Democratic officials charged with fraud due to alleged COVID relief funds scam

On Wednesday, a Democratic Party official was arrested for the second time this month over alleged COVID-related fraud.

According to US Attorney Leah Foley, Massachusetts state Representative Francisco Paulino was taken into custody early Wednesday, facing 11 charges tied to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.

Foley stated, “The indictment against Mr. Paulino claims he orchestrated a scheme to acquire over $700,000 in federal pandemic relief funds. It is alleged that Paulino allocated some of this money for personal expenses, including real estate costs, loan payments, and transfers to his campaign account.”

She further explained, “He also allegedly lent money to others at interest rates higher than those of the pandemic loans.”

The indictment details that Paulino’s alleged fraudulent activities began in 2020 when he applied for COVID relief funds on behalf of a 77-year-old relative without their knowledge.

Paulino’s arrest follows the FBI’s apprehension of Lawrence Mayor Brian DePeña on similar charges about a week ago.

A federal grand jury also issued an 11-count indictment against DePeña, accusing him of pandemic loan fraud and money laundering.

The FBI reports that DePeña allegedly began misappropriating public funds in 2020 during his tenure on the Lawrence city council.

He was arrested earlier this month.

Foley remarked, “Everyone listening today knows how difficult it was for Americans during the pandemic.”

“The funds these two individuals allegedly misappropriated were intended for hardworking Americans and struggling business owners, not for individuals who misrepresented themselves for personal gain,” she asserted.

Foley concluded, “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.”