on the Lawrence city council, before he became mayor.
DePeña allegedly applied for pandemic relief funds through Tenares Tire Services Inc., his tire shop in Lawrence, then funneled the money into his mayoral campaign and used it to pay off personal debts. The FBI arrested him earlier this month.
FBI Special Agent in Charge Ted Docks tied the two cases together bluntly, as the Washington Examiner reported:
"Simply put, both men are accused of treating the COVID-19 pandemic as their own personal cash cows."
The cases are not isolated curiosities. Pandemic fraud has been a persistent problem nationwide, with billions in relief dollars lost to waste and abuse. But the concentration of two elected Democratic officials in the same Massachusetts region, charged within a week of each other on nearly identical schemes, stands out. Questions about oversight failures, and whether fraud-fighting efforts by Democratic leaders have matched the rhetoric, deserve serious answers.
Foley warns no elected official gets a pass
Foley acknowledged the gravity of arresting sitting public officials but made clear her office would not hesitate to do it again:
"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 added that her office remained "dialed in and laser-focused on rooting out every bit we find," pledging to "hold fraudsters accountable until the stealing stops."
Massachusetts House Speaker Ron Mariano called the charges against Paulino "extremely concerning" and said the chamber would monitor the case and act if needed, the New York Post reported. That measured statement stopped well short of calling for Paulino's resignation or suspension.
Neither Paulino nor DePeña has publicly responded to the charges based on available reporting. No plea has been entered in either case. Paulino remains, as of the announcement, a sitting member of the Massachusetts state legislature.
The indictment does not name the specific federal pandemic relief programs Paulino allegedly exploited, whether the Paycheck Protection Program, Economic Injury Disaster Loans, Pandemic Unemployment Assistance, or some combination. The identities of the individuals to whom Paulino allegedly lent money at inflated interest rates also remain undisclosed. These are gaps the prosecution will presumably fill as the case moves forward.
A photo caption from a January 8 event showed Paulino watching as Massachusetts Governor Maura Healey signed healthcare legislation, a reminder that the lawmaker was operating in plain sight at the highest levels of state government while, prosecutors allege, a fraud scheme stretching back to 2020 remained undetected. The accountability questions extend beyond Paulino and DePeña themselves to the institutions that failed to catch the alleged theft for years. Similar questions have surfaced around other prominent figures facing legal trouble, where accountability lagged far behind the alleged conduct.
Paulino is the second sitting Massachusetts Democratic state representative indicted this legislative session. The back-to-back arrests of two Lawrence-area Democratic officials on federal COVID fraud charges raise an uncomfortable question about whether the political class in that corner of Massachusetts treated pandemic relief as something other than emergency aid for constituents. The broader pattern of Democratic officials entangled in legal proceedings only sharpens the scrutiny.
Pandemic relief was sold to the American public as a lifeline. When elected officials allegedly turn that lifeline into a personal slush fund, the betrayal lands twice, once on the taxpayers who funded it, and once on the constituents who trusted the people spending it.




