Massachusetts State Rep. Francisco Paulino, D-Methuen, was arrested Wednesday and taken into federal custody after a grand jury indicted him on 11 charges stemming from an alleged pandemic-era benefits scheme.
The U.S. Attorney's Office for Massachusetts and FBI Boston announced the indictment, which includes eight counts of wire fraud and three counts of unlawful monetary transactions.
Federal prosecutors allege Paulino filed a pandemic unemployment benefits claim for an elderly relative without their knowledge, then routed the funds into a bank account held solely in his name and later submitted fabricated documents when the state Department of Unemployment Assistance inquired.
He is also accused of fraudulently obtaining economic injury disaster loans for two of his own businesses, plus one filed in a client's name. Prosecutors say Paulino owned and operated Madison Tax, LLC and Madison Mortgage, Inc., and used his tax preparation business as a device to carry out the scheme.
Paulino is the second sitting Massachusetts Democrat state representative indicted on federal charges this session, following Rep. Chris Flanagan of Dennis, who was arrested last year on wire fraud allegations tied to a local trade association.
The same Wednesday announcement also unsealed a separate indictment against Lawrence Mayor Brian DePeña, a fellow Democrat, over alleged COVID-era loan fraud. Prosecutors say DePeña fraudulently obtained more than $1.5 million in pandemic-era small-business loans. The pairing puts two North Shore Democratic officials in federal court the same week.
Paulino's office has not yet responded to requests for comment. A detention hearing has not yet been scheduled.
