Massachusetts has seen two Democratic officials arrested in separate cases for allegedly misusing pandemic relief funds. The first arrest occurred earlier this month when Lawrence Mayor Brian DePeña, 61, was charged with stealing more than $1.5 million in federal pandemic assistance. Prosecutors claim DePeña used the ill-gotten cash to fund his campaign account, pay personal taxes, and secure high-interest mortgages on properties he owned in Lawrence.
This week, Massachusetts State Representative Francisco Paulino, a 46-year-old Democrat who runs a tax preparation business in Lawrence, was arrested on eight counts of wire fraud and three counts of unlawful monetary transactions. Authorities allege that Paulino received over $700,000 in unemployment benefits and small-business loans during the pandemic.
According to federal prosecutors, Paulino used those funds to purchase real estate and extend loans to clients at his tax preparation business prior to being elected to the state legislature in 2023.
U.S. Attorney for Massachusetts Leah Foley condemned both cases, stating that “the money these two individuals allegedly scammed was meant for hard-working Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit.”
Foley noted that the investigations began three years ago, meaning they started while President Joe Biden was in office. She emphasized that the cases are not related.
The charges against Paulino carry potential sentences of up to 20 years in prison for each wire fraud charge and up to 10 years for each money laundering charge if convicted.
This marks the second Massachusetts Democrat arrested for alleged pandemic fraud in Lawrence, where the mayor was the first to face such charges this month.
