Pandemic Relief Fraud Charges
Massachusetts State Representative Francisco Paulino Indicted on Federal Pandemic Relief Fraud Charges
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Key Points
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Paulino was arrested on August 26, 2026.
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According to his state legislature website, Paulino is described as a 'tax lawyer/business consultant' and has two children.
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He is the second high-ranking elected official from the Lawrence and Methuen area to be charged with fraud and money laundering this month.
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The charges place Paulino in the same federal case timeline as Lawrence Mayor Brian DePeña, who was arrested earlier in August and indicted in a separate but related COVID-relief scheme.
Massachusetts State Rep. Francisco Paulino was arrested and charged with using pandemic relief funds for personal gain. CBS News reports the Democrat, who represents the 16th Essex District in Lawrence and Methuen, faces eight counts of wire fraud and three counts of unlawful monetary transactions. Federal prosecutors say Paulino funneled hundreds of thousands of dollars through intermediaries and used borrowed identities to hide who controlled the money between 2020 and 2021.
Paulino's tax business, Madison Tax, served as a front to move relief funds between his personal and business accounts. Rolling Out reports he obtained government loans under false pretenses tied to his public-facing work. He is the second elected official from the Lawrence-Methuen area arrested this month on fraud charges, following Lawrence Mayor Brian DePeña.
How Paulino Allegedly Moved Pandemic Funds
Federal prosecutors describe an elaborate scheme using fake names and shell accounts. New Boston Post states Paulino fraudulently obtained pandemic unemployment benefits and business loans designed to help workers and small companies during COVID-19. He then moved the money through intermediaries to obscure its true source and ownership. His Madison Tax business became the vehicle for transferring funds between accounts.
The charges allege Paulino used both personal and business bank accounts as fronts for the relief loans. Prosecutors say he borrowed identities to disguise control of the funds. All transactions occurred between 2020 and 2021, when pandemic relief programs were at their peak.
Part of Broader Fraud Wave Hitting Local Officials
Paulino's arrest reveals a troubling pattern among elected officials in the Lawrence-Methuen area. Boston Herald reports his arrest comes less than two weeks after Lawrence Mayor Brian DePeña faced similar charges in a separate but related COVID-relief scheme. Both cases highlight gaps in oversight of pandemic aid distribution.
The timing raises questions about how thoroughly federal agencies vetted pandemic loan recipients. Local officials had access to programs designed to help workers and businesses survive shutdowns. Some instead used their positions and networks to exploit the system for personal enrichment.
Who Paulino Was Before the Indictment
According to his state legislature website, Paulino is described as a tax lawyer and business consultant. He has two children and represented constituents across the 16th Essex District in the Massachusetts House. His background in tax and business law made him familiar with financial systems that he allegedly exploited for fraud.
The indictment transforms Paulino from a sitting state representative into a federal defendant. His arrest on August 26, 2026, marks a dramatic fall from public trust. Federal prosecutors plan to detail the full scope of charges at a Boston press conference.
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