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'loaned the money'

FBI arrests Mass. state rep in $700K COVID fraud case

SUMMARY

The FBI arrested Massachusetts State Rep. Francisco Paulino on charges tied to an alleged COVID-19 relief fraud and money laundering scheme.

Paulino allegedly stole roughly $700,000 in taxpayer-funded pandemic relief. Prosecutors say he loaned the money back out at a significantly higher interest rate than he was paying, and spent the rest on real estate, personal loan payments and transfers to his campaign account.

He faces eight counts of wire fraud and three counts of unlawful monetary transactions.

The arrest follows that of Lawrence Mayor Brian DePena earlier this month on similar fraud allegations. The investigation continues.


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