Full Breakdown
Massachusetts Rep. Francisco Paulino Indicted on Federal COVID-Relief Fraud Charges
8/27/2026, 12:50:49 AM
Core Allegations and Charges
Massachusetts state Rep. Francisco Paulino, a Democrat from Methuen representing the 16th Essex District, was arrested and indicted on eight counts of wire fraud and three counts of unlawful-monetary-transaction (money-laundering) offenses. Prosecutors allege he fraudulently obtained more than $700,000 in federal pandemic-relief funds between April 2020 and December 2021. The scheme involved a false unemployment-benefits claim filed in the name of a 77-year-old relative, multiple Economic Injury Disaster Loan (EIDL) applications for his businesses—Madison Tax, Madison Mortgage, and Jackson Enterprise—and the diversion of those funds to personal real-estate purchases, loan payments, and his campaign account.
Background & Context
During the COVID-19 pandemic, the U.S. Small Business Administration offered EIDLs to help small businesses cover lost revenue, while state unemployment programs provided weekly benefits to workers who lost jobs. Paulino’s indictment follows an earlier arrest and adds a second sitting Democratic state legislator to the list of officials facing federal fraud charges in Massachusetts.
Data & Statistics
- Total alleged fraud: over $700,000 in federal pandemic-relief benefits.
- Unemployment-benefits fraud: $44,160 claimed for the relative; $44,000 of those benefits were allegedly received by Paulino.
- EIDL amounts: $136,600 approved for Jackson Enterprise (June 2020); $109,000 obtained for Madison Tax (May 2020) with a later $290,000 increase (July 2021); an additional $18,000 from an EIDL tied to a Lawrence donut shop was allegedly used for a real-estate purchase.
- Potential sentencing: each wire-fraud count carries up to 20 years in prison; each money-laundering count up to 10 years.
Official Statements & Responses
U.S. FBI Boston Special Agent in Charge Ted Docks called the alleged actions a “personal cash cow” and emphasized that public service does not shield officials from accountability. House Speaker Ronald J. Mariano said the charges are “extremely concerning” and warned that the House will monitor the legal process and consider appropriate action to preserve public trust.
Verbatim Quotes
- “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,” — Leah Foley, attorney
- “From April of 2020 until September of 2021, Paulino filed false weekly certifications with the Massachusetts Department of Unemployment Assurance, all in the relative’s name,” — Leah Foley, attorney
- “It is further alleged that Paulino obtained an EIDL of over $109,000 from Madison Tax in May of 2020 and later requested an increase to the Madison Tax EIDL,” — Leah Foley, attorney
What's Next
Paulino is scheduled to make his initial court appearance on Tuesday at 2 p.m. in federal court. His passport has been seized, and he was released on personal recognizance with conditions. Madison Tax has been ordered to notify clients and suspend operations pending a further hearing set for October. The case remains under active investigation, and federal prosecutors have indicated that additional fraud schemes related to pandemic relief may be pursued.
