A Massachusetts state lawmaker appeared in federal court in Boston on Wednesday after a grand jury indictment was unsealed charging him with pandemic benefit fraud and money laundering. The case centers on alleged misuse of COVID-19 relief programs, which prosecutors say included more than $700,000 in unemployment insurance and small-business aid.
Federal prosecutors alleged that Rep. Francisco E. Paulino, a Democrat representing the 16th Essex district, fraudulently obtained the pandemic funds, then used the money to purchase property and extend loans to clients of his tax preparation and mortgage businesses. Paulino, a tax attorney, was elected to the Massachusetts House of Representatives in 2023.
Pandemic benefit fraud allegations
According to prosecutors, the funds at issue consisted of COVID-19 unemployment insurance benefits and small-business loans. Authorities allege Paulino redirected the proceeds into real estate acquisitions and lending activity tied to his private business operations. He appeared in federal court following the unsealing of the indictment.
The charges include pandemic benefit fraud and money laundering. The case is being prosecuted by the U.S. attorney’s office for the District of Massachusetts.
The case marks the second time this month that the U.S. attorney’s office for the District of Massachusetts has brought allegations against a state or local official over misuse of pandemic-era loans. Earlier in August, Lawrence Mayor Brian Depena was arrested on accusations that he obtained more than $1.5 million in COVID-19 small-business loans to support his mayoral campaign and to help pay personal taxes and mortgages, according to published reports.
Depena’s case follows other recent high-profile federal prosecutions, including a 77-year federal sentence for a member of the 764 extremist group announced earlier this year.
Paulino’s office did not immediately respond to a request for comment. The indictment remains allegations at this stage, and the defendant is presumed innocent unless and until proven guilty.
The Massachusetts House of Representatives has not publicly addressed the charges against the lawmaker. Federal authorities have continued to pursue cases involving alleged fraud tied to COVID-19 relief programs nationwide.