Francisco Paulino's pandemic fraud charges, explained

Last verified: Aug. 27, 2026 (UTC) · Status: Pending; allegations reported, not adjudicated · Forum: U.S. District Court for the District of Massachusetts · Charging date: Aug. 26, 2026

Francisco Paulino, a Massachusetts state representative, is accused in an 11-count federal indictment involving four pandemic-relief schemes and more than $700,000 allegedly obtained. The indictment charges eight counts of wire fraud and three counts of money laundering. No plea or conviction was reported as of the verification date, and the presumption of innocence applies. The primary documents are the Aug. 26 indictment and the Department of Justice release.[1][2]

Legal-background reviewer: not identified in the supplied materials. This article is for informational purposes only and is not legal advice.

Paulino is 46, of Methuen, and represents the 16th Essex District as a Democrat. He was arrested and charged in Boston on Aug. 26. An initial appearance was scheduled for 2 p.m. that day; the materials available for this record do not establish a later plea, release ruling, or other docket development.

The 11-count structure at a glance

The indictment alleges eight wire-fraud counts and three money-laundering counts. The supplied reporting identifies the schemes and transactions below, but does not reproduce enough of the indictment's count-by-count numbering to safely assign each individual transaction to a specific numbered count. The table therefore preserves the charging structure without turning a paraphrase into an invented count map.

The DOJ describes the case as an 11-count indictment alleging that more than $700,000 was obtained through pandemic-relief fraud and money laundering. That aggregate figure is useful for orientation, but it does not replace the transaction-level allegations. The charging document's theory depends on what was submitted, what agencies approved, where funds moved, and which real-estate obligations they allegedly funded.[2]

Four schemes, four different alleged paths

1. Pandemic Unemployment Assistance application

The first alleged scheme concerns a PUA application submitted in April 2020 in the name of a 77-year-old relative who, according to the indictment's allegations, did not know about the application. Paulino is accused of claiming that the relative was self-employed and eligible for benefits, using documents purportedly from the IRS and directing payments to an account in his own name.

The reported payout figure is not consistent across the available accounts: Boston.com reported more than $39,000, while WWLP reported more than $44,000, for payments made between April 2020 and September 2021.[3][4] That discrepancy should remain visible until the indictment itself resolves it. The safe conclusion is that the government alleges tens of thousands of dollars in PUA benefits were paid through the application; this record does not select one competing total as definitive.

2. Jackson Enterprise's EIDL application

Jackson Enterprise, Inc., a restaurant incorporated in November 2019, allegedly reported $426,755 in revenue on a June 2020 Economic Injury Disaster Loan application. The indictment is described as alleging that the company's 2019 tax filings showed zero revenue. The Small Business Administration approved a $136,600 loan in July 2020, and $18,000 was allegedly used toward Lawrence real estate.[3]

The important documentary conflict is between the revenue number placed on the loan application and the tax-return figure attributed to the business. That is an allegation about the contents and use of documents, not a finding that the discrepancy has been proved at trial.

3. Madison Tax's EIDL increase and transfers

The Madison Tax, LLC scheme allegedly began with a $109,200 EIDL in May 2020. By June 2021, the loan amount had allegedly been increased to $401,800. In October 2021, $292,600 was deposited and allegedly transferred to Madison Mortgage, Inc.

The reported destination of that money matters to the government's theory: the transfer allegedly funded two mortgages, one for a $600,000 Methuen property and another for a $460,000 Lawrence property. The reported loan terms were 5.5% and 7.94% interest, respectively, with $25,000 in origination fees.[3] The allegation is therefore not merely that an EIDL amount changed; it is that the increased proceeds moved through a mortgage-related company and were applied to identified real-estate financing.

4. A tax-preparation client's alleged unauthorized increase

The fourth scheme involves a tax-preparation client who allegedly received a $104,300 EIDL and later had the amount increased to $243,200 without authorization. The client reportedly spoke little English and was shut out of the application process. The indictment alleges that $200,000 was directed back to Paulino.

That money was allegedly used to fund a $680,000 Lawrence mortgage, with a 6.25% interest rate and a $17,000 origination fee.[4] The alleged sequence is the critical point: an existing loan, a larger requested amount, the client's lack of control over the application process, and a subsequent transfer to Paulino connected to a mortgage.

Penalty exposure

Each of the eight wire-fraud counts carries a statutory maximum of up to 20 years in prison and a $250,000 fine. Each of the three money-laundering counts carries a statutory maximum of up to 10 years in prison and a $250,000 fine.[1] These are maximum penalties attached to individual counts. They are not a prediction of the sentence, and they should not be casually added together as a headline estimate.

Current procedural boundary

As of Aug. 27, 2026, the available materials report an indictment, arrest, and scheduled initial appearance, but no plea or conviction. The indictment sets out the government's allegations and the counts it intends to prove; it does not adjudicate whether Paulino committed the charged conduct. The presumption of innocence remains in effect.

This record should be re-verified if the plea posture, release conditions, initial-appearance outcome, or any other docket event changes. The status flag and last-verified stamp should change with it.

References

1. Indictment of Francisco Paulino
2. Massachusetts State Representative Charged with Pandemic Loan Fraud and Money Laundering — U.S. Attorney's Office, District of Massachusetts
3. Mass. state Rep. Paulino and Lawrence mayor DePeña indicted for pandemic loan fraud — WWLP
4. ‘Appalling’: Methuen state rep arrested on pandemic relief fraud charges — Boston.com
5. Massachusetts Rep. Francisco Paulino indicted in pandemic unemployment fraud case — WBUR