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August 26, 2026

Official Arrested for Alleged COVID Fraud

Authorities have arrested a Democratic Party official for alleged COVID fraud for the second time this month. U.S. Attorney Leah Foley announced the arrest of Massachusetts state Rep. Francisco Paulino on Wednesday, 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, stated Foley. She further explained that some of the funds were lent to others at higher interest rates.

The indictment highlights that Paulino’s fraud began in 2020 when he applied for COVID relief funds on behalf of an unwitting 77-year-old relative. His arrest follows the FBI’s recent arrest of Lawrence Mayor Brian DePeña on similar charges. DePeña also faces an 11-count indictment for pandemic loan fraud and money laundering.

Federal prosecutors revealed that DePeña, while serving on the Lawrence city council in 2020, allegedly diverted public funds intended for pandemic relief for personal benefit. He used pandemic relief funds intended for his tire shop, Tenares Tire Services Inc., to support his mayoral campaign and settle personal debts.

Addressing the gravity of the situation, Foley commented, 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. She emphasized the commitment to enforcing the law, No one is above the law, and no one gets a pass.

Reporter Anders Hagstrom of Fox News Digital provides coverage on national politics and major breaking news events.

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