Democrat officials charged for allegedly scamming COVID relief funds

Authorities arrested a Democratic Party official for alleged COVID fraud for the second time this month on Wednesday.

U.S. Attorney Leah Foley says police arrested Massachusetts State Rep. Francisco Paulino early Wednesday morning, charging him with 11 counts related to pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering.

“According to the Paulino indictment, Mr. Paulino devised a scheme to obtain more than $700,000 in federal pandemic relief funds. It is alleged that Paulino used some of the money for his own personal use, including real estate expenses, loan payments and transfers to his campaign account,” Foley said.

“Other money he flipped around and lent to other individuals at higher interest rates than the pandemic loan rate,” she continued.

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The indictment says Paulino’s alleged fraud began in 2020 when he signed up for COVID relief funding on behalf of “an unwitting 77-year-old relative.”

Paulino’s arrest comes roughly a week after the FBI arrested Lawrence Mayor Brian DePeña on similar charges. A federal grand jury also handed down an 11-count indictment against DePeña with charges relating to pandemic loan fraud and money laundering.

The FBI says DePeña first began “diverting public funds” in 2020 when he was serving on the Lawrence city council. He was arrested earlier this month.

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“Everyone listening today knows how difficult it was for Americans during the pandemic,” Foley said. “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.”

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“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,” she added.