With the Trump Administration in charge, fraud is finally being cracked down upon, as a Democrat representative in Massachusetts just found out the hard way, getting arrested on Wednesday, August 26, and charged with nearly a dozen counts connected to fraud and money laundering in which he allegedly participated.
That is Massachusetts State Representative Francisco Paulino, who was arrested for allegedly obtaining nearly three-quarters of a million dollars in fraudulent COVID relief funds, and using the proceeds of the fraud for personal business and investment purposes. He has been charged with counts ranging from wire fraud to money laundering as a result.
Such is what the DOJ explained in a press release announcing his arrest, saying, “The Massachusetts State Representative for the 16th Essex District, representing Lawrence and Methuen, was arrested today and charged with fraudulently obtaining over $700,000 in COVID unemployment insurance benefits and small-business loans, and using the proceeds to buy real estate and loan money to clients of his mortgage business, before he was elected to public office.”
Continuing, the DOJ said, describing the charges he is facing, “Francisco Paulino, 46, of Methuen, Mass., is charged in an 11-count indictment returned by a federal grand jury in Boston. Paulino is charged with eight counts of wire fraud and three counts of money laundering. Paulino will make an initial appearance in federal court in Boston at 2 p.m. today.”
It then further added, describing how he managed to access the notoriously fraud-ridden pandemic program and its vast reserves of taxpayer dollars, “According to the indictment, Paulino fraudulently obtained Pandemic Unemployment Assistance (PUA) benefits in 2020-2021 in the name of an unknowing 77-year-old relative.”
Adding to that, the DOJ went on to explain, “The PUA program, which was created during the COVID pandemic, provided unemployment benefits for people who were ineligible for regular unemployment benefits, including independent contractors.”
Then, commenting on another program from which he allegedly stole money, the DOJ explained, “According to the indictment, Paulino also committed fraud in connection with three Economic Injury Disaster Loans (EIDLs). During COVID, the U.S. Small Business Administration (SBA) offered taxpayer-funded EIDLs to eligible small businesses experiencing substantial financial disruptions due to the pandemic. The interest rate on EIDLs was 3.75% and the loan use was limited. A business could only use EIDL proceeds as working capital to alleviate economic injury caused by COVID.”
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It further noted, “According to the charging documents, Paulino incorporated a business called Jackson Enterprise, Inc. as a “fast food restaurant cafe” on Nov. 25, 2019. Jackson Enterprise allegedly had no revenue prior to August 2020. Although Madison Tax filed tax returns with the IRS stating that Jackson Enterprise’s revenues were $0 in 2019 and $116,925 in 2020, Paulino allegedly submitted an EIDL application to the SBA in June 2020 falsely representing that Jackson Enterprise’s revenues for the 12 months ending Jan. 31, 2020 were $426,755. The SBA granted the application and deposited $136,600 in EIDL proceeds into Jackson Enterprise’s bank account in July 2020. Paulino allegedly used $18,000 of the funds toward the purchase of real estate in Lawrence.”
He now faces significant prison time. As the DOJ provided, “The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000.”
Watch the DOJ comment on his arrest here: