Massachusetts Lawmaker Charged with Federal COVID-19 Relief Fraud

Federal investigators have indicted State Rep. Francisco Paulino, a Democrat from Lawrence and Methuen, on wire-fraud and money-laundering charges tied to COVID-19 relief programs. Court filings claim he exploited his company, Madison Tax, to submit fraudulent unemployment claims and altered applications for Economic Injury Disaster Loans from April 2020 through December 2021, extracting over $700,000. Among the alleged schemes, Paulino is accused of filing a $44,000 claim using a 77-year-old relative’s identity and inflating the revenue of Jackson Enterprise, which operates a Heav’nly Donuts outlet, to secure additional funds.

He also purportedly obtained a $200,000 disaster-loan increase for a non-English-speaking laundry business owner, then funneled the money to Madison Tax for a personal mortgage. The indictment arrives less than two weeks after Lawrence Mayor Brian DePena was arrested for a separate pandemic-relief fraud case. U.S. District Attorney Leah Foley said the department is “laser-focused” on rooting out abuse of federal aid, while FBI Boston Field Office chief Ted Docks warned that such fraud deprives legitimate recipients of needed assistance.