A sitting Massachusetts Democratic state representative faces an 11-count federal indictment for allegedly looting more than $700,000 in pandemic relief funds, the second Democratic official in the state arrested on similar charges this month.
FBI agents arrested State Rep. Francisco Paulino early Wednesday morning on charges of pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering. U.S. Attorney Leah Foley announced the case alongside the ongoing prosecution of Lawrence Mayor Brian DePeña, who Fox News Digital reported was arrested by the FBI earlier the same month on a separate but strikingly similar 11-count indictment.
Two elected Democrats in one state, both charged with treating pandemic aid as a personal slush fund, both allegedly running their schemes since 2020. The pattern is hard to miss.
Federal prosecutors say Paulino's fraud began in 2020, when he signed up for COVID relief funding on behalf of an unwitting 77-year-old relative. The indictment alleges he then funneled the proceeds into personal use, real estate expenses, loan payments, and transfers directly into his own campaign account.
He didn't stop there. Prosecutors allege Paulino took pandemic loan money and lent it to other individuals at interest rates higher than the rate on the original government loan, effectively running a private lending operation with stolen federal dollars.
Paulino allegedly operated the scheme through his tax preparation company, Madison Tax, the Washington Examiner reported, fraudulently obtaining the federal benefits between April 2020 and December 2021. The charges break down to eight counts of wire fraud and three counts of unlawful monetary transactions.
Foley did not hold back about what the case represents. She framed both the Paulino and DePeña arrests as a message to public officials who believed their positions shielded them from accountability.
Foley stated:
"Everyone listening today knows how difficult it was for Americans during the pandemic. The money these two individuals allegedly scammed was meant for hardworking Americans and struggling business owners, not for two greedy individuals who lied and stole for their own personal benefit."
She followed that with a blunter warning:
"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."
Paulino's arrest did not happen in isolation. Weeks before, FBI agents arrested Lawrence Mayor Brian DePeña on his own 11-count federal indictment. DePeña allegedly began diverting public funds in 2020 while serving on the Lawrence city council, before he became mayor.
DePeña applied for pandemic relief funds on behalf of Tenares Tire Services Inc., his tire shop in Lawrence. Prosecutors allege he used those funds to bankroll his mayoral campaign and pay off personal debts. The Newsmax report on the case put the total amount DePeña allegedly diverted at more than $1.5 million, more than double the amount in Paulino's indictment.
FBI Special Agent in Charge Ted Docks offered a pointed summary of both cases. The New York Post reported his remarks alongside Foley's announcement.
Docks said:
"Simply put, both men are accused of treating the COVID-19 pandemic as their own personal cash cows."
Foley added that her office remained committed to finding every dollar stolen from pandemic programs. "We are dialed in and laser-focused on rooting out every bit we find," she said. "We will continue to hold fraudsters accountable until the stealing stops."
Paulino's arrest marks the second time a sitting Massachusetts Democratic state representative has been indicted during the current legislative session. Rep. Chris Flanagan was charged with wire fraud in April 2025, according to Newsmax's reporting. That earlier case involved a different set of allegations, but the accumulation of indictments within a single statehouse caucus raises obvious questions about oversight, or the lack of it.
Massachusetts House Speaker Ron Mariano called the Paulino charges "extremely concerning" and said the chamber would monitor the case and act if needed. He did not elaborate on what action might follow.
The broader record of Democratic state legislators facing pandemic fraud charges extends well beyond Massachusetts. And the problem is not limited to pandemic money. Allegations of corruption and misconduct have trailed Democratic officials across multiple states, from corruption allegations against California's attorney general to a Democratic congressional candidate arrested in Hawaii on a threatening charge.
The COVID pandemic relief programs, rushed into existence under emergency conditions, disbursed hundreds of billions of dollars with minimal verification. Years later, federal prosecutors are still peeling back layers of fraud. The Paulino and DePeña cases illustrate what happens when massive government spending meets weak controls: public officials, the very people entrusted with serving their communities, allegedly helped themselves first.
Paulino's alleged scheme is notable for its mechanics. He did not simply pocket relief checks. He allegedly weaponized his own elderly relative's identity to access the funds, then diversified his fraud, spending some on personal expenses, routing some to his campaign, and lending the rest at a profit. That is not a crime of desperation. It is, if the indictment holds, a calculated financial operation.
Concerns about pandemic fraud oversight have surfaced at the state and federal level alike. A House oversight report accused the Walz administration in Minnesota of ignoring fraud warnings as billions in federal funds disappeared. The Massachusetts cases add two more names to a growing roster of officials who allegedly exploited the crisis.
Neither Paulino nor DePeña has entered a public plea. No statement from Paulino or his legal counsel appeared in available reporting. DePeña's case status following his arrest and indictment remains unclear.
Several questions remain unanswered: which specific pandemic programs Paulino exploited, the identity of the elderly relative whose name was allegedly used, and what real estate transactions the stolen money funded. Prosecutors have not disclosed those details publicly.
When elected officials steal from programs designed to keep families afloat during a national emergency, accountability is not optional, it is the bare minimum a self-governing people should expect.