BOSTON — State Rep. Francisco Paulino had no comment Wednesday as he left federal court after pleading not guilty to 11 federal charges that could send him to prison for decades.
[ State representative charged for alleged pandemic benefit fraud ]
Paulino, who represents Lawrence and Methuen, walked out of the courthouse holding onto his wife’s arm and declined to answer questions from reporters.
Federal prosecutors accuse Paulino of wrongfully collecting roughly $700,000 in COVID-19 unemployment benefits and small-business loans through his company, Madison Tax, before he ran for office.
The U.S. Attorney’s Office alleges the money was used for personal expenses, real estate and his political campaign in 2022.
Paulino faces charges including wire fraud and money laundering. The most serious charge carries a potential sentence of up to 20 years in prison.
During a news conference Wednesday, the U.S. attorney said public officials are not above the law.
“It is never proud moment when we arrest the public official, but we will continue to do it until the message is received. No one is above the law, and no one gets passed,” said U.S. Attorney Leah Foley.
Prosecutors said Paulino signed documents attesting that the money would be used as working capital for his business.
“It’s illegal because he signed documents attesting that that money was going to be used for working capital in a business not to profit off the backs of other people,” she said.
The charges come just two weeks after Lawrence Mayor Brian DePeña faced similar allegations.
“They’ve stolen from the federal taxpayer from all of us have stolen from all of us. And then they ran for elected office, asking people to put their faith in them is appalling.”
Gov. Maura Healey also weighed in on the allegations, saying Massachusetts residents should be able to trust their elected officials.
“Residents everywhere all across Massachusetts deserve and need to know their elected officials and those who are representing them are folks that they can trust who are going to serve and perform their jobs with integrity,” she said.
Paulino is now forced to suspend operations of his tax company.
He is expected to use legal counsel in Washington, D.C., as the case moves forward and is expected back in court at the end of next month.
This is a developing story. Check back for updates as more information becomes available.
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