Federal authorities arrested two Massachusetts Democratic officials within weeks of each other on charges they orchestrated elaborate schemes to steal more than $700,000 in COVID-19 relief funds meant for struggling Americans and small businesses during the pandemic.

State Representative Arrested on 11 Counts

U.S. Attorney Leah Foley announced that Massachusetts state Representative Francisco Paulino faces 11 federal counts including pandemic unemployment insurance fraud, pandemic loan fraud, and money laundering. FBI agents arrested Paulino Wednesday morning following a federal grand jury indictment. Prosecutors allege Paulino obtained over $700,000 in fraudulent pandemic relief funds beginning in 2020, using an unwitting 77-year-old relative’s identity to apply for the federal assistance without their knowledge or consent.

Investigators say Paulino spent portions of the stolen funds on personal expenses including real estate costs and loan payments. He also allegedly transferred relief money directly into his political campaign account. According to the indictment, Paulino used remaining funds to operate an illegal lending operation, loaning the low-interest federal pandemic money to other individuals at significantly higher interest rates for personal profit.

Second Democratic Official Faces Similar Charges

Paulino’s arrest followed the FBI’s apprehension of Lawrence Mayor Brian DePeña roughly one week earlier. DePeña faces an identical 11-count federal indictment charging pandemic loan fraud and money laundering. Federal investigators allege DePeña began diverting public funds in 2020 while serving on the Lawrence city council, before his election as mayor. Both cases represent the Justice Department’s ongoing efforts to prosecute pandemic relief fraud across the nation.

Federal Prosecutor Issues Stern Warning

U.S. Attorney Foley addressed the arrests during a press conference, emphasizing the severity of stealing from programs designed to help Americans during unprecedented economic hardship. She stated that the money these officials allegedly scammed belonged to hardworking Americans and struggling business owners, not greedy individuals who lied and stole for personal benefit. Foley acknowledged that arresting public officials is never a proud moment but promised continued prosecution until the message is received that no one stands above the law, regardless of position or political affiliation.