Arrest of Democratic Official for Alleged COVID Fraud

Authorities have arrested a Democratic official for suspected COVID fraud, marking a second arrest this month. U.S. Attorney Leah Foley announced on Wednesday that Massachusetts state Representative Francisco Paulino was taken into custody in connection with 11 counts of pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.

According to the indictment, Paulino reportedly devised a scheme to secure over $700,000 in federal pandemic relief funds. Allegations suggest he used part of the funds for personal expenses, including real estate transactions and campaign account transfers. Foley stated that Paulino also allegedly loaned money to others at higher interest rates than those applicable to pandemic loans.

“Other money he flipped around and lent to other individuals at higher interest rates than the pandemic loan rate,” said U.S. Attorney Leah Foley.

Representative Francisco E. Paulino’s arrest follows a similar case involving Lawrence Mayor Brian DePeña, who was recently taken into custody on similar charges. The FBI arrested DePeña and a federal grand jury issued an 11-count indictment against him, involving pandemic loan fraud and money laundering.

Federal investigators claim DePeña began misappropriating public funds in 2020 during his tenure on the Lawrence city council. His charges include allegations of using pandemic relief funds to support his mayoral campaign and pay personal debts, according to federal prosecutors.

“Everyone listening today knows how difficult it was for Americans during the pandemic,” stated U.S. Attorney Leah Foley. “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.”

Foley emphasized the importance of accountability, stating, “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.”

Anders Hagstrom, a reporter for Fox News Digital, covers national politics and significant breaking news stories.