Authorities have arrested a Democratic Party official for alleged COVID-19 fraud for the second time this month. U.S. Attorney Leah Foley announced that police arrested Massachusetts State Representative Francisco Paulino early Wednesday morning. Paulino faces 11 counts related to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.
“According to the indictment, Mr. Paulino devised a scheme to obtain more than $700,000 in federal pandemic relief funds,” Foley stated. “It is alleged that Paulino used some of the money for personal expenses, including real estate costs, loan payments, and transfers to his campaign account.” Foley added, “Other money he flipped around and lent to individuals at higher interest rates than the pandemic loan rate.”
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Paulino’s alleged activities began in 2020, with fraud schemes involving the unwitting use of a 77-year-old relative’s information to apply for COVID relief funds.
The arrest occurred shortly after the FBI detained Lawrence Mayor Brian DePeña on similar charges. A federal grand jury filed an 11-count indictment against DePeña, accusing him of pandemic loan fraud and money laundering.
DePeña allegedly began diverting public funds in 2020 while serving on the Lawrence city council. He was arrested earlier this month.
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Federal prosecutors allege that DePeña misused pandemic-relief funds for his mayoral campaign and personal debts, applying with claims to support his business, Tenares Tire Services Inc.
“Everyone knows how tough times were for Americans during the pandemic,” Foley stated. “The money allegedly scammed by these individuals was intended for hardworking Americans and struggling businesses, not for those who deceitfully took for personal gain.”
Foley emphasized, “It is never satisfactory to apprehend a public official, but we will persist until the message is clear: No one is above the law.”
Anders Hagstrom covers national politics and major breaking news for Fox News Digital.
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