Rep. Francisco Paulino (D-Methuen) was in federal court last week and pleaded “not guilty” to 11 counts brought against him for pandemic benefit fraud. According to United States Attorney Leah Foley, Paulino faces eight counts of wire fraud and three counts of unlawful monetary transactions. He is due back in court on October 7th. He is 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.
Conditions of Paulino’s release include limiting his travels within Massachusetts and New Hampshire and requiring him to get permission to travel anywhere else; surrendering his passport; prohibiting him from changing his address; and requiring that his remaining business, Madison Tax, temporarily suspend operations and that his clients be notified of the suspension.
In March 2026, United States Attorney Leah Foley announced the creation of the Benefit and Voter Fraud Team, a district-wide initiative established in response to the fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
Paulino did not respond to numerous requests by Beacon Hill Roll Call asking him to respond to the indictment.