Massachusetts State Rep. Arrested On Federal COVID Relief Fraud Charges

BOSTON, MA — A Massachusetts state representative has been arrested and charged in connection with an alleged pandemic benefit fraud scheme, the United States District Attorney's Office for the District of Massachusetts announced Wednesday.

Methuen Democrat Francisco Paulino, who represents the 16th Essex District, was indicted on eight counts of aiding and abetting wire fraud and three counts of aiding and abetting money laundering. A separate indictment was also unsealed Wednesday charging Lawrence Mayor Brian DePeña with COVID relief fraud.

According to federal authorities, Paulino is accused of using other people's identities and intermediaries to funnel federal COVID-19 relief money into business and personal accounts. United States Attorney for the District of Massachusetts Leah Foley said that Paulino frudulently obtained more than $700,000.

"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 in a press conference. "Other money he flipped around and lent to other individuals at higher interest rates than the pandemic loan rate."

Paulino's arrest comes nearly two years after federal agents searched a Lawrence property he owns. The FBI conducted what it described as court-authorized activity at Paulino's Essex Street building in November 2024, with the search reportedly focusing on a Heav'nly Donuts located inside the property. Authorities did not disclose the subject of the investigation at the time, and Paulino had not been charged with a crime.

Paulino has several business interests in the Lawrence area and lists his profession as a tax lawyer and business consultant, according to his Massachusetts Legislature biography. He founded Madison Tax LLC in 2013 and Madison Mortgage Inc. in 2019 and has also worked as a senior mortgage consultant. Madison Tax operates out of the same Essex Street property searched by federal agents in 2024. As of 2023, Paulino reportedly owned approximately $5.8 million worth of property across three communities, including 20 units in the Essex Street building. His 2023 state financial disclosure also showed at least $300,000 in income from four private-sector jobs and ownership interests in six businesses.

Paulino has represented portions of Lawrence and Methuen in the Massachusetts House of Representatives since 2023. He was first elected in 2022 after defeating five-term incumbent Marcos Devers in the Democratic primary before running unopposed in the general election. Paulino defeated Devers again in the 2024 Democratic primary before winning a second term.

Before joining the Legislature, Paulino served on the Lawrence School Committee. He earned a bachelor's degree in criminal justice in 2012 before receiving a Juris Doctor and Master of Laws in taxation from Suffolk University Law School in 2016. He currently serves on the House Committee on Climate Action and Sustainability, the House Committee on Intergovernmental Affairs, the Joint Committee on Bonding, Capital Expenditures and State Assets, and the Joint Committee on Revenue.