Mass. Rep. Paulino Arrested on Federal Fraud Charges

Massachusetts State Representative Francisco Paulino was arrested Wednesday morning, August 26, 2026, following a federal grand jury indictment on 11 counts related to an alleged scheme to fraudulently obtain over $700,000 in taxpayer-funded COVID-19 relief money. The Democrat, who represents the 16th Essex District including Lawrence and Methuen, pleaded not guilty to all charges during an arraignment in federal court in Boston that afternoon.

The indictment, unsealed Tuesday, August 25, charges Paulino with eight counts of aiding and abetting wire fraud and three counts of aiding and abetting money laundering. Federal prosecutors allege the scheme began in April 2020 and continued through at least December 2021, exploiting pandemic unemployment and Small Business Administration loan programs. U.S. Attorney Leah Foley stated that Paulino used his tax preparation company, the identities of others, and intermediaries to funnel funds into personal and business accounts for expenses including real estate, loan payments, and transfers to his campaign account.

According to the indictment, the alleged operation started when Paulino filed a Pandemic Unemployment Assistance application...